[United States Statutes at Large, Volume 123, 111th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

 
PROCLAMATION 8405--AUG. 31, 2009

Proclamation 8405 of August 31, 2009
To Adjust the 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. In Presidential Proclamation 8097 of December 29, 2006, pursuant to
the authority provided in section 1206(a) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3006(a)) (the ``1988 Act''), the
President modified the Harmonized Tariff Schedule of the United States
(HTS) to reflect amendments to the International Convention on the
Harmonized Commodity Description and Coding System (the ``Convention'').
2. 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 schedule of duty reductions and
rules of origin necessary or appropriate to carry out the NAFTA.
3. In order to ensure the continuation of the staged reductions in rates
of duty under the NAFTA for originating goods of Mexico in HTS tariff
categories that were modified to reflect amendments to the Convention,
Presidential Proclamation 8097 made modifications to the HTS that the
President determined were necessary or appropriate to carry out the duty
reductions proclaimed in Proclamation 6641.
4. Canada and Mexico are parties to the Convention. Because the
substance of changes to the Convention are reflected in slightly
differing form in the national tariff schedules of the parties to the
NAFTA, the rules of origin set out in that Agreement must be changed to
ensure that the tariff and certain other treatment accorded under the
NAFTA

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123 STAT. 3682

to originating goods will continue to be provided under the tariff
categories that were modified in Proclamation 8097. The NAFTA parties,
the United States, Canada, and Mexico, have agreed to make these
changes.
5. 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 part of the HTS, the rules of origin set
out in the NAFTA and to proclaim any modifications to such previously
proclaimed rules of origin, including those necessary to implement an
agreement with NAFTA countries under paragraph 2 of section 7 of Annex
300-B of the NAFTA, subject to the consultation and layover requirements
of section 103(a) of the NAFTA Implementation Act (19 U.S.C. 3313(a)).
6. The NAFTA parties have agreed to modify certain NAFTA rules of
origin. Modifications to the NAFTA rules of origin reflected in general
note 12 to the HTS are therefore necessary to ensure the continuation of
tariff and certain other treatment accorded under the NAFTA to
originating goods in tariff categories modified in Proclamation 8097 and
to carry out the duty reductions proclaimed in Proclamation 6641. The
consultation and layover requirements of section 103(a) of the NAFTA
Implementation Act were met December 10, 2007, with respect to the
proposed modifications.
7. I have determined that the modifications to the HTS proclaimed in
this proclamation pursuant to section 202 of the NAFTA Implementation
Act are necessary to implement an agreement with the NAFTA parties under
paragraph 2 of section 7 of Annex 300-B of the NAFTA. In addition, I
have determined that the modifications pursuant to section 1206(a) of
the 1988 Act are in conformity with the obligations of the United States
under the Convention and do not run counter to the national economic
interest of the United States.
8. Certain necessary modifications to the HTS to conform it to the
Convention were inadvertently omitted from Proclamation 8097. I have
determined that technical corrections to the HTS are necessary to
conform the HTS to the Convention.
9. 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
(USIFTA), which the Congress approved in the United States-Israel Free
Trade Area Implementation Act of 1985 (the ``USIFTA Implementation
Act'') (19 U.S.C. 2112 note).
10. Section 4(b) of the USIFTA Implementation 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 Agreement.

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123 STAT. 3683

11. 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''). On December 10, 2008, the United States entered into an
agreement with Israel to extend the 2004 Agreement through December 31,
2009, in order to allow for additional time to negotiate a successor
arrangement to the 2004 Agreement.
12. In Presidential Proclamation 7826 of October 4, 2004, consistent
with the 2004 Agreement, the President determined, pursuant to section
4(b) of the USIFTA Act, that it was 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 December 31, 2008, for specified
quantities of certain agricultural products of Israel.
13. In Presidential Proclamation 8334 of December 31, 2008, the
President determined that it was necessary in order to maintain the
general level of reciprocal and mutually advantageous concessions with
respect to Israel provided for by the USIFTA to extend such duty-free
treatment through December 31, 2009. I have determined that a
modification to the HTS is necessary to provide the intended tariff
treatment.
14. Section 604 of the Trade Act of 1974, as amended (the ``1974 Act'')
(19 U.S.C. 2483), authorizes the President to embody in the HTS the
substance of the 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. Section 1206(c) of the 1988 Act, as amended (19
U.S.C. 3006(c)), provides that any modifications proclaimed by the
President under section 1206(a) of that Act may not take effect before
the thirtieth day after the date on which the text of the proclamation
is published in the Federal Register.
NOW, THEREFORE, I, BARACK OBAMA, 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
section 1206(a) of the 1988 Act, section 202 of the NAFTA Implementation
Act, section 4(b) of the USIFTA Implementation Act, and section 604 of
the 1974 Act, do proclaim that: (1) In order to reflect in the HTS the
modifications to the rules of origin under the NAFTA, general note 12 to
the HTS is modified as provided in Annexes I and II of Publication 4095
of the United States International Trade Commission entitled,
``Modifications to the Harmonized Tariff Schedule of the United States
to Adjust Rules of Origin Under the North American Free Trade
Agreement,'' which is incorporated by reference into this proclamation.
(2) In order to make technical corrections to the HTS necessary to
conform it to the Convention, the HTS is modified as provided in Annex
III of Publication 4095.
(3) In order to provide the intended duty treatment under the 2004
Agreement as extended through December 31, 2009, the HTS is modified as
provided in Annex IV of Publication 4095.

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123 STAT. 3684

(4) 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.
(5) The modifications to the HTS set forth in Annexes I and II of
Publication 4095 shall be effective with respect to goods entered, or
withdrawn from warehouse for consumption, on or after the later of (i)
October 1, 2009, or (ii) the thirtieth day after the date of publication
of this proclamation in the Federal Register.
IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of
August, in the year of our Lord two thousand nine, and of the
Independence of the United States of America the two hundred and thirty-
fourth.
BARACK OBAMA