[House Document 111-85]
[From the U.S. Government Publishing Office]



111th Congress, 2d Session - - - - - - - - - - - - - House Document 111-85

 
TRANSMISSION OF A PROCLAMATION ENTITLED ``TO MODIFY DUTY-FREE TREATMENT 
 UNDER THE GENERALIZED SYSTEM OF PREFERENCES, AND FOR OTHER PURPOSES''

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

    TO ADD THE REPUBLIC OF THE MALDIVES TO THE LIST OF BENEFICIARY 
DEVELOPING COUNTRIES UNDER THE GENERALIZED SYSTEM OF PREFERENCES (GSP) 
     AND THE INTENTION TO TERMINATE THE DESIGNATION OF CROATIA AND 
            EQUATORIAL GUINEA AS A BENEFICIARY UNDER THE GSP




  January 13, 2010.--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) offers duty-
free treatment to specified products that are imported from 
designated beneficiary developing countries. The GSP is 
authorized by title V of the Trade Act of 1974, as amended (the 
``Act'').
    In accordance with sections 502(f)(1)(A) and 502(f)(2) of 
the Act, I am providing notification of my intent to add the 
Republic of Maldives to the list of beneficiary developing 
countries under the GSP program and my intent to terminate the 
designations of Croatia and Equatorial Guinea as beneficiary 
developing countries under the GSP program.
    In Proclamation 6813 of July 28, 1995, the designation of 
Maldives as a beneficiary developing country for purposes of 
the GSP program was suspended. After considering the criteria 
set forth in sections 501 and 502 of the Act, I have determined 
that the suspension of the designation of Maldives as a GSP 
beneficiary developing country should be ended.
    In addition, I have determined that Croatia and Equatorial 
Guinea have each become a ``high income'' country, as defined 
by the official statistics of the International Bank for 
Reconstruction and Development. In accordance with section 
502(e) of the Act, I have determined that the designations of 
Croatia and Equatorial Guinea as beneficiary developing 
countries under the GSP program should be terminated, effective 
January 1, 2011.
                                                      Barack Obama.
    The White House, December 23, 2009.
     To Modify Duty-Free Treatment Under the Generalized System of 
                  Preferences, and for Other Purposes

                              ----------                              


            By the President of the United States of America

                             A Proclamation

    1. Sections 501(1) and (4) of the Trade Act of 1974, as 
amended (the ``1974 Act'') (19 U.S.C. 2461(1) and (4)), provide 
that, in affording duty-free treatment under the Generalized 
System of Preferences (GSP), the President shall have due 
regard for, among other factors, the effect such action will 
have on furthering the economic development of a beneficiary 
developing country and the extent of the beneficiary developing 
country's competitiveness with respect to eligible articles. 
Section 502(c)(2) of the 1974 Act (19 U.S.C. 2462(c)(2)) 
provides that, in determining whether to designate any country 
as a beneficiary developing country for purposes of the GSP, 
the President shall take into account various factors, 
including the country's level of economic development, the 
country's per capita gross national product, the living 
standards of its inhabitants, and any other economic factors he 
deems appropriate. Section 502(d) of the 1974 Act (19 U.S.C. 
2462(d)) authorizes the President to withdraw, suspend, or 
limit the application of duty-free treatment under the GSP with 
respect to any country after considering the factors set forth 
in sections 501 and 502(c) of the 1974 Act. Section 502(f)(2) 
of the 1974 Act (19 U.S.C. 2462(f)(2)) requires the President 
to notify the Congress and the affected country, at least 60 
days before termination, of the President's intention to 
terminate the affected country's designation as a beneficiary 
developing country for purposes of the GSP.
    2. 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 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.
    3. Pursuant to section 502(e) of the 1974 Act, I have 
determined that Croatia 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, 2011.
    4. Pursuant to section 502(e) of the 1974 Act, I have 
determined that Equatorial Guinea 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, 2011.
    5. Section 502(a)(2) (19 U.S.C. 2462(a)(2)) of the 1974 Act 
provides that the President may designate any beneficiary 
developing country as a least-developed beneficiary developing 
country for purposes of the GSP, based on the considerations in 
sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2461 and 19 
U.S.C. 2462(c)).
    6. Pursuant to section 502(d)(1) of the 1974 Act, and 
having considered the factors set forth in sections 501 and 
502(c) of the 1974 Act, I have determined that Cape Verde 
should be removed from the list of least-developed beneficiary 
countries.
    7. In Proclamation 8272 of June 30, 2008, the President 
determined that Trinidad and Tobago had become a ``high 
income'' country, and the designation of Trinidad and Tobago as 
a beneficiary developing country for purposes of the GSP shall 
be terminated, effective January 1, 2010. I have determined 
that technical rectifications should be made to the Harmonized 
Tariff Schedule of the United States (HTS) to reflect that 
determination.
    8. Pursuant to sections 501 and 502(a)(1) of the 1974 Act, 
the President is authorized to designate countries as 
beneficiary developing countries for purposes of the GSP and to 
provide duty-free treatment for eligible articles from 
beneficiary developing counties.
    9. In Proclamation 6813 of July 28, 1995, the President 
suspended the designation of the Republic of Maldives 
(Maldives) as a beneficiary developing country under the GSP.
    10. Pursuant to sections 501 and 502(a) of the 1974 Act, 
and taking into account the factors set forth in sections 501 
and 502(c), I have determined that it is appropriate to 
terminate the suspension of preferential treatment under the 
GSP for articles that are currently eligible for such treatment 
and that are imported from Maldives and to redesignate Maldives 
as a beneficiary developing country for purposes of the GSP.
    11. On April 22, 1985, the United States and Israel entered 
into the Agreement on the Establishment of a Free Trade Area 
between the Government of the United States of America and the 
Government of Israel (the ``USIFTA''), which the Congress 
approved in the United States-Israel Free Trade Area 
Implementation Act of 1985 (the ``USIFTA Act'') (19 U.S.C. 2112 
note).
    12. Section 4(b) of the USIFTA Act provides that, whenever 
the President determines that it is necessary to maintain the 
general level of reciprocal and mutually advantageous 
concessions with respect to Israel provided for by the USIFTA, 
the President may proclaim such withdrawal, suspension, 
modification, or continuance of any duty, or such continuance 
of existing duty-free or excise treatment, or such additional 
duties as the President determines to be required or 
appropriate to carry out the USIFTA.
    13. In order to maintain the general level of reciprocal 
and mutually advantageous concessions with respect to 
agricultural trade with Israel, on July 27, 2004, the United 
States entered into an agreement with Israel concerning certain 
aspects of trade in agricultural products during the period 
January 1, 2004, through December 31, 2008 (the ``2004 
Agreement'').
    14. In Presidential Proclamation 7826 of October 4, 2004, 
consistent with the 2004 Agreement, the President determined, 
pursuant to section 4(b) of the USIFTA Act, that it was 
necessary in order to maintain the general level of reciprocal 
and mutually advantageous concessions with respect to Israel 
provided for by the USIFTA, to provide duty-free access into 
the United States through December 31, 2008, for specified 
quantities of certain agricultural products of Israel.
    15. On December 10, 2008, the United States entered into an 
agreement with Israel to extend the period that the 2004 
Agreement is in force through December 31, 2009, to allow 
additional time for the two governments to conclude an 
agreement to replace the 2004 Agreement.
    16. In Presidential Proclamation 8334 of December 31, 2008, 
the President determined that it was necessary in order to 
maintain the general level of reciprocal and mutually 
advantageous concessions with respect to Israel provided for by 
the USIFTA to extend such duty-free treatment through December 
31, 2009. In Proclamation 8334, the President modified the HTS 
to provide duty-free access into the United States through 
December 31, 2009, for specified quantities of certain 
agricultural products of Israel. In Proclamation 8405 of August 
31, 2009, I further modified the HTS to provide the intended 
tariff treatment.
    17. On December 6, 2009, the United States entered into a 
further agreement with Israel to extend the period that the 
2004 Agreement is in force through December 31, 2010, to allow 
for further negotiations on an agreement to replace the 2004 
Agreement.
    18. Pursuant to section 4(b) of the USIFTA Act, I have 
determined that it is necessary, in order to maintain the 
general level of reciprocal and mutually advantageous 
concessions with respect to Israel provided for by the USIFTA, 
to provide duty-free access into the United States through the 
close of December 31, 2010, for specified quantities of certain 
agricultural products of Israel.
    19. Presidential Proclamation 6641 of December 15, 1993, 
implemented the North American Free Trade Agreement (NAFTA) 
with respect to the United States and, pursuant to the North 
American Free Trade Agreement Implementation Act (the ``NAFTA 
Implementation Act'') (Public Law 103-182), incorporated in the 
HTS the schedule of duty reductions and rules of origin 
necessary or appropriate to carry out the NAFTA.
    20. Section 202 of the NAFTA Implementation Act (19 U.S.C. 
3332) 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.
    21. Presidential Proclamation 8405 of August 31, 2009, 
modified the HTS to provide for modifications to the rules of 
origin under the NAFTA. I have determined that technical 
corrections to the HTS are necessary to provide for the 
intended rules of origin.
    22. Presidential Proclamation 7747 of December 30, 2003, 
implemented the United States-Singapore Free Trade Agreement 
(USSFTA) with respect to the United States, including certain 
rules for determining whether a good is an originating good for 
the purposes of implementing tariff treatment under the USSFTA. 
I have determined that certain rules of origin under the USSFTA 
were inadvertently deleted in the HTS and that technical 
rectifications to the HTS are necessary to restore the intended 
rules of origin.
    23. Presidential Proclamation 7746 of December 30, 2003, 
implemented the United States-Chile Free Trade Agreement 
(USCFTA) with respect to the United States, including certain 
rules for determining whether a good is an originating good for 
the purposes of implementing tariff treatment under the USCFTA. 
I have determined that technical corrections to the HTS are 
necessary to provide for the intended rules of origin.
    24. Presidential Proclamations 7987 of February 28, 2006; 
7991 of March 24, 2006; 7996 of March 31, 2006; 8034 of June 
30, 2006; 8111 of February 28, 2007; and 8331 of December 23, 
2008, implemented the Dominican Republic-Central America-United 
States Free Trade Agreement (CAFTA-DR) with respect to the 
United States, including certain rules for determining whether 
a good is an originating good for the purposes of implementing 
tariff treatment under the CAFTA-DR. Section 203(f)(3)(A)(ii) 
of the Dominican Republic-Central America-United States Free 
Trade Agreement Implementation Act (the ``CAFTA-DR Act'') (19 
U.S.C. 4033) provides rules of origin for certain yarns 
described in section 204(b)(3)(B)(vi)(IV) of the Andean Trade 
Preference Act (19 U.S.C. 3203(b)(3)(B)(vi)(IV)) (as in effect 
on the date of enactment of the CAFTA-DR Act).
    25. Presidential Proclamations 8097 of December 29, 2006, 
and 8240 of April 17, 2008, modified the HTS pursuant to 
section 1206(a) of the Omnibus Trade and Competitiveness Act of 
1988 (19 U.S.C. 3006(a)) to conform it to amendments in the 
International Convention on the Harmonized Commodity 
Description and Coding System (the ``Convention''). They 
contained certain modifications that affected the rules of 
origin under the Andean Trade Preference Act. Modifications to 
the HTS are necessary to conform the rules of origin for 
certain yarns described in section 204(b)(3)(B)(vi)(IV) of the 
Andean Trade Preference Act to the Convention. I have 
determined that additional conforming changes to the HTS are 
necessary to provide for the intended rules of origin under the 
CAFTA-DR.
    26. 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, BARACK OBAMA, President of the United 
States of America, by virtue of 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 and section 4 of the USIFTA Act, do proclaim that:
    (1) The designation of Croatia as a beneficiary developing 
country for purposes of the GSP is terminated, effective on 
January 1, 2011.
    (2) In order to reflect this termination in the HTS, 
general note 4(a) of the HTS is modified by deleting 
``Croatia'' from the list of independent countries, effective 
with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after January 1, 2011.
    (3) The designation of Equatorial Guinea as a beneficiary 
developing country for purposes of the GSP is terminated, 
effective on January 1, 2011.
    (4) In order to reflect this termination in the HTS, 
general note 4(a) of the HTS is modified by deleting 
``Equatorial Guinea'' from the list of independent countries, 
effective with respect to articles entered, or withdrawn from 
warehouse for consumption, on or after January 1, 2011. General 
note 4(b)(i) of the HTS is modified by deleting ``Equatorial 
Guinea'' from the list of least-developed beneficiary 
developing countries, effective with respect to articles 
entered, or withdrawn from warehouse for consumption, on or 
after January 1, 2011.
    (5) In order to reflect in the HTS the termination of the 
designation of Cape Verde as a least-developed beneficiary 
developing country for purposes of the GSP, general note 
4(b)(i) of the HTS is modified by deleting ``Cape Verde'' from 
the list of least-developed beneficiary developing countries, 
effective with respect to articles entered, or withdrawn from 
warehouse for consumption, on or after January 1, 2010.
    (6) In order to reflect in the HTS the termination of the 
designation of Trinidad and Tobago as a beneficiary developing 
country for purposes of the GSP, general note 4(d) and general 
note 4(a) to the HTS, and the Rate of Duty 1-Special subcolumn 
for HTS subheading 7411.21.50, are modified as set forth in 
Annex I to this proclamation.
    (7) In order to reflect in the HTS the redesignation of 
Maldives as a beneficiary developing country under the GSP, 
general note 4(a) is modified by adding in alphabetical order 
``Maldives'' to the list of ``Independent Countries'' and by 
adding in alphabetical order ``Maldives'' to the list of 
``Member Countries of the South Asian Association for Regional 
Cooperation (SAARC).''
    (8) In order to make technical corrections and 
rectifications necessary to provide the intended rules of 
origin under the NAFTA, the USSFTA, and the USCFTA, the HTS is 
modified as set forth in Annex II to this proclamation.
    (9) In order to reflect modifications to the HTS made to 
conform the rules of origin for certain yarns described in 
section 204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act 
to the Convention, general note 29 of the HTS is modified as 
set forth in Annex II to this proclamation.
    (10) The modifications to the HTS set forth in Annexes I 
and II 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.
    (11) In order to implement U.S. tariff commitments under 
the 2004 Agreement through December 31, 2010, the HTS is 
modified as provided in Annex III to this proclamation.
    (12)(a) The modifications to the HTS made by Annex III to 
this proclamation shall be effective with respect to goods that 
are the product of Israel and are entered, or withdrawn from 
warehouse for consumption, on or after January 1, 2010.
    (b) The provisions of subchapter VIII of chapter 99 of the 
HTS, as modified by Annex III to this proclamation, shall 
continue in effect through December 31, 2010.
    (13) 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 
twenty-third day of December, in the year of our Lord two 
thousand nine, and of the Independence of the United States of 
America the two hundred and thirty-fourth.

                                                      Barack Obama.


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