In 1996, Congress authorized the President to designate areas, known as Qualifying Industrial Zones (QIZs), from which Egypt or Jordan can export products to the United States duty-free, as long as these products contain inputs from Israel. The President delegated the authority to designate QIZs to the U.S. Trade Representative.
In order for a QIZ article to gain duty-free entry, QIZ factories must add at least 35 percent to the value of the article. This 35 percent minimum content figure can include value added in Israel, Egypt, or the United States. QIZs must encompass portions of Egypt and Israel, though the areas do not have to be contiguous.