[Enclosure]
Proposed General Provisions for the New
Commercial Convention Between the United States and
Cuba
Article I
During the term of this convention, all articles of merchandise being
the product of the soil or industry of the United States which are
now imported into the Republic of Cuba free of duty, and all
articles of merchandise being the product of the soil or industry of
the Republic of Cuba which are now imported into the United States
free of duty, shall continue to be so admitted by the respective
countries free of duty (except as provided in Article . . of this
convention).
Article II
During the term of this convention, the articles of merchandise
specified in Schedule 1 annexed to this convention, being the
product of the soil or industry of the Republic of Cuba, imported
into the United States shall be admitted under the rates of duty and
classifications and shall enjoy the preferences therein
specified.
During the term of this convention, the articles of merchandise
specified in Schedule 2 annexed to this convention, being the
product of the soil or industry of the United States, its
territories and possessions, imported into the Republic of Cuba,
shall be admitted under the rates of duty and classification and
shall enjoy the preferences therein specified.
The rates of duty specified in Schedules 1 and 2, whether ad valorem
or specific, are understood to be maximum rates of duty, and may not
be increased during the life of this convention except as
hereinafter provided.
The percentages of preference specified as against the rates of duty
on like articles imported from other countries, as in Schedules 1
and 2, are understood to be minimum percentages and may not be
decreased during the life of this convention.
The term “like articles”, as used in this connection, shall be taken
to mean articles similar in material, texture, quality or uses to
which applied.
In any subsequent revision of the tariffs of the respective countries
the minimum amount of the preferences accorded to each other at the
time this convention enters into force may not be decreased during
the life of this convention.
In the case of articles subject to specific duties the minimum value
of the preferential is understood to mean the difference between the
rates of duty established in Schedules 1 and 2 and the general rates
[Page 114] of duty in effect at
the time this convention enters into force. In any subsequent
reduction of the general rate, this amount must be deducted from the
proposed new general rate to arrive at the new rate on any product
specified in Schedules 1 and 2.
In the case of articles subject to ad valorem duties, the minimum
value of the preferential is understood to mean the amount of the
difference between the general ad valorem rates of duty in effect at
the time this convention enters into force and the ad valorem rates
established in Schedules 1 and 2.
In any subsequent revision of the tariffs of the respective countries
the minimum amount of the preferences accorded to each other at the
time this convention enters into force may not be decreased during
the life of this convention.
Article III
With respect to articles not specified in Schedules 1 and 2, duties
may be increased or decreased by the respective countries but such
changes shall not become operative until at least 30 days after
public notice thereof in the usual official manner. The provisions
of this paragraph do not apply to administrative orders imposing
antidumping duties, relating to sanitation or public safety, or
giving effect to judicial or customs courts decisions.
However, the percentages of preference of articles not specified in
Schedules 1 and 2 as now provided in the Commercial Convention of
December 11, 1902 shall continue in force during the term of this
convention, and the value thereof as described in Paragraphs 6 and 7
of Article II shall not be decreased.
Rates of duty on articles specified in Schedules 1 and 2 may be
increased to a maximum of 50% of these rates only by common
agreement between the Presidents of the United States and Cuba on
the advice of their respective Tariff Commissions.*
In the event that these rates are increased, the value of the
preferences must be proportionately increased.
The classifications specified in Schedules 1 and 2 may be changed
only by common agreement between the Presidents of the United States
and Cuba on the advice of their respective Tariff Commissions.
Article IV
Duties on articles imported into the United States from Cuba shall be
paid in United States legal tender.
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Duties on articles imported into Cuba from the United States shall be
paid in Cuban or United States legal tender,†
Article V
All products of the soil or industry of either High Contracting Power
after importation into the territory of the other Party shall be
exempt from any national, federal, state, provincial or municipal
taxes or charges other or higher than those payable on like articles
of national origin.
All products of the soil or industry of one of the High Contracting
Powers shall, on their importation into the territories of the
other, be exempt from any internal taxes or charges whatsoever,
other or higher than those in force on the day of the signature of
this convention.
The High Contracting Parties bind themselves not to impose any export
duties on any articles exported to the territories of the other.
The High Contracting Parties agree not to impose taxes or
restrictions of any nature on the exportation of money or its kind
other or higher than those in force on the day of the signature of
this convention, insofar as such transactions relate to trade
between the two countries.
In order to maintain the reciprocal advantages herein stipulated, the
High Contracting Parties agree that in case any such advantage is in
fact, or is threatened to be, substantially diminished or nullified
by the importation of like articles of trade from a third country
with benefit of depreciation of the currency of any such third
country, of any bounty, or of any form of dumping such articles,
imported directly from any such foreign country or otherwise, such
articles shall be subject to a new or additional duty equal to the
net amount of any such currency depreciation, bounty, or dumping
practice.
Article VI
Insofar as rates and charges for transportation services within
either country are imposed or controlled directly or indirectly by
the respective Contracting Parties, goods which are the product of
the [Page 116] soil or industry of
one of the countries shall pay within the territory of the other
rates and charges which are not discriminatory as compared with the
rates and charges on like goods imported from a third country or of
domestic origin transported under like circumstances and
conditions.
Article VII
It is agreed that the High Contracting Parties will maintain consular
invoice fees on a fixed basis not to exceed $5.00 each or on an ad
valorem basis not to exceed 5% of the value at the point of origin
of the shipment. In the event either Party maintains this charge on
an ad valorem basis, it shall grant to the other a 50% preferential
in such charge.‡
Article VIII
All questions arising with respect to the preservation of the
respective rights and advantages accorded to either High Contracting
Party under the provisions of this convention shall be submitted for
settlement to the Board of Arbitration created as herein provided.
The classification, appraisal and assessment of duties under
Schedules 1 and 2 shall be accomplished, and protests and appeals
relating thereto shall be settled in the ordinary procedure
established by the laws, regulations and rules of the respective
High Contracting Parties. In the event that either Contracting Party
is dissatisfied with the result thereof, or has cause to believe
that the procedure and decision relating to protests and appeals is
unduly or unreasonably delayed,§
the Secretary of State of such country shall so notify the Secretary
of State of the other country and request the creation of a Board of
Arbitration to determine and settle the question at issue. The
respective Secretaries of State shall thereupon each appoint one
Arbitrator and if the two Arbitrators cannot agree they shall
appoint a third. The decision of such Board of Arbitration shall be
final and conclusive upon the Contracting Parties.
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The High Contracting Parties agree to furnish the Board with all
means required for its investigation and report.
The expenses of the Board shall be paid by the two Governments in
equal proportions.
