Caribbean Basin Economic Recovery Act of 1983
Encyclopedia
Caribbean Basin Economic Recovery Act of 1983 (CBERA) — P.L. 98-67 (August 5,
1983), Title II, authorized unilateral preferential trade and tax benefits for eligible Caribbean
countries, including duty-free treatment of eligible products. Often referred to as the
Caribbean Basin Initiative
(CBI). Amended several times, the last substantive revisions
were made in the Caribbean Basin Economic Recovery Expansion Act of 1990 (P.L. 101-
382, Title II, August 20, 1990). This made trade benefits permanent (repealing the
September 30, 1995 termination date). The law gives preferential trade and tax benefits for
eligible Caribbean countries, including duty-free entry of eligible products. To be eligible,
an article must be a product of a beneficiary country and imported directly from it, and at
least 35% of its import value must have originated in one or more CBERA beneficiaries.
Slightly different import value rules apply to articles entering from Puerto Rico and the
Virgin Islands. The duty-free import of sugar and beef products is subject to a special
eligibility requirement intended to ensure that increased production of sugar and beef will
not adversely affect overall food production. Preferential tariff treatment does not extend
to imports of: textiles and apparel subject to textile agreements, specified footwear, canned
tuna, petroleum and its products, and watches and watch parts containing any material
originating in countries denied normal trade relations (most-favored-nation) trade status.
Special criteria applied to the duty-free import of ethanol through FY2000. Import-sensitive
products, not accorded duty-free tariff treatment, are eligible to enter at lower than normal
trade relations tariff rates. These products include handbags, luggage, flat goods (such as
wallets, change purses, and key and eyeglass cases), work gloves, and certain leather
wearing apparel.
1983), Title II, authorized unilateral preferential trade and tax benefits for eligible Caribbean
countries, including duty-free treatment of eligible products. Often referred to as the
Caribbean Basin Initiative
Caribbean Basin Initiative
The Caribbean Basin Initiative was a unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" . The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central American and Caribbean countries....
(CBI). Amended several times, the last substantive revisions
were made in the Caribbean Basin Economic Recovery Expansion Act of 1990 (P.L. 101-
382, Title II, August 20, 1990). This made trade benefits permanent (repealing the
September 30, 1995 termination date). The law gives preferential trade and tax benefits for
eligible Caribbean countries, including duty-free entry of eligible products. To be eligible,
an article must be a product of a beneficiary country and imported directly from it, and at
least 35% of its import value must have originated in one or more CBERA beneficiaries.
Slightly different import value rules apply to articles entering from Puerto Rico and the
Virgin Islands. The duty-free import of sugar and beef products is subject to a special
eligibility requirement intended to ensure that increased production of sugar and beef will
not adversely affect overall food production. Preferential tariff treatment does not extend
to imports of: textiles and apparel subject to textile agreements, specified footwear, canned
tuna, petroleum and its products, and watches and watch parts containing any material
originating in countries denied normal trade relations (most-favored-nation) trade status.
Special criteria applied to the duty-free import of ethanol through FY2000. Import-sensitive
products, not accorded duty-free tariff treatment, are eligible to enter at lower than normal
trade relations tariff rates. These products include handbags, luggage, flat goods (such as
wallets, change purses, and key and eyeglass cases), work gloves, and certain leather
wearing apparel.