    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Proclamation 7696 of August 27, 2003

    To Extend Duty-Free Treatment for Certain Agricultural Products of
    Israel

    By the President of the United States of America
    A Proclamation

    1. On April 22, 1985, the United States 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 (FTA), which the
    Congress approved in the United States-Israel Free Trade Area
    Implementation Act of 1985 (the ``FTA Act'')(19 U.S.C. 2112 Note).
    2. On November 4, 1996, the United States entered into an agreement with
    Israel concerning certain aspects of trade in agricultural products,
    effective from December 4, 1996, through December 31, 2001 (the ``1996
    Agreement''), in order to maintain the general level of reciprocal and
    mutually advantageous concessions with respect to agricultural trade
    while acknowledging differing interpretations as to the meaning of
    certain rights and obligations in the FTA as to such trade.
    3. Section 4(b) of the FTA 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 FTA, 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 FTA.
    4. Consistent with section 4(b) of the FTA Act, President Clinton issued
    Proclamation 6962 of December 2, 1996, to provide to Israel through the
    close of December 31, 2001, access into the United States customs
    territory for specified quantities of certain agricultural products of
    Israel free of duty or certain fees or other import charges, consistent
    with the 1996 Agreement.
    5. On December 31, 2001, the United States entered into an agreement
    with Israel to extend the 1996 Agreement through December 31, 2002, in
    order to allow for additional time to negotiate a successor arrangement
    to the 1996 Agreement. Consistent with section 4(b) of the FTA Act, I
    issued Proclamation 7554, of May 3, 2002, to provide to Israel through
    the close of December 31, 2002, access into the United States customs
    territory for specified quantities of certain agricultural products of
    Israel free of duty or certain fees or other import charges. Several
    rounds of negotiations were held in 2002 but did not result in
    conclusion of a successor arrangement to the 1996 Agreement.
    6. On December 31, 2002, the 1-year extension of the 1996 Agreement
    expired. In order to allow additional time to conclude negotiations, the
    United States and Israel each have elected to extend through 2003 the
    tariff treatment provided for agricultural products in 2002 under the
    1996 Agreement. Israel has already extended through 2003 the tariff
    benefits for United States agricultural imports provided in 2002 under
    the 1996 Agreement.

    [[Page 3075]]
    117 STAT. 3075

    7. Consistent with section 4(b) of the FTA 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 FTA, to provide through the close of December 31, 2003, duty-
    free treatment for specified quantities of certain agricultural products
    of Israel.
    8. Section 604 of the Trade Act of 1974 (19 U.S.C. 2483) (the ``Trade
    Act'') authorizes the President to embody in the Harmonized Tariff
    Schedule of the United States (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, GEORGE W. BUSH, President of the United States of
    America, acting under the authority vested in me by the Constitution and
    the laws of the United States, including section 4 of the FTA Act and
    section 604 of the Trade Act, do hereby proclaim:
    (1) In order to maintain the general level of reciprocal and
    mutually advantageous concessions with respect to Israel provided for by
    the FTA, and, in particular, to provide duty-free treatment for
    specified quantities of certain agricultural products of Israel,
    subchapter VIII of chapter 99 of the HTS is modified as provided in the
    Annex to this proclamation.
    (2) 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.
    (3)(a) The modifications to the HTS made by the Annex to this
    proclamation shall be effective with respect to goods that are the
    product of Israel and are entered, or withdrawn from warehouse for
    consumption, on or after January 1, 2003, including entries for which
    the liquidation of duties has not become final under section 514 of the
    Tariff Act of 1930, as amended (19 U.S.C. 1514).
    (b) The provisions of subchapter VIII of chapter 99 of the HTS, as
    modified by the Annex to this proclamation, shall continue in effect
    through the close of December 31, 2003.
    IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day
    of August, in the year of our Lord two thousand three, and of the
    Independence of the United States of America the two hundred and twenty-
    eighth.
    GEORGE W. BUSH
    Annex
    Modifications to Subchapter VIII of Chapter 99 of the Harmonized Tariff
    Schedule of the United States
    Effective with respect to goods that are the product of Israel and are
    entered, or withdrawn from warehouse for consumption, on or after
    January 1, 2003, and through the close of December 31, 2003, subchapter
    VIII of chapter 99 of the HTS is modified as provided herein:
    1. U.S. note 1 to such subchapter is modified by striking ``December
    31, 2002,'' and by inserting in lieu thereof ``December 31, 2003,''.

    [[Page 3076]]
    117 STAT. 3076

    2. U.S. note 3 is modified by inserting at the end of the table
    therein the following additional applicable time period and quantity:
    ``Calendar year 2003.....383,000''.
    3. U.S. note 4 is modified by inserting at the end of the table
    therein the following additional applicable time period and quantity:
    ``Calendar year 2003.....1,160,000''.
    4. U.S. note 5 is modified by inserting at the end of the table
    therein the following additional applicable time period and quantity:
    ``Calendar year 2003.....1,279,000''.
    5. U.S. note 6 is modified by inserting at the end of the table
    therein the following additional applicable time period and quantity:
    ``Calendar year 2003.....116,000''.
    6. U.S. note 7 is modified by inserting at the end of the table
    therein the following additional applicable time period and quantity:
    ``Calendar year 2003.....405,317''.