7 since the last review of the united states in 2001

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7. Since the last Review of the United States in 2001, Ex-Im Bank has initiated various programmes including: financing sales of U.S exports to take advantage of the African Growth Opportunity Act; providing finance for the export of equipment and services to support direct air cargo service between Africa and the United States; approving a Transportation Security Exports Program (T-SEP); issuing guarantees through the Foreign Currency Guarantee programme in currencies that were not previously eligible (e.g. CFA franc, Egyptian pound, Mexican peso, and South African rand); hosting training seminars in various African countries; providing US$1 billion to finance sub-Saharan African purchases of HIV/AIDS medicines; and insuring short-term export credit transactions under the pilot programme termed "short-term Africa pilot program", which facilitates the purchase of U.S agricultural commodities, raw materials, spare parts, and other items. Table III.9 Ex-Im bank loan, guarantee, and insurance activities, 1996-04 (US$ million) Fiscal year Financed export value Amounts authorized Program budget authority (reserve for default) 1996 14,597 11,518 870 1999 16,709 13,068 656 2000 15,548 12,637 902 2001 12,526 9,242 824 2002 12,950 10,119 727 2003 14,151 10,533 334 2004 15,479 11,557 366 Source : WTO document G/SCM/N/71/USA, 2 July 2002, and information provided by the authorities. (ii) Other export assistance (a) Foreign-trade zones 1. Foreign-trade zones (FTZ) have been authorized by the Foreign-Trade Zones Act of 1934. 156 Under this legislation, foreign goods may be admitted to an FTZ without being subject to customs duties, inventory taxes, or excise taxes. Domestically produced merchandise may also be brought into an FTZ free of these taxes, and stored or processed individually or together with other domestic or foreign merchandise; about 62% of shipments into FTZs consisted of domestic products in 2001. Customs duty and federal excise tax are paid when merchandise is transferred to the U.S. customs territory; customs duty is also levied by the United States when merchandise is shipped from a zone 155 See Ex-Im Bank Annual Report FY 2002 [online]. Available at: http://www.exim.gov/about/ reports/ar/ar2002/index.htm. 156 See Title 19 of the United States Code (19U.S.C.81a-81u). The regulations of the Foreign-Trade Zones Board are published in 15 CFR Part 400. The regulations of the U.S. Customs Service governing the transfer of merchandise to and from zones are published in 19 CFR Part 146.
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United States WT/TPR/S/126 Page 70 to a NAFTA member. The authorities have indicated that there are no income tax advantages related to FTZ operations, and that zones are subject to all other federal, state, and local regulations and taxes. 2. The Foreign-Trade Zones Board is in charge of authorizing FTZs; it consists of the secretaries of the Department of the Treasury and the Department of Commerce. The authorities noted that the cost for zone development and operation, including infrastructure, is the responsibility of zone grantees, operators, and users. The zone grantees (i.e. the parties granted authority by the
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