[Federal Register Volume 68, Number 127 (Wednesday, July 2, 2003)]
[Presidential Documents]
[Pages 39795-39804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17035]


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  Federal Register / Vol. 68, No. 127 / Wednesday, July 2, 2003 / 
Presidential Documents  

[[Page 39795]]


                Proclamation 7689 of June 30, 2003

                
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)), 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(a)(1)(B) of the 1974 Act (19 
                U.S.C. 2463(a)(1)(B)), the President may designate 
                articles as eligible articles only for countries 
                designated as least-developed beneficiary developing 
                countries under section 502(a)(2) (19 U.S.C. 
                2462(a)(2)), if the President determines that such 
                articles are not import-sensitive in the context of 
                imports from such least-developed beneficiary 
                developing countries.

                3. 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 or beneficiary sub-
                Saharan African 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.

                4. Section 503(c)(2)(C) of the 1974 Act (19 U.S.C. 
                2463(c)(2)(C)), provides that 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) during the preceding calendar 
                year.

                5. Section 503(c)(2)(F) of the 1974 Act (19 U.S.C. 
                2463(c)(2)(F)), provides that the President may 
                disregard the competitive need limitation provided in 
                section 503(c)(2)(A)(i)(II) (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) (19 U.S.C. 2463(c)(2)(F)(ii)).

                6. 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 from any beneficiary developing country if 
                certain conditions are met.

                7. (a) 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) (19 U.S.C. 2463(e)), I have determined 
                to designate certain articles, previously designated 
                under section 503(a)(1)(B), as eligible articles when 
                imported from any beneficiary developing country. In 
                order to do so, it is necessary to subdivide and amend 
                the nomenclature of existing subheadings of the HTS.

[[Page 39796]]

                 (b) Furthermore, I have determined that it is 
                appropriate to modify the application of duty-free 
                treatment under title V of the 1974 Act for a certain 
                article, in particular for a good previously eligible 
                for such treatment that the Bureau of Customs and 
                Border Protection reclassified.

                8. Pursuant to section 503(a)(1)(B) of the 1974 Act, I 
                have determined to designate certain articles as 
                eligible articles under the GSP only for least-
                developed beneficiary developing countries.

                9. Pursuant to section 503(c)(1) of the 1974 Act, and 
                having considered the factors set forth in sections 501 
                and 502(c), I have determined to limit the application 
                of duty-free treatment accorded to certain articles 
                from certain beneficiary developing countries.

                10. Pursuant to sections 503(c)(1) and 503(c)(2)(A) of 
                the 1974 Act, I have determined that certain 
                beneficiary countries should no longer receive 
                preferential tariff treatment under the GSP with 
                respect to certain eligible articles that were imported 
                in quantities exceeding the applicable competitive need 
                limitation in 2002.

                11. 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).

                12. 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.

                13. 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 waiver, 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.

                14. 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, 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 of America, including but not limited to 
                title V and section 604 of the 1974 Act, do proclaim 
                that:

                    (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 redesignated as beneficiary developing 
                countries with respect to such article or articles for 
                purposes of the GSP, and, in order to provide that one 
                or more countries should no longer be treated as a 
                beneficiary developing country with respect to one or 
                more eligible articles for purposes of the GSP, general 
                note 4(d) to the HTS is modified as provided in section 
                A of Annex I to this proclamation.
                    (2) In order to designate certain articles as 
                eligible articles for purposes of the GSP, the HTS is 
                modified by amending and sub-dividing the nomenclature 
                of certain 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 such HTS subheadings is 
                modified as provided in section C(1) of Annex I to this 
                proclamation.

[[Page 39797]]

                (b) In order to designate certain articles as eligible 
                articles for purposes of the GSP when imported from any 
                beneficiary developing country other than India, the 
                Rates of Duty 1-Special subcolumn for such HTS 
                subheadings is modified as provided for in section C(2) 
                of Annex I to this proclamation.

                (c) In order to designate certain articles as eligible 
                articles for purposes of the GSP when imported from any 
                least- developed beneficiary developing country, the 
                Rates of Duty 1-Special subcolumn for such HTS 
                subheadings is modified as provided in section C(3) of 
                Annex I to this proclamation.

                (d) In order to provide preferential tariff treatment 
                under the GSP to a beneficiary developing country that 
                has been excluded from the benefits of the GSP for 
                certain eligible articles, the Rates of Duty 1-Special 
                subcolumn for such HTS subheadings is modified as 
                provided for in section C(4) of Annex I to this 
                proclamation.

                (e) 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 such HTS subheadings is modified as 
                provided for in section C(5) of Annex I to this 
                proclamation.

                    (4) A waiver of the application of section 
                503(c)(2)(A)(i)(II) of the 1974 Act shall apply 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 subheading and to the 
                beneficiary developing countries set forth in Annex III 
                to this proclamation.
                    (6) Any provisions of previous proclamations or 
                Executive orders that are inconsistent with the actions 
                taken in this proclamation are superseded to the extent 
                of such inconsistency.
                    (7) (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, 2003.

                (b) The actions taken in Annex II to this proclamation 
                shall be effective on July 1, 2003.

                (c) The actions taken in Annex III to this proclamation 
                shall be effective on the date of publication of this 
                proclamation in the Federal Register.

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

                    (Presidential Sig.)B

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                [FR Doc. 03-17035 Filed 7-1-03; 11:39 am]

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