Presidential Documents

36531

Federal Register

Vol. 63, No. 128

Monday, July 6, 1998

Title 3—

The President

Proclamation 7107 of June 30, 1998

To Modify Duty-Free Treatment Under the Generalized

System of Preferences

By the President of the United States of America

A Proclamation

1. Pursuant to sections 501, 503(a)(1)(A), and 503(c)(1) of title V of the

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

2463(a)(1)(A), and 2463(c)(1)), as amended, the President may designate

or withdraw designation of specified articles provided for in the Harmonized

Tariff Schedule of the United States (HTS) as eligible for preferential tariff

treatment under the Generalized System of Preferences (GSP) when imported

from designated beneficiary developing countries.

2. 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 pursuant to 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.

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

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 (19 U.S.C. 2463(c)(2)(A)), during the preceding

calendar year.

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

the President may disregard the competitive need limitation provided in

section 503(c)(2)(A)(i)(II) of the 1974 Act (19 U.S.C. 2463(c)(2)(A)(i)(II)) with

respect to any eligible article if the aggregate appraised value of the imports

of such article into the United States during the preceding calendar year

does not exceed the applicable amount set forth in section 503(c)(2)(F)(ii)

of the 1974 Act (19 U.S.C. 2463(c)(2)(F)(ii)).

5. 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) with respect to any eligible article of any beneficiary

developing country if certain conditions are met.

6. Section 507(2) of the 1974 Act (19 U.S.C. 2467(2)) provides that in

the case of an association of countries which is a free trade area or customs

union, or which is contributing to comprehensive regional economic integration among its members through appropriate means, including, but not limited to, the reduction of duties, the President may provide that all members

of such association other than members which 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 title V of the 1974 Act.

7. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act, and after

receiving advice from the International Trade Commission in accordance

with section 503(e), I have determined to designate certain articles, previously

designated under section 503(a)(1)(B), as eligible articles from additional

beneficiary developing countries. In order to do so, it is necessary to subdivide and amend the nomenclature of existing subheadings of the HTS.
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For certain articles, I have decided that the effective date of designation

shall be determined by the United States Trade Representative (USTR).

8. Pursuant to section 503(c)(1) of the 1974 Act, I have determined to

limit the application of duty-free treatment accorded to certain articles from

certain beneficiary developing countries.

9. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have determined

that certain beneficiary developing countries should not receive preferential

tariff treatment under the GSP with respect to certain eligible articles imported in quantities that exceed the applicable competitive need limitation.

10. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have determined

that certain countries should be redesignated 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).

11. 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.

12. 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 certain beneficiary developing

countries. 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. For

a certain article, I have decided that the effective date of the waiver shall

be determined by the USTR.

13. Pursuant to section 507(2) of the 1974 Act, I have determined that

members of the West African Economic and Monetary Union (WAEMU)

should be treated as one country for purposes of title V of the 1974 Act.

14. Pursuant to section 507(2) of the 1974 Act, I have determined that

members of the Southern African Development Community (SADC) should

be treated as one country for purposes of title V of the 1974 Act. The

USTR shall determine which specific members of the SADC are to be included in the designation under section 507(2) of the 1974 Act and shall

determine the effective date or dates of the designation. The USTR shall

announce by publication in the Federal Register the specific SADC members

to be included in the designation and the effective date or dates.

15. Pursuant to section 507(2) of the 1974 Act, I have determined that

members of the Tripartite Commission for East African Cooperation (EAC)

should be treated as one country for purposes of title V of the 1974 Act.

The USTR shall determine which specific members of the EAC are to be

included in the designation under section 507(2) of the 1974 Act and shall

determine the effective date or dates of the designation. The USTR shall

announce by publication in the Federal Register the specific EAC members

to be included in the designation and the effective date or dates.

16. 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, 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 but not limited

to title V and section 604 of the 1974 Act, do proclaim that:
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(1) 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 as beneficiary developing countries

with respect to such article or articles for purposes of the GSP, and that

one or more countries should not be treated as beneficiary developing countries with respect to one or more eligible articles for purposes of the GSP,

general note 4 to the HTS is modified as provided in section A of Annex

I and section A of Annex IV to this proclamation.

(2) In order to designate certain articles, previously designated under

section 503(a)(1)(B), as eligible articles from additional beneficiary developing

countries, the HTS is modified by amending and subdividing the nomenclature of existing HTS subheadings as provided in section B of Annex

I to this proclamation.

(3)(a) In order to designate certain articles as eligible articles for purposes

of the GSP when imported from any beneficiary developing country, the

Rates of Duty 1-Special subcolumn for certain HTS subheadings is modified

as provided in section C(1) of Annex I and section B of Annex IV to

this proclamation.

(b) In order to designate certain articles, previously designated under

section 503(a)(1)(B), as eligible articles from additional beneficiary developing

countries, the Rates of Duty 1-Special subcolumn for the HTS subheadings

enumerated in section C(2) of Annex I to this proclamation is modified

as provided in such section.

(c) In order to provide preferential tariff treatment under the GSP to

beneficiary developing countries that have 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 C(3) of Annex

I to this proclamation is modified as provided in such section.

(d) In order to provide that one or more countries should not be treated

as a beneficiary developing country 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 C(4) 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) of the 1974 Act

shall apply to the eligible articles in the HTS subheadings and to the

beneficiary developing countries set forth in Annex II and in section C

of Annex IV to this proclamation.

(5) In order to provide for the continuation of previously proclaimed

staged reductions of duties in the Rates of Duty 1-General subcolumn for

goods that fall in the HTS subheadings modified by section B of Annex

I to this proclamation and that are entered, or withdrawn from warehouse

for consumption, on or after the dates specified in section A of Annex

III to this proclamation, the rate of duty in the HTS set forth in such

subcolumn for each of the HTS subheadings enumerated in section A of

Annex III to this proclamation is deleted and the rate of duty provided

in such section is inserted in lieu thereof.

(6) In order to provide for the continuation of previously proclaimed

staged reductions of duties in the Rates of Duty 1-Special subcolumn for

certain goods of Mexico that fall in the HTS subheadings modified by

section B of Annex I to this proclamation and effective with respect to

goods of Mexico under the terms of general note 12 to the HTS that are

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

dates specified in section B of Annex III to this proclamation, the rate

of duty in the HTS set forth in such subcolumn followed by the symbol

‘‘MX’’ in parentheses for each of the HTS subheadings enumerated in section

B of Annex III to this proclamation is deleted and the rate of duty provided

in such section is inserted in lieu thereof.

(7) In order to reflect in the HTS the decision that members of the

WAEMU should be treated as one country for purposes of title V of the
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1974 Act, and to enumerate the member countries, general note 4(a) to

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

(8) In order to reflect in the HTS the decision that members of the

SADC should be treated as one country for purposes of title V of the

1974 Act, and to enumerate those member countries that should benefit

from such designation, general note 4(a) to the HTS is to be modified

as set forth in a notice or notices that the USTR shall cause to be published

in the Federal Register. Such notice or notices should direct the insertion

in general note 4(a) of the title of the association and the names of those

member countries that should be treated as one country for purposes of

title V of the 1974 Act, and should specify the effective date of such

designation.

(9) In order to reflect in the HTS the decision that members of the

EAC should be treated as one country for purposes of title V of the 1974

Act, and to enumerate those member countries that should benefit from

such designation, general note 4(a) to the HTS is to be modified as set

forth in a notice or notices that the USTR shall cause to be published

in the Federal Register. Such notice or notices should direct the insertion

in general note 4(a) of the title of the association and the names of those

member countries that should be treated as one country for purposes of

title V of the 1974 Act, and should specify the effective date of such

designation.

(10) 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.

(11)(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, 1998.

(b) The action taken in Annex II to 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 the dates set forth in such Annex.

(d) The modifications made by Annex IV 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.

(e) The modification made by Annex V to this proclamation shall be

effective with respect to articles entered, or withdrawn from warehouse

for consumption, on or after the date of signature of this proclamation.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day

of June, in the year of our Lord nineteen hundred and ninety-eight, and

of the Independence of the United States of America the two hundred

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and twenty-second.

œ–
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[FR Doc. 98–18007

[Filed 7–2–98; 8:45 am]

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