[House Document 110-130]
[From the U.S. Government Publishing Office]




110th Congress, 2d Session - - - - - - - - - - - House Document 110-130
 
  NOTIFICATION TO ADD SERBIA AND MONTENEGRO SEPARATELY TO THE LIST OF 
COUNTRIES UNDER THE GENERALIZED SYSTEM OF PREFERENCES AND TO TERMINATE 
                          TRINIDAD AND TOBAGO

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 NOTIFICATION OF HIS INTENTION TO DESIGNATE THE REPUBLIC OF SERBIA AND 
THE REPUBLIC OF MONTENEGRO AS SEPARATE BENEFICIARY DEVELOPING COUNTRIES 
UNDER THE GENERALIZED SYSTEM OF PREFERENCES (GSP) AND TO TERMINATE THE 
DESIGNATION OF TRINIDAD AND TOBAGO AS A BENEFICIARY DEVELOPING COUNTRY 
UNDER THE GENERALIZED SYSTEM OF PREFERENCES (GSP), PURSUANT TO PUB. L. 
                 104-188, SEC. 1952(a) (110 STAT. 1917)




July 8, 2008.--Referred to the Committee on Ways and Means and ordered 
                             to be printed
                                           The White House,
                                         Washington, June 30, 2008.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: In accordance with section 502(f) of 
the Trade Act of 1974, as amended (the ``1974 Act''), I am 
notifying the Congress of my intent to (a) designate the 
Republic of Serbia (Serbia) and the Republic of Montenegro 
(Montenegro) as separate beneficiary developing countries under 
the Generalized System of Preferences (GSP); and (b) terminate 
the designation of Trinidad and Tobago as a beneficiary 
developing country under the GSP.
    In proclamation 7912 of June 29, 2005, I designated Serbia 
and Montenegro as a beneficiary developing country for purposes 
of the GSP. On June 3, 2006, Montenegro declared independence 
from Serbia and Montenegro and the country separated into two 
independent republics, the Republic of Serbia and the Republic 
of Montenegro. Pursuant to section 502 of the 1974 Act, and 
having considered the factors set forth in sections 501 and 
502(c), I have determined that, in light of the separation of 
Serbia and Montenegro into two countries, the Republic of 
Serbia and the Republic of Montenegro should each be designated 
as beneficiary developing countries for purposes of the GSP.
    Section 502(e) of the 1974 Act, provides that the President 
shall terminate the designation of a country as a beneficiary 
developing country for purposes of the GSP if the President 
determines that such country has become a ``high income'' 
country as defined by the official statistics of the 
International Bank for Reconstruction and Development. 
Termination is effective on January 1 of the second year 
following the year in which such determination is made. I have 
determined that Trinidad and Tobago has become a ``high 
income'' country, and I am terminating the designation of that 
country as a beneficiary developing country for purposes of the 
GSP, effective January 1, 2010.
            Sincerely,
                                                    George W. Bush.
     To Modify Duty-Free Treatment Under the Generalized System of 
    Preferences, Take Certain Actions Under the African Growth and 
                Opportunity Act, and for Other Purposes

                              ----------                              


            By the President of the United States of America

                             A PROCLAMATION

    1. Pursuant to section 503(c)(2)(A) of the Trade Act of 
1974, as amended (the ``1974 Act'') (19 U.S.C. 2463(c)(2)(A)), 
beneficiary developing countries, except those designated as 
least-developed beneficiary developing countries or beneficiary 
sub-Saharan African countries as provided in 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 Generalized System of Preferences 
(GSP) to eligible articles.
    2. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 
Act (19 U.S.C. 2461 and 2463(a)(1)(A)), the President may 
designate articles as eligible for preferential tariff 
treatment under the GSP.
    3. Section 503(c)(2)(F)(i) of the 1974 Act (19 U.S.C. 
2463(c)(2)(F)(i)) provides that 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 from 
any beneficiary developing country if the aggregate appraised 
value of the imports of such article into the United States 
during the preceding calendar year does not exceed an amount 
set forth in section 503(c)(2)(F)(ii) of the 1974 Act (19 
U.S.C. 2463(c)(2)(F)(ii)) .
    4. Pursuant to section 503(d)(1) of the 1974 Act (19 U.S.C. 
2463(d)(1)), the President may waive the application of the 
competitive need limitations in section 503(c)(2)(A) of the 
1974 Act with respect to any eligible article from any 
beneficiary developing country if certain conditions are met.
    5. 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.
    6. Section 502(e) of the 1974 Act (19 U.S.C. 2462(e)) 
provides that the President shall terminate the designation of 
a country as a beneficiary developing country for purposes of 
the GSP if the President determines that such country has 
become a ``high income'' country as defined by the official 
statistics of the International Bank for Reconstruction and 
Development. Termination is effective on January 1 of the 
second year following the year in which such determination is 
made.
    7. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have 
determined that in 2007 certain beneficiary developing 
countries have exported certain eligible articles in quantities 
exceeding the applicable competitive need limitations, and I 
therefore terminate the duty-free treatment for such articles 
from such beneficiary developing countries.
    8. 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) of the 1974 Act should be 
disregarded with respect to certain eligible articles from 
certain beneficiary developing countries.
    9. Pursuant to section 503(d)(1) of the 1974 Act, 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 considerations 
described in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 
2462(c)), and after giving great weight to the considerations 
in section 503(d)(2) of the 1974 Act (19 U.S.C. 2463(d)(2)), 
that such waivers are in the national economic interest of the 
United States. Accordingly, I have determined that the 
competitive need limitations of section 503(c)(2)(A) of the 
1974 Act should be waived with respect to certain eligible 
articles from certain beneficiary developing countries.
    10. Pursuant to section 503(d)(5) of the 1974 Act, I have 
determined that certain previously granted waivers of the 
competitive need limitations of section 503(c)(2)(A) of the 
1974 Act are no longer warranted due to changed circumstances.
    11. Pursuant to section 502(e) of the 1974 Act, I have 
determined that Trinidad and Tobago has become a ``high 
income'' country, and I am terminating the designation of that 
country as a beneficiary developing country for purposes of the 
GSP, effective January 1, 2010.
    12. Section 502(a)(1) of the 1974 Act (19 U.S.C. 
2462(a)(1)) authorizes the President to designate countries as 
beneficiary developing countries for purposes of the GSP. In 
Proclamation 7912 of June 29, 2005, I designated Serbia and 
Montenegro as a beneficiary developing country for purposes of 
the GSP. On June 3, 2006, upon Montenegro's declaration of 
independence from Serbia and Montenegro, the country separated 
into two independent republics: the Republic of Serbia and the 
Republic of Montenegro. Pursuant to section 502 of the 1974 
Act, and taking into account the factors set forth in section 
502(c) of that Act, I have determined that, in light of the 
separation of Serbia and Montenegro into two countries, the 
Republic of Serbia and the Republic of Montenegro should each 
be designated as a beneficiary developing country for purposes 
of the GSP.
    13. Section 506A(a)(1) of the 1974 Act (19 U.S.C. 
2466a(a)(1)), as added by section 111(a) of the African Growth 
and Opportunity Act (title I of Public Law 106-200, 114 Stat. 
254) (AGOA), authorizes the President to designate a country 
listed in section 107 of the AGOA (19 U.S.C. 3706) as a 
beneficiary sub-Saharan African country if the President 
determines that the country meets the eligibility requirements 
set forth in section 104 of the AGOA (19 U.S.C. 3703) and the 
eligibility criteria set forth in section 502 of the 1974 Act 
(19 U.S.C. 2462).
    14. Section 104 of the AGOA authorizes the President to 
designate a country listed in section 107 of the AGOA as an 
eligible sub-Saharan African country if the President 
determines that the country meets certain eligibility 
requirements.
    15. Section 112(c) of the AGOA (19 U.S.C. 3721(c)), as 
added by section 6002(a) of the Africa Investment Incentive Act 
of 2006 (division D of title VI of Public Law 109-432, 120 
Stat. 2922), provides special rules for certain apparel 
articles imported from lesser developed beneficiary sub-Saharan 
African countries.
    16. Pursuant to section 104 of the AGOA and section 
506A(a)(1) of the 1974 Act, I have determined that the Union of 
the Comoros (Comoros) meets the eligibility requirements set 
forth or referenced therein, and I have decided to designate 
Comoros as an eligible sub-Saharan African country and 
beneficiary sub-Saharan African country.
    17. I have further determined that Comoros satisfies the 
criterion for treatment as a lesser developed beneficiary sub-
Saharan African country under section 112(c)(5)(D)(i) of the 
AGOA.
    18. On August 5, 2004, the United States entered into the 
Dominican Republic-Central America-United States Free Trade 
Agreement (the ``Agreement'') with Costa Rica, the Dominican 
Republic, El Salvador, Guatemala, Honduras, and Nicaragua. The 
Congress approved the Agreement in section 101(a) of the 
Dominican Republic-Central America-United States Free Trade 
Agreement Implementation Act (the ``CAFTA-DR Act'') (19 U.S.C. 
4011).
    19. Pursuant to section 403(a) of the CAFTA-DR Act (19 
U.S.C. 4111(a)), the President is to report biennially to the 
Congress on the matters described in that section and, as the 
President deems appropriate, in section 403(b)(2) of the CAFTA-
DR Act (19 U.S.C. 4111(b)(2)).
    20. Pursuant to section 403(a)(4) of the CAFTA-DR Act (19 
U.S.C. 4111(a)(4)), the President is to establish a mechanism 
to solicit public comments on the matters described in section 
403(a)(3)(D) of the CAFTA-DR Act (19 U.S.C. 4111(a)(3)(D)).
    21. In presidential Proclamation 8213 of December 20, 2007, 
I modified the Harmonized Tariff Schedule of the United States 
(HTS) pursuant to section 1634 of the Pension Protection Act of 
2006 (Public Law 109-280, 120 Stat. 780) to carry out the 
understandings described in that section. Technical 
rectifications to the HTS are required to provide the intended 
tariff treatment.
    22. In Presidential Proclamation 8240 of April 17, 2008, 
pursuant to section 503(c)(2)(A) of the 1974 Act, I modified 
the HTS to withdraw duty-free treatment for certain articles 
from Jamaica. A technical rectification to the HTS is required 
to provide the intended tariff treatment.
    23. 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, 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 
but not limited to title V and section 604 of the 1974 Act, 
section 104 of the AGOA, section 301 of title 3, United States 
Code (3 U.S.C. 301), and section 403 of the CAFTA-DR Act, do 
proclaim that:
    (1) In order to provide that one or more countries should 
no longer be treated as beneficiary developing countries with 
respect to one or more eligible articles for purposes of the 
GSP, general note 4(d) to the HTS is modified as set forth in 
section A of Annex I to this proclamation.
    (2) In order to provide that one or more countries should 
not be treated as beneficiary developing countries with respect 
to certain eligible articles for purposes of the GSP, the Rates 
of Duty 1-Special subcolumn for such HTS subheadings is 
modified as set forth in section B of Annex I to this 
proclamation.
    (3) In order to designate certain articles as eligible 
articles for purposes of the GSP, the Rates of Duty 1-Special 
subcolumn for such HTS subheadings is modified as set forth in 
section C of Annex I to this proclamation.
    (4) The competitive need limitation provided in section 
503(c)(2)(A)(i)(II) of the 1974 Act is disregarded with respect 
to the eligible articles in the HTS subheadings and to the 
beneficiary developing countries listed 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) The waivers of the application of section 503(c)(2)(A) 
of the 1974 Act to the articles in the HTS subheadings and to 
the beneficiary developing countries listed in Annex IV to this 
proclamation are revoked.
    (7) The designation of Trinidad and Tobago as a beneficiary 
developing country for purposes of the GSP is terminated, 
effective on January 1, 2010.
    (8) In order to reflect this termination in the HTS, 
general note 4(a) to the HTS is modified by deleting ``Trinidad 
and Tobago'' from the list of independent countries, effective 
with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after January 1, 2010.
    (9) The Republic of Serbia is designated as a beneficiary 
developing country for purposes of the GSP.
    (10) In order to reflect this designation in the HTS, 
general note 4(a) is modified by deleting ``Serbia and 
Montenegro'' and adding in alphabetical order ``Serbia'' to the 
list of independent countries, effective with respect to 
articles entered, or withdrawn from warehouse for consumption, 
on or after the thirtieth day after the date of this 
proclamation.
    (11) The Republic of Montenegro is designated as a 
beneficiary developing country for purposes of the GSP.
    (12) In order to reflect this designation in the HTS, 
general note 4(a) is modified by adding in alphabetical order 
``Montenegro'' to the list of independent countries, effective 
with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after the thirtieth day after the date 
of this proclamation.
    (13) Comoros is designated as an eligible sub-Saharan 
African country and as a beneficiary sub-Saharan African 
country for purposes of the AGOA.
    (14) In order to reflect this designation in the HTS, 
general note 16(a) to the HTS is modified by inserting in 
alphabetical sequence in the list of beneficiary sub-Saharan 
African countries ``Union of the Comoros,'' effective with 
respect to articles entered, or withdrawn from warehouse for 
consumption, on or after July 1, 2008.
    (15) For purposes of section 112(c) of the AGOA, Comoros is 
a lesser developed beneficiary sub-Saharan African country.
    (16) The modifications to the HTS set forth in Annexes I 
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 the respective annex.
    (17) The Secretary of Labor, in consultation with the 
United States Trade Representative, shall carry out the 
reporting function under sections 403(a) and 403(b)(2) of the 
CAFTA-DR Act.
    (18) The Secretary of Labor, in consultation with the 
United States Trade Representative, shall solicit public 
comments under section 403(a)(4) of the CAFTA-DR Act.
    (19) In order to provide the intended tariff treatment to 
certain articles of Jamaica, the HTS is modified as set forth 
in Annex V to this proclamation.
    (20) The modifications to the HTS set forth in Annex V to 
this proclamation shall be effective with respect to articles 
entered, or withdrawn from warehouse for consumption, on or 
after the date set forth in Annex V.
    (21) In order to provide the intended tariff treatment to 
goods subject to the understandings carried out in Proclamation 
8213, the HTS is modified as set forth in Annex VI to this 
proclamation.
    (22) The modifications to the HTS set forth in Annex VI to 
this proclamation shall enter into effect on the date that the 
modifications to the HTS set out in section C or D of the Annex 
to proclamation 8213, as appropriate, enter into force, and 
shall be effective with respect to goods entered, or withdrawn 
from warehouse for consumption, on or after that date.
    (23) 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.
    IN WITNESS WHEREOF, I have hereunto set my hand this 
thirtieth day of June in the year of our Lord two thousand 
eight, and of the Independence of the United States of America 
the two hundred and thirty-second.
                                                    George W. Bush.