[Federal Register Volume 66, Number 247 (Wednesday, December 26, 2001)]
[Presidential Documents]
[Pages 66549-66704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31522]



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Part III





The President





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Proclamation 7515--To Modify the Harmonized Tariff Schedule of the 
United States, To Provide Rules of Origin Under the North American Free 
Trade Agreement for Affected Goods, and for Other Purposes
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                         Presidential Documents 
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  Federal Register / Vol. 66, No. 247 / Wednesday, December 26, 2001 / 
Presidential Documents  

 ___________________________________________________________________

 Title 3--
 The President

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                Proclamation 7515 of December 18, 2001

                
To Modify the Harmonized Tariff Schedule of the 
                United States, To Provide Rules of Origin Under the 
                North American Free Trade Agreement for Affected Goods, 
                and for Other Purposes

                By the President of the United States of America

                A Proclamation

                1. Section 1205(a) of the Omnibus Trade and 
                Competitiveness Act of 1988 (the ``1988 Act'') (19 
                U.S.C. 3005(a)) directs the United States International 
                Trade Commission (the ``Commission'') to keep the 
                Harmonized Tariff Schedule of the United States (HTS) 
                under continuous review and periodically to recommend 
                to the President such modifications in the HTS as the 
                Commission considers necessary or appropriate to 
                accomplish the purposes set forth in that subsection. 
                The Commission has recommended modifications to the HTS 
                pursuant to sections 1205(c) and (d) of the 1988 Act 
                (19 U.S.C. 3005(c) and (d)) to conform the HTS to 
                amendments made to the International Convention on the 
                Harmonized Commodity Description and Coding System (the 
                ``Convention'').

                2. Section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) 
                authorizes the President to proclaim modifications to 
                the HTS, based on the recommendations of the Commission 
                under section 1205 of the 1988 Act (19 U.S.C. 3005), if 
                he determines that the modifications are in conformity 
                with the obligations of the United States under the 
                Convention and do not run counter to the national 
                economic interest of the United States. I have 
                determined that the modifications to the HTS proclaimed 
                in this proclamation pursuant to section 1206(a) are in 
                conformity with the obligations of the United States 
                under the Convention and do not run counter to the 
                national economic interest of the United States.

                3. (a) Presidential Proclamation 6641 of December 15, 
                1993, implemented the North American Free Trade 
                Agreement (the ``NAFTA'') with respect to the United 
                States and, pursuant to sections 201 and 202 of the 
                North American Free Trade Agreement Implementation Act 
                (the ``NAFTA Implementation Act'') (19 U.S.C. 3331 and 
                3332), incorporated in the HTS the tariff modifications 
                and rules of origin necessary or appropriate to carry 
                out the NAFTA.

                    (b) Because the substance of the changes to the 
                Convention will be reflected in slightly differing form 
                in the national tariff schedules of the three parties 
                to the NAFTA, the rules of origin and interpretative 
                rules set forth in Appendix 6.A of Annex 300-B, Annex 
                401, and Annex 403.1 to the NAFTA must be changed to 
                ensure that the tariff and certain other treatment 
                accorded under the NAFTA to originating goods will 
                continue to be provided under the tariff categories 
                that are being modified to reflect the amendments to 
                the Convention. The NAFTA parties have agreed to make 
                these changes.

                4. Section 202 of the NAFTA Implementation Act 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. Section 202(q) 
                of the NAFTA Implementation Act (19 U.S.C. 3332(q)) 
                authorizes the President to proclaim the rules of 
                origin set out in the NAFTA and any subordinate tariff 
                categories

[[Page 66550]]

                necessary to carry out the NAFTA Implementation Act 
                consistent with the NAFTA.

                5. I have determined that the modifications to the HTS 
                proclaimed in this proclamation pursuant to sections 
                201 and 202 of the NAFTA Implementation Act are 
                necessary in order to ensure that the tariff and 
                certain other treatment accorded under the NAFTA, 
                including previously proclaimed staged reductions in 
                rates of duty, will continue to be given to NAFTA 
                originating goods under tariff categories that are 
                being modified to reflect the amendments to the 
                Convention.

                6. Presidential Proclamation 6763 of December 23, 1994, 
                implemented with respect to the United States the trade 
                agreements resulting from the Uruguay Round of 
                multilateral trade negotiations, including Schedule XX-
                United States of America, annexed to the Marrakesh 
                Protocol to the General Agreement on Tariffs and Trade 
                1994 (``Schedule XX''), that were entered into pursuant 
                to sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 
                2902(a) and (e)) and approved in section 101(a) of the 
                Uruguay Round Agreements Act (URAA) (19 U.S.C. 
                3511(a)).

                7. Pursuant to the authority provided in section 111 of 
                the URAA (19 U.S.C. 3521) and sections 1102(a) and (e) 
                of the 1988 Act, Proclamation 6763 included the staged 
                reductions in rates of duty that the President 
                determined to be necessary or appropriate to carry out 
                the concessions set forth in Schedule XX. In order to 
                ensure the continuation of such staged reductions in 
                rates of duty for imported goods under tariff 
                categories that are being modified to reflect the 
                amendments to the Convention, I have determined that 
                additional modifications to the HTS are necessary or 
                appropriate to carry out the duty reductions previously 
                proclaimed, including certain technical or conforming 
                changes within the tariff schedule.

                8. Presidential Proclamation 7351 of October 2, 2000, 
                implemented section 211 of the United States-Caribbean 
                Basin Trade Partnership Act (title II of Public Law 
                106-200, 114 Stat. 286) (CBTPA), in order to provide 
                certain preferential tariff treatment to eligible 
                articles that are the product of any country that the 
                President has designated as a ``CBTPA beneficiary 
                country'' and that has satisfied the requirements of 
                section 213(b)(4)(A)(ii) of the Caribbean Basin 
                Economic Recovery Act (CBERA) (19 U.S.C. 
                2703(b)(4)(A)(ii)). Section 213(b)(3) of the CBERA (19 
                U.S.C. 2703(b)(3)) provides that the tariff treatment 
                accorded at any time under the CBTPA to any article 
                referred to in section 213(b)(1)(B) through (F) of the 
                CBERA (19 U.S.C. 2703(b)(1)(B) through (F)) that is a 
                CBTPA originating good shall be identical to the tariff 
                treatment that is accorded at such time under Annex 
                302.2 of the NAFTA to an article described in the same 
                8-digit subheading of the HTS that is a good of Mexico 
                and is imported into the United States.

                9. Pursuant to section 213(b) of the CBERA, 
                Proclamation 7351 included the staged reductions in 
                rates of duty that the President determined to be 
                necessary or appropriate to provide such identical 
                tariff treatment to CBTPA originating goods. In order 
                to ensure the continuation of such staged reductions in 
                rates of duty for imported goods under tariff 
                categories that are being modified to reflect the 
                amendments to the Convention and the conforming changes 
                in the NAFTA rules of origin, I have determined that 
                additional modifications to the HTS are necessary or 
                appropriate to carry out the duty reductions previously 
                proclaimed.

                10. Presidential Proclamation 7512 of December 7, 2001, 
                implemented with respect to the United States the 
                Agreement Between the United States of America and the 
                Hashemite Kingdom of Jordan on the Establishment of a 
                Free Trade Area (JFTA), which was entered into on 
                October 24, 2000, and implemented pursuant to section 
                101 of the United States-Jordan Free Trade Area 
                Implementation Act (the ``JFTA Act'') (19 U.S.C. 2112 
                Note). That proclamation included the staged reductions 
                in rates of duty that I determined to be necessary or 
                appropriate to carry out the concessions set forth in 
                Annex 2.1 to the JFTA. In order to ensure the 
                continuation

[[Page 66551]]

                of such staged reductions in rates of duty for 
                originating goods under tariff categories that are 
                being modified to reflect the amendments to the 
                Convention, I have determined that additional 
                modifications to the HTS are necessary or appropriate 
                to carry out the duty reductions previously proclaimed.

                11. Section 201(b) of the NAFTA Implementation Act (19 
                U.S.C. 3331(b)) authorizes the President, subject to 
                the consultation and layover requirements of section 
                103(a) of the NAFTA Implementation Act (19 U.S.C. 
                3313(a)), to proclaim accelerated schedules of duty 
                elimination that the United States may agree to with 
                Mexico or Canada. Consistent with Article 302(3) of the 
                NAFTA, I, through my duly empowered representative, 
                have entered into an agreement with the Government of 
                Mexico providing for an accelerated schedule of duty 
                elimination for specific goods of Mexico.

                12. Pursuant to section 201(b) of the NAFTA 
                Implementation Act, I have determined that the 
                modifications herein proclaimed of duties on goods 
                originating in the territory of a NAFTA party are 
                necessary or appropriate to maintain the general level 
                of reciprocal and mutually advantageous concessions 
                with respect to Mexico provided for by the NAFTA, and 
                to carry out the agreement with Mexico providing an 
                accelerated schedule of duty elimination for specific 
                goods. Pursuant to section 213(b)(3)(A) of the CBERA 
                (19 U.S.C. 2703(b)(3)), I have determined that the 
                rates of duty resulting from the accelerated schedule 
                of duty elimination for specific goods of Mexico should 
                also apply to CBTPA originating goods described in the 
                same 8-digit subheadings of the HTS.

                13. Section 604 of the Trade Act of 1974, as amended 
                (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, 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 section 604 of the 1974 Act, 
                sections 1102, 1205, and 1206 of the 1988 Act, section 
                213 of the CBERA, sections 201 and 202 of the NAFTA 
                Implementation Act, section 111 of the URAA, and 
                section 101 of the JFTA Act, do hereby proclaim:

                    (1) In order to modify the HTS to conform it to the 
                Convention or any amendment thereto recommended for 
                adoption, to promote the uniform application of the 
                Convention, to establish additional subordinate tariff 
                categories to carry out modifications to the rules of 
                origin under the NAFTA, and to make technical and 
                conforming changes to existing provisions, the HTS is 
                modified as set forth in Annex I to this proclamation.
                    (2) In order to modify the rules of origin under 
                the NAFTA to reflect the modifications to the HTS being 
                made to conform it to the Convention and to make 
                certain conforming changes, general note 12 to the HTS 
                is further modified as provided in Annex II to this 
                proclamation.
                    (3) In order to provide for the continuation of 
                previously proclaimed staged duty reductions in the 
                Rates of Duty 1-General subcolumn under section 111(a) 
                of the URAA, as provided in Presidential Proclamation 
                6763, for goods classifiable in the provisions modified 
                by Annex I to this proclamation that are entered, or 
                withdrawn from warehouse for consumption, on or after 
                each of the dates specified in section A of Annex III 
                to this proclamation, the rate of duty in the HTS set 
                forth in the Rates of Duty 1-General subcolumn for each 
                of the HTS subheadings enumerated in section A of Annex 
                III shall be deleted and the rate of duty provided in 
                such section inserted in lieu thereof.
                    (4) In order to provide for the continuation of 
                previously proclaimed staged duty reductions in the 
                Rates of Duty 1-Special subcolumn for originating goods 
                of Mexico under the NAFTA that are classifiable in the 
                provisions modified by Annex I to this proclamation and 
                entered, or withdrawn from warehouse for consumption, 
                on or after each of the dates specified

[[Page 66552]]

                in section B of Annex III to this proclamation, the 
                rate of duty in the HTS set forth in the Rates of Duty 
                1-Special subcolumn for each of the HTS subheadings 
                enumerated in section B of Annex III shall be deleted 
                and the rate of duty provided in such section inserted 
                in lieu thereof.
                    (5) In order to provide for the continuation of 
                previously proclaimed staged duty reductions in the 
                Rates of Duty 1-Special subcolumn for originating goods 
                of CBTPA beneficiary countries that are classifiable in 
                the provisions modified by Annex I to this proclamation 
                and entered, or withdrawn from warehouse for 
                consumption, on or after each of the dates specified in 
                section C of Annex III to this proclamation, the rate 
                of duty in the HTS set forth in the Rates of Duty 1-
                Special subcolumn for each of the HTS subheadings 
                enumerated in section C of Annex III shall be deleted 
                and the rate of duty provided in such section inserted 
                in lieu thereof.
                    (6) In order to provide for the continuation of 
                previously proclaimed staged duty reductions in the 
                Rates of Duty 1-Special subcolumn for originating goods 
                of Jordan under the JFTA that are classifiable in the 
                provisions modified by Annex I to this proclamation and 
                entered, or withdrawn from warehouse for consumption, 
                on or after each of the dates specified in section D of 
                Annex III to this proclamation, the rate of duty in the 
                HTS set forth in the Rates of Duty 1-Special subcolumn 
                for each of the HTS subheadings enumerated in section D 
                of Annex III shall be deleted and the rate of duty 
                provided in such section inserted in lieu thereof.
                    (7) In order to provide an accelerated schedule of 
                duty elimination for specific goods of Mexico under the 
                terms of general note 12 to the HTS, and to provide 
                identical tariff treatment for originating goods of a 
                CBTPA beneficiary country provided for in the same HTS 
                subheading, the special tariff treatment set forth in 
                the HTS for the pertinent subheadings is modified as 
                provided in Annex IV to this proclamation.
                    (8) 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.
                    (9)(a) The modifications and technical 
                rectifications to the HTS made by Annexes I and II to 
                this proclamation shall be effective with respect to 
                goods entered, or withdrawn from warehouse for 
                consumption, on or after the later of (i) January 1, 
                2002, or (ii) the 15th day after the date of 
                publication of this proclamation in the Federal 
                Register.
                      (b) The modifications made by Annexes III and IV 
                to this proclamation shall be effective with respect to 
                goods entered, or withdrawn from warehouse for 
                consumption, on or after the respective dates specified 
                in each section of such Annexes for the goods described 
                therein.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                eighteenth day of December, in the year of our Lord two 
                thousand one, and of the Independence of the United 
                States of America the two hundred and twenty-sixth.

                    (Presidential Sig.)B

Billing code 3195-01-P


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[FR Doc. 01-31522
Filed 12-19-01; 8:45 am]

Billing code 3190-01-C