[Weekly Compilation of Presidential Documents Volume 40, Number 27 (Monday, July 5, 2004)]
[Pages 1182-1184]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7800--To Modify Duty-Free Treatment Under the Generalized 
System of Preferences

 June 30, 2004

 By the President of the United States

 of America

 A Proclamation

    1. Pursuant to section 503(c)(1) of title V of the Trade Act of 
1974, as amended (the ``1974 Act'') (19 U.S.C. 2463(c)(1)), the 
President may withdraw, suspend, or limit 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(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.
    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. 
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. 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.
    6. Pursuant to section 503(c)(1) of the 1974 Act, and having 
considered the factors set forth in sections 501 and 502(c) (19 U.S.C. 
2461 and 2462(c)), I have determined that it is appropriate to withdraw 
the designation of certain articles as eligible articles under the GSP 
when imported from any beneficiary developing country. In order to do so 
for two of the articles, it is necessary to subdivide and amend the 
nomenclature of existing subheadings of the HTS.
    7. 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 a 
certain article from a certain beneficiary developing country.
    8. Pursuant to section 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 2003.
    9. 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).
    10. Pursuant to section 503(c)(2)(F) of the 1974 Act, I have 
determined that the competitive need limitation provided in section

[[Page 1183]]

503(c)(2)(A)(i)(II) should be waived with respect to certain eligible 
articles from certain beneficiary developing countries.
    11. 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.
    12. 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 (19 U.S.C. 2461-7, 2483), 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 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 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 withdraw the designation of certain articles as 
eligible articles for purposes of the GSP, the HTS is modified by 
amending and subdividing the nomenclature of certain existing HTS 
subheadings as provided in section B of Annex I 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 such HTS subheadings is modified as provided for 
in section C(1) of Annex I to this proclamation.
    (b) In order to provide that one or more countries 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(2) of 
Annex I to this proclamation.
    (c) In order to withdraw preferential tariff treatment under the GSP 
for a certain article imported from any beneficiary developing country, 
the Rates of Duty 1-Special subcolumn for such HTS subheading is 
modified as provided for in section C(3) 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 article in the HTS subheading and to the 
beneficiary developing country listed 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, 2004.
    (b) The actions taken in Annex II to this proclamation shall be 
effective on July 1, 2004.
    (c) The action taken in Annex III to this proclamation shall be 
effective on the date of this proclamation.
    In Witness Whereof, I have hereunto set my hand this thirtieth day 
of June, in the year of our Lord two thousand four, and of

[[Page 1184]]

the Independence of the United States of America the two hundred and 
twenty-eighth.
                                                George W. Bush

 [Filed with the Office of the Federal Register, 3:07 p.m., June 30, 
2004]

Note: This proclamation was published in the Federal Register on July 1.