U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

29–011 2004

108th Congress, 2d Session – – – – – – – – – – – – House Document 108–211 

NOTIFICATION TO ADD IRAQ TO THE LIST OF COUNTRIES UNDER THE GENERALIZED SYSTEM OF 

PREFERENCES (GSP) 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

NOTIFICATION OF HIS INTENTION TO DESIGNATE IRAQ AS A BENEFICIARY DEVELOPING COUNTRY UNDER THE GENERALIZED 

SYSTEM OF PREFERENCES (GSP) ANY SUCH DESIGNATION, PURSUANT TO PUB. L. 104–188, SEC. 1952(a) (110 STAT. 1917) 

SEPTEMBER 8, 2004.—Referred to the Committee on Ways and Means and 

ordered to be printed 


E:\Seals\Congress.#13
(1) 

To the Congress of the United States: 

Pursuant to section 502(f) of the Trade Act of 1974, as amended 

(the ‘‘1974 Act’’), I am writing to inform you of my intent to designate Iraq as a beneficiary developing country for purposes of the 

Generalized System of Preferences (GSP). 

I have considered the criteria set forth in sections 501 and 502 

of the 1974 Act. In light of these criteria, I have determined that 

it is appropriate to extend GSP benefits to Iraq. 

GEORGE W. BUSH. 

THE WHITE HOUSE, September 7, 2004. 

(3) 

TO MODIFY THE GENERALIZED SYSTEM OF PREFERENCES, AND FOR

OTHER PURPOSES

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

1. Pursuant to sections 501 and 502(a)(1) of Title V of the Trade 

Act of 1974, as amended (the ‘‘1974 Act’’) (19 U.S.C. 2461, 

2462(a)(1)), the President is authorized to designate countries as 

beneficiary developing countries for purposes of the Generalized 

System of Preferences (GSP). 

2. Pursuant to section 503(d) of the 1974 Act (19 U.S.C. 2463(d)), 

the President may waive the application of the competitive need 

limitations in section 503(c)(2)(A) (19 U.S.C. 2463(c)(2)(A)) with respect to any eligible article from any beneficiary developing country 

if certain conditions are met. 

3. Pursuant to section 503(d)(5) of the 1974 Act (19 U.S.C. 

2463(d)(5)), any waiver granted under section 503(d) shall remain 

in effect until the President determines that such waiver is no 

longer warranted due to changed circumstances. 

4. Section 7(a) of the AGOA Acceleration Act of 2004 (Public Law 

108–274) (‘‘AGOA Acceleration Act’’) amended section 506A of the 

GSP (19 U.S.C. 2466a) to provide certain benefits to any country 

designated as a beneficiary sub-Saharan African country under section 506A(a) of the GSP that becomes a party to a free trade agreement with the United States, and amended section 506B of the 

GSP (19 U.S.C. 2466b) to extend the period during which preferential treatment may be accorded to such countries. 

5. Section 7(b) through (f) of the AGOA Acceleration Act amended section 112 of the African Growth and Opportunity Act (Title I 

of the Trade and Development Act of 2000, Public Law 106–200) 

(AGOA) (19 U.S.C. 3721) to modify the type and quantity of textile 

and apparel articles eligible for the preferential treatment now accorded to designated beneficiary sub-Saharan African countries, 

and to provide certain benefits to any such country that becomes 

a party to a free trade agreement with the United States. 

6. On December 17, 1992, the Governments of Canada, Mexico, 

and the United States entered into the North American Free Trade 

Agreement (NAFTA). The Congress approved the NAFTA in section 

101(a) of the North American Free Trade Agreement Implementation Act (the ‘‘NAFTA Implementation Act’’) (19 U.S.C. 3311(a)), 

and the President implemented the tariff provisions of the NAFTA 

with respect to the United States in Proclamation 6641 of December 15, 1993. 

7. Section 201(a) of the NAFTA Implementation Act (19 U.S.C. 

3331(a)) authorizes the President to proclaim such duty modificaVerDate Aug 04 2004 04:48 Sep 11, 2004 Jkt 029011 PO 00000 Frm 00005 Fmt 6601 Sfmt 6601 E:\HR\OC\HD211.XXX HD211
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tions as the President may determine to be necessary or appropriate to carry out or apply, among other provisions, Article 308 

and Annex 308.1 of the NAFTA. 

8. NAFTA Article 308 and Annex 308.1 provide for each NAFTA 

Party to eliminate or reduce normal trade relations (most-favorednation) rates of duty on certain automatic data processing machinery and parts, and set the terms under which such goods shall be 

considered originating goods under the NAFTA when imported 

from the territory of a NAFTA Party. 

9. Pursuant to sections 501 and 502(a)(1) of the 1974 Act, and 

having due regard for the factors set forth in section 501 of the 

1974 Act and taking into account the factors set forth in section 

502(c) of the 1974 Act (19 U.S.C. 2462(c)), I have decided to designate Iraq as a beneficiary developing country for purposes of the 

GSP. 

10. Pursuant to section 503(d)(5) of the 1974 Act, I have determined that a previously granted waiver of the competitive need 

limitations of section 503(c)(2)(A) is no longer warranted due to 

changed circumstances. 

11. In order to implement the tariff treatment provided under 

section 7 of the AGOA Acceleration Act, it is necessary to modify 

the Harmonized Tariff Schedule of the United States (HTS). 

12. I have determined that each NAFTA Party has eliminated or 

reduced its normal trade relations (most-flavored-nation) rates of 

duty applicable to the goods enumerated in Table 308.1.1 of 

NAFTA Annex 308.1 to the levels prescribed in that Table. Annex 

308.1 provides for those goods to be originating goods under the 

NAFTA when imported from Canada or Mexico. 

13. Pursuant to section 201(a) of the NAFTA Implementation 

Act, I have determined that the modifications to the HTS hereinafter proclaimed concerning goods considered to be originating 

when imported from the territory of a NAFTA Party are necessary 

and appropriate to carry out or apply Article 308 and Annex 308.1 

of the NAFTA. 

14. 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 of America, 

including but not limited to Title V and section 604 of the 1974 

Trade Act, section 112 of the AGOA, and section 201(a) of the 

NAFTA Implementation Act, do proclaim that: 

(1) Iraq is designated as a beneficiary developing country for purposes of the GSP, effective 15 days after the date of this proclamation. 

(2) In order to reflect this designation in the HTS, general note 

4(a) to the HTS is modified by adding ‘‘Iraq’’ to the list entitled 

‘‘Independent Countries’’, effective with respect to articles entered, 

or withdrawn from warehouse for consumption, on or after 15 days 

after the date of this proclamation. 

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(3) In order to provide that a country no longer be treated as a 

beneficiary developing country with respect to an eligible article for 

purposes of the GSP, general note 4(d) to the HTS is modified as 

provided in section 1 of Annex I. 

(4) In order to withdraw preferential tariff treatment under the 

GSP for a certain article imported from a certain beneficiary developing country, the Rates of Duty 1-Special subcolumn for such HTS 

subheading is modified as provided for in section 2 of Annex I to 

this proclamation. 

(5) The waiver of the application of section 503(c)(2)(A) of the 

1974 Act to the article in the HTS subheading and to the beneficiary developing country listed in section 3 of Annex I to this 

proclamation is revoked. 

(6) In order to provide for the preferential treatment provided for 

in section 506A and 506B of the GSP, as amended by section 7(a) 

of the AGOA Acceleration Act, and section 112 of the AGOA, as 

amended by sections 7(b) through (f) of the AGOA Acceleration Act, 

the HTS is modified as provided in Annex II to this proclamation. 

(7) In order to implement Article 308 and Annex 308.1 of the 

NAFTA for certain automatic data processing machinery and parts 

imported from Canada and Mexico, the HTS is modified as provided in Annex III to this proclamation. 

(8) Any provisions of previous proclamations and Executive Orders that are inconsistent with this proclamation are superseded to 

the extent of such inconsistency. 

(9) The modifications made by and action taken in Annex I to 

this proclamation shall be effective with respect to eligible articles 

entered, or withdrawn from warehouse for consumption, on or after 

60 days after the date of this proclamation. 

(10) The modifications made by Annex II shall be effective with 

respect to eligible articles entered, or withdrawn from warehouse 

for consumption, on or after July 13, 2004, except that the modifications made by section 4(A) relating to increases in the quantity 

of certain articles eligible for duty-free treatment shall be effective 

with respect to articles entered, or withdrawn from warehouse for 

consumption, on or after the dates provided in that section. 

(11) The modifications made by Annex III shall be effective with 

respect to goods entered, or withdrawn from warehouse for consumption, on or after January 1, 2003. 

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of September, in the year of our Lord two thousand four, 

and of the Independence of the United States of America the two 

hundred and twenty-ninth. 

GEORGE W. BUSH. 

(7) 


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