For Immediate Release
Office of the Press Secretary
June 29, 2001
To Modify Duty-Free Treatment Under the Generalized System of Preferences
By the President of the United States of America
A Proclamation
1. Sections 501 and 502 of the Trade Act of 1974, as amended (the
"1974 Act") (19 U.S.C. 2461 and 2462), authorize the President to designate
countries as beneficiary developing countries for purposes of the
Generalized System of Preferences (GSP).
2. Section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 2463(c)(2)(A))
provides that beneficiary developing countries, except least-developed
beneficiary developing countries or beneficiary sub-Saharan African
countries, are subject to competitive need limitations on the preferential
treatment afforded under the GSP to eligible articles.
3. Section 503(c)(2)(C) of the 1974 Act (19 U.S.C. 2463(c)(2)(C))
provides that a country that is no longer treated as a beneficiary
developing country with respect to an eligible article may be redesignated
as a beneficiary developing country with respect to such article if imports
of such article from such country did not exceed the competitive need
limitations in section 503(c)(2)(A) during the preceding calendar year.
4. Section 503(c)(2)(F) of the 1974 Act (19 U.S.C. 2463(c)(2)(F))
provides that the President may disregard the competitive need limitation
provided in section 503(c)(2)(A)(i)(II) (19 U.S.C. 2463(c)(2)(A)(i)(II))
with respect to any eligible article from any beneficiary developing
country if the aggregate appraised value of the imports of such article
into the United States during the preceding calendar year does not exceed
an amount set forth in section 503(c)(2)(F)(ii) (19 U.S.C.
2463(c)(2)(F)(ii)).
5. Section 503(d) of the 1974 Act (19 U.S.C. 2463(d))
provides that the President may waive the application of the competitive
need limitations in section 503(c)(2)(A) with respect to any eligible
article of any beneficiary developing country if certain conditions are
met.
6. Pursuant to sections 501 and 502 of the 1974 Act, and having due
regard for the eligibility criteria set forth therein, I have determined
that it is appropriate to designate Georgia as a beneficiary developing
country for purposes of the GSP.
7. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have
determined that certain beneficiary countries should no longer receive
preferential tariff treatment under the GSP with respect to certain
eligible articles imported in quantities that exceed the applicable
competitive need limitation.
8. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have
determined that certain countries should be redesig-nated as beneficiary
developing countries with respect to certain eligible articles that
previously had been imported in quantities exceeding the competitive need
limitations of section 503(c)(2)(A). For certain articles, I have decided
that the effective date of the redesignation shall be determined by the
United States Trade Representative (USTR).
9. Pursuant to section 503(c)(2)(F) of the 1974 Act, I have
determined that the competitive need limitation provided in section
503(c)(2)(A)(i)(II) should be waived with respect to certain eligible
articles from certain beneficiary developing countries. For certain
articles, I have decided that the effective date of the waiver shall be
determined by the USTR.
10. Pursuant to section 503(d) of the 1974 Act, I have determined
that the competitive need limitations of section 503(c)(2)(A) should be
waived with respect to certain eligible articles from a beneficiary
developing country. I have received the advice of the International Trade
Commission on whether any industries in the United States are likely to be
adversely affected by such waivers, and I have determined, based on that
advice and on the considerations described in sections 501 and 502(c), that
such waivers are in the national economic interest of the United States. I
have decided that the effective date of the waivers shall be determined by
the USTR.
11. Section 604 of the 1974 Act (19 U.S.C. 2483) authorizes the
President to embody in the Harmonized Tariff Schedule of the United States
(HTS) the substance of the relevant provisions of that Act, and of other
acts affecting import treat-ment, and actions thereunder, including the
removal, modification, continuance, or imposition of any rate of duty or
other import restriction.
NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of
America, acting under the authority vested in me by the Constitution and
the laws of the United States, including section 301 of title 3, United
States Code, and title V and section 604 of the 1974 Act, do proclaim that:
(1) In order to reflect in the HTS the addition of Georgia as a
beneficiary developing country under the GSP, general note 4(a) to the HTS
is modified as provided in section A(1) of Annex I to this proclamation.
(2) In order to provide that one or more countries that have not been
treated as beneficiary developing countries with respect to one or more
eligible articles should be redesignated as beneficiary developing
countries with respect to such article or articles for purposes of the GSP,
and in order to provide that one or more countries should no longer be
treated as beneficiary developing countries with respect to one or more
eligible articles for purposes of the GSP, general note 4(d) to the HTS is
modified as provided in section A(2) of Annex I and paragraph (1) of Annex
III to this proclamation.
(3) (a) In order to provide preferential tariff treatment under the
GSP to a beneficiary developing country that has been excluded from the
benefits of the GSP for certain eligible articles, the Rates of Duty
1-Special subcolumn for each of the HTS subheadings enumerated in section
A(3)(a) of Annex I and paragraph (2) of Annex III to this proclamation is
modified as provided in such section and paragraph.
(b) In order to provide that one or more countries should not be
treated as beneficiary developing countries with respect to certain
eligible articles for purposes of the GSP, the Rates of Duty 1-Special
subcolumn for each of the HTS subheadings enumerated in section A(3)(b) of
Annex I to this proclamation is modified as provided in such section.
(4) A waiver of the application of section 503(c)(2)(A)(i)(II) of the
1974 Act shall apply to the eligible articles in the HTS subheadings and to
the beneficiary developing countries listed in section B of Annex I to this
proclamation.
(5) A waiver of the application of section 503(c)(2)(A) of the 1974
Act shall apply to the eligible articles in the HTS subheadings and to the
beneficiary developing country set forth in Annex II to this proclamation.
(6) Any provisions of previous proclamations and Executive Orders
that are inconsistent with the actions taken in this proclamation are
superseded to the extent of such inconsistency.
(7) (a) The modifications made by Annex I to this proclamation shall
be effective with respect to articles entered, or withdrawn from warehouse
for consumption, on or after July 1, 2001.
(b) The action taken in paragraph (5) of this proclamation shall
be effective on the date of signature of this proclamation.
(c) The modifications made by Annex III to this proclamation
shall be effective with respect to articles entered, or withdrawn from
warehouse for consumption, on or after a date to be announced in the
Federal Register by the USTR.
IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-ninth day of June, in the year of our Lord two thousand one, and of
the Independence of the United States of America the two hundred and
twenty-fifth.
GEORGE
W. BUSH
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