Presidential Documents

66549

Federal Register

Vol. 66, No. 247

Wednesday, December 26, 2001

Title 3—

The President

Proclamation 7515 of December 18, 2001

To Modify the Harmonized Tariff Schedule of the United

States, To Provide Rules of Origin Under the North American Free Trade Agreement for Affected Goods, and for

Other Purposes

By the President of the United States of America

A Proclamation

1. Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988

(the ‘‘1988 Act’’) (19 U.S.C. 3005(a)) directs the United States International

Trade Commission (the ‘‘Commission’’) to keep the Harmonized Tariff Schedule of the United States (HTS) under continuous review and periodically

to recommend to the President such modifications in the HTS as the Commission considers necessary or appropriate to accomplish the purposes set

forth in that subsection. The Commission has recommended modifications

to the HTS pursuant to sections 1205(c) and (d) of the 1988 Act (19 U.S.C.

3005(c) and (d)) to conform the HTS to amendments made to the International

Convention on the Harmonized Commodity Description and Coding System

(the ‘‘Convention’’).

2. Section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) authorizes the President

to proclaim modifications to the HTS, based on the recommendations of

the Commission under section 1205 of the 1988 Act (19 U.S.C. 3005), if

he determines that the modifications are in conformity with the obligations

of the United States under the Convention and do not run counter to

the national economic interest of the United States. I have determined that

the modifications to the HTS proclaimed in this proclamation pursuant

to section 1206(a) are in conformity with the obligations of the United

States under the Convention and do not run counter to the national economic

interest of the United States.

3. (a) Presidential Proclamation 6641 of December 15, 1993, implemented

the North American Free Trade Agreement (the ‘‘NAFTA’’) with respect

to the United States and, pursuant to sections 201 and 202 of the North

American Free Trade Agreement Implementation Act (the ‘‘NAFTA Implementation Act’’) (19 U.S.C. 3331 and 3332), incorporated in the HTS the

tariff modifications and rules of origin necessary or appropriate to carry

out the NAFTA.

(b) Because the substance of the changes to the Convention will be reflected

in slightly differing form in the national tariff schedules of the three parties

to the NAFTA, the rules of origin and interpretative rules set forth in

Appendix 6.A of Annex 300–B, Annex 401, and Annex 403.1 to the NAFTA

must be changed to ensure that the tariff and certain other treatment accorded

under the NAFTA to originating goods will continue to be provided under

the tariff categories that are being modified to reflect the amendments to

the Convention. The NAFTA parties have agreed to make these changes.

4. Section 202 of the NAFTA Implementation Act 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

the rules of origin set out in the NAFTA and any subordinate tariff categories

66550 Federal Register / Vol. 66, No. 247 / Wednesday, December 26, 2001 / Presidential Documents

necessary to carry out the NAFTA Implementation Act consistent with the

NAFTA.

5. I have determined that the modifications to the HTS proclaimed in this

proclamation pursuant to sections 201 and 202 of the NAFTA Implementation

Act are necessary in order to ensure that the tariff and certain other treatment

accorded under the NAFTA, including previously proclaimed staged reductions in rates of duty, will continue to be given to NAFTA originating

goods under tariff categories that are being modified to reflect the amendments to the Convention.

6. Presidential Proclamation 6763 of December 23, 1994, implemented with

respect to the United States the trade agreements resulting from the Uruguay

Round of multilateral trade negotiations, including Schedule XX-United

States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 (‘‘Schedule XX’’), that were entered into

pursuant to sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 2902(a)

and (e)) and approved in section 101(a) of the Uruguay Round Agreements

Act (URAA) (19 U.S.C. 3511(a)).

7. Pursuant to the authority provided in section 111 of the URAA (19

U.S.C. 3521) and sections 1102(a) and (e) of the 1988 Act, Proclamation

6763 included the staged reductions in rates of duty that the President

determined to be necessary or appropriate to carry out the concessions

set forth in Schedule XX. In order to ensure the continuation of such

staged reductions in rates of duty for imported goods under tariff categories

that are being modified to reflect the amendments to the Convention, I

have determined that additional modifications to the HTS are necessary

or appropriate to carry out the duty reductions previously proclaimed, including certain technical or conforming changes within the tariff schedule.

8. Presidential Proclamation 7351 of October 2, 2000, implemented section

211 of the United States-Caribbean Basin Trade Partnership Act (title II

of Public Law 106–200, 114 Stat. 286) (CBTPA), in order to provide certain

preferential tariff treatment to eligible articles that are the product of any

country that the President has designated as a ‘‘CBTPA beneficiary country’’

and that has satisfied the requirements of section 213(b)(4)(A)(ii) of the

Caribbean Basin Economic Recovery Act (CBERA) (19 U.S.C.

2703(b)(4)(A)(ii)). Section 213(b)(3) of the CBERA (19 U.S.C. 2703(b)(3)) provides that the tariff treatment accorded at any time under the CBTPA to

any article referred to in section 213(b)(1)(B) through (F) of the CBERA

(19 U.S.C. 2703(b)(1)(B) through (F)) that is a CBTPA originating good shall

be identical to the tariff treatment that is accorded at such time under

Annex 302.2 of the NAFTA to an article described in the same 8-digit

subheading of the HTS that is a good of Mexico and is imported into

the United States.

9. Pursuant to section 213(b) of the CBERA, Proclamation 7351 included

the staged reductions in rates of duty that the President determined to

be necessary or appropriate to provide such identical tariff treatment to

CBTPA originating goods. In order to ensure the continuation of such staged

reductions in rates of duty for imported goods under tariff categories that

are being modified to reflect the amendments to the Convention and the

conforming changes in the NAFTA rules of origin, I have determined that

additional modifications to the HTS are necessary or appropriate to carry

out the duty reductions previously proclaimed.

10. Presidential Proclamation 7512 of December 7, 2001, implemented with

respect to the United States the Agreement Between the United States of

America and the Hashemite Kingdom of Jordan on the Establishment of

a Free Trade Area (JFTA), which was entered into on October 24, 2000,

and implemented pursuant to section 101 of the United States-Jordan Free

Trade Area Implementation Act (the ‘‘JFTA Act’’) (19 U.S.C. 2112 Note).

That proclamation included the staged reductions in rates of duty that

I determined to be necessary or appropriate to carry out the concessions

set forth in Annex 2.1 to the JFTA. In order to ensure the continuation

Federal Register / Vol. 66, No. 247 / Wednesday, December 26, 2001 / Presidential Documents 66551

of such staged reductions in rates of duty for originating goods under tariff

categories that are being modified to reflect the amendments to the Convention, I have determined that additional modifications to the HTS are necessary

or appropriate to carry out the duty reductions previously proclaimed.

11. Section 201(b) of the NAFTA Implementation Act (19 U.S.C. 3331(b))

authorizes the President, subject to the consultation and layover requirements

of section 103(a) of the NAFTA Implementation Act (19 U.S.C. 3313(a)),

to proclaim accelerated schedules of duty elimination that the United States

may agree to with Mexico or Canada. Consistent with Article 302(3) of

the NAFTA, I, through my duly empowered representative, have entered

into an agreement with the Government of Mexico providing for an accelerated schedule of duty elimination for specific goods of Mexico.

12. Pursuant to section 201(b) of the NAFTA Implementation Act, I have

determined that the modifications herein proclaimed of duties on goods

originating in the territory of a NAFTA party are necessary or appropriate

to maintain the general level of reciprocal and mutually advantageous concessions with respect to Mexico provided for by the NAFTA, and to carry

out the agreement with Mexico providing an accelerated schedule of duty

elimination for specific goods. Pursuant to section 213(b)(3)(A) of the CBERA

(19 U.S.C. 2703(b)(3)), I have determined that the rates of duty resulting

from the accelerated schedule of duty elimination for specific goods of

Mexico should also apply to CBTPA originating goods described in the

same 8-digit subheadings of the HTS.

13. Section 604 of the Trade Act of 1974, as amended (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, 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 section 604 of the 1974 Act,

sections 1102, 1205, and 1206 of the 1988 Act, section 213 of the CBERA,

sections 201 and 202 of the NAFTA Implementation Act, section 111 of

the URAA, and section 101 of the JFTA Act, do hereby proclaim:

(1) In order to modify the HTS to conform it to the Convention or any

amendment thereto recommended for adoption, to promote the uniform

application of the Convention, to establish additional subordinate tariff categories to carry out modifications to the rules of origin under the NAFTA,

and to make technical and conforming changes to existing provisions, the

HTS is modified as set forth in Annex I to this proclamation.

(2) In order to modify the rules of origin under the NAFTA to reflect

the modifications to the HTS being made to conform it to the Convention

and to make certain conforming changes, general note 12 to the HTS is

further modified as provided in Annex II to this proclamation.

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

staged duty reductions in the Rates of Duty 1-General subcolumn under

section 111(a) of the URAA, as provided in Presidential Proclamation 6763,

for goods classifiable in the provisions modified by Annex I to this proclamation that are entered, or withdrawn from warehouse for consumption, on

or after each of the dates specified in section A of Annex III to this proclamation, the rate of duty in the HTS set forth in the Rates of Duty 1-General

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

Annex III shall be deleted and the rate of duty provided in such section

inserted in lieu thereof.

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

staged duty reductions in the Rates of Duty 1-Special subcolumn for originating goods of Mexico under the NAFTA that are classifiable in the provisions modified by Annex I to this proclamation and entered, or withdrawn

from warehouse for consumption, on or after each of the dates specified

66552 Federal Register / Vol. 66, No. 247 / Wednesday, December 26, 2001 / Presidential Documents

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

HTS set forth in the Rates of Duty 1-Special subcolumn for each of the

HTS subheadings enumerated in section B of Annex III shall be deleted

and the rate of duty provided in such section inserted in lieu thereof.

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

staged duty reductions in the Rates of Duty 1-Special subcolumn for originating goods of CBTPA beneficiary countries that are classifiable in the

provisions modified by Annex I to this proclamation and entered, or withdrawn from warehouse for consumption, on or after each of the dates specified in section C of Annex III to this proclamation, the rate of duty in

the HTS set forth in the Rates of Duty 1-Special subcolumn for each of

the HTS subheadings enumerated in section C of Annex III shall be deleted

and the rate of duty provided in such section inserted in lieu thereof.

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

staged duty reductions in the Rates of Duty 1-Special subcolumn for originating goods of Jordan under the JFTA that are classifiable in the provisions

modified by Annex I to this proclamation and entered, or withdrawn from

warehouse for consumption, on or after each of the dates specified in section

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

in the Rates of Duty 1-Special subcolumn for each of the HTS subheadings

enumerated in section D of Annex III shall be deleted and the rate of

duty provided in such section inserted in lieu thereof.

(7) In order to provide an accelerated schedule of duty elimination for

specific goods of Mexico under the terms of general note 12 to the HTS,

and to provide identical tariff treatment for originating goods of a CBTPA

beneficiary country provided for in the same HTS subheading, the special

tariff treatment set forth in the HTS for the pertinent subheadings is modified

as provided in Annex IV to this proclamation.

(8) 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.

(9)(a) The modifications and technical rectifications to the HTS made

by Annexes I and II to this proclamation shall be effective with respect

to goods entered, or withdrawn from warehouse for consumption, on or

after the later of (i) January 1, 2002, or (ii) the 15th day after the date

of publication of this proclamation in the Federal Register.

(b) The modifications made by Annexes III and IV to this proclamation

shall be effective with respect to goods entered, or withdrawn from warehouse

for consumption, on or after the respective dates specified in each section

of such Annexes for the goods described therein.

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

of December, in the year of our Lord two thousand one, and of the Independence of the United States of America the two hundred and twenty-sixth.


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[FR Doc. 01–31522

Filed 12–19–01; 8:45 am]

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