[Federal Register Volume 84, Number 4 (Monday, January 7, 2019)]
[Presidential Documents]
[Pages 35-44]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00013]


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                         Presidential Documents 
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  Federal Register / Vol. 84 , No. 4 / Monday, January 7, 2019 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 35]]

                Proclamation 9834 of December 21, 2018

                
To Take Certain Actions Under the African Growth 
                and Opportunity Act and for Other Purposes

                By the President of the United States of America

                A Proclamation

                1. In Proclamation 8468 of December 23, 2009, the 
                President designated the Islamic Republic of Mauritania 
                (Mauritania) as a beneficiary sub-Saharan African 
                country for purposes of section 506A(a)(1) of the Trade 
                Act of 1974, as amended (the ``Trade Act''), as added 
                by section 111(a) of the African Growth and Opportunity 
                Act (title I of Public Law 106-200, 114 Stat. 251).

                2. Section 506A(a)(3) of the Trade Act (19 U.S.C. 
                2466a(a)(3)) authorizes the President to terminate the 
                designation of a country as a beneficiary sub-Saharan 
                African country for purposes of section 506A if he 
                determines that the country is not making continual 
                progress in meeting the requirements described in 
                section 506A(a)(1) of the Trade Act.

                3. Pursuant to section 506A(a)(3) of the Trade Act, I 
                have determined that Mauritania is not making continual 
                progress in meeting the requirements described in 
                section 506A(a)(1) of the Trade Act. Accordingly, I 
                have decided to terminate the designation of Mauritania 
                as a beneficiary sub-Saharan African country for 
                purposes of section 506A of the Trade Act, effective 
                January 1, 2019.

                4. 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 (the 
                ``USIFTA''), which the Congress approved in section 3 
                of the United States-Israel Free Trade Area 
                Implementation Act of 1985 (the ``USIFTA Act'') (19 
                U.S.C. 2112 note).

                5. Section 4(b) of the USIFTA 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 USIFTA.

                6. 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'').

                7. In Proclamation 7826 of October 4, 2004, consistent 
                with the 2004 Agreement, President Bush determined, 
                pursuant to section 4(b) of the USIFTA Act, that, in 
                order to maintain the general level of reciprocal and 
                mutually advantageous concessions with respect to 
                Israel provided for by the USIFTA, it was necessary to 
                provide duty-free access into the United States through 
                December 31, 2008, for specified quantities of certain 
                agricultural products of Israel.

                8. Each year from 2008 through 2017, the United States 
                and Israel entered into agreements to extend the period 
                that the 2004 Agreement was in force

[[Page 36]]

                for 1-year periods to allow additional time for the two 
                governments to conclude an agreement to replace the 
                2004 Agreement.

                9. To carry out the extension agreements, the President 
                in Proclamation 8334 of December 31, 2008; Proclamation 
                8467 of December 23, 2009; Proclamation 8618 of 
                December 21, 2010; Proclamation 8770 of December 29, 
                2011; Proclamation 8921 of December 20, 2012; 
                Proclamation 9072 of December 23, 2013; Proclamation 
                9223 of December 23, 2014; Proclamation 9383 of 
                December 21, 2015; Proclamation 9555 of December 15, 
                2016; and Proclamation 9687 of December 22, 2017, 
                modified the Harmonized Tariff Schedule of the United 
                States (``HTS'') to provide duty-free access into the 
                United States for specified quantities of certain 
                agricultural products of Israel, each time for an 
                additional 1-year period.

                10. On November 8, 2018, the United States entered into 
                an agreement with Israel to extend the period that the 
                2004 Agreement is in force through December 31, 2019, 
                and to allow for further negotiations on an agreement 
                to replace the 2004 Agreement.

                11. Pursuant to section 4(b) of the USIFTA Act, I have 
                determined that it is 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 the close of December 
                31, 2019, for specified quantities of certain 
                agricultural products of Israel, as provided in Annex I 
                of this proclamation.

                12. Section 915(b) of the Trade Facilitation and Trade 
                Enforcement Act of 2015 (the ``TFTEA'') (19 U.S.C. 
                4454(b)) authorizes the President to provide 
                preferential treatment for eligible articles imported 
                directly from Nepal into the customs territory of the 
                United States.

                13. In Proclamation 9555 of December 15, 2016, the 
                President determined, taking into account the factors 
                specified in section 915(b)(1)(B) of the TFTEA, that 
                Nepal met the eligibility requirements of that section. 
                Accordingly, and after receiving advice from the United 
                States International Trade Commission (the 
                ``Commission'') in accordance with section 503(e) of 
                the Trade Act (19 U.S.C. 2463(e)), the President 
                determined to designate certain articles as eligible 
                for duty-free treatment when imported from Nepal 
                pursuant to section 915(c)(2)(A)(iv) of the TFTEA.

                14. Pursuant to section 604 of the Trade Act (19 U.S.C. 
                2483), I have determined that it is appropriate to 
                update the list of programs under which special tariff 
                treatment may be provided, and the programs' 
                corresponding symbols, found in general note 3(c)(i) of 
                the HTS in order to reflect more clearly the tariff 
                preference for certain products of Nepal and the symbol 
                of that program.

                15. Proclamation 8894 of October 29, 2012, implemented 
                the United States-Panama Trade Promotion Agreement (the 
                ``PATPA'') with respect to the United States. Section 
                201(a) of the United States-Panama Trade Promotion 
                Agreement Implementation Act (the ``PATPA Act'') 
                (Public Law 112-43, 125 Stat. 497, 501), authorizes the 
                President to proclaim such modifications or 
                continuation of any duty, such continuation of duty-
                free or excise treatment, or such additional duties, as 
                the President determines to be necessary or appropriate 
                to carry out or apply Article 3.28 of the PATPA, among 
                other portions of that agreement.

                16. Sections 500, 514, and 625 of the Tariff Act of 
                1930 (19 U.S.C. 1500, 1514, and 1625) grant U.S. 
                Customs and Border Protection (``CBP'') authority to 
                determine the tariff classification of articles that 
                have entered, or will enter, the commerce of the United 
                States. In 2017, CBP changed the classification of 
                certain guayabera-style shirts subject to Article 3.28 
                of the PATPA.

                17. In order to ensure the continuation of duty-free 
                treatment for originating guayabera-style shirts 
                subject to Article 3.28 of the PATPA, and in accordance 
                with section 201 of the PATPA Act, I have determined 
                that it is necessary and appropriate to modify the HTS 
                to carry out the duty reductions previously proclaimed.

[[Page 37]]

                18. Proclamation 6821 of September 12, 1995, 
                established a tariff-rate quota on certain tobacco and 
                eliminated tariffs on certain other tobacco by adding 
                additional U.S. note 5 and various subheadings to 
                chapter 24 of the HTS. Additional U.S. note 5 to 
                chapter 24 of the HTS provides that the tariff-rate 
                quota applies to the aggregate quantity of tobacco 
                entered, or withdrawn from warehouse for consumption, 
                under enumerated HTS subheadings from specified 
                countries or areas, except that the tariff-rate quota 
                does not apply to smoking tobacco unless it is 
                manufactured for use in cigarettes.

                19. Proclamation 8771 of December 29, 2011, pursuant to 
                the authority provided in section 1206(a) of the 
                Omnibus Trade and Competitiveness Act of 1988 (the 
                ``1988 Act'') (19 U.S.C. 3006(a)), modified the HTS to 
                reflect amendments to the International Convention on 
                the Harmonized Commodity Description and Coding System 
                (the ``Convention'').

                20. HTS subheading 2403.11.00, covering water pipe 
                tobacco that is not used in cigarettes, was incorrectly 
                added to the subheadings enumerated in additional U.S. 
                note 5 to chapter 24. I have determined, in accordance 
                with section 604 of the Trade Act, that a modification 
                to the HTS is needed to correct this technical error.

                21. In accordance with my direction, the United States 
                Trade Representative announced in the Federal Register 
                notice of September 21, 2018, 83 FR 47974 (the ``USTR 
                Notice''), his determination to modify the action taken 
                in the Section 301 Action: China's Acts, Policies, and 
                Practices Related to Technology Transfer, Intellectual 
                Property, and Innovation by imposing additional duties 
                on products of China classified in the full and partial 
                HTS subheadings set out in Annex A of that notice. The 
                full and partial subheadings covered by the USTR Notice 
                include HTS subheading 2009.89.60.

                22. Subsequently, Proclamation 9813 of October 30, 
                2018, divided HTS subheading 2009.89.60 into two new 
                subheadings, 2009.89.65 and 2009.89.70, in order to 
                provide that several countries should no longer be 
                treated as beneficiary developing countries with 
                respect to one or more eligible articles for purposes 
                of the Generalized System of Preferences. In order to 
                maintain the scope of the modification to the Section 
                301 action announced in the USTR Notice, and in 
                accordance with section 604 of the Trade Act, I have 
                determined that it is necessary to modify U.S. note 
                20(f) to subchapter III of chapter 99 of the HTS.

                23. The Miscellaneous Tariff Bill Act of 2018 (Public 
                Law 115-239, 132 Stat. 2451), enacted on September 13, 
                2018, and effective October 13, 2018, created three 
                headings in the HTS, 9902.01.15, 9902.01.16, and 
                9902.01.17, that refer to articles provided for in 
                subheading 2009.89.60. As a result of the division of 
                that subheading into two new subheadings in 
                Proclamation 9813, those articles are now provided for 
                in 2009.89.70. In accordance with section 604 of the 
                Trade Act, I have determined that it is necessary to 
                amend headings 9902.01.15, 9902.01.16, and 9902.01.17 
                of the HTS to reflect the correct new subheading.

                24. On June 30, 2007, the United States signed the 
                United States-Korea Free Trade Agreement (the 
                ``KORUS''). The Congress approved the KORUS in section 
                101(a) of the United States-Korea Free Trade Agreement 
                Implementation Act (the ``KORUS Act'') (Public Law 112-
                41, 125 Stat. 428).

                25. Proclamation 8783 of March 6, 2012, implemented the 
                KORUS with respect to the United States and, pursuant 
                to section 201 of the KORUS Act, incorporated in the 
                HTS the tariff modifications necessary or appropriate 
                to carry out the staged reductions in duty that the 
                President determined to be necessary or appropriate to 
                carry out or apply Articles 2.3, 2.5, and 2.6 of the 
                KORUS, and the schedule of duty reductions with respect 
                to Korea set forth in Annex 2-B, Annex 4-B, and Annex 
                22-A of the KORUS.

                26. Section 201(b) of the KORUS Act (125 Stat. 433) 
                authorizes the President, subject to the consultation 
                and layover requirements of section 104 (125 Stat. 431-
                32), to proclaim such modifications or continuation of 
                any duty,

[[Page 38]]

                such modifications as the United States may agree to 
                with Korea regarding the staging of any duty treatment 
                set forth in Annex 2-B of the KORUS, such continuation 
                of duty-free or excise treatment, or such additional 
                duties, as the President determines to be necessary or 
                appropriate to maintain the general level of reciprocal 
                and mutually advantageous concessions with respect to 
                Korea provided for by the KORUS.

                27. The United States and Korea have agreed to modify 
                the KORUS by modifying the staging of duty treatment 
                for specific goods of Korea. I have determined that 
                modification of the tariff treatment set forth in 
                Proclamation 8783 is therefore necessary or appropriate 
                to maintain the general level of reciprocal and 
                mutually advantageous concessions with respect to Korea 
                provided for by the KORUS, and to carry out the 
                agreement with Korea modifying the staging of duty 
                treatment for specific goods.

                28. On June 13, 2018, in accordance with section 104 of 
                the KORUS Act, the United States Trade Representative 
                submitted a report to the Committee on Finance of the 
                Senate and the Committee on Ways and Means of the House 
                of Representatives that set forth the proposed 
                modifications to the duties for specific goods of Korea 
                under the KORUS. The consultation and layover period 
                specified in section 104 expired on August 11, 2018.

                29. Section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) 
                authorizes the President to proclaim modifications to 
                the HTS based on the recommendations of the Commission 
                under section 1205 of the 1988 Act (19 U.S.C. 3005) 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.

                30. In Proclamation 9771 of July 30, 2018, pursuant to 
                the authority provided in section 1206(a) of the 1988 
                Act, the President modified the HTS to reflect a small 
                number of amendments to the Convention.

                31. In order to ensure the continuation of staged 
                reductions in rates of duty for originating goods of 
                Korea as provided in Proclamation 8783, under tariff 
                categories that were modified in Proclamation 9771 to 
                reflect the amendments to the Convention, I have 
                determined that additional modifications to the HTS are 
                necessary or appropriate.

                32. Proclamation 7971 of December 22, 2005, implemented 
                the United States-Morocco Free Trade Agreement (the 
                ``USMFTA'') with respect to the United States and, 
                pursuant to the United States-Morocco Free Trade 
                Agreement Implementation Act (Public Law 108-302, 118 
                Stat. 1103) (the ``USMFTA Act''), incorporated in the 
                HTS the tariff modifications and rules of origin 
                necessary or appropriate to carry out the USMFTA.

                33. Section 203 of the USMFTA Act (118 Stat. 1109-15) 
                provides rules for determining whether goods imported 
                into the United States originate in the territory of 
                Morocco and thus are eligible for the tariff and other 
                treatment contemplated under the USMFTA. Section 
                203(j)(2)(B)(i) of the USMFTA Act (118 Stat. 1115) 
                authorizes the President to proclaim, as a part of the 
                HTS, the rules of origin set out in the USMFTA, and to 
                proclaim modifications to such previously proclaimed 
                rules of origin, subject to the consultation and 
                layover requirements of section 104 of the USMFTA Act 
                (118 Stat. 1106).

                34. The United States and Morocco have agreed to modify 
                certain USMFTA rules of origin and to apply the 
                modified rules to their bilateral trade. On November 
                21, 2017, in accordance with section 104 of USMFTA Act, 
                the United States Trade Representative submitted a 
                report to the Committee on Finance of the Senate and 
                the Committee on Ways and Means of the House of 
                Representatives that set forth the proposed 
                modifications to specific textile and apparel rules of 
                origin of the USMFTA incorporated in the HTS. The 
                consultation and layover period specified in section 
                104 expired on January 20, 2018.

[[Page 39]]

                35. In order to reflect the agreement between the 
                United States and Morocco related to USMFTA rules of 
                origin, I have determined that it is necessary to 
                modify the HTS.

                36. Section 604 of 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 removal, modification, 
                continuance, or imposition of any rate of duty or other 
                import restriction.

                NOW, THEREFORE, I, DONALD J. TRUMP, 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 section 506A(a)(3) 
                of the Trade Act (19 U.S.C. 2466a(a)(3)); section 4(b) 
                of the USIFTA Act (19 U.S.C. 2112 note); section 201(a) 
                of the PATPA Act (125 Stat. 501); section 1206(a) of 
                the 1988 Act (19 U.S.C. 3006(a)); section 201(b) of the 
                KORUS Act (125 Stat. 433); section 203(j) of the USMFTA 
                Act (118 Stat. 1115); and section 604 of the Trade Act 
                (19 U.S.C. 2483), do proclaim that:

                    (1) The designation of Mauritania as a beneficiary 
                sub-Saharan African country for purposes of section 
                506A of the Trade Act is terminated, effective January 
                1, 2019.
                    (2) In order to reflect in the HTS that beginning 
                January 1, 2019, Mauritania shall no longer be 
                designated as a beneficiary sub-Saharan African 
                country, general note 16(a) to the HTS is modified by 
                deleting ``Islamic Republic of Mauritania'' from the 
                list of beneficiary sub-Saharan African countries.
                    (3) The modification to the HTS set forth in 
                paragraphs (1) and (2) of this proclamation shall be 
                effective with respect to articles that are entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or after January 1, 2019.
                    (4) In order to implement United States tariff 
                commitments under the 2004 Agreement through December 
                31, 2019, the HTS is modified as provided in Annex I of 
                this proclamation.
                    (5) The modifications to the HTS set forth in Annex 
                I of this proclamation shall be effective with respect 
                to eligible agricultural products of Israel that are 
                entered for consumption, or withdrawn from warehouse 
                for consumption, on or after January 1, 2019.
                    (6) The provisions of subchapter VIII of chapter 99 
                of the HTS, as modified by Annex I of this 
                proclamation, shall continue in effect through December 
                31, 2019.
                    (7) In order to reflect the tariff preference for 
                certain products from Nepal, the HTS is modified by 
                adding ``Nepal Preference Program.........NP'' after 
                ``United States-Panama Trade Promotion Agreement 
                Implementation Act.........PA'' in general note 
                3(c)(i). The modification set forth in this paragraph 
                shall be effective with respect to goods that are 
                entered for consumption, or withdrawn from warehouse 
                for consumption, on or after January 1, 2019, and shall 
                continue in effect through December 31, 2025.
                    (8) In order to provide for previously proclaimed 
                duty-free treatment for originating guayabera-style 
                shirts under the PATPA, the HTS is modified by deleting 
                ``heading 6205 or 6206'' and by inserting in lieu 
                thereof ``heading 6205, 6206, or 6211'' in U.S. note 41 
                to subchapter XXII of chapter 98. The modification set 
                forth in this paragraph shall be effective with respect 
                to goods that are entered for consumption, or withdrawn 
                from warehouse for consumption, on or after January 1, 
                2019.
                    (9) In order to correct a technical error in the 
                administration of a tobacco tariff-rate quota, 
                additional U.S. note 5(a) to chapter 24 is modified by 
                deleting ``2403.11.00''. The modification set forth in 
                this paragraph shall be effective with respect to goods 
                that are entered for consumption, or withdrawn from 
                warehouse for consumption, on or after January 1, 2019.

[[Page 40]]

                    (10) In order to maintain the scope of the 
                modification of the Section 301 action, U.S. note 20(f) 
                to subchapter III of chapter 99 of the HTS is modified 
                by deleting ``2009.89.60'' and inserting ``2009.89.65'' 
                and ``2009.89.70'' in numerical sequence. The 
                modification set forth in this paragraph shall be 
                effective with respect to goods that are entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or after November 1, 2018.
                    (11) In order to reflect modifications to certain 
                HTS subheadings made in Proclamation 9813 and to 
                provide the intended tariff treatment under the 
                Miscellaneous Tariff Bill of 2018, headings 9902.01.15, 
                9902.01.16, and 9902.01.17 of the HTS are each amended 
                by deleting ``subheading 2009.89.60'' and inserting 
                ``subheading 2009.89.70'' in lieu thereof. The 
                modification set forth in this paragraph shall be 
                effective with respect to goods that are entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or after November 1, 2018.
                    (12) In order to modify the staging of duty 
                treatment for specific goods of Korea under the terms 
                of general note 33 to the HTS:

(a) the tariff treatment set forth in Proclamation 8783 with respect to 
subheadings 8704.21.00, 8704.22.50, 8704.23.00, 8704.31.00, 8704.32.00, and 
8704.90.00 is terminated, effective with respect to goods that are entered 
for consumption, or withdrawn from warehouse for consumption, on or after 
January 1, 2019;

(b) in the Rates of Duty 1-Special subcolumn of column 1 for subheadings 
8704.21.00, 8704.22.50, 8704.23.00, 8704.31.00, 8704.32.00, and 8704.90.00, 
the rate of duty ``25% (KR)'' shall continue in effect through December 31, 
2040; and

(c) effective with respect to goods that are entered for consumption, or 
withdrawn from warehouse for consumption, on or after January 1, 2041, 
subheadings 8704.21.00, 8704.22.50, 8704.23.00, 8704.31.00, 8704.32.00, and 
8704.90.00 are hereby modified by inserting, in the Rates of Duty 1-Special 
subcolumn of column 1 in the parenthetical expression following the 
``Free'' rate of duty, the symbol ``KR''.

                    (13) In order to provide for the continuation of 
                previously proclaimed staged duty reductions in the 
                Rates of Duty 1-Special subcolumn for originating goods 
                of Korea under the KORUS that are classifiable in the 
                provisions modified by Annex III of Proclamation 9771 
                and entered for consumption, or withdrawn from 
                warehouse for consumption, on or after each of the 
                dates specified in Proclamation 9771, the HTS is 
                modified as follows:

(a) effective January 1, 2019, the rate of duty in the HTS set forth in the 
Rate of Duty 1-Special subcolumn for each of the HTS subheadings enumerated 
in Annex II of this proclamation shall be modified by inserting in such 
subcolumn for each subheading the rate of duty specified for such 
subheading in the table column ``2019'' before the symbol ``KR'' in 
parentheses; and

(b) for each of the subsequent dated table columns, the rates of duty in 
such subcolumn for such subheadings set forth before the symbol ``KR'' in 
parentheses are deleted and the rates of duty for such dated table column 
are inserted in each enumerated subheading in lieu thereof.

                    (14) In order to implement agreed amendments to 
                certain textile rules of origin under the USMFTA, 
                general note 27 to the HTS is modified as set forth in 
                Annex III of this proclamation. The modifications set 
                forth in Annex III of this proclamation shall enter 
                into effect on the first day of the month following the 
                date the United States Trade Representative announces 
                in a notice published in the Federal Register that 
                Morocco has completed its applicable domestic 
                procedures to give effect to corresponding 
                modifications to be applied to goods of the United 
                States.
                    (15) 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.

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                IN WITNESS WHEREOF, I have hereunto set my hand this 
                twenty-first day of December, in the year of our Lord 
                two thousand eighteen, and of the Independence of the 
                United States of America the two hundred and forty-
                third.
                
                
                    (Presidential Sig.)

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[FR Doc. 2019-00013
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