[Federal Register Volume 77, Number 61 (Thursday, March 29, 2012)]
[Presidential Documents]
[Pages 18899-18905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7681]


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                         Presidential Documents 
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  Federal Register / Vol. 77, No. 61 / Thursday, March 29, 2012 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 18899]]

                Proclamation 8788 of March 26, 2012

                
To Modify Duty-Free Treatment Under the 
                Generalized System of Preferences and For Other 
                Purposes

                By the President of the United States of America

                A Proclamation

                1. Section 502(b)(2)(E) of the Trade Act of 1974, as 
                amended (the ``1974 Act'') (19 U.S.C. 2462(b)(2)(E)), 
                provides that the President shall not designate any 
                country a beneficiary developing country under the 
                Generalized System of Preferences (GSP) if such country 
                fails to act in good faith in recognizing as binding or 
                in enforcing arbitral awards in favor of United States 
                citizens or a corporation, partnership, or association 
                that is 50 percent or more beneficially owned by United 
                States citizens, which have been made by arbitrators 
                appointed for each case or by permanent arbitral bodies 
                to which the parties involved have submitted their 
                dispute. Section 502(d)(2) (19 U.S.C. 2462(d)(2)) 
                provides that, after complying with the requirements of 
                section 502(f)(2) (19 U.S.C. 2462(f)(2)), the President 
                shall withdraw or suspend the designation of any 
                country as a beneficiary developing country if, after 
                such designation, the President determines that as the 
                result of changed circumstances such country would be 
                barred from designation as a beneficiary developing 
                country under section 502(b)(2). Section 502(f)(2) 
                requires the President to notify the Congress and the 
                country concerned at least 60 days before terminating 
                the country's designation as a beneficiary developing 
                country for purposes of the GSP.

                2. Having considered the factors set forth in section 
                502(b)(2)(E) of the 1974 Act, I have determined 
                pursuant to section 502(d) that it is appropriate to 
                suspend Argentina's designation as a GSP beneficiary 
                developing country because it has not acted in good 
                faith in enforcing arbitral awards in favor of United 
                States citizens or a corporation, partnership, or 
                association that is 50 percent or more beneficially 
                owned by United States citizens, and I will so notify 
                the Congress. In order to reflect the suspension of 
                Argentina's status as a beneficiary developing country 
                under the GSP, I have determined that it is appropriate 
                to modify general note 4(a) of the Harmonized Tariff 
                Schedule of the United States (HTS).

                3. Pursuant to section 502(a) of the 1974 Act (19 
                U.S.C. 2462(a)), the President is authorized to 
                designate countries as beneficiary developing countries 
                and to designate any beneficiary developing country as 
                a least-developed beneficiary developing country, for 
                purposes of the GSP. Section 502(f)(1)(A) (19 U.S.C. 
                2462(f)(1)(A)) requires the President to notify the 
                Congress before designating any country as a 
                beneficiary developing country. Section 502(f)(1)(B) 
                (19 U.S.C. 2462(f)(1)(B)) requires the President to 
                notify the Congress at least 60 days before designating 
                any country as a least-developed beneficiary country.

                4. Pursuant to section 502(a)(1) of the 1974 Act, 
                having considered the factors set forth in section 
                502(c) (19 U.S.C. 2462(c)), I have determined that the 
                Republic of South Sudan should be designated as a 
                beneficiary developing country under the GSP, and I 
                will so notify the Congress.

                5. Pursuant to section 502(a)(2) of the 1974 Act, 
                having considered the factors set forth in section 
                502(c), I have determined that the Republic

[[Page 18900]]

                of South Sudan should also be designated as a least-
                developed beneficiary developing country for purposes 
                of the GSP, and I will so notify the Congress.

                6. Section 203(o) of the Dominican Republic-Central 
                America-United States Free Trade Agreement 
                Implementation Act (the ``CAFTA-DR Implementation 
                Act'') (19 U.S.C. 4033(o)) authorizes the President to 
                proclaim as part of the HTS the provisions set out in 
                Annex 4.1 of the Dominican Republic- Central America-
                United States Free Trade Agreement (CAFTA-DR).

                7. Appendix 4.1-B of Annex 4.1 of the CAFTA-DR provides 
                that ``[f]or purposes of determining whether a good of 
                chapter 62 of the Harmonized System is originating, 
                materials used in the production of such a good that 
                are produced in Canada or Mexico and that would be 
                originating under this Agreement if produced in the 
                territory of a Party shall be considered as having been 
                produced in the territory of a Party.'' For the 
                Dominican Republic, this rule entered into effect only 
                with regard to Mexico. Furthermore, under the terms of 
                Appendix 4.1-B, for operations performed in the 
                Dominican Republic, this rule would no longer apply to 
                Mexican-produced materials 5 years from the date CAFTA-
                DR enters into force, unless within that 5-year period, 
                the Dominican Republic concludes a free trade agreement 
                with Mexico and provides written notification to the 
                United States and other Parties to the CAFTA-DR that 
                the Dominican Republic and Mexico have taken actions 
                necessary to provide reciprocal application of the 
                rule. The 5-year period expired on March 1, 2012, and 
                the Dominican Republic has not concluded a free trade 
                agreement with Mexico. Accordingly, the rule set out in 
                Appendix 4.1-B to Annex 4.1 of the CAFTA-DR, no longer 
                applies to operations performed in the Dominican 
                Republic, and the HTS must be modified to implement 
                this provision of Annex 4.1.

                8. Section 3 of the Haiti Economic Lift Program Act of 
                2010, Public Law 111-171, amended section 213(b) of the 
                Caribbean Basin Economic Recovery Act, as amended (19 
                U.S.C. 2703(b)), to extend the duration of duty-free 
                treatment for certain apparel articles qualifying as 
                the product of a beneficiary country under the 
                Caribbean Basin Trade Partnership Act until September 
                30, 2020. A modification to the HTS needs to be made to 
                reflect this amendment.

                9. Presidential Proclamation 8771 of December 29, 2011, 
                modified the HTS to conform it to the International 
                Convention on the Harmonized Commodity Description and 
                Coding System (the ``Convention''). Technical 
                corrections to the HTS are necessary to ensure 
                conformity with the Convention.

                10. Presidential Proclamation 8783 of March 6, 2012, 
                authorized the United States Trade Representative to 
                modify U.S. note 4 to subchapter XX of chapter 99 of 
                the HTS in a notice published in the Federal Register 
                to reflect modifications made by the Committee for the 
                Implementation of Textile Agreements (CITA) to the list 
                of fabrics, yarns, or fibers in Annex 4-B-1 of the 
                United States-Korea Free Trade Agreement. That 
                authorization erroneously referred to paragraph (6), 
                and instead should refer to paragraph (5) of that 
                proclamation.

                11. Section 604 of 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, 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 
                title V and section 604 of the 1974 Act, section 203(o) 
                of the CAFTA-DR Implementation Act, and section 301 of 
                title 3, United States Code, do proclaim that:

                (1) The designation of Argentina as a beneficiary 
                developing country under the GSP is suspended on the 
                date that is 60 days after the date this proclamation 
                is published in the Federal Register.

[[Page 18901]]

                (2) In order to reflect the suspension of Argentina's 
                designation as a beneficiary developing country under 
                the GSP, general note 4 of the HTS is modified as set 
                forth in section A of the Annex to this proclamation, 
                effective with respect to articles entered, or 
                withdrawn from warehouse for consumption, on or after 
                the date that is 60 days after the date this 
                proclamation is published in the Federal Register.

                (3) The Republic of South Sudan is designated as a 
                beneficiary developing country for purposes of the GSP, 
                effective on the date that is 20 days after the date of 
                this proclamation.

                (4) In order to reflect this designation in the HTS, 
                general note 4(a) to the HTS is modified by adding in 
                alphabetical order ``South Sudan'' to the list 
                entitled, ``Independent Countries,'' effective with 
                respect to articles entered, or withdrawn from 
                warehouse for consumption, on or after the date that is 
                20 days after the date of this proclamation.

                (5) The Republic of South Sudan is designated as a 
                least-developed beneficiary developing country for 
                purposes of the GSP, effective 60 days after the date 
                this proclamation is published in the Federal Register.

                (6) In order to reflect this designation in the HTS, 
                general note 4(b)(i) is modified by adding in 
                alphabetical order ``South Sudan,'' effective with 
                respect to articles entered, or withdrawn from 
                warehouse for consumption, on or after the date that is 
                60 days after the date this proclamation is published 
                in the Federal Register.

                (7) In order to implement Appendix 4.1-B to Annex 4.1 
                of the CAFTA-DR, with respect to operations performed 
                in the Dominican Republic, the HTS is modified as set 
                forth in section B of the Annex to this proclamation.

                (8) The modifications to the HTS set forth in section B 
                of the Annex to this proclamation shall be effective 
                with respect to goods entered or withdrawn from 
                warehouse for consumption on or after March 1, 2012.

                (9) In order to implement section 3 of the Haiti 
                Economic Lift Program Act of 2010, the HTS is modified 
                as set forth in section C of the Annex to this 
                proclamation.

                (10) The modification to the HTS set forth in section C 
                of the Annex to this proclamation shall be effective 
                with respect to goods entered or withdrawn from 
                warehouse for consumption, on or after May 24, 2010.

                (11) In order to make the technical corrections to the 
                HTS necessary to conform to the Convention, the HTS is 
                modified as set forth in section D of the Annex to this 
                proclamation.

                (12) The modifications to the HTS set forth in section 
                D of the Annex to this proclamation shall be effective 
                with respect to goods entered, or withdrawn from 
                warehouse for consumption, on or after February 3, 
                2012.

                (13) Paragraph (9) of Presidential Proclamation 8783 is 
                amended to provide that the United States Trade 
                Representative is authorized to modify U.S. note 4 to 
                subchapter XX of chapter 99 of the HTS in a notice 
                published in the Federal Register to reflect 
                modifications pursuant to paragraph (5) of Presidential 
                Proclamation 8783 by the CITA to the list of fabrics, 
                yarns, or fibers in Annex 4-B-1 of the United States-
                Korea Free Trade Agreement.

                (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.

[[Page 18902]]

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

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[FR Doc. 2012-7681
Filed 3-28-12; 8:45 am]
Billing code 7020-02-C