[Federal Register Volume 70, Number 125 (Thursday, June 30, 2005)]
[Presidential Documents]
[Pages 37959-37984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13182]



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Part VI





The President





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Proclamation 7912--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences and Certain Rules of Origin Under the North 
American Free Trade Agreement, and for Other Purposes
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                         Presidential Documents 
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  Federal Register / Vol. 70, No. 125 / Thursday, June 30, 2005 / 
Presidential Documents  

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 Title 3--
 The President

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                Proclamation 7912 of June 29, 2005

                
To Modify Duty-Free Treatment Under the 
                Generalized System of Preferences and Certain Rules of 
                Origin Under the North American Free Trade Agreement, 
                and for Other Purposes

                By the President of the United States of America

                A Proclamation

                1. Pursuant to section 502(a)(1) of the Trade Act of 
                1974, as amended (the ``1974 Act'') (19 U.S.C. 
                2462(a)(1)), the President is authorized to designate 
                countries as beneficiary developing countries for 
                purposes of the Generalized System of Preferences 
                (GSP).

                2. In Proclamation 6425 of April 29, 1992, the 
                President suspended duty-free treatment for certain 
                eligible articles imported from India after considering 
                the factors set forth in sections 501 and 502(c) of the 
                1974 Act (19 U.S.C. 2461, 2462(c)), in particular 
                section 502(c)(5) of the 1974 Act (19 U.S.C. 
                2462(c)(5)) on the extent to which India provides 
                adequate and effective protection of intellectual 
                property rights.

                3. In Proclamation 6942 of October 17, 1996, the 
                President suspended duty-free treatment for certain 
                eligible articles imported from Pakistan because of 
                insufficient progress on affording workers in that 
                country internationally recognized worker rights.

                4. Pursuant to sections 501 and 503(a)(1)(A) of the 
                1974 Act (19 U.S.C. 2463(a)(1)(A)), the President may 
                designate articles as eligible for preferential tariff 
                treatment under the GSP.

                5. 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 as provided in 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.

                6. 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) of the 1974 Act during the 
                preceding calendar year.

                7. Section 503(c)(2)(F)(i) of the 1974 Act (19 U.S.C. 
                2463(c)(2)(F)(i)) 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) of the 1974 Act (19 U.S.C. 
                2463(c)(2)(F)(ii)).

                8. Pursuant to section 503(d)(1) of the 1974 Act (19 
                U.S.C. 2463(d)(1)) and after giving great weight to the 
                considerations in section 503(d)(2) of the 1974 Act (19 
                U.S.C. 2463(d)(2)), the President may, subject to the 
                limitations set out in section 503(d)(4) (19 U.S.C. 
                2463(d)(4)), waive the application of the competitive 
                need limitations in section 503(c)(2)(A) of the 1974 
                Act

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                with respect to any eligible article from any 
                beneficiary developing country, if after receiving 
                advice from the United States International Trade 
                Commission (USITC), he determines that such waiver is 
                in the national economic interest of the United States.

                9. Section 507(2) of the 1974 Act (19 U.S.C. 2467(2)) 
                provides that in the case of an association of 
                countries that is a free trade area or customs union, 
                or that is contributing to a comprehensive regional 
                economic integration among its members through 
                appropriate means, the President may provide that all 
                members of such association other than members that 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 the GSP.

                10. Pursuant to section 502 of the 1974 Act (19 U.S.C. 
                2462) and taking into account the factors set forth in 
                section 502(c) of the 1974 Act, I have decided to 
                designate Serbia and Montenegro as a beneficiary 
                developing country for purposes of the GSP.

                11. After a review of the current situation in India 
                and taking into account the factors set out in section 
                502 of the 1974 Act, in particular section 502(c)(5), I 
                have determined that India has made progress in 
                providing adequate and effective protection of 
                intellectual property rights. Accordingly, I have 
                determined to terminate the suspension of India's duty-
                free treatment for certain articles under the GSP.

                12. After a review of the current situation in 
                Pakistan, I have determined that Pakistan has taken or 
                is taking steps to afford workers in that country 
                internationally recognized worker rights as provided in 
                section 502(c)(7) of the 1974 Act (19 U.S.C. 
                2462(c)(7)). Accordingly, I have determined to restore 
                Pakistan's eligibility for certain articles for 
                preferential treatment under the GSP.

                13. Pursuant to sections 501 and 503(a)(1)(A) of the 
                1974 Act, and after receiving advice from the USITC in 
                accordance with section 503(e) of the 1974 Act (19 
                U.S.C. 2463(e)), I have determined to designate certain 
                articles, some of which were previously designated 
                under section 503(a)(1)(B) of the 1974 Act (19 U.S.C. 
                2463(a)(1)(B)), as eligible articles. In order to do so 
                for certain articles, it is necessary to subdivide and 
                amend the nomenclature of certain existing subheadings 
                of the Harmonized Tariff Schedule of the United States 
                (HTS).

                14. Pursuant to section 503(c)(2)(A) of the 1974 Act, I 
                have determined that certain beneficiary countries have 
                exported certain eligible articles in quantities 
                exceeding the applicable competitive need limitation in 
                2004, and I therefore terminate the duty-free treatment 
                for such articles from such beneficiary developing 
                countries.

                15. Pursuant to section 503(c)(2)(C) of the 1974 Act, 
                and subject to the considerations set forth in sections 
                501 and 502 of the 1974 Act, I redesignate certain 
                countries 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) of 
                the 1974 Act.

                16. Pursuant to section 503(c)(2)(F)(i) of the 1974 
                Act, I have determined that the competitive need 
                limitation provided in section 503(c)(2)(A)(i)(II) of 
                the 1974 Act should be disregarded with respect to 
                certain eligible articles from certain beneficiary 
                developing countries.

                17. Pursuant to section 503(d)(1) of the 1974 Act, I 
                have received the advice of the USITC 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) of 
                the 1974 Act, and after giving great weight to the 
                considerations in section 503(d)(2) of the 1974 Act, 
                that such waivers are in the national economic interest 
                of the United States. Accordingly, 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.

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                18. Pursuant to section 507(2) of the 1974 Act, I have 
                determined that currently qualifying members of the 
                South Asian Association for Regional Cooperation 
                (SAARC) should be treated as one country for purposes 
                of the GSP.

                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 (Public Law 103-182) (the 
                ``NAFTA Implementation Act'') incorporated in the HTS 
                the tariff modifications 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. Section 202(q) of the NAFTA Implementation Act 
                (19 U.S.C. 3332(q)) authorizes the President to 
                proclaim, as a part of the HTS, the rules of origin set 
                out in the NAFTA and to proclaim modifications to such 
                previously proclaimed rules of origin, subject to the 
                consultation and layover requirements of section 103(a) 
                of the NAFTA Implementation Act (19 U.S.C. 3313(a)).

                21. The United States and Canada have agreed to 
                modifications to certain NAFTA rules of origin. 
                Modifications to the NAFTA rules of origin set out in 
                Proclamation 6641 are therefore necessary.

                22. Section 1558 of the Miscellaneous Trade and 
                Technical Corrections Act of 2004 (Public Law 108-429) 
                (the ``Miscellaneous Trade Act'') amended section 
                213(b) of the Caribbean Basin Economic Recovery Act 
                (CBERA) (19 U.S.C. 2703(b)) to exclude certain footwear 
                from duty-free treatment under the CBERA and to provide 
                duty-free treatment for certain other footwear that is 
                the product of a designated beneficiary Caribbean Basin 
                Trade Partnership Act country.

                23. In order to implement the tariff treatment provided 
                under section 1558 of the Miscellaneous Trade Act, it 
                is necessary to modify the HTS.

                24. Section 7(c) of the AGOA Acceleration Act of 2004 
                (Public Law 108-274) (the ``AGOA Acceleration Act'') 
                amended section 112(b)(6) of the of the African Growth 
                and Opportunity Act (title I of Public Law 106-200) 
                (AGOA) (19 U.S.C. 3721(b)(6)) by adding ethnic printed 
                fabrics to the list of textile and apparel goods of 
                beneficiary sub-Saharan African countries that may be 
                eligible for the preferential treatment described in 
                section 112(a) of the AGOA (19 U.S.C. 3721(a)).

                25. Section 2 of Executive Order 13191 of January 17, 
                2001, delegated the President's authority under section 
                112(b)(6) of the AGOA to the Committee for the 
                Implementation of Textile Agreements (Committee), in 
                consultation with the then-Commissioner, United States 
                Customs Service, now the Commissioner, Bureau of 
                Customs and Border Protection (Commissioner), to 
                determine which, if any, particular textile and apparel 
                goods of beneficiary sub-Saharan African countries 
                shall be treated as being hand loomed, handmade, or 
                folklore articles. Executive Order 13191 further 
                ordered the Commissioner to take actions directed by 
                the Committee to carry out such determinations.

                26. In order to implement section 7(c) of the AGOA 
                Acceleration Act, it is necessary to modify Executive 
                Order 13191.

                27. 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, including title V and section 604 of

[[Page 37962]]

                the 1974 Act, section 202 of the NAFTA Implementation 
                Act, section 1558 of the Miscellaneous Trade Act, 
                section 7(c) of the AGOA Acceleration Act, and section 
                301 of title 3, United States Code, do hereby proclaim:

                    (1) In order to reflect in the HTS the addition of 
                Serbia and Montenegro as a beneficiary developing 
                country under the GSP, general note 4(a) to the HTS is 
                modified as provided in section A(1) of Annex I to this 
                proclamation.
                    (2) 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 or redesignated as beneficiary 
                developing countries with respect to such article or 
                articles for purposes of the GSP, in order to terminate 
                the suspensions of India's and Pakistan's eligibility 
                for certain articles, and in order to provide that one 
                or more countries should no longer be treated as 
                beneficiary developing countries 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(2) of Annex I to this proclamation.
                    (3) In order to designate certain articles as 
                eligible articles for purposes of the GSP, the HTS is 
                modified by amending and subdividing the nomenclature 
                of certain existing HTS subheadings as provided in 
                section B of Annex I to this proclamation.
                    (4) (a) In order to designate certain articles as 
                eligible articles for purposes of the GSP, the Rates of 
                Duty 1-Special subcolumn for such HTS subheadings is 
                modified as provided in sections C(1) and C(2) of Annex 
                I to this proclamation.

  (b) In order to designate certain articles as eligible articles for 
purposes of the GSP when imported from any beneficiary developing country 
except for a country or countries exceeding the applicable competitive need 
limitation in 2004, the Rates of Duty 1-Special subcolumn for such HTS 
subheadings is modified as provided for in section C(3) of Annex I to this 
proclamation.

  (c) 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.

  (d) In order to provide that one or more countries should not be treated 
as beneficiary developing countries 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.

  (e) In order to reflect in the HTS the decision that certain members of 
the SAARC should be treated as one country for purposes of title V of the 
1974 Act, and to enumerate those countries, general note 4(a) to the HTS is 
modified as provided in section D of Annex I to this proclamation.

                    (5) 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.
                    (6) 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.
                    (7) In order to modify the rules of origin under 
                the NAFTA, general note 12 to the HTS is modified as 
                provided in Annex IV to this proclamation.
                    (8) The modifications made by Annex IV to this 
                proclamation shall be effective with respect to goods 
                of Canada that are entered, or withdrawn from warehouse 
                for consumption, on or after the date provided in that 
                Annex.

[[Page 37963]]

                    (9) General notes 7 and 17 to the HTS are modified 
                as set forth in Annex V to this proclamation.
                    (10) The modifications made by Annex V to this 
                proclamation shall be effective with respect to goods 
                entered, or withdrawn from warehouse for consumption, 
                on or after December 18, 2004.
                    (11) In order to make technical corrections to the 
                HTS, the HTS is modified as provided in Annex VI to 
                this proclamation.
                    (12) The modifications made by Annex VI to this 
                proclamation shall be effective with respect to 
                articles entered, or withdrawn for consumption, on or 
                after the dates provided in that Annex.
                    (13) Section 2 of Executive Order 13191 of January 
                17, 2001, is modified by revising the heading to state 
                ``Handloomed, Handmade, and Folklore Articles and 
                Ethnic Printed Fabrics'' and deleting the phrase 
                ``handloomed, handmade, or folklore articles,'' and 
                inserting in lieu thereof, ``handloomed, handmade, or 
                folklore articles or ethnic printed fabrics.''
                    (14) 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-ninth day of June, in the year of our Lord two 
                thousand five, and of the Independence of the United 
                States of America the two hundred and twenty-ninth.

                    (Presidential Sig.)B

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[FR Doc. 05-13182 Filed 6-29-05; 2:36 pm]Billing code 3190-01-C