[Weekly Compilation of Presidential Documents Volume 37, Number 26 (Monday, July 2, 2001)]
[Pages 992-994]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7454--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences

June 29, 2001

 By the President of the United States

 of America

 A Proclamation

    1. Sections 501 and 502 of the Trade Act of 1974, as amended (the 
``1974 Act'') (19 U.S.C. 2461 and 2462), authorize the President to 
designate countries as beneficiary developing countries for purposes of 
the Generalized System of Preferences (GSP).
    2. Section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 2463(c)(2)(A)) 
provides that beneficiary developing countries, except least-developed 
beneficiary developing countries or beneficiary sub-Saharan African 
countries, are subject to competitive need limitations on the 
preferential treatment afforded under the GSP to eligible articles.
    3. Section 503(c)(2)(C) of the 1974 Act (19 U.S.C. 2463(c)(2)(C)) 
provides that 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) during the 
preceding calendar year.
    4. Section 503(c)(2)(F) of the 1974 Act (19 U.S.C. 2463(c)(2)(F)) 
provides that the President may disregard the competitive need 
limitation provided in section 503(c)(2)(A)(i)(II) (19 U.S.C.

[[Page 993]]

2463(c)(2)(A)(i)(II)) with respect to any eligible article from any 
beneficiary developing country if the aggregate appraised value of the 
imports of such article into the United States during the preceding 
calendar year does not exceed an amount set forth in section 
503(c)(2)(F)(ii) (19 U.S.C. 2463(c)(2)(F)(ii)).
    5. Section 503(d) of the 1974 Act (19 U.S.C. 2463(d)) provides that 
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. 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 Georgia as a beneficiary developing 
country for purposes of the GSP.
    7. Pursuant to section 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.
    8. 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). For certain articles, I have 
decided that the effective date of the redesignation shall be determined 
by the United States Trade Representative (USTR).
    9. 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.
    10. 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 a beneficiary 
developing country. 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. I have decided that the effective date of the waivers 
shall be determined by the USTR.
    11. Section 604 of the 1974 Act (19 U.S.C. 2483) authorizes the 
President to embody in the Harmonized Tariff Schedule of the United 
States (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, George W. Bush, 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 section 301 of title 3, United 
States Code, and title V and section 604 of the 1974 Act, do proclaim 
that:
    (1) In order to reflect in the HTS the addition of Georgia as a 
beneficiary developing country under the GSP, general note 4(a) to the 
HTS is modified as provided in section A(1) of Annex I to this 
proclamation.
    (2) 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 redesignated as beneficiary developing 
countries with respect to such article or articles for purposes of the 
GSP, and in order to provide that one or more countries should no longer 
be treated as beneficiary developing countries with respect to one or 
more eligible articles for purposes of the GSP, general note 4(d) to the 
HTS is modified as provided in section A(2) of Annex I and paragraph (1) 
of Annex III to this proclamation.
    (3) (a) In order to provide preferential tariff treatment under the 
GSP to a beneficiary developing country that has 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 
A(3)(a) of Annex I and

[[Page 994]]

paragraph (2) of Annex III to this proclamation is modified as provided 
in such section and paragraph.
      (b) In order to provide that one or more countries should not be 
treated as beneficiary developing countries with respect to certain 
eligible articles for purposes of the GSP, the Rates of Duty 1-Special 
subcolumn for each of the HTS subheadings enumerated in section A(3)(b) 
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)(i)(II) of 
the 1974 Act shall apply to the eligible articles in the HTS subheadings 
and to the beneficiary developing countries listed in section B of Annex 
I 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 country set forth in Annex II to this 
proclamation.
    (6) 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.
    (7) (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, 2001.
      (b) The action taken in paragraph (5) of 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 a date to be announced in the 
Federal Register by the USTR.
    In Witness Whereof, I have hereunto set my hand this twenty-ninth 
day of June, in the year of our Lord two thousand one, and of the 
Independence of the United States of America the two hundred and twenty-
fifth.
                                                George W. Bush

 [Filed with the Office of the Federal Register, 8:45 a.m., July 3, 
2001]

Note: This proclamation and the attached annexes will be published in 
the Federal Register on July 5.