    [Weekly Compilation of Presidential Documents Volume 37, Number 51 (Monday, December 24, 2001)]
    [Pages 1803-1806]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Proclamation 7515--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 18, 2001

     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. The Commission has
    recommended modifications to the HTS pursuant to sections 1205(c) and
    (d) of the 1988 Act (19 U.S.C. 3005(c) and (d)) to conform the HTS to
    amendments made to the International Convention on the Harmonized
    Commodity Description and Coding System (the ``Convention'').
        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 under section 1205 of the 1988 Act (19
    U.S.C. 3005), if he determines that the modifications 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.
    I have determined that the modifications to the HTS proclaimed in this
    proclamation pursuant to section 1206(a) 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.
        3. (a) Presidential Proclamation 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 Annex
    403.1 to the NAFTA must be changed to ensure that the tariff and certain
    other treatment accorded under the NAFTA to originating goods will
    continue to be provided under the tariff categories that are being
    modified to reflect the amendments to the Convention. The NAFTA parties
    have agreed to make these changes.
        4. Section 202 of the NAFTA Implementation Act provides 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 subordinate
    tariff categories necessary to carry out the NAFTA Implementation Act
    consistent with the NAFTA.
        5. I have determined that the modifications to the HTS proclaimed in
    this proclamation pursuant to sections 201 and 202 of the NAFTA
    Implementation Act are necessary in order to ensure that the tariff and
    certain other treatment accorded under the NAFTA, including previously
    proclaimed staged reductions in rates of duty, will continue to be given
    to NAFTA originating goods under tariff categories that are being

    [[Page 1804]]

    modified to reflect the amendments to the Convention.
        6. Presidential Proclamation 6763 of December 23, 1994, implemented
    with respect to the United States the trade agreements resulting from
    the Uruguay Round of multilateral trade negotiations, including Schedule
    XX-United States of America, annexed to the Marrakesh Protocol to the
    General Agreement on Tariffs and Trade 1994 (``Schedule XX''), that were
    entered into pursuant to sections 1102(a) and (e) of the 1988 Act (19
    U.S.C. 2902(a) and (e)) and approved in section 101(a) of the Uruguay
    Round Agreements Act (URAA) (19 U.S.C. 3511(a)).
        7. Pursuant to the authority provided in section 111 of the URAA (19
    U.S.C. 3521) and sections 1102(a) and (e) of the 1988 Act, Proclamation
    6763 included the staged reductions in rates of duty that the President
    determined to be necessary or appropriate to carry out the concessions
    set forth in Schedule XX. In order to ensure the continuation of such
    staged reductions in rates of duty for imported goods under tariff
    categories that are being modified to reflect the amendments to the
    Convention, I have determined that additional modifications to the HTS
    are necessary or appropriate to carry out the duty reductions previously
    proclaimed, including certain technical or conforming changes within the
    tariff schedule.
        8. Presidential Proclamation 7351 of October 2, 2000, implemented
    section 211 of the United States-Caribbean Basin Trade Partnership Act
    (title II of Public Law 106-200, 114 Stat. 286) (CBTPA), in order to
    provide certain preferential tariff treatment to eligible articles that
    are the product of any country that the President has designated as a
    ``CBTPA beneficiary country'' and that has satisfied the requirements of
    section 213(b)(4)(A)(ii) of the Caribbean Basin Economic Recovery Act
    (CBERA) (19 U.S.C. 2703(b)(4)(A)(ii)). Section 213(b)(3) of the CBERA
    (19 U.S.C. 2703(b)(3)) provides that the tariff treatment accorded at
    any time under the CBTPA to any article referred to in section
    213(b)(1)(B) through (F) of the CBERA (19 U.S.C. 2703(b)(1)(B) through
    (F)) that is a CBTPA originating good shall be identical to the tariff
    treatment that is accorded at such time under Annex 302.2 of the NAFTA
    to an article described in the same 8-digit subheading of the HTS that
    is a good of Mexico and is imported into the United States.
        9. Pursuant to section 213(b) of the CBERA, Proclamation 7351
    included the staged reductions in rates of duty that the President
    determined to be necessary or appropriate to provide such identical
    tariff treatment to CBTPA originating goods. In order to ensure the
    continuation of such staged reductions in rates of duty for imported
    goods under tariff categories that are being modified to reflect the
    amendments to the Convention and the conforming changes in the NAFTA
    rules of origin, I have determined that additional modifications to the
    HTS are necessary or appropriate to carry out the duty reductions
    previously proclaimed.
        10. Presidential Proclamation 7512 of December 7, 2001, implemented
    with respect to the United States the Agreement Between the United
    States of America and the Hashemite Kingdom of Jordan on the
    Establishment of a Free Trade Area (JFTA), which was entered into on
    October 24, 2000, and implemented pursuant to section 101 of the United
    States-Jordan Free Trade Area Implementation Act (the ``JFTA Act'') (19
    U.S.C. 2112 Note). That proclamation included the staged reductions in
    rates of duty that I determined to be necessary or appropriate to carry
    out the concessions set forth in Annex 2.1 to the JFTA. In order to
    ensure the continuation of such staged reductions in rates of duty for
    originating goods under tariff categories that are being modified to
    reflect the amendments to the Convention, I have determined that
    additional modifications to the HTS are necessary or appropriate to
    carry out the duty reductions previously proclaimed.
        11. Section 201(b) of the NAFTA Implementation Act (19 U.S.C.
    3331(b)) authorizes the President, subject to the consultation and
    layover requirements of section 103(a) of the NAFTA Implementation Act
    (19 U.S.C. 3313(a)), to proclaim accelerated schedules of duty
    elimination that the United States may agree to with Mexico or Canada.
    Consistent with Article 302(3) of the NAFTA, I, through my duly
    empowered representative,

    [[Page 1805]]

    have entered into an agreement with the Government of Mexico providing
    for an accelerated schedule of duty elimination for specific goods of
    Mexico.
        12. Pursuant to section 201(b) of the NAFTA Implementation Act, I
    have determined that the modifications herein proclaimed of duties on
    goods originating in the territory of a NAFTA party are necessary or
    appropriate to maintain the general level of reciprocal and mutually
    advantageous concessions with respect to Mexico provided for by the
    NAFTA, and to carry out the agreement with Mexico providing an
    accelerated schedule of duty elimination for specific goods. Pursuant to
    section 213(b)(3)(A) of the CBERA (19 U.S.C. 2703(b)(3)), I have
    determined that the rates of duty resulting from the accelerated
    schedule of duty elimination for specific goods of Mexico should also
    apply to CBTPA originating goods described in the same 8-digit
    subheadings of the HTS.
        13. Section 604 of the Trade Act of 1974, as amended (the ``1974
    Act'') (19 U.S.C. 2483), authorizes the President to embody 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, 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 604 of the 1974 Act,
    sections 1102, 1205, and 1206 of the 1988 Act, section 213 of the CBERA,
    sections 201 and 202 of the NAFTA Implementation Act, section 111 of the
    URAA, and section 101 of the JFTA Act, do hereby proclaim:
        (1) In order to modify 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 I to this
    proclamation.
        (2) In order to modify the rules of origin under the NAFTA to
    reflect the modifications to the HTS being made to conform it to the
    Convention and to make certain conforming changes, general note 12 to
    the HTS is further modified as provided 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, as provided in Presidential
    Proclamation 6763, for goods classifiable in the provisions modified by
    Annex I to this proclamation that are entered, or withdrawn from
    warehouse for consumption, on or after each of 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 inserted in lieu thereof.
        (4) In order to provide for the continuation of previously
    proclaimed staged duty reductions in the Rates of Duty 1-Special
    subcolumn for originating goods of Mexico under the NAFTA that are
    classifiable in the provisions modified by Annex I to this proclamation
    and entered, or withdrawn from warehouse for consumption, on or after
    each of the dates specified in section B of Annex III to this
    proclamation, the rate of duty in the HTS set forth in the Rates of Duty
    1-Special subcolumn for each of the HTS subheadings enumerated in
    section B of Annex III shall be deleted and the rate of duty provided in
    such section inserted in lieu thereof.
        (5) In order to provide for the continuation of previously
    proclaimed staged duty reductions in the Rates of Duty 1-Special
    subcolumn for originating goods of CBTPA beneficiary countries that are
    classifiable in the provisions modified by Annex I to this proclamation
    and entered, or withdrawn from warehouse for consumption, on or after
    each of the dates specified in section C of Annex III to this
    proclamation, the rate of duty in the HTS set forth in the Rates of Duty
    1-Special subcolumn for each of the HTS subheadings enumerated in
    section C of Annex III shall be deleted and the rate of duty provided in
    such section inserted in lieu thereof.

    [[Page 1806]]

        (6) In order to provide for the continuation of previously
    proclaimed staged duty reductions in the Rates of Duty 1-Special
    subcolumn for originating goods of Jordan under the JFTA that are
    classifiable in the provisions modified by Annex I to this proclamation
    and entered, or withdrawn from warehouse for consumption, on or after
    each of the dates specified in section D of Annex III to this
    proclamation, the rate of duty in the HTS set forth in the Rates of Duty
    1-Special subcolumn for each of the HTS subheadings enumerated in
    section D of Annex III shall be deleted and the rate of duty provided in
    such section inserted in lieu thereof.
        (7) In order to provide an accelerated schedule of duty elimination
    for specific goods of Mexico under the terms of general note 12 to the
    HTS, and to provide identical tariff treatment for originating goods of
    a CBTPA beneficiary country provided for in the same HTS subheading, the
    special tariff treatment set forth in the HTS for the pertinent
    subheadings is modified as provided in Annex IV to this proclamation.
        (8) 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.
        (9)(a) The modifications and technical rectifications 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 or after the later of (i) January 1, 2002, or (ii) the 15th day after
    the date of publication of this proclamation in the Federal Register.
        (b) The modifications made by Annexes III and IV to this
    proclamation shall be effective with respect to goods entered, or
    withdrawn from warehouse for consumption, on or after the respective
    dates specified in each section of such Annexes for the goods described
    therein.
        In Witness Whereof, I have hereunto set my hand this eighteenth day
    of December, in the year of our Lord two thousand one, and of the
    Independence of the United States of America the two hundred and twenty-
    sixth.
                                                    George W. Bush

     [Filed with the Office of the Federal Register, 8:45 a.m., December 19,
    2001]

    Note: This proclamation will be published in the Federal Register on
    December 26.