[Federal Register Volume 63, Number 128 (Monday, July 6, 1998)]
[Presidential Documents]
[Pages 36531-36539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18007]



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Part IV





The President





_______________________________________________________________________



Proclamation 7107--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences
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                         Presidential Documents 
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  Federal Register / Vol. 63, No. 128 / Monday, July 6, 1998 / 
Presidential Documents  

 ___________________________________________________________________

 Title 3--
 The President

[[Page 36531]]

                Proclamation 7107 of June 30, 1998

                
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, as 
                amended (``the 1974 Act'') (19 U.S.C. 2461, 
                2463(a)(1)(A), and 2463(c)(1)), 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 section 503(c)(2)(A) of the 1974 Act (19 
                U.S.C. 2463(c)(2)(A)), beneficiary developing 
                countries, except those designated as least-developed 
                beneficiary developing countries pursuant to 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 GSP to 
                eligible articles.

                3. Pursuant to section 503(c)(2)(C) of the 1974 Act (19 
                U.S.C. 2463(c)(2)(C)), 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 limitations in 
                section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 
                2463(c)(2)(A)), during the preceding calendar year.

                4. Pursuant to section 503(c)(2)(F) of the 1974 Act (19 
                U.S.C. 2463(c)(2)(F)), 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 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) of the 
                1974 Act (19 U.S.C. 2463(c)(2)(F)(ii)).

                5. Pursuant to section 503(d) of the 1974 Act (19 
                U.S.C. 2463(d)), the President may waive the 
                application of the competitive need limitations in 
                section 503(c)(2)(A) with respect to any eligible 
                article of any beneficiary developing country if 
                certain conditions are met.

                6. Section 507(2) of the 1974 Act (19 U.S.C. 2467(2)) 
                provides that in the case of an association of 
                countries which is a free trade area or customs union, 
                or which is contributing to comprehensive regional 
                economic integration among its members through 
                appropriate means, including, but not limited to, the 
                reduction of duties, the President may provide that all 
                members of such association other than members which 
                are barred from designation under section 502(b) of the 
                1974 Act (19 U.S.C. 2462(b)) shall be treated as one 
                country for purposes of title V of the 1974 Act.

                7. Pursuant to sections 501 and 503(a)(1)(A) of the 
                1974 Act, and after receiving advice from the 
                International Trade Commission in accordance with 
                section 503(e), I have determined to designate certain 
                articles, previously designated under section 
                503(a)(1)(B), as eligible articles from additional 
                beneficiary developing countries. In order to do so, it 
                is necessary to subdivide and amend the nomenclature of 
                existing subheadings of the HTS.

[[Page 36532]]

                For certain articles, I have decided that the effective 
                date of designation shall be determined by the United 
                States Trade Representative (USTR).

                8. Pursuant to section 503(c)(1) of the 1974 Act, I 
                have determined to limit the application of duty-free 
                treatment accorded to certain articles from certain 
                beneficiary developing countries.

                9. Pursuant to section 503(c)(2)(A) of the 1974 Act, I 
                have determined that certain beneficiary developing 
                countries should not receive preferential tariff 
                treatment under the GSP with respect to certain 
                eligible articles imported in quantities that exceed 
                the applicable competitive need limitation.

                10. 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 previously 
                had been imported in quantities exceeding the 
                competitive need limitations of section 503(c)(2)(A).

                11. 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) should be 
                waived with respect to certain eligible articles from 
                certain beneficiary developing countries. For certain 
                articles, I have decided that the effective date of the 
                waiver shall be determined by the USTR.

                12. Pursuant to section 503(d) of the 1974 Act, I have 
                determined that the competitive need limitations of 
                section 503(c)(2)(A) should be waived with respect to 
                certain eligible articles from certain beneficiary 
                developing countries. I have received the advice of the 
                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), 
                that such waivers are in the national economic interest 
                of the United States. For a certain article, I have 
                decided that the effective date of the waiver shall be 
                determined by the USTR.

                13. Pursuant to section 507(2) of the 1974 Act, I have 
                determined that members of the West African Economic 
                and Monetary Union (WAEMU) should be treated as one 
                country for purposes of title V of the 1974 Act.

                14. Pursuant to section 507(2) of the 1974 Act, I have 
                determined that members of the Southern African 
                Development Community (SADC) should be treated as one 
                country for purposes of title V of the 1974 Act. The 
                USTR shall determine which specific members of the SADC 
                are to be included in the designation under section 
                507(2) of the 1974 Act and shall determine the 
                effective date or dates of the designation. The USTR 
                shall announce by publication in the Federal Register 
                the specific SADC members to be included in the 
                designation and the effective date or dates.

                15. Pursuant to section 507(2) of the 1974 Act, I have 
                determined that members of the Tripartite Commission 
                for East African Cooperation (EAC) should be treated as 
                one country for purposes of title V of the 1974 Act. 
                The USTR shall determine which specific members of the 
                EAC are to be included in the designation under section 
                507(2) of the 1974 Act and shall determine the 
                effective date or dates of the designation. The USTR 
                shall announce by publication in the Federal Register 
                the specific EAC members to be included in the 
                designation and the effective date or dates.

                16. Section 604 of the 1974 Act, as amended (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, 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:

[[Page 36533]]

                    (1) In order to provide that one or more countries 
                that have not been treated as beneficiary developing 
                countries with respect to one or more eligible articles 
                should be designated as beneficiary developing 
                countries with respect to such article or articles for 
                purposes of the GSP, and that one or more countries 
                should not be treated as beneficiary developing 
                countries with respect to one or more eligible articles 
                for purposes of the GSP, general note 4 to the HTS is 
                modified as provided in section A of Annex I and 
                section A of Annex IV to this proclamation.
                    (2) In order to designate certain articles, 
                previously designated under section 503(a)(1)(B), as 
                eligible articles from additional beneficiary 
                developing countries, the HTS is modified by amending 
                and subdividing the nomenclature of existing HTS 
                subheadings as provided in section B of Annex I to this 
                proclamation.
                    (3)(a) In order to designate certain articles as 
                eligible articles for purposes of the GSP when imported 
                from any beneficiary developing country, the Rates of 
                Duty 1-Special subcolumn for certain HTS subheadings is 
                modified as provided in section C(1) of Annex I and 
                section B of Annex IV to this proclamation.
                      (b) In order to designate certain articles, 
                previously designated under section 503(a)(1)(B), as 
                eligible articles from additional beneficiary 
                developing countries, the Rates of Duty 1-Special 
                subcolumn for the HTS subheadings enumerated in section 
                C(2) of Annex I to this proclamation is modified as 
                provided in such section.
                      (c) In order to provide preferential tariff 
                treatment under the GSP to beneficiary developing 
                countries that have been excluded from the benefits of 
                the GSP for certain eligible articles, the Rates of 
                Duty 1-Special subcolumn for each of the HTS 
                subheadings enumerated in section C(3) of Annex I to 
                this proclamation is modified as provided in such 
                section.
                      (d) In order to provide that one or more 
                countries should not be treated as a beneficiary 
                developing country with respect to certain eligible 
                articles for purposes of the GSP, the Rates of Duty 1-
                Special subcolumn for each of the HTS subheadings 
                enumerated in section C(4) of Annex I to this 
                proclamation is modified as provided in such section.
                    (4) 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 II 
                and in section C of Annex IV to this proclamation.
                    (5) In order to provide for the continuation of 
                previously proclaimed staged reductions of duties in 
                the Rates of Duty 1-General subcolumn for goods that 
                fall in the HTS subheadings modified by section B of 
                Annex I to this proclamation and that are entered, or 
                withdrawn from warehouse for consumption, on or after 
                the dates specified in section A of Annex III to this 
                proclamation, the rate of duty in the HTS set forth in 
                such subcolumn for each of the HTS subheadings 
                enumerated in section A of Annex III to this 
                proclamation is deleted and the rate of duty provided 
                in such section is inserted in lieu thereof.
                    (6) In order to provide for the continuation of 
                previously proclaimed staged reductions of duties in 
                the Rates of Duty 1-Special subcolumn for certain goods 
                of Mexico that fall in the HTS subheadings modified by 
                section B of Annex I to this proclamation and effective 
                with respect to goods of Mexico under the terms of 
                general note 12 to the HTS that are entered, or 
                withdrawn from warehouse for consumption, on or after 
                the dates specified in section B of Annex III to this 
                proclamation, the rate of duty in the HTS set forth in 
                such subcolumn followed by the symbol ``MX'' in 
                parentheses for each of the HTS subheadings enumerated 
                in section B of Annex III to this proclamation is 
                deleted and the rate of duty provided in such section 
                is inserted in lieu thereof.
                    (7) In order to reflect in the HTS the decision 
                that members of the WAEMU should be treated as one 
                country for purposes of title V of the

[[Page 36534]]

                1974 Act, and to enumerate the member countries, 
                general note 4(a) to the HTS is modified as provided in 
                Annex V to this proclamation.
                    (8) In order to reflect in the HTS the decision 
                that members of the SADC should be treated as one 
                country for purposes of title V of the 1974 Act, and to 
                enumerate those member countries that should benefit 
                from such designation, general note 4(a) to the HTS is 
                to be modified as set forth in a notice or notices that 
                the USTR shall cause to be published in the Federal 
                Register. Such notice or notices should direct the 
                insertion in general note 4(a) of the title of the 
                association and the names of those member countries 
                that should be treated as one country for purposes of 
                title V of the 1974 Act, and should specify the 
                effective date of such designation.
                    (9) In order to reflect in the HTS the decision 
                that members of the EAC should be treated as one 
                country for purposes of title V of the 1974 Act, and to 
                enumerate those member countries that should benefit 
                from such designation, general note 4(a) to the HTS is 
                to be modified as set forth in a notice or notices that 
                the USTR shall cause to be published in the Federal 
                Register. Such notice or notices should direct the 
                insertion in general note 4(a) of the title of the 
                association and the names of those member countries 
                that should be treated as one country for purposes of 
                title V of the 1974 Act, and should specify the 
                effective date of such designation.
                    (10) 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.
                    (11)(a) The modifications made by Annex I to this 
                proclamation shall be effective with respect to 
                articles entered, or withdrawn from warehouse for 
                consumption, on or after July 1, 1998.
                      (b) The action taken in Annex II to this 
                proclamation shall be effective on the date of 
                signature of this proclamation.
                      (c) The modifications made by Annex III 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 
                Annex.
                      (d) The modifications made by Annex IV to this 
                proclamation shall be effective with respect to 
                articles entered, or withdrawn from warehouse for 
                consumption, on or after a date to be announced in the 
                Federal Register by the USTR.
                      (e) The modification made by Annex V to this 
                proclamation shall be effective with respect to 
                articles entered, or withdrawn from warehouse for 
                consumption, on or after the date of signature of this 
                proclamation.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                thirtieth day of June, in the year of our Lord nineteen 
                hundred and ninety-eight, and of the Independence of 
                the United States of America the two hundred and 
                twenty-second.

                    (Presidential Sig.)

                Billing code 3195-01-P

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[FR Doc. 98-18007
[Filed 7-2-98; 8:45 am]
Billing code 3190-01-C