[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Presidential Documents]
[Pages 44129-44205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16174]



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Vol. 81

Wednesday,

No. 129

July 6, 2016

Part III





The President





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Proclamation 9466--To Implement the World Trade Organization 
Declaration on the Expansion of Trade in Information Technology 
Products and for Other Purposes
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                         Presidential Documents 
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  Federal Register / Vol. 81 , No. 129 / Wednesday, July 6, 2016 / 
Presidential Documents  

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 Title 3--
 The President

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                Proclamation 9466 of June 30, 2016

                
To Implement the World Trade Organization 
                Declaration on the Expansion of Trade in Information 
                Technology Products and for Other Purposes

                By the President of the United States of America

                A Proclamation

                1. On July 28, 2015, the United States and other 
                Members of the World Trade Organization (WTO) issued a 
                Declaration on the Expansion of Trade in Information 
                Technology Products (Declaration), which established a 
                framework for eliminating duties on certain information 
                and communication technology products. These products 
                include advanced semiconductors, medical equipment, and 
                a range of audio and video equipment. The Declaration 
                sets forth commitments for immediate or staged 
                elimination of duties on the covered products, 
                expanding on duty-elimination commitments set forth in 
                the 1996 Declaration on Trade in Information Technology 
                Products, which the United States implemented in 
                Proclamation 7011 of June 30, 1997.

                2. On December 16, 2015, the United States and other 
                WTO Members issued a Ministerial Declaration in which 
                ministers endorsed the Declaration of July 28, 2015, 
                and acknowledged that the conditions for implementation 
                had been met.

                3. Section 111(b) of the Uruguay Round Agreements Act 
                (URAA) (19 U.S.C. 3521(b)) authorizes the President to 
                proclaim the modification of any duty or staged rate 
                reduction of any duty set forth in Schedule XX for 
                products in tariff categories that were the subject of 
                reciprocal duty elimination or harmonization 
                negotiations during the Uruguay Round, if the United 
                States agrees to such action in a multilateral 
                negotiation under the auspices of the WTO, and after 
                compliance with the requirements of section 115 of the 
                URAA (19 U.S.C. 3524). The products covered by the 
                Declaration were the subject of reciprocal duty 
                elimination negotiations during the Uruguay Round, and 
                the requirements of section 115 of the URAA have been 
                met.

                4. Accordingly, pursuant to section 111(b) of the URAA, 
                I have determined to proclaim modifications to the 
                tariff categories and rates of duty set forth in the 
                Harmonized Tariff Schedule (HTS), as set forth in 
                Annexes I and II to this proclamation.

                5. Section 103(a) of the Trade Preferences Extension 
                Act of 2015 (TPEA) (Public Law 114-27) amended section 
                506B of the Trade Act of 1974 (the ``1974 Act'') (19 
                U.S.C. 2466b) and section 103(b)(1) amended section 
                112(g) of the African Growth and Opportunity Act (AGOA) 
                (19 U.S.C. 3721(g)), to provide that in the case of a 
                beneficiary sub-Saharan African country, duty-free 
                treatment provided under title V of the 1974 Act shall 
                remain in effect through September 30, 2025.

                6. Accordingly, pursuant to section 506B of the 1974 
                Act and section 112(g) of the AGOA, I have determined 
                that general note 16(c) of the HTS is modified by 
                striking ``September 30, 2015'' and by inserting in 
                lieu thereof ``September 30, 2025''.

                7. Section 103(b)(2) of the TPEA amended section 
                112(b)(3)(A) of the AGOA (19 U.S.C. 3721(b)(3)(A)) to 
                extend the regional apparel article program and section 
                103(b)(3) of the TPEA amended section 112(c)(1) of the 
                AGOA

[[Page 44130]]

                (19 U.S.C. 3721(c)(1)) to extend the third-country 
                fabric program through September 30, 2025.

                8. Accordingly, pursuant to sections 112(b)(3)(A) and 
                112(c)(1) of the AGOA, I have determined that chapter 
                98, subchapter XIX, U.S. note 2(b) of the HTS is 
                modified by striking ``September 30, 2015'' where 
                stated in ``through the period October 1, 2014 through 
                September 30, 2015'' and in ``each 1-year period 
                thereafter through September 30, 2015'' and by 
                inserting in lieu thereof ``September 30, 2025''.

                9. Section 104(c) of the TPEA authorizes the President 
                to proclaim modifications that may be necessary to add 
                the special tariff treatment symbol ``D'' in the 
                ``Special'' subcolumn of the HTS for each article 
                classified under a heading or subheading with the 
                special tariff treatment symbol ``A'' or ``A*'' in the 
                ``Special'' subcolumn of the HTS.

                10. Accordingly, pursuant to section 104(c) of the 
                TPEA, I have determined it is necessary to add the 
                special tariff treatment symbol ``D'' in the HTS as set 
                forth in Annex III to this proclamation.

                11. Pursuant to sections 501 and 503(a)(1)(B) of the 
                1974 Act (19 U.S.C. 2461 and 2463(a)(1)(B)), the 
                President may designate certain articles as eligible 
                for preferential tariff treatment under the Generalized 
                System of Preferences (GSP) when imported from a least-
                developed beneficiary developing country if, after 
                receiving the advice of the United States International 
                Trade Commission (Commission), the President determines 
                that such articles are not import-sensitive in the 
                context of imports from least-developed beneficiary 
                developing countries.

                12. Pursuant to sections 501, 503(a)(1)(B), and 
                503(b)(5) of the 1974 Act (19 U.S.C. 2461, 
                2463(a)(1)(b), and 2463(b)(5)), and after receiving 
                advice from the Commission in accordance with section 
                503(e) of the 1974 Act (19 U.S.C. 2463(e)), I have 
                determined to designate certain articles as eligible 
                articles when imported from a least-developed 
                beneficiary developing country.

                13. Pursuant to sections 503(b)(1)(E) and 506A(b)(1) of 
                the 1974 Act (19 U.S.C. 2463(b)(1)(E) and 2466A(b)(1)), 
                the President may designate certain articles as 
                eligible for preferential tariff treatment under the 
                AGOA when the articles are the growth, product, or 
                manufacture of a beneficiary sub-Saharan African 
                country if, after receiving the advice of the 
                Commission, the President determines that such articles 
                are not import-sensitive in the context of imports from 
                beneficiary sub-Saharan African countries.

                14. Pursuant to sections 503(b)(1)(E) and 506A(b)(1) of 
                the 1974 Act, and after receiving advice from the 
                Commission in accordance with section 503(e) of the 
                1974 Act, I have determined to designate certain 
                articles as eligible articles when the articles are the 
                growth, product, or manufacture of a beneficiary sub-
                Saharan African country.

                15. Pursuant to section 503(c)(1) of the 1974 Act (19 
                U.S.C. 2463(c)(1)), the President may withdraw, 
                suspend, or limit application of the duty-free 
                treatment accorded to specified articles under the GSP 
                when imported from designated beneficiary developing 
                countries.

                16. Pursuant to section 503(c)(1) of the 1974 Act, and 
                having considered the factors set forth in sections 501 
                and 502(c) of the 1974 Act (19 U.S.C. 2462(c)), I have 
                determined to limit the application of duty-free 
                treatment accorded to certain articles from certain 
                beneficiary developing countries.

                17. Section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 
                2463(c)(2)(A)) 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.

                18. Pursuant to section 503(c)(2)(A) of the 1974 Act, I 
                have determined that in 2015 certain beneficiary 
                developing countries exported eligible articles

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                in quantities exceeding the applicable competitive need 
                limitations, and I therefore terminate the duty-free 
                treatment for such articles from such beneficiary 
                developing countries.

                19. 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)).

                20. 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.

                21. 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 (19 U.S.C. 
                2463(c)(2)) with respect to any eligible article from 
                any beneficiary developing country if certain 
                conditions are met.

                22. Pursuant to section 503(d)(1) of the 1974 Act, I 
                have received the advice of the 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) of the 1974 
                Act, 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 (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.

                23. 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.

                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 111(b) of the URAA, section 506B of the 1974 
                Act, sections 112(g), 112(b)(3)(A), and 112(c)(1) of 
                the AGOA, section 104(c) of the TPEA, and title V and 
                section 604 of the 1974 Act, do proclaim that:

                    (1) In order to provide for the immediate or staged 
                elimination of duties on the information technology 
                products covered by the Declaration, the HTS is 
                modified as set forth in Annexes I and II to this 
                proclamation;
                    (2) In order to provide that duty-free treatment 
                provided under the AGOA shall remain in effect through 
                September 30, 2025, general note 16(c) of the HTS is 
                modified by striking ``September 30, 2015'' and by 
                inserting in lieu thereof ``September 30, 2025'';
                    (3) In order to provide that the regional apparel 
                article program and the third-country fabric program 
                are effective through September 30, 2025, chapter 98, 
                subchapter XIX, U.S. note 2 of the HTS is modified by 
                striking ``September 30, 2015'' where stated in 
                ``through the period October 1, 2014 through September 
                30, 2015'' and in ``each 1-year period thereafter 
                through September 30, 2015'' and by inserting in lieu 
                thereof ``September 30, 2025'';
                    (4) In order to provide for the addition of the 
                special tariff treatment symbol ``D'' in the 
                ``Special'' subcolumn where necessary in the HTS, the 
                HTS is modified as set forth in Annex III to this 
                proclamation;

[[Page 44132]]

                    (5) In order to designate certain articles as 
                eligible articles only when imported from a least-
                developed beneficiary developing country for purposes 
                of the GSP, the Rates of Duty 1-Special subcolumn for 
                the corresponding HTS subheadings is modified as set 
                forth in Annex IV to this proclamation;
                    (6) In order to designate certain articles as 
                eligible articles only when imported from a beneficiary 
                sub-Saharan African country for purposes of the AGOA, 
                the Rates of Duty 1 Special subcolumn for the 
                corresponding HTS subheadings is modified as set forth 
                in Annex IV to this proclamation;
                    (7) 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) to the HTS are modified as set forth 
                in sections A and B of Annex V to this proclamation;
                    (8) The modifications to the HTS set forth in Annex 
                V to this proclamation shall be effective with respect 
                to articles entered, or withdrawn from warehouse for 
                consumption, on or after the dates set forth in the 
                relevant sections of Annex V to this proclamation;
                    (9) 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 VI to this proclamation, 
                effective July 1, 2016;
                    (10) 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 VII to this 
                proclamation, effective July 1, 2016; and
                    (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.

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

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[FR Doc. 2016-16174
Filed 7-5-16; 11:15 a.m.]
Billing code 7020-02-C