Page:United States Statutes at Large Volume 100 Part 3.djvu/423

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2231

(I) has on the date of enactment of this Act, or (II) will have at the time such facility is placed in service (based on estimates made before the date of enactment of this Act), ' ''" a stated capacity to produce not more than 42,000,000 gallons of such product per year. (2) The exception provided under paragraph (1) shall cease to apply during each of calendar years 1987 and 1988 to ethyl alcohol produced in a facility described in subparagraph (A) or (B) of paragraph (1) after 20,000,000 gallons of ethyl alcohol produced in that facility are entered into the United States during that year. (c) DEFINITIONS.—For purposes of this section— (1) The term "ethyl alcohol or a mixture thereof means (except for purposes of subsection (e)) ethyl alcohol or any mixture thereof described in item 901.50 of the Appendix to the Tariff Schedules of the United States. (2) Ethyl alcohol or a mixture thereof may be treated as being an indigenous product of an insular possession or beneficiary country only if the ethyl alcohol or a mixture thereof— (A) has been both dehydrated and produced by a process of full-scale fermentation within that insular possession or beneficiary country; or (B) has been dehydrated within that insular possession or beneficiary country from hydrous ethyl alcohol that includes hydrous ethyl alcohol which is wholly the product or -i ^ manufacture of any insular possession or beneficiary coun'^ try and which has a value not less than— (i) 30 percent of the value of the ethyl alcohol or r, > mixture, if entered during calendar year 1987, except that this clause shall not apply to any ethyl alcohol or mixture which has been dehydrated in the United States Virgin Islands by a facility with respect to which— (I) the owner has entered into a binding contract for the engineering and design of full-scale fermentation capacity, and (II) authorization for operation of a full-scale fermentation facility has been granted by the Island authorities before May 1, 1986, , (ii) 60 percent of the value of the ethyl alcohol or mixture, if entered during calendar year 1988, and (iii) 75 percent of the value of the ethyl alcohol or mixture, if entered after December 31, 1988. (3) The term "beneficiary country" has the meaning given to such term under section 212 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702). (4) The term "United States person" has the meaning given to such term by section 7701(a)(3) of the Internal Revenue Code of 1986. (5) The term "entered" means entered, or withdrawn from warehouse, for consumption in the customs territory of the United States. (d) AMENDMENT TO APPENDIX TO SCHEDULES.—The item designation for item 901.50 of the Appendix to the Tariff Schedules of the United States is amended to read as follows: "Ethyl alcohol (provided for in item 427.88, part 2D, schedule 4) or any mixture

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