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

Proclamation 7689 of June 30, 2003
 
To Modify Duty-Free Treatment Under the Generalized System of
Preferences

By the President of the United States of America
A Proclamation

1. Pursuant to sections 501, 503(a)(1)(A), and 503(c)(1) of title V of
the Trade Act of 1974, as amended (the ``1974 Act'') (19 U.S.C. 2461,
2463(a)(1)(A), and 2463(c)(1)), the President may designate or withdraw
designation of specified articles provided for in the Harmonized Tariff
Schedule of the United States (HTS) as eligible for preferential tariff
treatment under the Generalized System of Preferences (GSP) when
imported from designated beneficiary developing countries.
2. Pursuant to section 503(a)(1)(B) of the 1974 Act (19 U.S.C.
2463(a)(1)(B)), the President may designate articles as eligible
articles only for countries designated as least-developed beneficiary
developing countries under section 502(a)(2) (19 U.S.C. 2462(a)(2)), if
the President determines that such articles are not import-sensitive in
the context of imports from such least-developed beneficiary developing
countries.
3. Pursuant to section 503(c)(2)(A) of the 1974 Act (19 U.S.C.
2463(c)(2)(A)), beneficiary developing countries, except those
designated as least-developed beneficiary developing countries or
beneficiary sub-Saharan African countries pursuant to 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. Section 503(c)(2)(C) of the 1974 Act (19 U.S.C. 2463(c)(2)(C)),
provides that a country that is no longer treated as a beneficiary
developing country with respect to an eligible article may be
redesignated as a beneficiary developing country with respect to such
article if imports of such article from such country did not exceed the
competitive need limitations in section 503(c)(2)(A) during the
preceding calendar year.
5. Section 503(c)(2)(F) of the 1974 Act (19 U.S.C. 2463(c)(2)(F)),
provides that the President may disregard the competitive need
limitation provided in section 503(c)(2)(A)(i)(II) (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) (19 U.S.C. 2463(c)(2)(F)(ii)).
6. Pursuant to section 503(d) of the 1974 Act (19 U.S.C. 2463(d)), the
President may waive the application of the competitive need limitations
in section 503(c)(2)(A) with respect to any eligible article from any
beneficiary developing country if certain conditions are met.
7. (a) Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act, and
after receiving advice from the International Trade Commission in
accordance with section 503(e) (19 U.S.C. 2463(e)), I have determined to
designate certain articles, previously designated under section
503(a)(1)(B), as eligible articles when imported from any beneficiary

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developing country. In order to do so, it is necessary to subdivide and
amend the nomenclature of existing subheadings of the HTS.
(b) Furthermore, I have determined that it is appropriate to modify the
application of duty-free treatment under title V of the 1974 Act for a
certain article, in particular for a good previously eligible for such
treatment that the Bureau of Customs and Border Protection reclassified.
8. Pursuant to section 503(a)(1)(B) of the 1974 Act, I have determined
to designate certain articles as eligible articles under the GSP only
for least-developed beneficiary developing countries.
9. Pursuant to section 503(c)(1) of the 1974 Act, and having considered
the factors set forth in sections 501 and 502(c), I have determined to
limit the application of duty-free treatment accorded to certain
articles from certain beneficiary developing countries.
10. Pursuant to sections 503(c)(1) and 503(c)(2)(A) of the 1974 Act, I
have determined that certain beneficiary countries should no longer
receive preferential tariff treatment under the GSP with respect to
certain eligible articles that were imported in quantities exceeding the
applicable competitive need limitation in 2002.
11. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have determined
that certain countries should be redesignated as beneficiary developing
countries with respect to certain eligible articles that previously had
been imported in quantities exceeding the competitive need limitations
of section 503(c)(2)(A).
12. Pursuant to section 503(c)(2)(F) of the 1974 Act, I have determined
that the competitive need limitation provided in section
503(c)(2)(A)(i)(II) should be waived with respect to certain eligible
articles from certain beneficiary developing countries.
13. Pursuant to section 503(d) of the 1974 Act, I have determined that
the competitive need limitations of section 503(c)(2)(A) should be
waived with respect to certain eligible articles from certain
beneficiary developing countries. I have received the advice of the
International Trade Commission on whether any industries in the United
States are likely to be adversely affected by such waiver, and I have
determined, based on that advice and on the considerations described in
sections 501 and 502(c), that such waivers are in the national economic
interest of the United States.
14. Section 604 of the 1974 Act, as amended (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, 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 of America, including but not limited to
title V and section 604 of the 1974 Act, do proclaim that:
(1) In order to provide that one or more countries that have not
been treated as beneficiary developing countries with respect to one or
more eligible articles should be redesignated as beneficiary developing
countries with respect to such article or articles for purposes of the
GSP, and, in order to provide that one or more countries should no
longer

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be treated as a beneficiary developing country with respect to one or
more eligible articles for purposes of the GSP, general note 4(d) to the
HTS is modified as provided in section A of Annex I to this
proclamation.
(2) In order to designate certain articles as eligible articles for
purposes of the GSP, the HTS is modified by amending and sub-dividing
the nomenclature of certain existing HTS subheadings as provided in
section B of Annex I to this proclamation.
(3)(a) In order to designate certain articles as eligible articles
for purposes of the GSP when imported from any beneficiary developing
country, the Rates of Duty 1-Special subcolumn for such HTS subheadings
is modified as provided in section C(1) of Annex I to this proclamation.
(b) In order to designate certain articles as eligible articles for
purposes of the GSP when imported from any beneficiary developing
country other than India, the Rates of Duty 1-Special subcolumn for such
HTS subheadings is modified as provided for in section C(2) of Annex I
to this proclamation.
(c) In order to designate certain articles as eligible articles for
purposes of the GSP when imported from any least- developed beneficiary
developing country, the Rates of Duty 1-Special subcolumn for such HTS
subheadings is modified as provided in section C(3) of Annex I to this
proclamation.
(d) In order to provide preferential tariff treatment under the GSP to a
beneficiary developing country that has been excluded from the benefits
of the GSP for certain eligible articles, the Rates of Duty 1-Special
subcolumn for such HTS subheadings is modified as provided for in
section C(4) of Annex I to this proclamation.
(e) In order to provide that one or more countries should not be treated
as a beneficiary developing country with respect to certain eligible
articles for purposes of the GSP, the Rates of Duty 1-Special subcolumn
for such HTS subheadings is modified as provided for in section C(5) of
Annex I to this proclamation.
(4) A waiver of the application of section 503(c)(2)(A)(i)(II) of
the 1974 Act shall apply to the eligible articles in the HTS subheadings
and to the beneficiary developing countries listed in Annex II to this
proclamation.
(5) A waiver of the application of section 503(c)(2)(A) of the 1974
Act shall apply to the eligible articles in the HTS subheading and to
the beneficiary developing countries set forth in Annex III to this
proclamation.
(6) Any provisions of previous proclamations or Executive orders
that are inconsistent with the actions taken in this proclamation are
superseded to the extent of such inconsistency.
(7)(a) The modifications made by Annex I to this proclamation shall
be effective with respect to articles entered, or withdrawn from
warehouse for consumption, on or after July 1, 2003.
(b) The actions taken in Annex II to this proclamation shall be
effective on July 1, 2003.

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117 STAT. 3061

(c) The actions taken in Annex III to this proclamation shall be
effective on the date of publication of this proclamation in the Federal
Register.
IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of
June, in the year of our Lord two thousand three, and of the
Independence of the United States of America the two hundred and twenty-
seventh.
GEORGE W. BUSH

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