[United States Statutes at Large, Volume 119, 109th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

 
PROCLAMATION 7912--JUNE 29, 2005
Proclamation 7912 of June 29, 2005
To Modify Duty-Free Treatment Under the Generalized System of
Preferences and Certain Rules of Origin Under the North American Free
Trade Agreement, and for Other Purposes
By the President of the United States of America
A Proclamation
1. Pursuant to section 502(a)(1) of the Trade Act of 1974, as amended
(the ``1974 Act'';) (19 U.S.C. 2462(a)(1)), the President is authorized
to designate countries as beneficiary developing countries for purposes
of the Generalized System of Preferences (GSP).
2. In Proclamation 6425 of April 29, 1992, the President suspended duty-
free treatment for certain eligible articles imported from India after
considering the factors set forth in sections 501 and 502(c) of the 1974
Act (19 U.S.C. 2461, 2462(c)), in particular section 502(c)(5) of

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the 1974 Act (19 U.S.C. 2462(c)(5)) on the extent to which India
provides adequate and effective protection of intellectual property
rights.
3. In Proclamation 6942 of October 17, 1996, the President suspended
duty-free treatment for certain eligible articles imported from Pakistan
because of insufficient progress on affording workers in that country
internationally recognized worker rights.
4. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act (19 U.S.C.
2463(a)(1)(A)), the President may designate articles as eligible for
preferential tariff treatment under the GSP.
5. 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 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.
6. 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) of the 1974 Act
during the preceding calendar year.
7. 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) (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)).
8. Pursuant to section 503(d)(1) of the 1974 Act (19 U.S.C. 2463(d)(1))
and after giving great weight to the considerations in section 503(d)(2)
of the 1974 Act (19 U.S.C. 2463(d)(2)), the President may, subject to
the limitations set out in section 503(d)(4) (19 U.S.C. 2463(d)(4)),
waive the application of the competitive need limitations in section
503(c)(2)(A) of the 1974 Act with respect to any eligible article from
any beneficiary developing country, if after receiving advice from the
United States International Trade Commission (USITC), he determines that
such waiver is in the national economic interest of the United States.
9. Section 507(2) of the 1974 Act (19 U.S.C. 2467(2)) provides that in
the case of an association of countries that is a free trade area or
customs union, or that is contributing to a comprehensive regional
economic integration among its members through appropriate means, the
President may provide that all members of such association other than
members that are barred from designation under section 502(b) of the
1974 Act (19 U.S.C. 2462(b)) shall be treated as one country for
purposes of the GSP.
10. Pursuant to section 502 of the 1974 Act (19 U.S.C. 2462) and taking
into account the factors set forth in section 502(c) of the 1974 Act, I

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have decided to designate Serbia and Montenegro as a beneficiary
developing country for purposes of the GSP.
11. After a review of the current situation in India and taking into
account the factors set out in section 502 of the 1974 Act, in
particular section 502(c)(5), I have determined that India has made
progress in providing adequate and effective protection of intellectual
property rights. Accordingly, I have determined to terminate the
suspension of India's duty-free treatment for certain articles under the
GSP.
12. After a review of the current situation in Pakistan, I have
determined that Pakistan has taken or is taking steps to afford workers
in that country internationally recognized worker rights as provided in
section 502(c)(7) of the 1974 Act (19 U.S.C. 2462(c)(7)). Accordingly, I
have determined to restore Pakistan's eligibility for certain articles
for preferential treatment under the GSP.
13. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act, and after
receiving advice from the USITC in accordance with section 503(e) of the
1974 Act (19 U.S.C. 2463(e)), I have determined to designate certain
articles, some of which were previously designated under section
503(a)(1)(B) of the 1974 Act (19 U.S.C. 2463(a)(1)(B)), as eligible
articles. In order to do so for certain articles, it is necessary to
subdivide and amend the nomenclature of certain existing subheadings of
the Harmonized Tariff Schedule of the United States (HTS).
14. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have determined
that certain beneficiary countries have exported certain eligible
articles in quantities exceeding the applicable competitive need
limitation in 2004, and I therefore terminate the duty-free treatment
for such articles from such beneficiary developing countries.
15. Pursuant to section 503(c)(2)(C) of the 1974 Act, and subject to the
considerations set forth in sections 501 and 502 of the 1974 Act, I
redesignate certain countries 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) of the 1974 Act.
16. 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.
17. Pursuant to section 503(d)(1) of the 1974 Act, I have received the
advice of the USITC on whether any industries in the United States are
likely to be adversely affected by such waivers, 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, 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)(A) should be waived with respect to certain eligible articles
from certain beneficiary developing countries.
18. Pursuant to section 507(2) of the 1974 Act, I have determined that
currently qualifying members of the South Asian Association for Regional
Cooperation (SAARC) should be treated as one country for purposes of the
GSP.

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19. Presidential Proclamation 6641 of December 15, 1993, implemented the
North American Free Trade Agreement (NAFTA) with respect to the United
States and, pursuant to the North American Free Trade Agreement
Implementation Act (Public Law 103-182) (the ``NAFTA Implementation
Act'';) incorporated in the HTS the tariff modifications and rules of
origin necessary or appropriate to carry out the NAFTA.
20. Section 202 of the NAFTA Implementation Act (19 U.S.C. 3332)
provides rules for determining whether goods imported into the United
States originate in the territory of a NAFTA Party and thus are eligible
for the tariff and other treatment contemplated under the NAFTA. Section
202(q) of the NAFTA Implementation Act (19 U.S.C. 3332(q)) authorizes
the President to proclaim, as a part of the HTS, the rules of origin set
out in the NAFTA and to proclaim modifications to such previously
proclaimed rules of origin, subject to the consultation and layover
requirements of section 103(a) of the NAFTA Implementation Act (19
U.S.C. 3313(a)).
21. The United States and Canada have agreed to modifications to certain
NAFTA rules of origin. Modifications to the NAFTA rules of origin set
out in Proclamation 6641 are therefore necessary.
22. Section 1558 of the Miscellaneous Trade and Technical Corrections
Act of 2004 (Public Law 108-429) (the ``Miscellaneous Trade Act'';)
amended section 213(b) of the Caribbean Basin Economic Recovery Act
(CBERA) (19 U.S.C. 2703(b)) to exclude certain footwear from duty-free
treatment under the CBERA and to provide duty-free treatment for certain
other footwear that is the product of a designated beneficiary Caribbean
Basin Trade Partnership Act country.
23. In order to implement the tariff treatment provided under section
1558 of the Miscellaneous Trade Act, it is necessary to modify the HTS.
24. Section 7(c) of the AGOA Acceleration Act of 2004 (Public Law 108-
274) (the ``AGOA Acceleration Act'';) amended section 112(b)(6) of the
of the African Growth and Opportunity Act (title I of Public Law 106-
200) (AGOA) (19 U.S.C. 3721(b)(6)) by adding ethnic printed fabrics to
the list of textile and apparel goods of beneficiary sub-Saharan African
countries that may be eligible for the preferential treatment described
in section 112(a) of the AGOA (19 U.S.C. 3721(a)).
25. Section 2 of Executive Order 13191 of January 17, 2001, delegated
the President's authority under section 112(b)(6) of the AGOA to the
Committee for the Implementation of Textile Agreements (Committee), in
consultation with the then-Commissioner, United States Customs Service,
now the Commissioner, Bureau of Customs and Border Protection
(Commissioner), to determine which, if any, particular textile and
apparel goods of beneficiary sub-Saharan African countries shall be
treated as being hand loomed, handmade, or folklore articles. Executive
Order 13191 further ordered the Commissioner to take actions directed by
the Committee to carry out such determinations.
26. In order to implement section 7(c) of the AGOA Acceleration Act, it
is necessary to modify Executive Order 13191.
27. 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

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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, including title V and section 604 of the
1974 Act, section 202 of the NAFTA Implementation Act, section 1558 of
the Miscellaneous Trade Act, section 7(c) of the AGOA Acceleration Act,
and section 301 of title 3, United States Code, do hereby proclaim:
(1) In order to reflect in the HTS the addition of Serbia and
Montenegro as a beneficiary developing country under the GSP, general
note 4(a) to the HTS is modified as provided in section A(1) of Annex I
to this proclamation.
(2) 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 designated or redesignated as
beneficiary developing countries with respect to such article or
articles for purposes of the GSP, in order to terminate the suspensions
of India's and Pakistan's eligibility for certain articles, and 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, general note 4(d) to the HTS is
modified as provided in section A(2) of Annex I to this proclamation.
(3) In order to designate certain articles as eligible articles for
purposes of the GSP, the HTS is modified by amending and subdividing the
nomenclature of certain existing HTS subheadings as provided in section
B of Annex I to this proclamation.
(4) (a) In order to designate certain articles as eligible articles
for purposes of the GSP, the Rates of Duty 1-Special subcolumn for such
HTS subheadings is modified as provided in sections C(1) and C(2) 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 except for a country or countries exceeding the applicable
competitive need limitation in 2004, the Rates of Duty 1-Special
subcolumn for such HTS subheadings is modified as provided for in
section C(3) of Annex I to this proclamation.
(c) 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.
(d) In order to provide that one or more countries should not be
treated as beneficiary developing countries 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.
(e) In order to reflect in the HTS the decision that certain
members of the SAARC should be treated as one country for purposes of
title V of the 1974 Act, and to enumerate those countries, general note
4(a) to the HTS is modified as provided in section D of Annex I to this
proclamation.

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(5) 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.
(6) 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.
(7) In order to modify the rules of origin under the NAFTA, general
note 12 to the HTS is modified as provided in Annex IV to this
proclamation.
(8) The modifications made by Annex IV to this proclamation shall be
effective with respect to goods of Canada that are entered, or withdrawn
from warehouse for consumption, on or after the date provided in that
Annex.
(9) General notes 7 and 17 to the HTS are modified as set forth in
Annex V to this proclamation.
(10) The modifications made by Annex V to this proclamation shall be
effective with respect to goods entered, or withdrawn from warehouse for
consumption, on or after December 18, 2004.
(11) In order to make technical corrections to the HTS, the HTS is
modified as provided in Annex VI to this proclamation.
(12) The modifications made by Annex VI to this proclamation shall
be effective with respect to articles entered, or withdrawn for
consumption, on or after the dates provided in that Annex.
(13) Section 2 of Executive Order 13191 of January 17, 2001, is
modified by revising the heading to state ``Handloomed, Handmade, and
Folklore Articles and Ethnic Printed Fabrics''; and deleting the phrase
``handloomed, handmade, or folklore articles,''; and inserting in lieu
thereof, ``handloomed, handmade, or folklore articles or ethnic printed
fabrics.'';
(14) 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 twenty-ninth day of
June, in the year of our Lord two thousand five, and of the Independence
of the United States of America the two hundred and twenty-ninth.
GEORGE W. BUSH

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