[Weekly Compilation of Presidential Documents Volume 30, Number 26 (Monday, July 4, 1994)]
[Pages 1385-1388]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 6704--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences and for Other Purposes

June 30, 1994

By the President of the United States

of America

A Proclamation

    1. Pursuant to title V of the Trade Act of 1974, as amended (``1974 
Act'') (19 U.S.C. 2461 et seq.), the President may designate specified 
articles provided for in the Harmonized Tariff Schedule of the United 
States (``HTS'') as eligible for preferential tariff treatment under the 
Generalized System of Preferences (``GSP'') when imported from 
designated beneficiary developing countries. Pursuant to section 
504(a)(1) of the 1974 Act (19 U.S.C. 2464(a)(1)), the President may 
withdraw, suspend, or limit the application of duty-free treatment 
accorded under section 501 of the 1974 Act (19 U.S.C. 2461) with respect 
to any article or with respect to any country, after considering the 
factors set forth in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 
2462(c)). Pursuant to section 504(c) of the 1974 Act (19 U.S.C. 
2464(c)), beneficiary developing countries, except those designated as 
least-developed beneficiary developing countries pursuant to

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section 504(c)(6) of the 1974 Act, are subject to limitations on the 
preferential treatment afforded under the GSP. Pursuant to section 
504(c)(5) of the 1974 Act, 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 
limitations in section 504(c)(1) (after application of paragraph (c)(2)) 
during the preceding calendar year. Further, pursuant to section 
504(d)(2) of the 1974 Act (19 U.S.C. 2464(d)(2), the President may 
disregard the limitations provided in section 504(c)(1)(B) with respect 
to any eligible article if the appraised value of the total imports of 
such article into the United States during the preceding calendar year 
is not in excess of an amount that bears the same ratio to $5,000,000 as 
the gross national product of the United States for that calendar year 
(as determined by the Department of Commerce) bears to the gross 
national product of the United States for calendar year 1979.
    2. Pursuant to sections 501, 503(a), and 504(a) of the 1974 Act (19 
U.S.C. 2461, 2463(a), and 2464(a)), in order to subdivide and amend the 
nomenclature of existing provisions of the HTS to modify tariff 
treatment under the GSP, I have determined, after taking into account 
information and advice received under section 503(a), that the HTS 
should be modified to adjust the original designation of eligible 
articles. In addition, pursuant to title V of the 1974 Act, I have 
determined that it is appropriate to designate specified articles 
provided for in the HTS as eligible for preferential tariff treatment 
under the GSP when imported from designated beneficiary developing 
countries, and that such treatment for other articles should be 
terminated. I have also determined, pursuant to section 504(a)(1) of the 
1974 Act, having considered the factors set forth in sections 501 and 
502(c) of the 1974 Act, and pursuant to sections 504(c)(1) and (c)(2) of 
the 1974 Act, that certain beneficiary countries should not receive 
preferential tariff treatment under the GSP with respect to certain 
eligible articles. Further, I have determined, pursuant to section 
504(c)(5) of the 1974 Act, that certain countries should be redesignated 
as beneficiary developing countries with respect to certain eligible 
articles. These countries have been previously excluded from benefits of 
the GSP with respect to such eligible articles pursuant to section 
504(c)(1) of the 1974 Act. Last, I have determined that section 
504(c)(1)(B) of the 1974 Act should not apply with respect to certain 
eligible articles pursuant to section 504(d)(2) of the 1974 Act.
    3. Proclamation 6641 of December 15, 1993, implemented the North 
American Free Trade Agreement. Certain conforming changes and technical 
corrections to the HTS were omitted from this proclamation. I have 
decided that it is appropriate to modify the HTS to make such changes 
and corrections.
    4. 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 actions thereunder, including the removal, modification, 
continuance, or imposition of any rate of duty or other import 
restriction.
    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, including but not 
limited to title V and section 604 of the 1974 Act, do proclaim that:
    (1) In order to designate certain articles as eligible articles for 
purposes of the GSP when imported from designated beneficiary developing 
countries, the HTS is modified as provided in Annex I to this 
proclamation.
    (2)(a) In order to designate certain articles as eligible articles 
for purposes of the GSP when imported from any designated beneficiary 
developing country, the Rates of Duty 1-Special subcolumn for the HTS 
subheadings enumerated in Annex II(a) to this proclamation is modified 
by inserting in the parentheses the symbol ``A'' as provided in such 
Annex.
    (b) In order to designate certain articles as eligible articles for 
purposes of the GSP when imported from any designated beneficiary 
developing country excluding India, the Rates of Duty 1-Special 
subcolumn for the HTS subheading enumerated in Annex II(b) to this 
proclamation is modified by in- 

[[Page 1387]]

serting in the parentheses the symbol ``A*'' as provided in such Annex.
    (c) In order to terminate preferential tariff treatment under the 
GSP for certain articles imported from all designated beneficiary 
developing countries, the Rates of Duty 1-Special subcolumn for the HTS 
subheading in Annex II(c) to this proclamation is modified by deleting 
the symbol ``A*'' as set forth in such Annex.
     (d) In order to restore preferential tariff treatment under the GSP 
to a country which has been excluded from the benefits of the GSP for an 
eligible article, the Rates of Duty 1-Special subcolumn for each of the 
HTS subheadings enumerated in Annex II(d) to this proclamation is 
modified: (i) by deleting symbol ``A*'' in parentheses, and (ii) by 
inserting in such subcolumn the symbol ``A'' in lieu thereof.
     (e) In order to provide that one or more countries should no longer 
be treated as a beneficiary developing country with respect to an 
eligible article for purposes of the GSP, the Rates of Duty 1-Special 
subcolumn for each of the HTS provisions enumerated in Annex II(e) to 
this proclamation is modified: (i) by deleting the symbol ``A'' in 
parentheses, and (ii) by inserting in such subcolumn the symbol ``A*'' 
in lieu thereof.
     (3) In order to provide that one of more countries that have not 
been treated as beneficiary developing countries with respect to one or 
more eligible articles should be redesignated as beneficiary developing 
countries with respect to such article for purposes of the GSP, and to 
provide that one or more countries should no longer be treated as 
beneficiary developing countries with respect to an eligible article for 
purposes of the GSP, general note 4 to the HTS is modified as provided 
in Annex III to this proclamation.
     (4) In order to provide for the continuation of previously 
proclaimed staged reductions on certain Canadian goods, falling under 
HTS provisions modified in Annex I to this proclamation, effective with 
respect to goods of Canada under the terms of general note 12 to the 
HTS, that are entered, or withdrawn from warehouse for consumption, on 
or after the dates specified in Annex IV to this proclamation, the rate 
of duty in the HTS set forth in the Rates of Duty 1-Special subcolumn 
followed by the symbol ``CA'' in parentheses for each of the HTS 
subheadings enumerated in Annex IV to this proclamation is modified as 
provided in such Annex.
     (5) In order to provide for the continuation of previously 
proclaimed staged reductions on certain Mexican goods, falling under HTS 
provisions modified in Annex I to this proclamation, effective with 
respect to goods of Mexico under the terms of general note 12 to the 
HTS, that are entered, or withdrawn from warehouse for consumption, on 
or after the dates specified in Annex V to this proclamation, the rate 
of duty in the HTS set forth in the Rates of Duty 1-Special subcolumn 
followed by the symbol ``MX'' in parentheses for each of the HTS 
subheadings enumerated in Annex V to this proclamation is modified as 
provided in such Annex.
     (6) In order to provide for certain modifications to the GSP, the 
HTS is modified as set forth in Annex VII to this proclamation.
     (7) In order to correct certain technical errors and to make 
certain conforming changes in HTS provisions, the HTS is modified as 
provided in Annex VI to this proclamation.
     (8) Any provisions of previous proclamations and Executive orders 
inconsistent with the provisions of this proclamation are hereby 
superseded to the extent of such inconsistency.
     (9)(a) The modifications made by Annexes I, II, and III to this 
proclamation shall be effective with respect to articles both: (i) 
imported on or after January 1, 1976, and (ii) entered, or withdrawn 
from warehouse for consumption, on or after July 1, 1994.
     (b) The modifications made by Annexes IV, V, VI, and VII to this 
proclamation shall be effective on or after the dates set forth in such 
Annexes.
     In Witness Whereof, I have hereunto set my hand this thirtieth day 
of June, in the year of our Lord nineteen hundred and ninety-four, 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, 11:57 a.m., June 30, 
1994]

[[Page 1388]]

Note: This proclamation and the attached annexes were published in the 
Federal Register on July 1.