[Weekly Compilation of Presidential Documents Volume 42, Number 52 (Monday, January 1, 2007)]
[Pages 2215-2220]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 8097--To Modify the Harmonized Tariff Schedule of the 
United States, To Adjust Rules of Origin Under the United States-
Australia Free Trade Agreement and for Other Purposes

 December 29, 2006

 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 
to 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, if 
he determines that the modifications are in conformity with United 
States obligations 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) of the 1988 Act (19 U.S.C. 3006(a)) are in conformity 
with United States obligations under the Convention and do not run 
counter to the national economic interest of the United States.
    3. 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 section 201 of the North American 
Free Trade Agreement Implementation Act (the ``NAFTA Implementation 
Act'') (19 U.S.C. 3331), the staged reductions in rates of duty that the 
President determined to be necessary or appropriate to carry out 
articles 302, 305, 307, 308, and 703 and Annexes 302.2, 307.1, 308.1, 
308.2, 300-B, 703.2, and 703.3 of the NAFTA. In order to ensure the 
continuation of such staged reductions in rates of duty for originating 
goods of Mexico 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.
    4. 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)).
    5. 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 provisions of 
Schedule XX. In order to ensure the continuation of such 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.
    6. Presidential Proclamation 7351 of October 2, 2000, implemented 
section 211 of the United States-Caribbean Basin Trade Partnership Act 
(CBTPA) (title II of Public Law 106-200, 114 Stat. 286) in order to 
provide certain preferential tariff treatment to eligible articles that 
are the product of any country that the President designates as a 
``CBTPA beneficiary country'' and that the

[[Page 2216]]

President determines to have 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.
    7. 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 the 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.
    8. Presidential Proclamation 7512 of December 7, 2001, implemented 
the Agreement Between the United States of America and the Hashemite 
Kingdom of Jordan on the Establishment of a Free Trade Area (JFTA), with 
respect to the United States and, pursuant to section 101 of the United 
States-Jordan Free Trade Area Implementation Act (the ``JFTA Act'') (19 
U.S.C. 2112 note), 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.
    9. Presidential Proclamation 7747 of December 30, 2003, implemented 
the United States-Singapore Free Trade Agreement (USSFTA) with respect 
to the United States and, pursuant to section 201 of the United States-
Singapore Free Trade Agreement Implementation Act (the ``USSFTA Act'') 
(19 U.S.C. 3805 note), the staged reductions in rates of duty that I 
determined to be necessary or appropriate to carry out or apply articles 
2.2, 2.5, 2.6, and 2.12 of the USSFTA and the schedule of reductions 
with respect to the Republic of Singapore set forth in Annex 2B of the 
USSFTA. 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.
    10. Presidential Proclamation 7746 of December 30, 2003, implemented 
the United States-Chile Free Trade Agreement (USCFTA) with respect to 
the United States and, pursuant to section 201 of the United States-
Chile Free Trade Agreement Implementation Act (the ``CFTA Act'') (19 
U.S.C. 3805 note), the staged reductions in rates of duty that I 
determined to be necessary or appropriate to carry out or apply articles 
3.3 (including the schedule of United States duty reductions with 
respect to originating goods set forth in Annex 3.3 to the USCFTA), 3.7, 
3.9, and 3.20(8), (9), (10), and (11) of the USCFTA. 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. Presidential Proclamation 7857 of December 20, 2004, implemented 
the United States-Australia Free Trade Agreement (USAFTA) with respect 
to the United States and, pursuant to section 201 of the United States-
Australia Free Trade Agreement Implementation Act (the ``USAFTA Act'') 
(19 U.S.C. 3805 note), the staged reductions in rates of duty that I 
determined to be necessary or appropriate to carry out or apply

[[Page 2217]]

articles 2.3, 2.5, and 2.6 of the USAFTA and the schedule of reductions 
with respect to Australia set forth in Annex 2B of the USAFTA.
    12. Because the substance of the changes to the Convention will be 
reflected in slightly differing form in the national tariff schedules of 
the parties to the USAFTA, the rules of origin set out in Annexes 4A and 
5A of that Agreement must be changed to ensure that the tariff and 
certain other treatment accorded under the USAFTA to originating goods 
will continue to be provided under the tariff categories that are being 
modified to reflect the amendments to the Convention. The USAFTA parties 
have agreed to make these changes.
    13. Section 203 of the USAFTA Act provides certain rules for 
determining whether a good is an originating good for the purposes of 
implementing tariff treatment under the USAFTA. Section 203(o) of the 
USAFTA Act authorizes the President to proclaim the rules of origin set 
out in the USAFTA and any subordinate tariff categories necessary to 
carry out the USAFTA.
    14. I have determined that the modifications to the HTS proclaimed 
in this proclamation pursuant to sections 201 and 203 of the USAFTA Act 
are necessary or appropriate to ensure that the tariff and certain other 
treatment accorded under the USAFTA will continue to be given to 
originating goods under tariff categories that are being modified to 
reflect the amendments to the Convention and to carry out the duty 
reductions previously proclaimed.
    15. Presidential Proclamation 7971 of December 22, 2005, implemented 
the United States-Morocco Free Trade Agreement (USMFTA) with respect to 
the United States and, pursuant to section 201 of the United States-
Morocco Free Trade Agreement Implementation Act (the ``USMFTA Act'') (19 
U.S.C. 3805 note), the staged reductions in rates of duty that I 
determined to be necessary or appropriate to carry out or apply articles 
2.3, 2.5, 2.6, 4.1, 4.3.9, 4.3.10, 4.3.11, 4.3.13, 4.3.14, and 4.3.15 of 
the USMFTA and the schedule of reductions with respect to Morocco set 
forth in Annex IV of the USMFTA. 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.
    16. Presidential Proclamations 7987 of February 28, 2006, 7991 of 
March 24, 2006, 7996 of March 31, 2006, and 8034 of June 30, 2006, 
implemented the Dominican Republic-Central America-United States Free 
Trade Agreement (CAFTA-DR Agreement) with respect to the United States 
and, pursuant to section 201 of the Dominican Republic-Central America-
United States Implementation Act (the ``CAFTA-DR Act'') (19 U.S.C. 
4031), the staged reductions in rates of duty that I determined to be 
necessary or appropriate to carry out or apply articles 3.3, 3.5, 3.6, 
3.21, 3.26, 3.27, and 3.28, and Annexes 3.3 (including the schedule of 
the United States duty reductions with respect to originating goods), 
3.27, and 3.28. 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.
    17. Presidential Proclamation 8039 of July 27, 2006, implemented the 
United States-Bahrain Free Trade Agreement (USBFTA) with respect to the 
United States and, pursuant to section 201 of the United States-Bahrain 
Free Trade Agreement Implementation Act (the ``USBFTA Act'') (19 U.S.C. 
3805 note), the staged reductions in rates of duty that I determined to 
be necessary or appropriate to carry out or apply articles 2.3, 2.5, 
2.6, 3.2.8, and 3.2.9, and the schedule of reductions with respect to 
Bahrain set forth in Annex 2-B of the USBFTA. 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.

[[Page 2218]]

    18. Section 604 of the Trade Act of 1974, as amended (the ``Trade 
Act'') (19 U.S.C. 2483), authorizes the President to embody in the HTS 
the substance of the 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. Section 1206(c) of the 1988 Act, as amended 
(19 U.S.C. 3006(c)), provides that any modifications proclaimed by the 
President under section 1206(a) of that Act may not take effect before 
the thirtieth day after the date on which the text of the proclamation 
is published in the Federal Register.
    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 
sections 1102 and 1206 of the 1988 Act, section 214 of the CBERA, 
section 201 of the NAFTA Implementation Act, section 111 of the URAA, 
section 101 of the JFTA Act, section 201 of the USSFTA Act, section 201 
of the USCFTA Act, sections 201 and 203 of the USAFTA Act, section 201 
of the USMFTA Act, section 201 of the CAFTA-DR Act, section 201 of the 
USBFTA Act, and section 604 of the Trade Act do proclaim that:
    (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, and to make technical and conforming changes to 
existing provisions, the HTS is modified as set forth in Annex I of 
Publication 3898 of the United States International Trade Commission, 
entitled, ``Modifications to the Harmonized Tariff Schedule of the 
United States Under Section 1206 of the Omnibus Trade and 
Competitiveness Act of 1988,'' which is incorporated by reference into 
this proclamation.
    (2) 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 of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in section F of Annex II of Publication 
3898, 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 
F of Annex II shall be deleted and the rate of duty provided in such 
section inserted in lieu thereof.
    (3) In order to provide for the continuation of previously 
proclaimed staged duty reductions in the Rates of Duty 1-Special 
subcolumn for goods under the terms of general note 17 to the HTS that 
are classifiable in the provisions modified by Annex I of Publication 
3898 and entered, or withdrawn from warehouse for consumption, on or 
after each of the dates specified in section H of Annex II of 
Publication 3898, 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 H of Annex II 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 Jordan under the JFTA that are 
classifiable in the provisions modified by Annex I of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in section D of Annex II of Publication 
3898, 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 II 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 Singapore under USSFTA that are 
classifiable in the provisions modified by Annex I of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in sections J of Annex II of Publication 
3898, 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 
J of Annex

[[Page 2219]]

II shall be deleted and the rate of duty provided in such section 
inserted in lieu thereof.
    (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 Chile under USCFTA that are 
classifiable in the provisions modified by Annex I of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in sections C, K, and L of Annex II of 
Publication 3898, 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 
sections C, K, and L of Annex II shall be deleted and the rate of duty 
provided in such section inserted in lieu thereof.
    (7) 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 Australia under USAFTA that are 
classifiable in the provisions modified by Annex I of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in section A of Annex II of Publication 
3898, 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 
A of Annex II shall be deleted and the rate of duty provided in such 
section inserted in lieu thereof.
    (8) In order to modify the rules of origin under the USAFTA to 
reflect the modifications to the HTS being made to conform it to the 
Convention and to make certain conforming changes, general note 28 to 
the HTS is further modified as provided in Annex III to Publication 
3898.
    (9) 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 Morocco under USMFTA that are 
classifiable in the provisions modified by Annex I of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in section E of Annex II of Publication 
3898, 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 
E of Annex II shall be deleted and the rate of duty provided in such 
section inserted in lieu thereof.
    (10) In order to provide for the continuation of previously 
proclaimed staged duty reductions in the Rates of Duty 1-Special 
subcolumn for originating goods under general note 29 to the HTS that 
are classifiable in the provisions modified by Annex I of Publication 
3898 and entered, or withdrawn from warehouse for consumption, on or 
after each of the dates specified in section G of Annex II of 
Publication 3898, 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 G of Annex II shall be deleted and the rate of duty provided in 
such section inserted in lieu thereof.
    (11) 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 Bahrain under USBFTA that are 
classifiable in the provisions modified by Annex I of Publication 3898 
and entered, or withdrawn from warehouse for consumption, on or after 
each of the dates specified in section B of Annex II of Publication 
3898, 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 II shall be deleted and the rate of duty provided in such 
section inserted in lieu thereof.
    (12) 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.
    (13)(a) The modifications and technical rectifications to the HTS 
set forth in Annexes I and III to Publication 3898 shall be effective 
with respect to goods entered, or withdrawn from warehouse for 
consumption, on or after the later of (i) February 1, 2007, or (ii) the 
thirtieth day after the date of publication of this proclamation in the 
Federal Register.
    (b) The modifications to the HTS set forth in Annex II to 
Publication 3898 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 Annex for the goods described 
therein.

[[Page 2220]]

    In Witness Whereof, I have hereunto set my hand this twenty-ninth 
day of December, in the year of our Lord two thousand six, and of the 
Independence of the United States of America the two hundred and thirty-
first.
                                                George W. Bush

 [Filed with the Office of the Federal Register, 11:03 p.m., January 3, 
2007]

Note: This proclamation will be published in the Federal Register on 
January 4, 2007.