[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.