[Weekly Compilation of Presidential Documents Volume 34, Number 27 (Monday, July 6, 1998)]
[Pages 1282-1285]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7107--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences

June 30, 1998

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, as amended (``the 1974 Act'') (19 U.S.C. 2461, 
2463(a)(1)(A), and 2463(c)(1)), 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 section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 
2463(c)(2)(A)), beneficiary developing countries, except those 
designated as least-developed beneficiary developing countries pursuant 
to section 503(c)(2)(D) of the 1974 Act (19 U.S.C. 2463(c)(2)(D)), are 
subject to competitive need limitations on the preferential treatment 
afforded under the GSP to eligible articles.
    3. Pursuant to section 503(c)(2)(C) of the 1974 Act (19 U.S.C. 
2463(c)(2)(C)), 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 limitations in section 503(c)(2)(A) of the 1974 Act (19 
U.S.C. 2463(c)(2)(A)), during the preceding calendar year.
    4. Pursuant to section 503(c)(2)(F) of the 1974 Act (19 U.S.C. 
2463(c)(2)(F)), the President may disregard the competitive need 
limitation provided in section 503(c)(2)(A)(i)(II) of the 1974 Act (19 
U.S.C. 2463(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) of the 1974 Act (19 U.S.C. 
2463(c)(2)(F)(ii)).
    5. Pursuant to section 503(d) of the 1974 Act (19 U.S.C. 2463(d)), 
the President may waive the application of the competitive need 
limitations in section 503(c)(2)(A) with respect to any eligible article 
of any beneficiary developing country if certain conditions are met.
    6. Section 507(2) of the 1974 Act (19 U.S.C. 2467(2)) provides that 
in the case of an association of countries which is a free trade area or 
customs union, or which is contributing to comprehensive regional 
economic integration among its members through appropriate means, 
including, but not limited to, the reduction of duties, the President 
may provide that all members of such association other than members 
which are barred from designation under section 502(b) of the 1974 Act 
(19 U.S.C. 2462(b)) shall be treated as one country for purposes of 
title V of the 1974 Act.
    7. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act, and 
after receiving advice from the International Trade Commission in 
accordance with section 503(e), I have determined to designate certain 
articles, previously designated under section 503(a)(1)(B), as eligible 
articles from additional beneficiary developing countries. In order to 
do so, it is necessary to subdivide and amend the nomenclature of 
existing subheadings of the HTS. For certain articles, I have decided 
that the effective date of designation shall be determined by the United 
States Trade Representative (USTR).
    8. Pursuant to section 503(c)(1) of the 1974 Act, I have determined 
to limit the application of duty-free treatment accorded to

[[Page 1283]]

certain articles from certain beneficiary developing countries.
    9. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have 
determined that certain beneficiary developing countries should not 
receive preferential tariff treatment under the GSP with respect to 
certain eligible articles imported in quantities that exceed the 
applicable competitive need limitation.
    10. 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 
previously had been imported in quantities exceeding the competitive 
need limitations of section 503(c)(2)(A).
    11. 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 from certain beneficiary developing countries. For certain 
articles, I have decided that the effective date of the waiver shall be 
determined by the USTR.
    12. Pursuant to section 503(d) of the 1974 Act, I have determined 
that the competitive need limitations 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 
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. For a certain article, I have decided 
that the effective date of the waiver shall be determined by the USTR.
    13. Pursuant to section 507(2) of the 1974 Act, I have determined 
that members of the West African Economic and Monetary Union (WAEMU) 
should be treated as one country for purposes of title V of the 1974 
Act.
    14. Pursuant to section 507(2) of the 1974 Act, I have determined 
that members of the Southern African Development Community (SADC) should 
be treated as one country for purposes of title V of the 1974 Act. The 
USTR shall determine which specific members of the SADC are to be 
included in the designation under section 507(2) of the 1974 Act and 
shall determine the effective date or dates of the designation. The USTR 
shall announce by publication in the Federal Register the specific SADC 
members to be included in the designation and the effective date or 
dates.
    15. Pursuant to section 507(2) of the 1974 Act, I have determined 
that members of the Tripartite Commission for East African Cooperation 
(EAC) should be treated as one country for purposes of title V of the 
1974 Act. The USTR shall determine which specific members of the EAC are 
to be included in the designation under section 507(2) of the 1974 Act 
and shall determine the effective date or dates of the designation. The 
USTR shall announce by publication in the Federal Register the specific 
EAC members to be included in the designation and the effective date or 
dates.
    16. 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 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 one or more countries that have not 
been treated as beneficiary developing countries with respect to one or 
more eligible articles should be designated as beneficiary developing 
countries with respect to such article or articles for purposes of the 
GSP, and that one or more countries should not be treated as beneficiary 
developing countries with respect to one or more eligible articles for 
purposes of the GSP, general note 4 to the HTS is modified as provided 
in section A of Annex I and section A of Annex IV to this proclamation.
    (2) In order to designate certain articles, previously designated 
under section

[[Page 1284]]

503(a)(1)(B), as eligible articles from additional beneficiary 
developing countries, the HTS is modified by amending and subdividing 
the nomenclature of existing HTS subheadings as provided in section B of 
Annex I to this proclamation.
    (3)(a) In order to designate certain articles as eligible articles 
for purposes of the GSP when imported from any beneficiary developing 
country, the Rates of Duty 1-Special subcolumn for certain HTS 
subheadings is modified as provided in section C(1) of Annex I and 
section B of Annex IV to this proclamation.
    (b) In order to designate certain articles, previously designated 
under section 503(a)(1)(B), as eligible articles from additional 
beneficiary developing countries, the Rates of Duty 1-Special subcolumn 
for the HTS subheadings enumerated in section C(2) of Annex I to this 
proclamation is modified as provided in such section.
    (c) In order to provide preferential tariff treatment under the GSP 
to beneficiary developing countries that have been excluded from the 
benefits of the GSP for certain eligible articles, the Rates of Duty 1-
Special subcolumn for each of the HTS subheadings enumerated in section 
C(3) of Annex I to this proclamation is modified as provided in such 
section.
    (d) In order to provide that one or more countries should not be 
treated as a beneficiary developing country with respect to certain 
eligible articles for purpose of the GSP, the Rates of Duty 1-Special 
subcolumn for each of the HTS subheadings enumerated in section C(4) of 
Annex I to this proclamation is modified as provided in such section.
    (4) 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 II and in 
section C of Annex IV to this proclamation.
    (5) In order to provide for the continuation of previously 
proclaimed staged reductions of duties in the Rates of Duty 1-General 
subcolumn for goods that fall in the HTS subheadings modified by section 
B of Annex I to this proclamation and 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 such subcolumn for each of the HTS subheadings enumerated 
in section A of Annex III to this proclamation is deleted and the rate 
of duty provided in such section is inserted in lieu thereof.
    (6) In order to provide for the continuation of previously 
proclaimed staged reductions of duties in the Rates of Duty 1-Special 
subcolumn for certain goods of Mexico that fall in the HTS subheadings 
modified by section B of Annex I to this proclamation and 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 section B of Annex III to this 
proclamation, the rate of duty in the HTS set forth in such subcolumn 
followed by the symbol ``MX'' in parentheses for each of the HTS 
subheadings enumerated in section B of Annex III to this proclamation is 
deleted and the rate of duty provided in such section is interested in 
lieu thereof.
    (7) In order to reflect in the HTS the decision that members of the 
WAEMU should be treated as one country for purposes of title V of the 
1974 Act, and to enumerate the member countries, general note 4(a) to 
the HTS is modified as provided in Annex V to this proclamation.
    (8) In order to reflect in the HTS the decision that members of the 
SADC should be treated as one country for purposes of title V of the 
1974 Act, and to enumerate those member countries that should benefit 
from such designation, general note 4(a) to the HTS is to be modified as 
set forth in a notice or notices that the USTR shall cause to be 
published in the Federal Register. Such notice or notices should direct 
the insertion in general note 4(a) of the title of the association and 
the names of those member countries that should be treated as one 
country for purposes of title V of the 1974 Act, and should specify the 
effective date of such designation.
    (9) In order to reflect in the HTS the decision that members of the 
EAC should be treated as one country for purposes of title V of the 1974 
Act, and to enumerate those

[[Page 1285]]

member countries that should benefit from such designation, general note 
4(a) to the HTS is to be modified as set forth in a notice or notices 
that the USTR shall cause to be published in the Federal Register. Such 
notice or notices should direct the insertion in general note 4(a) of 
the title of the association and the names of those member countries 
that should be treated as one country for purposes of title V of the 
1974 Act, and should specify the effective date of such designation.
    (10) 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.
    (11)(a) The modifications made by Annex I to this proclamation shall 
be effective with respect to articles entered, or withdrawn from 
warehouse for consumption, on or after July 1, 1998.
    (b) The action taken in Annex II to this proclamation shall be 
effective on the date of signature of this proclamation.
    (c) The modifications made by Annex III 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 
Annex.
    (d) The modifications made by Annex IV to this proclamation shall be 
effective with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after a date to be announced in the Federal 
Register by the USTR.
    (e) The modification made by Annex V to this proclamation shall be 
effective with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after the date of signature of this proclamation.
    In Witness Whereof, I have hereunto set my hand this thirtieth day 
of June, in the year of our Lord nineteen hundred and ninety-eight, and 
of the Independence of the United States of America the two hundred and 
twenty-second.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 8:45 a.m., July 2, 1998]

Note: This proclamation was released by the Office of the Press 
Secretary on July 1, and it was published in the Federal Register on 
July 6.