[Weekly Compilation of Presidential Documents Volume 33, Number 22 (Monday, June 2, 1997)]
[Pages 808-810]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7007--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences

May 30, 1997

By the President of the United States

of America

A Proclamation

    1. Pursuant to sections 501, 503(a)(1)(A), and 503(c)(1) of title V 
of the Trade Act of 1974 (``the 1974 Act''), 19 U.S.C. 2461-2466, as 
amended, the President may designate or withdraw designation of 
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.
    2. Pursuant to sections 501 and 502 of the 1974 Act, the President 
is authorized to designate countries as beneficiary developing countries 
for purposes of the GSP.
    3. Pursuant to section 503(c)(2)(A) of the 1974 Act, some 
beneficiary developing countries are subject to the competitive need 
limitation on the preferential treatment afforded under the GSP to 
eligible products.
    4. Pursuant to section 503(c)(2)(C) 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 competitive need limitation in section 
503(c)(2)(A) during the preceding calendar year.
    5. Pursuant to section 503(c)(2)(F) of the 1974 Act, the President 
may disregard the competitive need limitation provided in section 
503(c)(2)(A)(i)(II) with respect to any eligible article if the 
aggregate appraised value of the imports of such article into the United 
States during the preceding calendar year does not exceed the applicable 
amount set forth in section 503(c)(2)(F)(ii).
    6. Further, pursuant to subsection 503(d) of the 1974 Act, the 
President may waive the application of the competitive need limitation 
in section 503(c)(2)(A) with respect to any eligible article of any 
beneficiary developing country.
    7. Pursuant to section 503(a)(1)(B) of the 1974 Act, the President 
may designate articles as eligible articles only for countries 
designated as least-developed beneficiary developing countries under 
section 502(a)(2), if the President determines that such articles are 
not import-sensitive in the context of imports from such least-developed 
beneficiary developing countries.
    8. Pursuant to sections 501, 503(a)(1)(A), and 503(c)(1) of the 1974 
Act, I have determined, after taking into account information and advice 
received from the United States International Trade Commission under 
section 503(a)(1)(A), to designate additional articles as eligible 
articles for purposes of the GSP. In order to do so, it is necessary to 
subdivide and amend the nomenclature of existing provisions of the HTS.
    9. Pursuant to sections 501 and 502 of the 1974 Act, and having due 
regard for the eligibility criteria set forth therein, I have determined 
that it is appropriate to designate Cambodia as a beneficiary developing 
country and a least-developed beneficiary developing country for 
purposes of the GSP.

[[Page 809]]

    10. Pursuant to sections 503(c)(2)(A) of the 1974 Act, I have 
determined that certain beneficiary countries should no longer receive 
preferential tariff treatment under the GSP with respect to certain 
eligible articles imported in quantities that exceed the applicable 
competitive need limitation.
    11. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have 
determined that certain countries should be redesignated as beneficiary 
developing countries with respect to certain eligible articles that had 
been imported previously in quantities that exceeded the competitive 
need limitation of section 503(c)(2)(A).
    12. Pursuant to section 503(c)(2)(F) of the 1974 Act, I have 
determined that the competitive need limitation provided in section 
503(c)(2)(A)(i)(II) should be waived with respect to certain eligible 
articles.
    13. Pursuant to section 503(d) of the 1974 Act, I have determined 
that the competitive need limitation of section 503(c)(2)(A) should be 
waived with respect to certain eligible articles from certain 
beneficiary developing countries. I have received the advice of the 
United States International Trade Commission on whether any industries 
in the United States are likely to be adversely affected by such waivers 
and I have determined, based on that advice and on the considerations 
described in sections 501 and 502(c), that such waivers are in the 
national economic interest of the United States. In order to grant one 
of those waivers, it is necessary to subdivide and amend the 
nomenclature of existing provisions of the HTS.
    14. Pursuant to section 503(a)(1)(B) of the 1974 Act, I have 
determined to designate certain articles as eligible articles under the 
GSP only for least-developed beneficiary developing countries.
    15. Section 604 of the 1974 Act, 19 U.S.C. 2483, as amended, 
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 of America, including but 
not limited to title V and section 604 of the 1974 Act, do proclaim 
that:
    (1) In order to provide that Cambodia is designated as a beneficiary 
developing country and a least-developed beneficiary developing country 
for purposes of the GSP, that one or 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 or articles for purposes of the 
GSP, and 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 section A of Annex I to this proclamation.
    (2) In order to designate certain articles as eligible articles for 
purposes of the GSP when imported from beneficiary developing countries, 
the HTS is modified as provided in section B of Annex I to this 
proclamation.
    (3) (a) In order to designate an article as an eligible article for 
purposes of the GSP when imported from any beneficiary developing 
country other than India, the Rates of Duty 1-Special subcolumn for the 
HTS subheading enumerated in section C(1)(a) of Annex I to this 
proclamation is modified as provided in such Annex section.
    (b) In order to designate an article as an eligible article for 
purposes of the GSP when imported from any beneficiary developing 
country, the Rates of Duty 1-Special subcolumn for the HTS subheading 
enumerated in section C(1)(b) of Annex I to this proclamation is 
modified as provided in such Annex section.
    (c) In order to restore preferential tariff treatment under the GSP 
to a country that 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 section C(1)(c) of Annex I to this 
proclamation is modified as provided in such Annex section.
    (d) 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,

[[Page 810]]

the Rates of Duty 1-Special subcolumn for each of the HTS provisions 
enumerated in section C(2) of Annex I to this proclamation is modified 
as provided in such Annex section.
    (4) In order to designate certain articles as eligible articles for 
purposes of the GSP only when imported from designated least-developed 
beneficiary developing countries, the HTS is modified as provided in 
Annex II to this proclamation.
    (5) A waiver of the application of section 503(c)(2)(A) of the 1974 
Act shall apply to the eligible articles in the HTS subheadings and to 
the beneficiary developing countries set forth in Annex III to this 
proclamation.
    (6) In order to provide for the continuation of previously 
proclaimed staged reductions in the Rates of Duty 1-General subcolumn, 
for goods that fall in the HTS subheadings modified by section B(1) of 
Annex I to this proclamation and 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 such 
subcolumn for each of the HTS subheadings enumerated in Annex IV to this 
proclamation is deleted and the rate of duty provided in such Annex is 
inserted in lieu thereof.
    (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.
    (8) (a) The modifications made by Annexes I, II, and IV to this 
proclamation shall be effective with respect to articles entered, or 
withdrawn from warehouse for consumption, on or after the dates set 
forth in such Annexes.
    (b) The action taken in Annex III to this proclamation shall be 
effective on May 31, 1997.
    In Witness Whereof, I have hereunto set my hand this thirtieth day 
of May, in the year of our Lord nineteen hundred and ninety-seven, and 
of the Independence of the United States of America the two hundred and 
twenty-first.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 2:21 p.m., May 30, 1997]

Note: This proclamation will be published in the Federal Register on 
June 3.