[House Document 112-158]
[From the U.S. Government Publishing Office]




112th Congress, 2d Session - - - - - - - - - - - House Document 112-158

 
 TERMINATION OF THE FEDERATION OF ST. KITTS AND NEVIS AS A BENEFICIARY 
 DEVELOPING COUNTRY UNDER THE GENERALIZED SYSTEM OF PREFERENCES PROGRAM

                               __________

                                MESSAGE

                                  from

                 THE PRESIDENT OF THE UNITED STATES

                              transmitting

 NOTIFICATION OF THE TERMINATION OF THE FEDERATION OF SAINT KITTS AND 
NEVIS BENEFICIARY DEVELOPING COUNTRIES UNDER THE GENERALIZED SYSTEM OF 
                          PREFERENCES PROGRAM




  December 20, 2012.--Message and accompanying papers referred to the 
         Committee on Ways and Means and ordered to be printed

                              ------------

                    U.S. GOVERNMENT PRINTING OFFICE

 29-011                      WASHINGTON : 2012






To the Congress of the United States:
    In accordance with section 502(f)(2) of the Trade Act of 
1974, as amended (the ``1974 Act'') (19 U.S.C. 2462(f)(2)), I 
am providing notification of my intent to terminate the 
designation of the Federation of Saint Kitts and Nevis (St. 
Kitts and Nevis) as a beneficiary developing country under the 
Generalized System of Preferences (GSP) program. Section 502(e) 
of the 1974 Act (19 U.S.C. 2462(e)) provides that if the 
President determines that a beneficiary developing country has 
become a ``high-income'' country, as defined by the official 
statistics of the International Bank for Reconstruction and 
Development (i.e., the World Bank), then the President shall 
terminate the designation of such country as a beneficiary 
developing country for purposes of the GSP, effective on 
January 1 of the second year following the year in which such 
determination is made.
    Pursuant to section 502(e) of the 1974 Act, I have 
determined that it is appropriate to terminate the designation 
of St. Kitts and Nevis as a beneficiary developing country 
under the GSP program because it has become a high-income 
country as defined by the World Bank. Accordingly, St. Kitts 
and Nevis' eligibility for trade benefits under the GSP program 
will end on January 1, 2014.

                                                      Barack Obama.
    The White House, December 20, 2012.




 To 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. Section 506A(a)(1) of the Trade Act of 1974, as amended 
(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) (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), as well as the eligibility criteria set forth 
in section 502 of the 1974 Act (19 U.S.C. 2462).
    2. 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.
    3. Pursuant to section 104 of the AGOA and section 
506A(a)(1) of the 1974 Act, I have determined that the Republic 
of South Sudan meets the eligibility requirements set forth or 
referenced therein, and I have decided to designate the 
Republic of South Sudan an eligible sub-Saharan African country 
and as a beneficiary sub-Saharan African country.
    4. Section 506A(a)(3) of the 1974 Act (19 U.S.C. 
2466a(a)(3)) authorizes the President to terminate the 
designation of a country as a beneficiary sub-Saharan African 
country for purposes of section 506A if he determines that the 
country is not making continual progress in meeting the 
requirements described in section 506A(a)(1) of the 1974 Act.
    5. Pursuant to section 506A(a)(3) of the 1974 Act, I have 
determined that the Republic of Mali and the Republic of 
Guinea-Bissau are not making continual progress in meeting the 
requirements described in section 506A(a)(1) of the 1974 Act. 
Accordingly, I have decided to terminate the designations of 
the Republic of Mali and the Republic of Guinea-Bissau as 
beneficiary sub-Saharan African countries for purposes of 
section 506A of the 1974 Act, effective on January 1, 2013.
    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 Generalized System of Preferences (GSP) if the President 
determines that such country has become a ``high-income'' 
country as efined 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 502(e) of the 1974 Act, I have 
determined that the Federation of Saint Kitts and Nevis has 
become a ``high-income'' country. I am terminating the 
designation of that country as a beneficiary developing country 
for purposes of the GSP, effective January 1, 2014, and I will 
so notify the Congress.
    8. 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 (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).
    9. 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.
    10. 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'').
    11. In 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.
    12. In 2008, 2009, 2010, and 2011, the United States and 
Israel entered into agreements to extend the period that the 
2004 Agreement was in force for 1-year periods to allow 
additional time for the two governments to conclude an 
agreement to replace the 2004 Agreement.
    13. To carry out the extension agreements, the President in 
Proclamation 8334 of December 31, 2008; Proclamation 8467 of 
December 23, 2009; Proclamation 8618 of December 21, 2010; and 
Proclamation 8770 of December 29, 2011, modified the Harmonized 
Tariff Schedule of the United States (HTS) to provide duty-free 
access into the United States for specified quantities of 
certain agricultural products of Israel, each time for an 
additional 1-year period.
    14. On November 19, 2012, the United States entered into an 
agreement with Israel to extend the period that the 2004 
Agreement is in force through December 31, 2013, to allow for 
further negotiations on an agreement to replace the 2004 
Agreement.
    15. 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, 2013, for specified quantities of certain 
agricultural products of Israel.
    16. In Presidential Proclamation 8771 of December 29, 2011, 
pursuant to the authority provided in section 1206(a) of the 
Omnibus Trade and Competitiveness Act of 1988 (the ``1988 
Act'') (19 U.S.C. 3006(a)), I modified the HTS to reflect 
amendments to the International Convention on the Harmonized 
Commodity Description and Coding System (the ``Convention'').
    17. Presidential Proclamation 7746 of December 30, 2003, 
implemented the United States-Chile Free Trade Agreement 
(USCFTA) with respect to the United States and, pursuant to the 
United States-Chile Free Trade Agreement Implementation Act 
(the ``USCTA Act'') (19 U.S.C. 3805 note), incorporated in the 
HTS the schedule of duty reductions and rules of origin 
necessary or appropriate to carry out the USCFTA.
    18. In order to ensure the continuation of such staged 
reductions in rates of duty for originating goods of Chile in 
tariff categories that were modified to reflect amendments to 
the Convention, Presidential Proclamation 8771 made 
modifications to the HTS that I determined were necessary or 
appropriate to carry out the duty reductions proclaimed in 
Proclamation 7746.
    19. Chile is a party to the Convention. Because the 
substance of the changes to the Convention are reflected in 
slightly differing form in its national tariff schedule, the 
rules of origin set out in the USCFTA must be changed to ensure 
that the tariff and certain other treatment accorded under the 
USCFTA to originating goods will continue to be provided under 
the tariff categories that were modified in Proclamation 8771. 
The United States and Chile have agreed to make these changes 
to certain rules of origin set out in the USCFTA.
    20. Section 202 of the USCFTA Act provides rules for 
determining whether goods imported into the United States 
originate in the territory of a USCFTA Party and thus are 
eligible for the tariff and other treatment contemplated under 
the USCFTA. Section 202(o) of the USCFTA Act authorizes the 
President to proclaim, as part of the HTS, the rules of origin 
set out in the USCFTA and to proclaim any modifications to such 
previously proclaimed rules of origin, subject to the 
exceptions stated in section 202(o)(2)(A).
    21. Presidential Proclamation 8840 of June 29, 2012, 
modified the HTS to reflect changes to duty-free treatment 
under the GSP. Annex I to that proclamation included an error 
in the list of subheading numbers to be added at general note 
4(d) to the HTS, and I have determined that a modification to 
the HTS is necessary to correct that technical error.
    22. Presidential Proclamation 8894 of October 29, 2012 
pursuant to the authority provided under section 
202(o)(2)(B)(ii) of the United States-Korea Free Trade 
Agreement Implementation Act, modified the HTS, through section 
E of Annex III of Publication 4349 of the United States 
International Trade Commission (the ``Commission''), to correct 
a clerical error regarding a provision of chapter 61 (as 
included in Annex 4-A of the United States-Korea Free Trade 
Agreement).
    23. Section E of Annex III of Publication 4349 contained a 
Typographical error within the correction that needs to be 
corrected. I have determined that a modification to the HTS is 
necessary to correct this typographical error and to provide 
the intended tariff treatment.
    24. Presidential Proclamation 8894 of October 29, 2012, 
modified the HTS as provided in Annex II of Publication 4349 of 
the Commission to implement the initial stage of duty 
elimination provided for in the United States-Panama Trade 
Promotion Agreement and to provide for further staged 
reductions in duties for originating goods of Panama. The 
proclamation erroneously referred to ``originating goods of 
Colombia'' and should instead refer to ``originating goods of 
Panama.''
    25. 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 taken 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, section 104 of the AGOA, section 4 of the USIFTA Act, 
and section 202 of the USCFTA Act do proclaim that:
    (1) The Republic of South Sudan is designated as an 
eligible sub-Saharan African country and as a beneficiary sub-
Saharan African country.
    (2) 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 ``Republic of South Sudan.''
    (3) The designations of the Republic of Mali and the 
Republic of Guinea-Bissau as beneficiary sub-Saharan African 
countries for purposes of section 506A of the 1974 Act are 
terminated, effective on January 1, 2013.
    (4) In order to reflect in the HTS that beginning on 
January 1, 2013, the Republic of Mali and the Republic of 
Guinea-Bissau shall no longer be designated as beneficiary sub-
Saharan African countries, general note 16(a) to the HTS is 
modified by deleting ``Republic of Mali'' and ``Republic of 
Guinea-Bissau'' from the list of beneficiary sub-Saharan 
African countries. Further, note 2(d) to subchapter XIX of 
chapter 98 of the HTS is modified by deleting ``Republic of 
Guinea-Bissau'' and ``Republic of Mali'' from the list of 
lesser developed beneficiary sub-Saharan African countries.
    (5) The designation of the Federation of Saint Kitts and 
Nevis as a beneficiary developing country for purposes of the 
GSP is terminated, effective on January 1, 2014.
    (6) In order to reflect this termination in the HTS, 
general note 4(a) to the HTS is modified by deleting ``St. 
Kitts and Nevis'' from the list of independent countries, 
effective with respect to articles entered, or withdrawn from 
warehouse for consumption, on or after January 1, 2014.
    (7) In order to implement U.S. tariff commitments under the 
2004 Agreement through December 31, 2013, the HTS is modified 
as provided in Annex I to this proclamation.
    (8)(a) The modifications to the HTS set forth in Annex I to 
this proclamation shall be effective with respect to eligible 
agricultural products of Israel that are entered, or withdrawn 
fom warehouse for consumption, on or after January 1, 2013.
    (b) The provisions of subchapter VIII of chapter 99 of the 
HTS, as modified by Annex I to this proclamation, shall 
continue in effect through December 31, 2013.
    (9) In order to reflect in the HTS the modifications to the 
rules of origin under the USCFTA, general note 26 to the HTS is 
modified as provided in Annex II to this proclamation.
    (10) In order to correct a technical error in the list of 
subheading numbers at general note 4(d) to the HTS, the HTS is 
modified as set forth in section A of Annex III to this 
proclamation.
    (11) In order to provide the intended tariff treatment to 
goods of Korea under the terms of general note 33, the HTS is 
modified as set forth in section B of Annex III to this 
proclamation.
    (12) Paragraph (3) of Presidential Proclamation 8894 is 
amended to correct an inadvertent error by replacing 
``Colombia'' with ``Panama.''
    (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 
twentieth day of December, in the year of our Lord two thousand 
twelve, and of the Independence of the United States of America 
the two hundred and thirty-seventh.

                                                      Barack Obama.





                             

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