[Weekly Compilation of Presidential Documents Volume 31, Number 50 (Monday, December 18, 1995)]
[Pages 2174-2177]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 6857--To Modify the Harmonized Tariff Schedule of the 
United States, To Provide Rules of Origin Under the North American Free 
Trade Agreement for Affected Goods, and for Other Purposes

December 11, 1995

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 in the HTS as the Commission considers necessary or 
appropriate to accomplish the purposes set forth in that subsection.
    2. Section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) authorizes 
the President to proclaim modifications to the HTS, based on the 
recommendations of the Commission

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under section 1205 of the 1988 Act (19 U.S.C. 3005), that he determines 
are in conformity with the obligations of the United States under the 
International Convention on the Harmonized Commodity Description and 
Coding System (``the Convention'') and do not run counter to the 
national economic interest of the United States.
    3. (a) Presidential Proclamation No. 6641 of December 15, 1993, 
implemented the North American Free Trade Agreement (``the NAFTA'') with 
respect to the United States and, pursuant to sections 201 and 202 of 
the North American Free Trade Agreement Implementation Act (``the NAFTA 
Implementation Act'') (19 U.S.C. 3331 and 3332), incorporated in the HTS 
the tariff modifications and rules of origin necessary or appropriate to 
carry out the NAFTA.
    (b) Because the substance of the changes to the Convention will be 
reflected in slightly differing form in the national tariff schedules of 
the three parties to the NAFTA, the rules of origin and interpretative 
rules set forth in Appendix 6.A of Annex 300-B, Annex 401, and other 
annexes to the NAFTA must be modified to ensure that the agreed tariff 
and certain other treatment accorded under the NAFTA to originating 
goods will continue to be provided under the tariff categories affected 
by the modifications to the Convention. The NAFTA parties agreed, on 
November 6, 1995, to the text of necessary revisions to the NAFTA.
    4. Section 202 of the NAFTA Implementation Act (19 U.S.C. 3332) 
provides certain 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 the rules of origin set 
out in the NAFTA and any additional subordinate tariff categories 
necessary to carry out the NAFTA Implementation Act consistent with the 
NAFTA.
    5. Pursuant to section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) 
and section 202 of the NAFTA Implementation Act (19 U.S.C. 3332), I have 
determined (1) that the modifications to the HTS being proclaimed 
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; and (2) 
that the modifications to the HTS being proclaimed pursuant to section 
202 of the NAFTA Implementation Act must be incorporated in the HTS in 
order to ensure that the tariff and certain other treatment accorded 
under the NAFTA will continue to be given to NAFTA originating goods. 
The report and lay-over requirements of section 1206(b) of the 1988 Act 
(19 U.S.C. 3006(b)) and section 202(q)(2) of the NAFTA Implementation 
Act (19 U.S.C. 3332(q)) have been complied with.
    6. (a) Presidential Proclamation No. 6763 of December 23, 1994, 
implemented with respect to the United States the trade agreements 
resulting from the Uruguay Round of multilateral trade negotiations, 
entered into pursuant to sections 1102(a) and (e) of the 1988 Act (19 
U.S.C. 2902(a) and (e)), including Schedule XX--United States of 
America, annexed to the Marrakesh Protocol to the General Agreement on 
Tariffs and Trade 1994 (``Schedule XX''). Certain provisions set forth 
in annexes to that proclamation contain technical errors in the 
instructions for implementing particular changes.
    (b) Sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 2902(a) and 
(e)) authorize the President to proclaim such modification or 
continuance of any existing duty, such continuance of existing duty-free 
or excise treatment, or such additional duties, as he determines to be 
required or appropriate to carry out any trade agreements entered into 
under those sections. Section 111(a) of the Uruguay Round Agreements Act 
(``the URAA'') (19 U.S.C. 3521(a)) authorizes the President to proclaim 
such other modification of any duty, such other staged rate reduction, 
or such additional duties as the President determines to be necessary or 
appropriate to carry out Schedule XX. To clarify the intent of the 
changes previously proclaimed, I have decided that such technical errors 
should be corrected.
    7. Section 604 of the Trade Act of 1974, as amended (``the 1974 
Act'') (19 U.S.C. 2483), authorizes the President to embody

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in the HTS the substance of the relevant provisions of that Act, 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, 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 604 of the 1974 Act (19 U.S.C. 2483), sections 1102, 1205, and 
1206 of the 1988 Act (19 U.S.C. 2902, 3005, and 3006), sections 201 and 
202 of the NAFTA Implementation Act (19 U.S.C. 3331 and 3332), and 
section 111(a) of the URAA (19 U.S.C. 3521(a)), do hereby proclaim:
    (1) In order to modify the rules of origin under the NAFTA to 
reflect the amendments agreed to by the NAFTA parties, and to make 
certain conforming changes, the general notes to the HTS are modified as 
set forth in Annex I to this proclamation.
    (2) In order to make changes in the HTS to conform it to the 
Convention or any amendment thereto recommended for adoption, to promote 
the uniform application of the Convention, to establish additional 
subordinate tariff categories to carry out modifications to the rules of 
origin under the NAFTA, and to make technical and conforming changes to 
existing provisions, the HTS is modified as set forth in Annex II to 
this proclamation.
    (3) In order to provide for the continuation of previously 
proclaimed staged duty reductions in the Rates of Duty 1--General 
subcolumn under section 111(a) of the URAA (19 U.S.C. 3521(a)), as 
provided in Presidential Proclamation No. 6763 of December 23, 1994, for 
goods in the provisions modified in Annex II to this proclamation that 
are entered or withdrawn from warehouse for consumption on or after the 
dates specified in section A of Annex III to this proclamation, the rate 
of duty in the HTS set forth in the Rates of Duty 1--General subcolumn 
for each of the HTS subheadings enumerated in section A of Annex III 
shall be deleted and the rate of duty provided in such section A 
inserted in lieu thereof.
    (4) In order to provide for the continuation of previously 
proclaimed tariff modifications and staged duty reductions under section 
201 of the NAFTA Implementation Act (19 U.S.C. 3331), as implemented 
with respect to the United States in Presidential Proclamation No. 6641 
of December 15, 1993, for goods of Canada and of Mexico under the terms 
of general note 12 to the HTS classifiable in the tariff provisions set 
forth in or affected by Annex II to this proclamation that are entered 
or withdrawn from warehouse for consumption on or after the dates 
specified in sections B and C, respectively, of Annex III to this 
proclamation, the appropriate rate of duty in the HTS set forth in the 
rates of Duty 1--Special subcolumn followed by the symbol ``CA'' or 
``MX'', respectively, for each of the HTS subheadings enumerated in 
sections B and C of Annex III shall be deleted and the rate of duty 
provided in such sections inserted in lieu thereof.
    (5)(a) In order to make technical corrections to certain provisions 
of the annexes to Presidential Proclamation No. 6763 of December 23, 
1994, such provisions are modified as set forth in Annex IV to this 
proclamation.
    (b) All provisions of previous proclamations and Executive orders 
inconsistent with the actions taken in this proclamation are hereby 
superseded to the extent of such inconsistency.
    (6)(a) The modifications to the HTS made by Annexes I and II to this 
proclamation shall be effective with respect to goods entered or 
withdrawn from warehouse for consumption on and after the later of (i) 
January 1, 1996, or (ii) the date that is 15 days after the date of 
publication of this proclamation in the Federal Register.
    (b) The modifications to the HTS made by Annexes III and IV to this 
proclamation shall be effective with respect to goods entered or 
withdrawn from warehouse for consumption on and after the dates 
specified in such annexes to this proclamation for each action 
specified.
    In Witness Whereof, I have hereunto set my hand this eleventh day of 
December, in the year of our Lord nineteen hundred and ninety-five, and 
of the Independence of the

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United States of America the two hundred and twentieth.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 8:45 a.m., December 14, 
1995]

Note: This proclamation and the attached annexes were published in the 
Federal Register on December 15.