[United States Statutes at Large, Volume 126, 112th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

 
PROCLAMATION 8788--MAR. 26, 2012

Proclamation 8788 of March 26, 2012

To Modify Duty-Free Treatment Under the Generalized System of

Preferences and for Other Purposes

By the President of the United States of America

A Proclamation

1. Section 502(b)(2)(E) of the Trade Act of 1974, as amended (the ``1974
Act'') (19 U.S.C. 2462(b)(2)(E)), provides that the President shall not
designate any country a beneficiary developing country under the
Generalized System of Preferences (GSP) if such country fails to act in
good faith in recognizing as binding or in enforcing arbitral awards in
favor of United States citizens or a corporation, partnership, or
association that is 50 percent or more beneficially owned by United
States citizens, which have been made by arbitrators appointed for each
case or by permanent arbitral bodies to which the parties involved have
submitted their dispute. Section 502(d)(2) (19 U.S.C. 2462(d)(2))
provides that, after complying with the requirements of section
502(f)(2) (19 U.S.C. 2462(f)(2)), the President shall withdraw or
suspend the designation of any country as a beneficiary developing
country if, after such designation, the President determines that as the
result of changed circumstances such country would be barred from
designation as a beneficiary developing country under section 502(b)(2).
Section 502(f)(2) requires the President to notify the Congress and the
country concerned at least 60 days before terminating the country's
designation as a beneficiary developing country for purposes of the GSP.
2. Having considered the factors set forth in section 502(b)(2)(E) of
the 1974 Act, I have determined pursuant to section 502(d) that it is
appropriate to suspend Argentina's designation as a GSP beneficiary
developing country because it has not acted in good faith in enforcing
arbitral awards in favor of United States citizens or a corporation,
partnership, or association that is 50 percent or more beneficially
owned by United States citizens, and I will so notify the Congress. In
order to reflect the suspension of Argentina's status as a beneficiary
developing country under the GSP, I have determined that it is
appropriate to modify general note 4(a) of the Harmonized Tariff
Schedule of the United States (HTS).
3. Pursuant to section 502(a) of the 1974 Act (19 U.S.C. 2462(a)), the
President is authorized to designate countries as beneficiary developing
countries and to designate any beneficiary developing country as a
least-developed beneficiary developing country, for purposes of the GSP.
Section 502(f)(1)(A) (19 U.S.C. 2462(f)(1)(A)) requires the President to
notify the Congress before designating any country as a beneficiary
developing country. Section 502(f)(1)(B) (19 U.S.C. 2462(f)(1)(B))
requires the President to notify the Congress at least 60 days before
designating any country as a least-developed beneficiary country.


[[Page 2541]]


4. Pursuant to section 502(a)(1) of the 1974 Act, having considered the
factors set forth in section 502(c) (19 U.S.C. 2462(c)), I have
determined that the Republic of South Sudan should be designated as a
beneficiary developing country under the GSP, and I will so notify the
Congress.
5. Pursuant to section 502(a)(2) of the 1974 Act, having considered the
factors set forth in section 502(c), I have determined that the Republic
of South Sudan should also be designated as a least-developed
beneficiary developing country for purposes of the GSP, and I will so
notify the Congress.
6. Section 203(o) of the Dominican Republic-Central America-United
States Free Trade Agreement Implementation Act (the ``CAFTA-DR
Implementation Act'') (19 U.S.C. 4033(o)) authorizes the President to
proclaim as part of the HTS the provisions set out in Annex 4.1 of the
Dominican Republic- Central America-United States Free Trade Agreement
(CAFTA-DR).
7. Appendix 4.1-B of Annex 4.1 of the CAFTA-DR provides that ``[f]or
purposes of determining whether a good of chapter 62 of the Harmonized
System is originating, materials used in the production of such a good
that are produced in Canada or Mexico and that would be originating
under this Agreement if produced in the territory of a Party shall be
considered as having been produced in the territory of a Party.'' For
the Dominican Republic, this rule entered into effect only with regard
to Mexico. Furthermore, under the terms of Appendix 4.1-B, for
operations performed in the Dominican Republic, this rule would no
longer apply to Mexican-produced materials 5 years from the date CAFTA-
DR enters into force, unless within that 5-year period, the Dominican
Republic concludes a free trade agreement with Mexico and provides
written notification to the United States and other Parties to the
CAFTA-DR that the Dominican Republic and Mexico have taken actions
necessary to provide reciprocal application of the rule. The 5-year
period expired on March 1, 2012, and the Dominican Republic has not
concluded a free trade agreement with Mexico. Accordingly, the rule set
out in Appendix 4.1-B to Annex 4.1 of the CAFTA-DR, no longer applies to
operations performed in the Dominican Republic, and the HTS must be
modified to implement this provision of Annex 4.1.
8. Section 3 of the Haiti Economic Lift Program Act of 2010, Public Law
111-171, amended section 213(b) of the Caribbean Basin Economic Recovery
Act, as amended (19 U.S.C. 2703(b)), to extend the duration of duty-free
treatment for certain apparel articles qualifying as the product of a
beneficiary country under the Caribbean Basin Trade Partnership Act
until September 30, 2020. A modification to the HTS needs to be made to
reflect this amendment.
9. Presidential Proclamation 8771 of December 29, 2011, modified the HTS
to conform it to the International Convention on the Harmonized
Commodity Description and Coding System (the ``Convention''). Technical
corrections to the HTS are necessary to ensure conformity with the
Convention.
10. Presidential Proclamation 8783 of March 6, 2012, authorized the
United States Trade Representative to modify U.S. note 4 to subchapter
XX of chapter 99 of the HTS in a notice published in the Federal
Register to reflect modifications made by the Committee for the
Implementation of Textile Agreements (CITA) to the list of fabrics,
yarns, or fibers in Annex 4-B-1 of the United States-Korea Free Trade
Agreement.


[[Page 2542]]

That authorization erroneously referred to paragraph (6), and
instead should refer to paragraph (5) of that proclamation.
11. Section 604 of the 1974 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
title V and section 604 of the 1974 Act, section 203(o) of the CAFTA-DR
Implementation Act, and section 301 of title 3, United States Code, do
proclaim that:
(1) The designation of Argentina as a beneficiary developing country
under the GSP is suspended on the date that is 60 days after the date
this proclamation is published in the Federal Register.
(2) In order to reflect the suspension of Argentina's designation as a
beneficiary developing country under the GSP, general note 4 of the HTS
is modified as set forth in section A of the Annex to this proclamation,
effective with respect to articles entered, or withdrawn from warehouse
for consumption, on or after the date that is 60 days after the date
this proclamation is published in the Federal Register.
(3) The Republic of South Sudan is designated as a beneficiary
developing country for purposes of the GSP, effective on the date that
is 20 days after the date of this proclamation.
(4) In order to reflect this designation in the HTS, general note 4(a)
to the HTS is modified by adding in alphabetical order ``South Sudan''
to the list entitled, ``Independent Countries,'' effective with respect
to articles entered, or withdrawn from warehouse for consumption, on or
after the date that is 20 days after the date of this proclamation.
(5) The Republic of South Sudan is designated as a least-developed
beneficiary developing country for purposes of the GSP, effective 60
days after the date this proclamation is published in the Federal
Register.
(6) In order to reflect this designation in the HTS, general note
4(b)(i) is modified by adding in alphabetical order ``South Sudan,''
effective with respect to articles entered, or withdrawn from warehouse
for consumption, on or after the date that is 60 days after the date
this proclamation is published in the Federal Register.
(7) In order to implement Appendix 4.1-B to Annex 4.1 of the CAFTA-DR,
with respect to operations performed in the Dominican Republic, the HTS
is modified as set forth in section B of the Annex to this proclamation.
(8) The modifications to the HTS set forth in section B of the Annex to
this proclamation shall be effective with respect to goods entered or
withdrawn from warehouse for consumption on or after March 1, 2012.
(9) In order to implement section 3 of the Haiti Economic Lift Program
Act of 2010, the HTS is modified as set forth in section C of the Annex
to this proclamation.


[[Page 2543]]


(10) The modification to the HTS set forth in section C of the Annex to
this proclamation shall be effective with respect to goods entered or
withdrawn from warehouse for consumption, on or after May 24, 2010.
(11) In order to make the technical corrections to the HTS necessary to
conform to the Convention, the HTS is modified as set forth in section D
of the Annex to this proclamation.
(12) The modifications to the HTS set forth in section D of the Annex to
this proclamation shall be effective with respect to goods entered, or
withdrawn from warehouse for consumption, on or after February 3, 2012.
(13) Paragraph (9) of Presidential Proclamation 8783 is amended to
provide that the United States Trade Representative is authorized to
modify U.S. note 4 to subchapter XX of chapter 99 of the HTS in a notice
published in the Federal Register to reflect modifications pursuant to
paragraph (5) of Presidential Proclamation 8783 by the CITA to the list
of fabrics, yarns, or fibers in Annex 4-B-1 of the United States-Korea
Free Trade Agreement.
(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-sixth day of
March, in the year of our Lord two thousand twelve, and of the
Independence of the United States of America the two hundred and thirty-
sixth.
BARACK OBAMA






[[Page 2544]]

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

[[Page 2545]]

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]