[Federal Register Volume 74, Number 169 (Wednesday, September 2, 2009)]
[Presidential Documents]
[Pages 45529-45531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21335]


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  Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / 
Presidential Documents  

[[Page 45529]]


                Proclamation 8405 of August 31, 2009

                
To Adjust the 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. In Presidential Proclamation 8097 of December 29, 
                2006, pursuant to the authority provided in section 
                1206(a) of the Omnibus Trade and Competitiveness Act of 
                1988 (19 U.S.C. 3006(a)) (the ``1988 Act''), the 
                President modified the Harmonized Tariff Schedule of 
                the United States (HTS) to reflect amendments to the 
                International Convention on the Harmonized Commodity 
                Description and Coding System (the ``Convention'').

                2. 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 
                schedule of duty reductions and rules of origin 
                necessary or appropriate to carry out the NAFTA.

                3. In order to ensure the continuation of the staged 
                reductions in rates of duty under the NAFTA for 
                originating goods of Mexico in HTS tariff categories 
                that were modified to reflect amendments to the 
                Convention, Presidential Proclamation 8097 made 
                modifications to the HTS that the President determined 
                were necessary or appropriate to carry out the duty 
                reductions proclaimed in Proclamation 6641.

                4. Canada and Mexico are parties to the Convention. 
                Because the substance of changes to the Convention are 
                reflected in slightly differing form in the national 
                tariff schedules of the parties to the NAFTA, the rules 
                of origin set out in that Agreement 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 were modified in Proclamation 8097. The NAFTA 
                parties, the United States, Canada, and Mexico, have 
                agreed to make these changes.

                5. 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 part of the HTS, the rules of origin set 
                out in the NAFTA and to proclaim any modifications to 
                such previously proclaimed rules of origin, including 
                those necessary to implement an agreement with NAFTA 
                countries under paragraph 2 of section 7 of Annex 300-B 
                of the NAFTA, subject to the consultation and layover 
                requirements of section 103(a) of the NAFTA 
                Implementation Act (19 U.S.C. 3313(a)).

                6. The NAFTA parties have agreed to modify certain 
                NAFTA rules of origin. Modifications to the NAFTA rules 
                of origin reflected in general note 12 to the HTS are 
                therefore necessary to ensure the continuation of 
                tariff and certain other treatment accorded under the 
                NAFTA to originating goods in tariff categories 
                modified in Proclamation 8097 and to carry out the duty 
                reductions proclaimed in Proclamation 6641. The 
                consultation and

[[Page 45530]]

                layover requirements of section 103(a) of the NAFTA 
                Implementation Act were met December 10, 2007, with 
                respect to the proposed modifications.

                7. I have determined that the modifications to the HTS 
                proclaimed in this proclamation pursuant to section 202 
                of the NAFTA Implementation Act are necessary to 
                implement an agreement with the NAFTA parties under 
                paragraph 2 of section 7 of Annex 300-B of the NAFTA. 
                In addition, I have determined that the modifications 
                pursuant to section 1206(a) of the 1988 Act 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.

                8. Certain necessary modifications to the HTS to 
                conform it to the Convention were inadvertently omitted 
                from Proclamation 8097. I have determined that 
                technical corrections to the HTS are necessary to 
                conform the HTS to the Convention.

                9. 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 Implementation Act'') (19 U.S.C. 
                2112 note).

                10. Section 4(b) of the USIFTA Implementation 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 
                Agreement.

                11. 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''). On December 10, 2008, the United States 
                entered into an agreement with Israel to extend the 
                2004 Agreement through December 31, 2009, in order to 
                allow for additional time to negotiate a successor 
                arrangement to the 2004 Agreement.

                12. In Presidential 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.

                13. In Presidential Proclamation 8334 of December 31, 
                2008, the President determined 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 extend such duty-
                free treatment through December 31, 2009. I have 
                determined that a modification to the HTS is necessary 
                to provide the intended tariff treatment.

                14. 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 
                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. Section 
                1206(c) of the 1988 Act, as amended (19 U.S.C. 
                3006(c)), provides that any modifications proclaimed by 
                the President under section 1206(a) of that Act may not 
                take effect before the thirtieth day after the date on 
                which the text of the proclamation is published in the 
                Federal Register.

[[Page 45531]]

                NOW, THEREFORE, I, BARACK OBAMA, 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 
                section 1206(a) of the 1988 Act, section 202 of the 
                NAFTA Implementation Act, section 4(b) of the USIFTA 
                Implementation Act, and section 604 of the 1974 Act, do 
                proclaim that: (1) In order to reflect in the HTS the 
                modifications to the rules of origin under the NAFTA, 
                general note 12 to the HTS is modified as provided in 
                Annexes I and II of Publication 4095 of the United 
                States International Trade Commission entitled, 
                ``Modifications to the Harmonized Tariff Schedule of 
                the United States to Adjust Rules of Origin Under the 
                North American Free Trade Agreement,'' which is 
                incorporated by reference into this proclamation.

                (2) In order to make technical corrections to the HTS 
                necessary to conform it to the Convention, the HTS is 
                modified as provided in Annex III of Publication 4095.

                (3) In order to provide the intended duty treatment 
                under the 2004 Agreement as extended through December 
                31, 2009, the HTS is modified as provided in Annex IV 
                of Publication 4095.

                (4) 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.

                (5) The modifications to the HTS set forth in Annexes I 
                and II of Publication 4095 shall be effective with 
                respect to goods entered, or withdrawn from warehouse 
                for consumption, on or after the later of (i) October 
                1, 2009, or (ii) the thirtieth day after the date of 
                publication of this proclamation in the Federal 
                Register.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                thirty-first day of August, in the year of our Lord two 
                thousand nine, and of the Independence of the United 
                States of America the two hundred and thirty-fourth.
                
                
                    (Presidential Sig.)

[FR Doc. E9-21335
Filed 9-1-09; 8:45 am]
Billing code 3195-W9-P