TITLE TWO:  ECONOMIC RELATIONS

Article IV:  Trade
Section 241
          The Marshall Islands and the Federated States of Micronesia are not included in the customs territory of the United States.

Section 242
          For the purpose of assessing duties on their products imported into the customs territory of the United States, the Marshall Islands and the Federated States of Micronesia shall be treated as if they were insular possessions of the United States within the meaning of General Headnote 3(a) of the Tariff Schedules of the United States.  The exceptions, valuation procedures and all other provisions of General Headnote 3(a) shall apply to any product deriving from the Marshall Islands or the Federated States of Micronesia.

Section 243
          All products of the Marshall Islands or the Federated States of Micronesia imported into the customs territory of the United States, which are not accorded the treatment, set forth in Section 242 and all products of the United States imported into the Marshall Islands or the Federated States of Micronesia shall receive treatment no less favorable than that accorded like products of any foreign country with respect to customs duties or charges of a similar nature and with respect to laws and regulations relating to importation, exportation, taxation, sale, distribution, storage or use.
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