[Weekly Compilation of Presidential Documents Volume 39, Number 27 (Monday, July 7, 2003)]
[Pages 849-851]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7689--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences

 June 30, 2003

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)), 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(a)(1)(B) of the 1974 Act (19 U.S.C. 
2463(a)(1)(B)), the President may designate articles as eligible 
articles only for countries designated as least-developed beneficiary 
developing countries under section 502(a)(2) (19 U.S.C. 2462(a)(2)), if 
the President determines that such articles are not import-sensitive in 
the context of imports from such least-developed beneficiary developing 
countries.
    3. 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 or 
beneficiary sub-Saharan African 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.
    4. 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.
    5. 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. 
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)).
    6. 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 
from any beneficiary developing country if certain conditions are met.
    7. (a) 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) (19 U.S.C. 2463(e)), I have determined to 
designate certain articles, previously designated under section 
503(a)(1)(B), as eligible articles when imported from any beneficiary 
developing country. In order to do so, it is necessary to subdivide and 
amend the nomenclature of existing subheadings of the HTS.
     (b) Furthermore, I have determined that it is appropriate to modify 
the application of duty-free treatment under title V of the 1974 Act for 
a certain article, in particular for a good previously eligible for such 
treatment that the Bureau of Customs and Border Protection reclassified.

[[Page 850]]

    8. Pursuant to section 503(a)(1)(B) of the 1974 Act, I have 
determined to designate certain articles as eligible articles under the 
GSP only for least-developed beneficiary developing countries.
    9. Pursuant to section 503(c)(1) of the 1974 Act, and having 
considered the factors set forth in sections 501 and 502(c), I have 
determined to limit the application of duty-free treatment accorded to 
certain articles from certain beneficiary developing countries.
    10. Pursuant to sections 503(c)(1) and 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 that were imported in quantities exceeding the 
applicable competitive need limitation in 2002.
    11. 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).
    12. 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.
    13. 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 waiver, 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.
    14. 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, 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 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 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 a beneficiary developing country 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 of Annex I to this 
proclamation.
    (2) In order to designate certain articles as eligible articles for 
purposes of the GSP, the HTS is modified by amending and sub-dividing 
the nomenclature of certain 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 such HTS subheadings 
is modified as provided in section C(1) of Annex I to this proclamation.
     (b) In order to designate certain articles as eligible articles for 
purposes of the GSP when imported from any beneficiary developing 
country other than India, the Rates of Duty 1-Special subcolumn for such 
HTS subheadings is modified as provided for in section C(2) of Annex I 
to this proclamation.
     (c) In order to designate certain articles as eligible articles for 
purposes of the GSP when imported from any least-developed beneficiary 
developing country, the Rates of Duty 1-Special subcolumn for such HTS 
subheadings is modified as provided in section C(3) of Annex I to this 
proclamation.
     (d) In order to provide preferential tariff treatment under the GSP 
to a beneficiary developing country that has been excluded

[[Page 851]]

from the benefits of the GSP for certain eligible articles, the Rates of 
Duty 1-Special subcolumn for such HTS subheadings is modified as 
provided for in section C(4) of Annex I to this proclamation.
     (e) 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 purposes of the GSP, the Rates of Duty 1-Special 
subcolumn for such HTS subheadings is modified as provided for in 
section C(5) of Annex I to this proclamation.
    (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 Annex II 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 subheading and to 
the beneficiary developing countries set forth in Annex III to this 
proclamation.
    (6) Any provisions of previous proclamations or 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, 2003.
     (b) The actions taken in Annex II to this proclamation shall be 
effective on July 1, 2003.
     (c) The actions taken in Annex III to this proclamation shall be 
effective on the date of publication of this proclamation in the Federal 
Register.
    In Witness Whereof, I have hereunto set my hand this thirtieth day 
of June, in the year of our Lord two thousand three, and of the 
Independence of the United States of America the two hundred and twenty-
seventh.
                                                George W. Bush

[Filed with the Office of the Federal Register, 11:39 a.m., July 1, 
2003]

Note: This proclamation was released by the Office of the Press 
Secretary on July 1, and it and its attached annexes were published in 
the Federal Register on July 2.