[United States Statutes at Large, Volume 125, 112th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

 
Proclamation 8742 of October 31, 2011

To Modify the Harmonized Tariff Schedule of the United States
By the President of the United States of America
A Proclamation
1. Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988
(the ``1988 Act'') (19 U.S.C. 3005(a)) directs the United States
International Trade Commission (the ``Commission'') to keep the
Harmonized Tariff Schedule of the United States (HTS) under continuous
review and periodically to recommend to the President such modifications
to the HTS as the Commission considers necessary or appropriate to
accomplish the purposes set forth in that subsection. Among those
purposes are to promote the uniform application of the International
Convention on the Harmonized Commodity Description and Coding System
(the ``Convention'') and to alleviate unnecessary administrative
burdens.
2. The Commission conducted an investigation pursuant to section 1205 of
the 1988 Act (Investigation No. 1205-8) in response to a request from
the Department of the Treasury regarding certain footwear featuring
outer soles of rubber or plastic to which a layer of textile material
has been added. The request stated that changes to the HTS would promote
the uniform application of the Convention as well as alleviate
unnecessary administrative burdens.
3. On August 9, 2010, the Commission issued a report in Investigation
No. 1205-8, recommending certain changes to the HTS. The report and

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layover requirements of section 1206(b) of the 1988 Act (19 U.S.C.
3006(b)) were satisfied as of March 30, 2011.
4. On November 8, 2010, the United States Trade Representative (the
``USTR'') requested that the Commission make further recommendations
consistent with section 1205(d) of the 1988 Act concerning particular
provisions of the HTS that the Commission had recommended in its August
report be replaced by new tariff lines. The USTR also asked the
Commission to consider whether, in response to requests made by
interested parties in the course of the original investigation,
additional tariff lines should be inserted in the HTS.
5. On February 18, 2011, the Commission issued an addendum to its
report, recommending additional modifications to the HTS. The report and
layover requirements of section 1206(b) were satisfied as of June 30,
2011.
6. Section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) authorizes the
President to proclaim modifications to the HTS based on recommendations
made by the Commission pursuant to section 1205 of the 1988 Act, 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. I have determined that the
modifications to the HTS set forth in Annex I to this proclamation are
in conformity with United States obligations under the Convention and do
not run counter to the national economic interest of the United States.
7. On June 6, 2003, the United States and Chile entered into the United
States-Chile Free Trade Agreement (USCFTA). The Congress approved the
USCFTA in section 101(a) of the United States-Chile Free Trade Agreement
Implementation Act (the ``USCFTA Act'') (19 U.S.C. 3805 note).
Presidential Proclamation 7746 of December 30, 2003, implemented the
USCFTA with respect to the United States, and incorporated in the HTS
the tariff modifications and rules of origin necessary or appropriate to
carry out the USCFTA.
8. Section 202 of the USCFTA Act provides rules for determining whether
goods imported into the United States originate in the territory of a
USCFTA Party and thus are eligible for the tariff and other treatment
contemplated under the USCFTA. Section 202(o)(2)(A) authorizes the
President to proclaim, subject to the consultation and layover
requirements of section 103(a) of the USCFTA Act, modifications to such
previously proclaimed rules of origin.
9. The United States and Chile have agreed to modify certain rules of
origin and to add certain other rules of origin in the USCFTA. I have
determined that further modification of the USCFTA rules of origin set
forth in Proclamation 7746, and subsequently modified, is therefore
necessary.
10. The consultation and layover requirements of section 103(a) of the
USCFTA Act were satisfied as of July 10, 2010.
11. On April 15, 1994, the United States entered into trade agreements
resulting from the Uruguay Round of multilateral trade negotiations (the
``Uruguay Round Agreements''). In section 101(a) of the Uruguay Round
Agreements Act (the ``URAA'') (19 U.S.C. 3511(a)), the Congress approved
the Uruguay Round Agreements listed in section 101(d) of that Act,
including the Agreement on Agriculture in section 101(d)(2).

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To implement section 4.2 of the Agreement on Agriculture, section
401(b)(2) of the URAA amended section 103B of the Agricultural Act of
1949 (7 U.S.C. 1444-2) by converting the special import quotas on cotton
provided for under section 103B to tariff-rate quotas.
12. Proclamation 6301 of June 7, 1991, and Proclamation 6948 of October
29, 1996, modified U.S. note 6 to subchapter III of chapter 99 of the
HTS and created tariff lines in the HTS for reporting entries under a
special import quota for upland cotton. Note 6 sets out the conditions
under which a special import quota for upland cotton takes effect.
13. Section 1207(a)(2)(B) of the Food Conservation and Energy Act of
2008 (7 U.S.C. 8737(a)(2)(B)) changed the conditions under which a
special import quota for upland cotton takes effect. U.S. note 6 to
subchapter III of chapter 99 needs to be modified to reflect those
changes.
14. Section 604 of the Trade Act of 1974, as amended (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 the
removal, modification, continuance, or imposition of any rate of duty or
other import restriction.
NOW, THEREFORE, I, BARACK OBAMA, President of the United States of
America, by virtue of the authority vested in me by the Constitution and
the laws of the United States of America, including but not limited to
section 1206 of the 1988 Act, section 202 of the USCFTA Act, and section
604 of the Trade Act, do proclaim that:
(1) In order to modify the HTS to promote the uniform application of
the Convention and to alleviate unnecessary administrative burdens, the
HTS is modified as set forth in Annex I to this proclamation.
(2) The modifications to the HTS set forth in Annex I to this
proclamation shall be effective with respect to goods that are entered,
or withdrawn from warehouse for consumption, on or after the later of
September 1, 2011, or the thirtieth day after publication of this
proclamation in the Federal Register.
(3) In order to modify the rules of origin under the USCFTA, general
note 26 to the HTS is modified as provided in Annex II to this
proclamation.
(4) The modifications made by Annex II to this proclamation shall be
effective with respect to goods of Chile under the terms of general note
26 to the HTS that are entered, or withdrawn from warehouse for
consumption, on or after November 1, 2011.
(5) In order to reflect the modified requirements under which a
special import quota for upland cotton takes effect, the HTS is modified
as set forth in Annex III to this proclamation.
(6) The modifications made by Annex III to this proclamation, shall
be effective with respect to goods entered, or withdrawn from warehouse
for consumption, on or after June 18, 2008.
(7) 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 thirty-first day of
October, in the year of our Lord two thousand eleven, and of the
Independence of the United States of America the two hundred and thirty-
sixth.
BARACK OBAMA


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