[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
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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,
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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.