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[House Document 106-318]
[From the U.S. Government Publishing Office]

106th Congress, 2d Session - - - - - - - - - - - House Document 106-318 

 
 TO IMPLEMENT TITLE V OF THE TRADE AND DEVELOPMENT ACT OF 2000 AND TO 
             MODIFY THE GENERALIZED SYSTEM OF PREFERENCES

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

NOTIFICATION OF HIS INTENTION TO MODIFY THE LIST OF BENEFICIARY 
  DEVELOPING COUNTRIES UNDER THE GENERALIZED SYSTEM OF PREFERENCES, 
  CHANGING THE DESIGNATION OF ``WESTERN SAMOA'' TO ``SAMOA'' SUBMITTED 
  IN ACCORDANCE WITH SECTION 502(f) OF THE TRADE ACT OF 1974

  December 6, 2000.--Referred to the Committee on Ways and Means and 
                         ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-011                     WASHINGTON : 2000

                                           The White House,
                                      Washington, December 1, 2000.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I hereby notify you of my intent to 
modify the list of beneficiary developing countries under the 
Generalized System of Preferences (GSP), which offers duty-free 
access to the U.S. market for eligible products imported from 
designated beneficiary developing countries. Specifically, I 
intend to change the designation of ``Western Samoa'' to 
``Samoa,'' to reflect this nation's current name, in the list 
of beneficiary developing countries and to designate Samoa as a 
least-developed beneficiary developing country under the GSP. I 
have carefully considered the criteria in sections 501 and 502 
of the Trade Act of 1974 and have determined that it is 
appropriate to designate Samoa as such.
    This notice is submitted in accordance with section 502(f) 
of the Trade Act of 1974.
            Sincerely,
                                                William J. Clinton.
 To Implement Title V of the Trade and Development Act of 2000 and To 
              Modify the Generalized System of Preferences

                              ----------                              

            By the President of the United States of America

                             A Proclamation

    1. Title V of the Trade and Development Act of 2000 (Public 
Law 106-200) (the ``Act'') modifies the tariff treatment of 
certain imported wool articles.
    2. Section 501(a)(1) of the Act amends the Harmonized 
Tariff Schedule of the United States (HTS) to create a new 
heading, 9902.51.11, for imports of certain worsted wool 
fabrics with average fiber diameters greater than 18.5 microns. 
Section 501(d) of the Act limits the quantity of imports under 
heading 9902.51.11, on an annual basis, to 2,500,000 square 
meter equivalents or such other quantity proclaimed by the 
President pursuant to section 504(b)(3) of the Act.
    3. Section 501(b)(1) of the Act amends the HTS to create a 
new heading, 9902.51.12, for imports of certain worsted wool 
fabrics with average fiber diameters of 18.5 microns or less. 
Section 501(d) of the Act limits the quantity of imports under 
heading 9902.51.12, on an annual basis, to 1,500,000 square 
meter equivalents or such other quantity proclaimed by the 
President pursuant to section 504(b)(3) of the Act.
    4. Section 501(b)(2) of the Act authorizes the President to 
proclaim a reduction in the rate of duty applicable to imports 
of worsted wool fabrics classified under heading 9902.51.12 of 
the HTS that is necessary to equalize such rate of duty with 
the most favored nation rate of duty applicable to imports of 
such worsted wool fabrics into Canada.
    5. Section 501(e) of the Act provides that in implementing 
the limitation on the quantity of imports of worsted wool 
fabrics under headings 9902.51.11 and 9902.51.12 of the HTS, 
the President, consistent with U.S. international obligations, 
shall take such action as he determines appropriate to ensure 
that such fabrics are fairly allocated to persons who cut and 
sew men's and boys' worsted wool suits and suit-type jackets 
and trousers in the United States and who apply for an 
allocation based on the amount of such suits cut and sewn 
during the prior calendar year.
    6. Section 503(a) of the Act requires the President to 
proclaim 8-digit tariff categories for certain wool yarn and 
wool fabrics with an average fiber diameter of 18.5 microns or 
less, and men's or boys' suits, suit-type jackets, and trousers 
of worsted wool fabric, made of wool yarn with an average 
diameter of 18.5 microns or less. Section 503(b) of the Act 
authorizes the President to make conforming changes in the HTS 
to take into account the new tariff categories proclaimed under 
section 503(a).
    7. Section 504(a) of th4 Act requires the President to 
monitor market conditions in the United States, including 
domestic demand, domestic supply, and increases in domestic 
production, of worsted wool fabrics and their components in the 
market for (i) men's or boys' worsted wool suits, suit-type 
jackets, and trousers, (ii) worsted wool fabrics and yarn used 
in the manufacture of such apparel articles, and (iii) wool 
used in the production of such fabrics and yarn.
    8. Section 504(b)(1) requires the President, on an annual 
basis, to consider requests from domestic manufacturers of 
apparel products made of worsted wool fabrics described in 
section 504(a) to modify the limitation on the quantity of 
imports of worsted wool fabrics under headings 9902.51.11 and 
9902.51.12 of the HTS.
    9. Section 504(b)(3) of the Act authorizes the President, 
after taking into account the market conditions set forth in 
section 504(b)(2) of the Act, to modify the limitation on the 
quantity of imports of worsted wool fabrics under headings 
9902.51.11 and 9902.51.12 of the HTS, provided that any such 
modification shall not exceed 1,000,000 square meter 
equivalents annually for each heading, and to proclaim any such 
modifications.
    10. Section 504(c) requires the President to issue 
regulations to implement the provisions of section 504.
    11. I have determined that it is appropriate to authorize 
the Secretary of Commerce (Secretary) to perform certain 
functions specified in sections 501(e) and 504(b) of the Act.
    12. I have determined that it is appropriate to authorize 
the United States Trade Representative (USTR) to perform 
certain functions specified in section 504(a) of the Act.
    13. 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 and as least-developed beneficiary developing 
countries for purposes of the Generalized System of Preferences 
(GSP).
    14. Pursuant to Executive Order 11888 of November 24, 1975, 
Western Samoa was designated as a beneficiary developing 
country for purposes of the GSP. I have determined that the 
designation of Western Samoa as a beneficiary developing 
country under the GSP should be modified so that the 
designation applies to Samoa. Furthermore, pursuant to section 
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 Samoa as a least-developed beneficiary 
developing country for purposes of the GSP.
    15. Proclamation 6425 of April 29, 1992, suspended the 
application of duty-free treatment under the GSP for certain 
handloomed cotton fabrics imported from India. On September 14, 
2000, the United States Government and the Government of India 
entered into a Memorandum of Understanding in which the United 
States agreed to restore GSP treatment for certain handloomed 
cotton fabrics. Pursuant to section 501 of the 1974 Act, I have 
determined that it is appropriate to restore GSP treatment for 
these articles to give effect to the Memorandum of 
Understanding.
    16. Section 604 of the 1974 Act (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, WILLIAM J. CLINTON, President of the 
United States of America, acting under the authority vested in 
me by the Constitution and the laws of the United States of 
America, including section 301 of title 3, United States Code, 
title V of the Act, and sections 501, 502, and 604 of the 1974 
Act, do proclaim that:
    (1) In order to provide separate tariff treatment for the 
articles specified in section 503(a) of the Act, the HTS is 
modified as provided in section A of the Annex to this 
proclamation.
    (2) In order to make conforming changes to take into 
account the new permanent tariff categories established in 
section A of the Annex to this proclamation, the HTS is further 
modified as provided in section B of the Annex to this 
proclamation.
    (3) The Secretary is authorized to exercise the authority 
set forth in section 501(e) of the Act to allocate the quantity 
of imports of worsted wool fabrics under headings 9902.51.11 
and 9902.51.12. Any determination by the Secretary under this 
paragraph shall be set forth in a notice or notices that the 
Secretary shall cause to be published in the Federal Register.
    (4) The Secretary is authorized to monitor the most favored 
nation rate of duty applicable to imports into Canada of 
worsted wool fabrics of the kind classified under heading 
9902.51.12 of the HTS and shall notify the President of any 
reduction, effective on or after May 18, 2000, in the Canadian 
most favored nation rate of duty on such imports. The Secretary 
shall cause to be published in the Federal Register a notice 
describing any such reduction.
    (5) The Secretary is authorized to exercise the authority 
set forth in section 504(b)(1) of the Act to consider, on an 
annual basis, requests from domestic manufacturers of 
apparelproducts made of worsted wool fabrics described in section 
504(a) to modify the limitation on the quantity of imports of worsted 
wool fabrics under headings 9902.51.11 and 9902.51.12 of the HTS.
    (6) The Secretary is authorized to determine, under section 
504(b)(3) of the Act, whether the limitation on the quantity of 
imports of worsted wool fabrics under headings 9902.51.11 and 
9902.51.12 of the HTS should be modified and to recommend to 
the President that appropriate modifications be made.
    (7) The Secretary is authorized to issue regulations to 
implement the provisions of sections 501 and 504(b) of the Act, 
the implementation of which have been delegated to the 
Secretary pursuant to paragraphs 3, 4, 5, and 6 of this 
proclamation.
    (8) The USTR is authorized to exercise the authority set 
forth in section 504(a) of the Act to monitor market conditions 
in the United States for the worsted wool articles specified in 
that section.
    (9) In order to reflect a change in the name of a 
designated beneficiary developing country for purposes of the 
GSP, general note 4(a) to the HTS is modified by striking 
``Western Samoa'' and by inserting in alphabetical sequence in 
lieu thereof ``Samoa'' in the enumeration of independent 
beneficiary developing countries.
    (10) Samoa is designated as a least-developed beneficiary 
developing country for purposes of the GSP and title V of the 
1974 Act. In order to reflect such designation, general note 
4(b)(i) to the HTS, enumerating those countries designated as 
least-developed beneficiary developing countries for purposes 
of the GSP, is modified by inserting in alphabetical sequence 
``Samoa.''
    (11) In order to provide that India is again treated as a 
beneficiary developing country with respect to certain 
certified handloomed cotton fabrics for purposes of the GSP 
program, the HTS is modified as provided in section C of the 
Annex to this proclamation.
    (12) 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.
    (13) This proclamation is effective on the date of 
signature of this proclamation, except that the designation of 
Samoa as a least-developed beneficiary developing country shall 
be effective with respect to articles entered, or withdrawn 
from warehouse for consumption, on or after the date that is 60 
days from the date of publication of this proclamation in the 
Federal Register.
    IN WITNESS WHEREOF, I have hereunto set my hand this first 
day of December, in the year of our Lord two thousand, and of 
the Independence of the United States of America the two 
hundred and twenty-fifth.

                                                William J. Clinton.

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