[House Document 105-88]
[From the U.S. Government Publishing Office]



105th Congress, 1st Session  - - - - - - - - - - - House Document 105-88


 
   INTENTION TO ADD CAMBODIA TO THE LIST OF BENEFICIARY DEVELOPING 
                               COUNTRIES

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

     NOTIFICATION OF HIS INTENTION TO ADD CAMBODIA TO THE LIST OF 
   BENEFICIARY DEVELOPING COUNTRIES UNDER THE GENERALIZED SYSTEM OF 
            PREFERENCES (GSP), PURSUANT TO 19 U.S.C. 2462(a)





    June 3, 1997.--Message and accompanying papers referred to the 
         Committee on Ways and Means and ordered to be printed


To the Congress of the United States:
    The Generalized System of Preferences (GSP) program offers 
duty-free treatment to specified products that are imported 
from designated developing countries. The program is authorized 
by title V of the Trade Act of 1974, as amended.
    Pursuant to title V, I have determined that Cambodia should 
be designated as a least developed beneficiary developing 
country under the GSP program because it has taken steps to 
improve worker rights and the protection of intellectual 
property. I have also determined, as a result of the 1995 
Annual Review of petitions for changes that three products 
should be added to the GSP list of eligible products and that 
the competitive need limits on 22 products should be waived. As 
a result of a review of 1996 imports of GSP products, I have 
determined that de minimis limits on 79 products be waived and 
11 products, whose imports no longer exceed the program's 
competitive need limits, should be redesignated as GSP 
eligible. Finally as a result of certain provisions of the 
legislation enacted in August 1996 reauthorizing GSP, I am 
granting GSP eligibility to an additional 1,783 articles not 
previously included under GSP, provided that they are imported 
directly from the least developed beneficiary developing 
countries.
    This notice is submitted in accordance with the 
requirements of title V of the Trade Act of 1974.

                                                William J. Clinton.


    The White House, May 30, 1997.

     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 (``the 1974 Act''), 19 U.S.C. 
2461-2466, 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 sections 501 and 502 of the 1974 Act, the 
President is authorized to designate countries as beneficiary 
developing countries for purposes of the GSP.
    3. Pursuant to section 503(c)(2)(A) of the 1974 Act, some 
beneficiary developing countries are subject to the competitive 
need limitation on the preferential treatment afforded under 
the GSP to eligible products.
    4. Pursuant to section 503(c)(2)(C) of the 1974 Act, 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 limitation in section 503(c)(2)(A) 
during the preceding calendar year.
    5. Pursuant to section 503(c)(2)(F) of the 1974 Act, the 
President may disregard the competitive need limitation 
provided in section 503(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).
    6. Further, pursuant to subsection 503(d) of the 1974 Act, 
the President may waive the application of the competitive need 
limitation in section 503(c)(2)(A) with respect to any eligible 
article of any beneficiary developing country.
    7. Pursuant to section 503(a)(1)(B) of the 1974 Act, the 
President may designate articles as eligible articles only for 
countries designated as least-developed beneficiary developing 
countries under section 502(a)(2), if the President determines 
that such articles are not import-sensitive in the context of 
imports from such least-developed beneficiary developing 
countries.
    8. Pursuant to section 501, 503(a)(1)(A), and 503(c)(1) of 
the 1974 Act, I have determined, after taking into account 
information and advice received from the United States 
International Trade Commission under section 503(a)(1)(A), to 
designate additional articles as eligible articles for purposes 
of the GSP. In order to do so, it is necessary to subdivide and 
amend the nomenclature of existing provisions of the HTS.
    9. Pursuant to sections 501 and 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 
Cambodia as a beneficiary developing country and a least-
developed beneficiary developing country for purposes of the 
GSP.
    10. Pursuant to sections 503(c)(2)(A) of the 1974 Act, I 
have determined that certain beneficiary countries should no 
longer receive preferential tariff treatment under the GSP with 
respect to certain eligible articles imported in quantities 
that exceed the applicable competitive need limitation.
    11. 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 had been imported previously in 
quantities that exceeded the competitive need limitation of 
section 503(c)(2)(A).
    12. Pursuant to section 503(c)(2)(F) of the 1974 Act, I 
have determined that the competitive need limitation provided 
insection 503(c)(2)(A)(i)(II) should be waived with respect to 
certain eligible articles.
    13. Pursuant to section 503(d) of the 1974 Act, I have 
determined that the competitive need limitation of section 
4503(c)(2)(A) should be waived with respect to certain eligible 
articles from certain beneficiary developing countries. I have 
received the advice of the United States 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 consideration 
described in sections 501 and 502(c), that such waivers are in 
the national economic interest of the United States. In order 
to grant one of those waivers, it is necessary to subdivide and 
amend the nomenclature of existing provisions of the HTS.
    14. Pursuant to section 503(a)(1)(B) of the 1974 Act, I 
have determined to designate certain articles as eligible 
articles under the GSP only for least-developed beneficiary 
developing countries.
    15. Section 604 of the 1974 Act, 19 U.S.C. 2483, as 
amended, 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:
    (1) In order to provide that Cambodia is designated as a 
beneficiary developing country and a least-developed 
beneficiary developing country for purposes of the GSP, that 
one or more countries that have not been treated as beneficiary 
developing countries with respect to one or more eligible 
articles should be redesignated as beneficiary developing 
countries with respect to such article or articles for purposes 
of the GSP, and that one or more countries should no longer be 
treated as beneficiary developing countries with respect to an 
eligible article for purposes of the GSP, general note 4 to the 
HTS is modified as provided in section A of Annex I to this 
proclamation.
    (2) In order to designate certain articles as eligible 
articles for purposes of the GSP when imported from beneficiary 
developing countries, the HTS is modified as provided in 
section B of Annex I to this proclamation.
    (3) (a) In order to designate an article as an eligible 
article for purposes of the GSP when imported from any 
beneficiary developing country other than India, the Rates of 
Duty 1-Special subcolumn for the HTS subheading enumerated in 
section C(1)(a) of Annex I to this proclamation is modified as 
provided in such Annex section.
    (b) In order to designate an article as an eligible article 
for purposes of the GSP when imported from any beneficiary 
developing country, the Rates of Duty 1-Special subcolumn for 
the HTS subheading enumerated in section C(1)(b) of Annex I to 
this proclamation is modified as provided in such Annex 
section.
    (c) In order to restore preferential tariff treatment under 
the GSP to a country that has been excluded from the benefits 
of the GSP for an eligible article, the Rates of Duty 1-Special 
subcolumn for each of the HTS subheadings enumerated in section 
C(1)(c) of Annex I to this proclamation is modified as provided 
in such Annex section.
    (d) In order to provide that one or more countries should 
no longer be treated as a beneficiary developing country with 
respect to an eligible article for purposes of the GSP, the 
Rate of Duty 1-Special subcolumn for each of the HTS provisions 
enumerated in section C(2) of Annex I to this proclamation is 
modified as provided in such Annex section.
    (4) In order to designate certain articles as eligible 
articles for purposes of the GSP only when imported from 
designated least-developed beneficiary developing countries, 
the HTS is modified as provided in Annex II to this 
proclamation.
    (5) 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 III to this proclamation.
    (6) In order to provide for the continuation of previously 
proclaimed staged reductions in the Rates of Duty 1-General 
subcolumn, for goods that fall in the HTS subheadings modified 
by section B(1) of Annex I to this proclamation and that are 
entered, or withdrawn from warehouse for consumption, on or 
after the dates specified in Annex IV to this proclamation, the 
rate of duty in the HTS set forth in such subcolumn for each of 
the HTS subheadings enumerated in Annex IV to this proclamation 
is deleted and the rate of duty provided in such Annex is 
inserted in lieu thereof.
    (7) 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.
    (8) (a) The modifications made by Annexes I, II, and IV 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 Annexes.
    (b) The action taken in Annex III to this proclamation 
shall be effective on May 31, 1997.
    IN WITNESS WHEREOF, I have hereunto set my hand this 
thirtieth day of May, in the year of our Lord nineteen hundred 
and ninety-seven, and of the Independence of the United States 
of America the two hundred and twenty-first.

                                                William J. Clinton.




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