[Federal Register Volume 78, Number 127 (Tuesday, July 2, 2013)]
[Presidential Documents]
[Pages 39949-39956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16104]



[[Page 39947]]

Vol. 78

Tuesday,

No. 127

July 2, 2013

Part V





The President





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Proclamation 8997--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences and for Other Purposes
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                         Presidential Documents 
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  Federal Register / Vol. 78 , No. 127 / Tuesday, July 2, 2013 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 39949]]

                Proclamation 8997 of June 27, 2013

                
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)(G) of the Trade Act of 1974, as 
                amended (the ``1974 Act'') (19 U.S.C. 2462(b)(2)(G)), 
                provides that the President shall not designate any 
                country a beneficiary developing country under the 
                Generalized System of Preferences (GSP) if such country 
                has not taken or is not taking steps to afford 
                internationally recognized worker rights to workers in 
                the country (including any designated zone in that 
                country). Section 502(d)(2) of the 1974 Act (19 U.S.C. 
                2462(d)(2)) provides that, after complying with the 
                requirements of section 502(f)(2) of the 1974 Act (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) of the 1974 Act. Section 502(f)(2) of 
                the 1974 Act requires the President to notify the 
                Congress and the country concerned at least 60 days 
                before terminating its designation as a beneficiary 
                developing country for purposes of the GSP.

                2. Having considered the factors set forth in section 
                502(b)(2)(G) and providing the notification called for 
                in section 502(f)(2), I have determined pursuant to 
                section 502(d) of the 1974 Act, that it is appropriate 
                to suspend Bangladesh's designation as a GSP 
                beneficiary developing country because it has not taken 
                or is not taking steps to afford internationally 
                recognized worker rights to workers in the country. In 
                order to reflect the suspension of Bangladesh's status 
                as a beneficiary developing country under the GSP, I 
                have determined that it is appropriate to modify 
                general notes 4(a) and 4(b)(i) of the Harmonized Tariff 
                Schedule of the United States (HTS).

                3. Section 503(c)(2)(A) of the 1974 Act provides that 
                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.

                4. Pursuant to section 503(c)(2)(A) of the 1974 Act, I 
                have determined that in 2012 certain beneficiary 
                developing countries exported eligible articles in 
                quantities exceeding the applicable competitive need 
                limitations, and I therefore terminate the duty-free 
                treatment for such articles from such beneficiary 
                developing countries.

                5. 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) of the 1974 Act (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)).

[[Page 39950]]

                6. 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.

                7. Section 503(d)(1) of the 1974 Act (19 U.S.C. 
                2463(d)(1)) provides that the President may waive the 
                application of the competitive need limitations in 
                section 503(c)(2) of the 1974 Act with respect to any 
                eligible article from any beneficiary developing 
                country if certain conditions are met.

                8. Pursuant to section 503(d)(1) of the 1974 Act, I 
                have received the advice of the United States 
                International Trade Commission on whether any industry 
                in the United States is likely to be adversely affected 
                by waivers of the competitive need limitations provided 
                in section 503(c)(2), and I have determined, based on 
                that advice and on the considerations described in 
                sections 501 and 502(c) of the 1974 Act (19 U.S.C. 
                2462(c)) and after giving great weight to the 
                considerations in section 503(d)(2) of the 1974 Act (19 
                U.S.C. 2463(d)(2)), 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) of the 1974 Act 
                should be waived with respect to certain eligible 
                articles from certain beneficiary developing countries.

                9. Section 503(d)(4)(B)(ii) of the 1974 Act (19 U.S.C. 
                2463(d)(4)(B)(ii)) provides that the President should 
                revoke any waiver of the application of the competitive 
                need limitations that has been in effect with respect 
                to an article for 5 years or more if the beneficiary 
                developing country has exported to the United States 
                during the preceding calendar year an amount that 
                exceeds the quantity set forth in section 
                503(d)(4)(B)(ii)(I) or section 503(d)(4)(B)(ii)(II) of 
                the 1974 Act (19 U.S.C. 2463(d)(4)(B)(ii)(I) and 19 
                U.S.C. 2463(d)(4)(B)(ii)(II)).

                10. Pursuant to section 503(d)(4)(B)(ii) of the 1974 
                Act, I have determined that in 2012 certain beneficiary 
                developing countries exported eligible articles for 
                which a waiver has been in effect for 5 years or more 
                in quantities exceeding the applicable limitation set 
                forth in section 503(d)(4)(B)(ii)(I) or section 
                503(d)(4)(B)(ii)(II) of the 1974 Act, and I therefore 
                revoke said waivers.

                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 removal, modification, 
                continuance, or imposition of any rate of duty or other 
                import restriction.

                12. Presidential Proclamation 6763 of December 23, 
                1994, implemented the trade agreements resulting from 
                the Uruguay Round of multilateral negotiations, 
                including Schedule XX--United States of America, 
                annexed to the Marrakesh Protocol to the General 
                Agreement on Tariffs and Trade 1994 (Schedule XX). In 
                order to maintain the intended tariff treatment for 
                certain products covered in Schedule XX, I have 
                determined that technical corrections to the HTS are 
                necessary.

                13. Presidential Proclamation 7011 of June 30, 1997, 
                implemented modifications of the World Trade 
                Organization Ministerial Declaration on Trade in 
                Information Technology Products (the ``ITA'') for the 
                United States. Products included in Attachment B to the 
                ITA are entitled to duty-free treatment wherever 
                classified. Presidential Proclamation 8840 of June 29, 
                2012, implemented certain technical corrections are 
                necessary to the HTS in order to maintain the intended 
                tariff treatment for certain products covered in 
                Attachment B. I have determined that certain additional 
                technical corrections are necessary to conform the HTS 
                to the changes made by Presidential Proclamation 8840.

                14. Presidential Proclamation 8818 of May 14, 2012, 
                implemented U.S. tariff commitments under the United 
                States-Colombia Trade Promotion Agreement

[[Page 39951]]

                and incorporated by reference Publication 4320 of the 
                United States International Trade Commission, entitled 
                ``Modifications to the Harmonized Tariff Schedule of 
                the United States to Implement the United States-
                Colombia Trade Promotion Agreement.'' Presidential 
                Proclamation 8894 of October 29, 2012, made 
                modifications to the HTS to correct technical errors 
                and omissions in Annexes I and II to Publication 4320. 
                I have determined that a modification is necessary to 
                correct an additional omission.

                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, do proclaim 
                that:

                    (1) The designation of Bangladesh 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.
                    (2) In order to reflect the suspension of benefits 
                under the GSP with respect to Bangladesh, general notes 
                4(a) and 4(b)(i) of the HTS are modified as set forth 
                in section A of Annex I to this proclamation by 
                deleting ``Bangladesh'' from the list of independent 
                countries and least developed countries, 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) 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, the Rates of Duty 1--Special 
                subcolumn for the corresponding HTS subheadings and 
                general note 4(d) of the HTS are modified as set forth 
                in sections B and C of Annex I to this proclamation.
                    (4) The modifications to the HTS set forth in 
                sections B and C of Annex I to this proclamation shall 
                be effective with respect to the articles entered, or 
                withdrawn from warehouse for consumption, on or after 
                the dates set forth in the relevant sections of Annex 
                I.
                    (5) The competitive need limitation provided in 
                section 503(c)(2)(A)(i)(II) of the 1974 Act is 
                disregarded with respect 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) of the 1974 Act shall apply to the articles 
                in the HTS subheadings and to the beneficiary 
                developing countries set forth in Annex III to this 
                proclamation.
                    (7) In order to provide the intended tariff 
                treatment to certain products as set out in Schedule 
                XX, the HTS is modified as set forth in section A of 
                Annex IV to this proclamation.
                    (8) In order to conform the HTS to certain 
                technical corrections made to provide the intended 
                tariff treatment to certain products as set out in the 
                ITA, the HTS is modified as set forth in section B of 
                Annex IV to this proclamation.
                    (9) In order to provide the intended tariff 
                treatment to certain goods from Colombia, the HTS is 
                modified as set forth in section C of Annex IV to this 
                proclamation.
                    (10) The modifications to the HTS set forth in 
                Annex IV to this proclamation shall be effective with 
                respect to the articles entered, or withdrawn from 
                warehouse for consumption, on or after the dates set 
                forth in the relevant sections of Annex IV.
                    (11) 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 39952]]

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

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[FR Doc. 2013-16104
Filed 7-1-13; 11:15 am]

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