[Federal Register Volume 76, Number 213 (Thursday, November 3, 2011)]
[Presidential Documents]
[Pages 68273-68293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-28727]



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Vol. 76

Thursday,

No. 213

November 3, 2011

Part III





The President





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Proclamation 8742--To Modify the Harmonized Tariff Schedule of the 
United States



Executive Order 13588--Reducing Prescription Drug Shortages
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  Federal Register / Vol. 76 , No. 213 / Thursday, November 3, 2011 / 
Presidential Documents  

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 Title 3--
 The President

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                Proclamation 8742 of October 31, 2011

                
To Modify the Harmonized Tariff Schedule of the 
                United States

                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 to the HTS as the 
                Commission considers necessary or appropriate to 
                accomplish the purposes set forth in that subsection. 
                Among those purposes are to promote the uniform 
                application of the International Convention on the 
                Harmonized Commodity Description and Coding System (the 
                ``Convention'') and to alleviate unnecessary 
                administrative burdens.

                2. The Commission conducted an investigation pursuant 
                to section 1205 of the 1988 Act (Investigation No. 
                1205-8) in response to a request from the Department of 
                the Treasury regarding certain footwear featuring outer 
                soles of rubber or plastic to which a layer of textile 
                material has been added. The request stated that 
                changes to the HTS would promote the uniform 
                application of the Convention as well as alleviate 
                unnecessary administrative burdens.

                3. On August 9, 2010, the Commission issued a report in 
                Investigation No. 1205-8, recommending certain changes 
                to the HTS. The report and layover requirements of 
                section 1206(b) of the 1988 Act (19 U.S.C. 3006(b)) 
                were satisfied as of March 30, 2011.

                4. On November 8, 2010, the United States Trade 
                Representative (the ``USTR'') requested that the 
                Commission make further recommendations consistent with 
                section 1205(d) of the 1988 Act concerning particular 
                provisions of the HTS that the Commission had 
                recommended in its August report be replaced by new 
                tariff lines. The USTR also asked the Commission to 
                consider whether, in response to requests made by 
                interested parties in the course of the original 
                investigation, additional tariff lines should be 
                inserted in the HTS.

                5. On February 18, 2011, the Commission issued an 
                addendum to its report, recommending additional 
                modifications to the HTS. The report and layover 
                requirements of section 1206(b) were satisfied as of 
                June 30, 2011.

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

                7. On June 6, 2003, the United States and Chile entered 
                into the United States-Chile Free Trade Agreement 
                (USCFTA). The Congress approved the

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                USCFTA in section 101(a) of the United States-Chile 
                Free Trade Agreement Implementation Act (the ``USCFTA 
                Act'') (19 U.S.C. 3805 note). Presidential Proclamation 
                7746 of December 30, 2003, implemented the USCFTA with 
                respect to the United States, and incorporated in the 
                HTS the tariff modifications and rules of origin 
                necessary or appropriate to carry out the USCFTA.

                8. Section 202 of the USCFTA Act provides rules for 
                determining whether goods imported into the United 
                States originate in the territory of a USCFTA Party and 
                thus are eligible for the tariff and other treatment 
                contemplated under the USCFTA. Section 202(o)(2)(A) 
                authorizes the President to proclaim, subject to the 
                consultation and layover requirements of section 103(a) 
                of the USCFTA Act, modifications to such previously 
                proclaimed rules of origin.

                9. The United States and Chile have agreed to modify 
                certain rules of origin and to add certain other rules 
                of origin in the USCFTA. I have determined that further 
                modification of the USCFTA rules of origin set forth in 
                Proclamation 7746, and subsequently modified, is 
                therefore necessary.

                10. The consultation and layover requirements of 
                section 103(a) of the USCFTA Act were satisfied as of 
                July 10, 2010.

                11. On April 15, 1994, the United States entered into 
                trade agreements resulting from the Uruguay Round of 
                multilateral trade negotiations (the ``Uruguay Round 
                Agreements''). In section 101(a) of the Uruguay Round 
                Agreements Act (the ``URAA'') (19 U.S.C. 3511(a)), the 
                Congress approved the Uruguay Round Agreements listed 
                in section 101(d) of that Act, including the Agreement 
                on Agriculture in section 101(d)(2). To implement 
                section 4.2 of the Agreement on Agriculture, section 
                401(b)(2) of the URAA amended section 103B of the 
                Agricultural Act of 1949 (7 U.S.C. 1444-2) by 
                converting the special import quotas on cotton provided 
                for under section 103B to tariff-rate quotas.

                12. Proclamation 6301 of June 7, 1991, and Proclamation 
                6948 of October 29, 1996, modified U.S. note 6 to 
                subchapter III of chapter 99 of the HTS and created 
                tariff lines in the HTS for reporting entries under a 
                special import quota for upland cotton. Note 6 sets out 
                the conditions under which a special import quota for 
                upland cotton takes effect.

                13. Section 1207(a)(2)(B) of the Food Conservation and 
                Energy Act of 2008 (7 U.S.C. 8737(a)(2)(B)) changed the 
                conditions under which a special import quota for 
                upland cotton takes effect. U.S. note 6 to subchapter 
                III of chapter 99 needs to be modified to reflect those 
                changes.

                14. Section 604 of the Trade Act of 1974, as amended 
                (the ``Trade Act'') (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, BARACK OBAMA, President of the 
                United States of America, by virtue of the authority 
                vested in me by the Constitution and the laws of the 
                United States of America, including but not limited to 
                section 1206 of the 1988 Act, section 202 of the USCFTA 
                Act, and section 604 of the Trade Act, do proclaim 
                that:

                    (1) In order to modify the HTS to promote the 
                uniform application of the Convention and to alleviate 
                unnecessary administrative burdens, the HTS is modified 
                as set forth in Annex I to this proclamation.
                    (2) The modifications to the HTS set forth in Annex 
                I to this proclamation shall be effective with respect 
                to goods that are entered, or withdrawn from warehouse 
                for consumption, on or after the later of September 1, 
                2011, or the thirtieth day after publication of this 
                proclamation in the Federal Register.
                    (3) In order to modify the rules of origin under 
                the USCFTA, general note 26 to the HTS is modified as 
                provided in Annex II to this proclamation.

[[Page 68275]]

                    (4) The modifications made by Annex II to this 
                proclamation shall be effective with respect to goods 
                of Chile under the terms of general note 26 to the HTS 
                that are entered, or withdrawn from warehouse for 
                consumption, on or after November 1, 2011.
                    (5) In order to reflect the modified requirements 
                under which a special import quota for upland cotton 
                takes effect, the HTS is modified as set forth in Annex 
                III to this proclamation.
                    (6) The modifications made by Annex III to this 
                proclamation, shall be effective with respect to goods 
                entered, or withdrawn from warehouse for consumption, 
                on or after June 18, 2008.
                    (7) 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 
                thirty-first day of October, in the year of our Lord 
                two thousand eleven, and of the Independence of the 
                United States of America the two hundred and thirty-
                sixth. 
                
                
                    (Presidential Sig.)

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[FR Doc. 2011-28727
Filed 11-2-11; 11:15 am]

Billing code 7020-02-C