For Immediate Release
Office of the Press Secretary
June 29, 2005
To Modify Duty-Free Treatment Under the Generalized System of Preferences and Certain Rules of Origin Under the North American Free Trade Agreement, and for Other Purposes
A Proclamation by the President of the United States of America
1. Pursuant to section 502(a)(1) of the Trade Act of 1974, as amended (the
"1974 Act") (19 U.S.C. 2462(a)(1)), the President is authorized to
designate countries as beneficiary developing countries for purposes of the
Generalized System of Preferences (GSP).
2. In Proclamation 6425 of April 29, 1992, the President suspended
duty-free treatment for certain eligible articles imported from India after
considering the factors set forth in sections 501 and 502(c) of the 1974
Act (19 U.S.C. 2461, 2462(c)), in particular section 502(c)(5) of the 1974
Act (19 U.S.C. 2462(c)(5)) on the extent to which India provides adequate
and effective protection of intellectual property rights.
3. In Proclamation 6942 of October 17, 1996, the President suspended
duty-free treatment for certain eligible articles imported from Pakistan
because of insufficient progress on affording workers in that country
internationally recognized worker rights.
4. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act (19 U.S.C.
2463(a)(1)(A)), the President may designate articles as eligible for
preferential tariff treatment under the GSP.
5. Pursuant to section 503(c)(2)(A) of the 1974 Act (19 U.S.C.
2463(c)(2)(A)), beneficiary developing countries, except those designated
as least-developed beneficiary developing countries or beneficiary
sub-Saharan African countries as provided in section 503(c)(2)(D) of the
1974 Act (19 U.S.C. 2463(c)(2)(D)), are subject to competitive need
limitations on the preferential treatment afforded under the GSP to
eligible articles.
6. 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) of the 1974 Act during the preceding
calendar year.
7. Section 503(c)(2)(F)(i) of the 1974 Act (19 U.S.C. 2463(c)(2)(F)(i))
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) of the 1974 Act (19 U.S.C.
2463(c)(2)(F)(ii)).
8. Pursuant to section 503(d)(1) of the 1974 Act (19 U.S.C. 2463(d)(1))
and after giving great weight to the considerations in section 503(d)(2) of
the 1974 Act (19 U.S.C. 2463(d)(2)), the President may, subject to the
limitations set out in section 503(d)(4) (19 U.S.C. 2463(d)(4)), waive the
application of the competitive need limitations in section 503(c)(2)(A) of
the 1974 Act with respect to any eligible article from any beneficiary
developing country, if after receiving advice from the United States
International Trade Commission (USITC), he determines that such waiver is
in the national economic interest of the United States.
9. Section 507(2) of the 1974 Act (19 U.S.C. 2467(2)) provides that in the
case of an association of countries that is a free trade area or customs
union, or that is contributing to a comprehensive regional economic
integration among its members
through appropriate means, the President may provide that all members of
such association other than members that are barred from designation under
section 502(b) of the 1974 Act (19 U.S.C. 2462(b)) shall be treated as one
country for purposes of the GSP.
10. Pursuant to section 502 of the 1974 Act (19 U.S.C. 2462) and taking
into account the factors set forth in section 502(c) of the 1974 Act , I
have decided to designate Serbia and Montenegro as a beneficiary developing
country for purposes of the GSP.
11. After a review of the current situation in India and taking into
account the factors set out in section 502 of the 1974 Act, in particular
section 502(c)(5), I have determined that India has made progress in
providing adequate and effective protection of intellectual property
rights. Accordingly, I have determined to terminate the suspension of
India's duty-free treatment for certain articles under the GSP.
12. After a review of the current situation in Pakistan, I have determined
that Pakistan has taken or is taking steps to afford workers in that
country internationally recognized worker rights as provided in section
502(c)(7) of the 1974 Act (19 U.S.C. 2462(c)(7)). Accordingly, I have
determined to restore Pakistan's eligibility for certain articles for
preferential treatment under the GSP.
13. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act, and after
receiving advice from the USITC in accordance with section 503(e) of the
1974 Act (19 U.S.C. 2463(e)), I have determined to designate certain
articles, some of which were previously designated under section
503(a)(1)(B) of the 1974 Act (19 U.S.C. 2463(a)(1)(B)), as eligible
articles. In order to do so for certain articles, it is necessary to
subdivide and amend the nomenclature of certain existing subheadings of the
Harmonized Tariff Schedule of the United States (HTS).
14. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have determined
that certain beneficiary countries have exported certain eligible articles
in quantities exceeding the applicable competitive need limitation in 2004,
and I therefore terminate the duty-free treatment for such articles from
such beneficiary developing countries.
15. Pursuant to section 503(c)(2)(C) of the 1974 Act, and subject to the
considerations set forth in sections 501 and 502 of the 1974 Act, I
redesignate certain countries 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) of the 1974 Act.
16. Pursuant to section 503(c)(2)(F)(i) of the 1974 Act, I have determined
that the competitive need limitation provided in section
503(c)(2)(A)(i)(II) of the 1974 Act should be disregarded with respect to
certain eligible articles from certain beneficiary developing countries.
17. Pursuant to section 503(d)(1) of the 1974 Act, I have
received the advice of the USITC 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) of the 1974 Act, and after giving great weight to
the considerations in section 503(d)(2) of the 1974 Act, that such waivers
are in the national economic interest of the United States. Accordingly, I
have determined that the competitive need limitations of section
503(c)(2)(A) should be waived with respect to certain eligible articles
from certain beneficiary developing countries.
18. Pursuant to section 507(2) of the 1974 Act, I have determined that
currently qualifying members of the South Asian Association for Regional
Cooperation (SAARC) should be treated as one country for purposes of the
GSP.
19. Presidential Proclamation 6641 of December 15, 1993, implemented the
North American Free Trade Agreement (NAFTA) with respect to the United
States and, pursuant to the North American Free Trade Agreement
Implementation Act (Public Law 103-182) (the "NAFTA Implementation Act")
incorporated in the HTS the tariff modifications and rules of origin
necessary or appropriate to carry out the NAFTA.
20. Section 202 of the NAFTA Implementation Act (19 U.S.C. 3332) provides
rules for determining whether goods imported into the United States
originate in the territory of a NAFTA Party and thus are eligible for the
tariff and other treatment contemplated under the NAFTA. Section 202(q) of
the NAFTA Implementation Act (19 U.S.C. 3332(q)) authorizes the President
to proclaim, as a part of the HTS, the rules of origin set out in the NAFTA
and to proclaim modifications to such previously proclaimed rules of
origin, subject to the consultation and layover requirements of section
103(a) of the NAFTA Implementation Act (19 U.S.C. 3313(a)).
21. The United States and Canada have agreed to modifications to certain
NAFTA rules of origin. Modifications to the NAFTA rules of origin set out
in Proclamation 6641 are therefore necessary.
22. Section 1558 of the Miscellaneous Trade and Technical Corrections Act
of 2004 (Public Law 108-429) (the "Miscellaneous Trade Act") amended
section 213(b) of the Caribbean Basin Economic Recovery Act (CBERA) (19
U.S.C. 2703(b)) to exclude certain footwear from duty-free treatment under
the CBERA and to provide duty-free treatment for certain other footwear
that is the product of a designated beneficiary Caribbean Basin Trade
Partnership Act country.
23. In order to implement the tariff treatment provided under section 1558
of the Miscellaneous Trade Act, it is necessary to modify the HTS.
24. Section 7(c) of the AGOA Acceleration Act of 2004 (Public Law 108-274)
(the "AGOA Acceleration Act") amended section 112(b)(6) of the of the
African Growth and Opportunity Act (title I of Public Law 106-200) (AGOA)
(19 U.S.C. 3721(b)(6)) by adding ethnic printed fabrics to the list of
textile and apparel goods of beneficiary sub-Saharan African countries that
may be eligible for the preferential treatment described in section 112(a)
of the AGOA (19 U.S.C. 3721(a)).
25. Section 2 of Executive Order 13191 of January 17, 2001, delegated the
President's authority under section 112(b)(6) of the AGOA to the Committee
for the Implementation of Textile Agreements (Committee), in consultation
with the then-Commissioner, United States Customs Service, now the
Commissioner, Bureau of Customs and Border Protection (Commissioner), to
determine which, if any, particular textile and apparel goods of
beneficiary sub-Saharan African countries shall be treated as being
handloomed, handmade, or folklore articles. Executive Order 13191 further
ordered the Commissioner to take actions directed by the Committee to carry
out such determinations.
26. In order to implement section 7(c) of the AGOA Acceleration Act, it is
necessary to modify Executive Order 13191.
27. Section 604 of the 1974 Act, as amended (19 U.S.C. 2483), authorizes
the President to embody in the HTS the substance of the relevant provisions
of that Act, and of other acts affecting import treatment, 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 title V and section 604 of the
1974 Act, section 202 of the NAFTA Implementation Act, section 1558 of the
Miscellaneous Trade Act, section 7(c) of the AGOA Acceleration Act, and
section 301 of title 3, United States Code, do hereby proclaim:
(1) In order to reflect in the HTS the addition of Serbia and Montenegro
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 designated or redesignated as beneficiary
developing countries with respect to such article or articles for purposes
of the GSP, in order to terminate the suspensions of India's and Pakistan's
eligibility for certain articles, 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 to this proclamation.
(3) In order to designate certain articles as eligible articles for
purposes of the GSP, the HTS is modified by amending and subdividing the
nomenclature of certain existing HTS subheadings as provided in section B
of Annex I to this proclamation.
(4) (a) In order to designate certain articles as eligible articles for
purposes of the GSP, the Rates of Duty 1-Special subcolumn for such HTS
subheadings is modified as provided in sections C(1) and C(2) of Annex I to
this proclamation.
(b) In order to designate certain articles as eligible articles for
purposes of the GSP when imported from any beneficiary developing country
except for a country or countries exceeding the applicable competitive need
limitation in 2004, the Rates of Duty 1-Special subcolumn for such HTS
subheadings is modified as provided for in section C(3) of Annex I to this
proclamation.
(c) 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 such HTS subheadings is modified as provided for in section
C(4) of Annex I to this proclamation.
(d) 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
such HTS subheadings is modified as provided for in section C(5) of Annex I
to this proclamation.
(e) In order to reflect in the HTS the decision that certain members of
the SAARC should be treated as one country for purposes of title V of the
1974 Act, and to enumerate those countries, general note 4(a) to the HTS is
modified as provided in section D of Annex I to this proclamation.
(5) 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 Annex II to this
proclamation.
(6) A waiver of the application of section 503(c)(2)(A) of the 1974 Act
shall apply to the eligible articles in the HTS subheading and to the
beneficiary developing countries set forth in Annex III to this
proclamation.
(7) In order to modify the rules of origin under the NAFTA, general note
12 to the HTS is modified as provided in Annex IV to this proclamation.
(8) The modifications made by Annex IV to this proclamation shall be
effective with respect to goods of Canada that are entered, or withdrawn
from warehouse for consumption, on or after the date provided in that
Annex.
(9) General notes 7 and 17 to the HTS are modified as set forth in Annex V
to this proclamation.
(10) The modifications made by Annex V to this proclamation shall be
effective with respect to goods entered, or withdrawn from warehouse for
consumption, on or after December 18, 2004.
(11) In order to make technical corrections to the HTS, the HTS is
modified as provided in Annex VI to this proclamation.
(12) The modifications made by Annex VI to this proclamation shall be
effective with respect to articles entered, or withdrawn for consumption,
on or after the dates provided in that Annex.
(13) Section 2 of Executive Order 13191 of January 17, 2001, is modified
by revising the heading to state "Handloomed, Handmade, and Folklore
Articles and Ethnic Printed Fabrics" and deleting the phrase "handloomed,
handmade, or folklore articles," and inserting in lieu thereof,
"handloomed, handmade, or folklore articles or ethnic printed fabrics."
(14) 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.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth
day of June, in the year of our Lord two thousand five, and of the
Independence of the United States of America the two hundred and twenty
ninth.
GEORGE W. BUSH
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