[Weekly Compilation of Presidential Documents Volume 29, Number 50 (Monday, December 20, 1993)]
[Pages 2596-2599]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 6641--To Implement the North American Free Trade Agreement, 
and for Other Purposes

 December 15, 1993

By the President of the United States

of America

A Proclamation

    1. On December 17, 1992, the President entered into the North 
American Free Trade Agreement (``the NAFTA''). The NAFTA was approved by 
the Congress in section 101(a) of the North American Free Trade 
Agreement Implementation Act (``the NAFTA Implementation Act'') (Public 
Law 103-182, 107 Stat. 2057).
    2. Section 201 of the NAFTA Implementation Act authorizes the 
President to proclaim such modifications or continuation of any duty, 
such continuation of duty-free or excise treatment, or such additional 
duties, as the President determines to be necessary or appropriate to 
carry out Articles 302 (including the schedule of United States duty 
reductions with respect to originating goods set forth or incorporated 
in Annex 302.2 to the

[[Page 2597]]

NAFTA), 305, 307, 308, and 703 of the NAFTA and enumerated Annexes 
thereto, and to accord the preferential tariff and other customs 
treatment provided in the NAFTA for certain other goods.
    3. Sections 202 and 321 of the NAFTA Implementation Act provide 
certain rules for determining whether goods originate in the territory 
of a NAFTA party and thus are eligible for the tariff and certain other 
treatment contemplated under the NAFTA. I have decided that it is 
necessary to include these rules of origin, together with particular 
rules applicable to certain other goods, in the Harmonized Tariff 
Schedule of the United States (``the HTS'').
    4. Pursuant to section 466 of the Tariff Act of 1930, as amended (19 
U.S.C. 1466), the rate of duty imposed on equipments, or any part 
thereof, including boats, purchased for, or the repair parts or the 
materials to be used, or the expenses of repairs made in a foreign 
country upon a U.S.-documented vessel at its first arrival in any port 
of the United States is 50 percent ad valorem. Such duty does not apply 
to the cost of repair parts, materials, or expenses of repairs in a 
foreign country upon U.S. civil aircraft, as defined in general note 6 
to the HTS (as redesignated by Annex I to this proclamation). I have 
determined that it is necessary or appropriate to continue the duty 
treatment previously proclaimed for such equipments, or any part 
thereof, originating in the territory of Canada and the expenses of 
repairs made in the territory of Canada upon U.S.-documented vessels 
(other than civil aircraft), as set forth in Annex 307.1 to the NAFTA. I 
have further determined that it is necessary or appropriate to provide 
for staged reductions in the rate of duty on such equipments, or any 
part thereof, originating in the territory of Mexico and the expenses of 
repairs made in the territory of Mexico upon U.S.-documented vessels 
(other than civil aircraft), as set forth in Annex 307.1 to the NAFTA.
    5. Pursuant to section 201(a)(2) of the NAFTA Implementation Act, 
Mexico is to be removed from the enumeration of designated beneficiary 
developing countries eligible for the benefits of the Generalized System 
of Preferences (``GSP''). This action must be reflected in the HTS. 
Further, pursuant to section 504(c) of the Trade Act of 1974 (``the 1974 
Act'') (19 U.S.C. 2464(c)), I have determined that certain preferential 
tariff treatment previously afforded to other designated beneficiary 
developing countries for purposes of the GSP should be continued in the 
HTS provisions established by Annex II to this proclamation, and that 
other technical and conforming changes are necessary to reflect that 
Mexico is no longer eligible to receive benefits of the GSP.
    6. Section 4 of the United States-Israel Free Trade Area 
Implementation Act of 1985 (``the Israel FTA Implementation Act'') (19 
U.S.C. 2112 note) and Presidential Proclamation No. 5365 of August 30, 
1985, implemented reduced duties for products of Israel. I have 
determined that the duty-free treatment previously proclaimed for goods 
covered by provisions of the former Tariff Schedules of the United 
States enumerated in Annex X to Presidential Proclamation No. 5365 
should be reflected in the pertinent HTS provisions as of the date 
provided in such Annex.
    7. Section 681(b)(1) of the NAFTA Implementation Act provides for a 
new ``Note 4'' to be added to chapter 86 of the HTS. Pursuant to the 
International Convention on the Harmonized Commodity Description and 
Coding System (``the Harmonized System''), approved by the Congress in 
section 1203 of the Omnibus Trade and Competitiveness Act of 1988 (``the 
1988 Act'') (19 U.S.C. 3003), the provisions designated as ``Notes'' in 
chapters 1 through 97 of the HTS reflect the corresponding provisions of 
the Harmonized System, while the designation ``Additional U.S. Note'' is 
given to any provision in such a chapter that is of U.S. origin. 
Accordingly, pursuant to section 1204 of the 1988 Act (19 U.S.C. 3004), 
I have decided that it is appropriate to insert in chapter 86 of the HTS 
as ``Additional U.S. Note 1'' the new note enacted in such section 
681(b)(1) of the NAFTA Implementation Act.
    8. Pursuant to section 1102(a) of the 1988 Act (19 U.S.C. 2902(a)), 
on December 5, 1988, the United States entered into a trade agreement 
providing for the reduction of rates of duty applicable to imports of 
certain tropical products. This trade agreement with

[[Page 2598]]

other contracting parties to the General Agreement on Tariffs and Trade 
(61 Stat. (parts 5 and 6)), as amended, committed the United States to 
make, on a provisional basis, temporary tariff reductions on enumerated 
tropical products. Such tariff reductions were accorded by Presidential 
Proclamation No. 6030 of September 28, 1989, effective through December 
31, 1992, and were subsequently extended through December 31, 1993, by 
Presidential Proclamation No. 6515 of December 16, 1992.
    9. Pursuant to section 1102 of the 1988 Act (19 U.S.C. 2902), I have 
determined that the modification or continuance of existing duties is 
required or appropriate to carry out the trade agreement on tropical 
products. Accordingly, I have decided to extend the effective period of 
the temporary duty reductions on such enumerated tropical products, as 
set forth in heading 9903.10.01 through 9903.10.42, inclusive, of the 
HTS, through December 31, 1994.
     10. Section 604 of the 1974 Act (19 U.S.C. 2483), as amended, 
confers authority upon the President to embody in the HTS the substance 
of relevant provisions of that Act, of other Acts affecting import 
treatment, and of actions taken thereunder.
    Now, Therefore, I, William J. Clinton, 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 II and section 321 of the NAFTA Implementation Act, 
sections 504 and 604 of the 1974 Act (19 U.S.C. 2464(c) and 2483), 
sections 201 and 203 of the Automotive Products Trade Act of 1965 (``the 
APTA'') (19 U.S.C. 2011 and 2013), and sections 1102(a) and 1204 of the 
1988 Act (19 U.S.C. 2902(a) and 3004), do proclaim that:
    (1) In order to provide generally for the preferential tariff 
treatment being accorded under the NAFTA, to set forth rules for 
determining the country of origin of goods imported into the customs 
territory of the United States for purposes of the NAFTA and of the 
APTA, to reflect Mexico's removal from the enumeration of designated 
beneficiary developing countries for purposes of the GSP, and to make 
technical and conforming changes in the general notes to the HTS, the 
HTS is modified as set forth in Annex I to this proclamation.
    (2) In order to provide preferential duty and certain other 
treatment to particular goods originating in the territory of a NAFTA 
party, as well as to certain other goods, to provide tariff-rate quotas 
with respect to particular goods originating in the territory of Mexico, 
to make technical and conforming changes in specified HTS provisions, 
and to continue the preferential tariff treatment previously accorded to 
particular goods that are the products of eligible countries and 
reflected in the ``Special'' rates of duty subcolumn of column 1 of the 
HTS, the HTS is modified as set forth in Annex II to this proclamation.
    (3) (a) In order to provide other preferential treatment for certain 
goods originating in the territory of a NAFTA party and for certain 
other goods, and to make additional technical and conforming changes to 
reflect the removal of Mexico from eligibility for benefits of the GSP, 
the HTS is modified as provided in section (a) of Annex III to this 
proclamation.
    (b) In order to provide for or to continue staged reductions in 
duties for goods originating in the territory of a NAFTA party, the HTS 
is modified as provided in sections (b), (c), and (d) of Annex III to 
this proclamation, effective on the date specified in such Annex 
sections for each such provision and on any subsequent dates set forth 
for such provisions in Annex III columns.
    (c) In order to make conforming changes in the ``Special'' rates of 
duty subcolumn for purposes of the GSP, to continue staged reductions in 
duties previously proclaimed for purposes of the Israel FTA 
Implementation Act, and to reflect in the HTS the duty-free treatment 
previously proclaimed for certain goods that are products of Israel 
pursuant to the Israel FTA Implementation Act, the HTS is modified as 
provided in section (e) of Annex III to this proclamation.
    (4) In order to implement the staged reductions in the rate of duty 
otherwise applicable under section 466 of the Tariff Act of 1930 to the 
equipments, or any part thereof, including boats, originating in the 
territory of Mexico and the expenses of repairs made in the territory of 
Mexico upon U.S.-documented vessels (others than civil aircraft, as 
defined in general note 6 to the HTS (as redesignated by Annex I to this 
proclamation)), such equipments, parts (including boats), and expenses 
of repairs shall be subject to duty at a rate of 40 percent ad valorem, 
effective with respect to such U.S.-docu- 

[[Page 2599]]

mented vessels (other than civil aircraft) arriving in any port of the 
United States on or after the date of entry into force of the NAFTA 
under this proclamation. Effective with respect to any U.S.-documented 
vessel (other than civil aircraft) arriving in any port of the United 
States on or after January 1 in each of the following years, the rate of 
duty set forth opposite the appropriate year shall be assessed on such 
equipments, parts, and repairs:
    1995--30 percent ad valorem
    1996--20 percent ad valorem
    1997--10 percent ad valorem
    1998 and thereafter--Free
    (5) In order to correct the designation of the provisions added as 
``Note 4'' to chapter 86 of the HTS by section 681(b)(1) of the NAFTA 
Implementation Act, the text of such note as previously enacted shall be 
designated as ``Additional U.S. Note 1'' to chapter 86 of the HTS, 
effective as of the date of enactment of the NAFTA Implementation Act.
    (6) In order to extend the effective period of the previously 
proclaimed duty reductions on enumerated tropical products, the rates of 
duty set forth in HTS headings 9903.10.01 through 9903.10.42 shall be 
effective with respect to goods entered, or withdrawn from warehouse for 
consumption, through December 31, 1994.
    (7) (a) All previously issued proclamations and Executive orders are 
hereby superseded to the extent inconsistent with this proclamation, 
except as provided in paragraph (b).
    (b) If the NAFTA enters into force with respect to both Canada and 
Mexico, Presidential Proclamation No. 5923 of December 14, 1988, is 
superseded to the extent provided in this proclamation. If the NAFTA 
does not enter into force with respect to both Canada and Mexico, 
Presidential Proclamation No. 5923 is not superseded.
    (8) (a) The amendments made by paragraphs (2) and (3) of this 
proclamation shall be effective with respect to goods entered, or 
withdrawn from warehouse for consumption, on or after the dates 
indicated in Annexes II and III to this proclamation.
    (b) Except as provided in subparagraph (a) and in paragraphs (4) and 
(5), this proclamation shall be effective with respect to goods entered, 
or withdrawn from warehouse for consumption, on or after January 1, 
1994, or, if the NAFTA does not enter into force on January 1, 1994, on 
or after such later date as the NAFTA enters into force.
    (c) If the date of entry into force with respect to Mexico or Canada 
is later than January 1, 1994, the United States Trade Representative 
shall publish notice of that later date in the Federal Register. Should 
this occur, all other references to January 1, 1994, in this 
proclamation and its Annexes shall then be deemed to refer to such later 
date of entry into force with respect to that NAFTA party.
    In Witness Whereof, I have hereunto set my hand this fifteenth day 
of December, in the year of our Lord nineteen hundred and ninety-three, 
and of the Independence of the United States of America the two hundred 
and eighteenth.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 5 p.m., December 15, 
1993]

Note: This proclamation and its annexes were published in the Federal 
Register on December 20.