[Weekly Compilation of Presidential Documents Volume 40, Number 37 (Monday, September 13, 2004)]
[Pages 1892-1894]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7808--To Modify the Generalized System of Preferences, and 
for Other Purposes

 September 7, 2004

 By the President of the United States

 of America

 A Proclamation

    1. Pursuant to sections 501 and 502(a)(1) of Title V of the Trade 
Act of 1974, as amended (the ``1974 Act'') (19 U.S.C. 2461, 2462(a)(1)), 
the President is authorized to designate countries as beneficiary 
developing countries for purposes of the Generalized System of 
Preferences (GSP).
    2. 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) (19 U.S.C. 2463(c)(2)(A)) with 
respect to any eligible article from any beneficiary developing country 
if certain conditions are met.
    3. Pursuant to section 503(d)(5) of the 1974 Act (19 U.S.C. 
2463(d)(5)), any waiver granted under section 503(d) shall remain in 
effect until the President determines that such waiver is no longer 
warranted due to changed circumstances.
    4. Section 7(a) of the AGOA Acceleration Act of 2004 (Public Law 
108-274) (``AGOA Acceleration Act'') amended section 506A of the GSP (19 
U.S.C. 2466a) to provide certain benefits to any country designated as a 
beneficiary sub-Saharan African country under section 506A(a) of the GSP 
that becomes a party to a free trade agreement with the United States, 
and amended section 506B of the GSP (19 U.S.C. 2466b) to extend the 
period during which preferential treatment may be accorded to such 
countries.
    5. Section 7(b) through (f) of the AGOA Acceleration Act amended 
section 112 of the

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African Growth and Opportunity Act (Title I of the Trade and Development 
Act of 2000, Public Law 106-200) (AGOA) (19 U.S.C. 3721) to modify the 
type and quantity of textile and apparel articles eligible for the 
preferential treatment now accorded to designated beneficiary sub-
Saharan African countries, and to provide certain benefits to any such 
country that becomes a party to a free trade agreement with the United 
States.
    6. On December 17, 1992, the Governments of Canada, Mexico, and the 
United States entered into the North American Free Trade Agreement 
(NAFTA). The Congress approved the NAFTA in section 101(a) of the North 
American Free Trade Agreement Implementation Act (the ``NAFTA 
Implementation Act'') (19 U.S.C. 3311(a)), and the President implemented 
the tariff provisions of the NAFTA with respect to the United States in 
Proclamation 6641 of December 15, 1993.
    7. Section 201(a) of the NAFTA Implementation Act (19 U.S.C. 
3331(a)) authorizes the President to proclaim such duty modifications as 
the President may determine to be necessary or appropriate to carry out 
or apply, among other provisions, Article 308 and Annex 308.1 of the 
NAFTA.
    8. NAFTA Article 308 and Annex 308.1 provide for each NAFTA Party to 
eliminate or reduce normal trade relations (most-favored-nation) rates 
of duty on certain automatic data processing machinery and parts, and 
set the terms under which such goods shall be considered originating 
goods under the NAFTA when imported from the territory of a NAFTA Party.
    9. Pursuant to sections 501 and 502(a)(1) of the 1974 Act, and 
having due regard for the factors set forth in section 501 of the 1974 
Act and taking into account the factors set forth in section 502(c) of 
the 1974 Act (19 U.S.C. 2462(c)), I have decided to designate Iraq as a 
beneficiary developing country for purposes of the GSP.
    10. Pursuant to section 503(d)(5) of the 1974 Act, I have determined 
that a previously granted waiver of the competitive need limitations of 
section 503(c)(2)(A) is no longer warranted due to changed 
circumstances.
    11. In order to implement the tariff treatment provided under 
section 7 of the AGOA Acceleration Act, it is necessary to modify the 
Harmonized Tariff Schedule of the United States (HTS).
    12. I have determined that each NAFTA Party has eliminated or 
reduced its normal trade relations (most-favored-nation) rates of duty 
applicable to the goods enumerated in Table 308.1.1 of NAFTA Annex 308.1 
to the levels prescribed in that Table. Annex 308.1 provides for those 
goods to be originating goods under the NAFTA when imported from Canada 
or Mexico.
    13. Pursuant to section 201(a) of the NAFTA Implementation Act, I 
have determined that the modifications to the HTS hereinafter proclaimed 
concerning goods considered to be originating when imported from the 
territory of a NAFTA Party are necessary and appropriate to carry out or 
apply Article 308 and Annex 308.1 of the NAFTA.
    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 Trade Act, section 112 of the AGOA, 
and section 201(a) of the NAFTA Implementation Act, do proclaim that:
    (1) Iraq is designated as a beneficiary developing country for 
purposes of the GSP, effective 15 days after the date of this 
proclamation.
    (2) In order to reflect this designation in the HTS, general note 
4(a) to the HTS is modified by adding ``Iraq'' to the list entitled 
``Independent Countries'', effective with respect to articles entered, 
or withdrawn from warehouse for consumption, on or after 15 days after 
the date of this proclamation.
    (3) In order to provide that a country no longer be treated as a 
beneficiary developing country with respect to an eligible article for 
purposes of the GSP, general note 4(d) to

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the HTS is modified as provided in section 1 of Annex I.
    (4) In order to withdraw preferential tariff treatment under the GSP 
for a certain article imported from a certain beneficiary developing 
country, the Rates of Duty 1-Special subcolumn for such HTS subheading 
is modified as provided for in section 2 of Annex I to this 
proclamation.
    (5) The waiver of the application of section 503(c)(2)(A) of the 
1974 Act to the article in the HTS subheading and to the beneficiary 
developing country listed in section 3 of Annex I to this proclamation 
is revoked.
    (6) In order to provide for the preferential treatment provided for 
in section 506A and 506B of the GSP, as amended by section 7(a) of the 
AGOA Acceleration Act, and section 112 of the AGOA, as amended by 
sections 7(b) through (f) of the AGOA Acceleration Act, the HTS is 
modified as provided in Annex II to this proclamation.
    (7) In order to implement Article 308 and Annex 308.1 of the NAFTA 
for certain automatic data processing machinery and parts imported from 
Canada and Mexico, the HTS is modified as provided in Annex III to this 
proclamation.
    (8) Any provisions of previous proclamations and Executive Orders 
that are inconsistent with this proclamation are superseded to the 
extent of such inconsistency.
    (9) The modifications made by and action taken in Annex I to this 
proclamation shall be effective with respect to eligible articles 
entered, or withdrawn from warehouse for consumption, on or after 60 
days after the date of this proclamation.
    (10) The modifications made by Annex II shall be effective with 
respect to eligible articles entered, or withdrawn from warehouse for 
consumption, on or after July 13, 2004, except that the modifications 
made by section 4(A) relating to increases in the quantity of certain 
articles eligible for duty-free treatment shall be effective with 
respect to articles entered, or withdrawn from warehouse for 
consumption, on or after the dates provided in that section.
    (11) The modifications made by Annex III shall be effective with 
respect to goods entered, or withdrawn from warehouse for consumption, 
on or after January 1, 2003.
    In Witness Whereof, I have hereunto set my hand this seventh day of 
September, in the year of our Lord two thousand four, and of the 
Independence of the United States of America the two hundred and twenty-
ninth.
                                                George W. Bush

 [Filed with the Office of the Federal Register, 8:45 a.m., September 8, 
2004]

Note: This proclamation was published in the Federal Register on 
September 9.