Proclamation 6123—To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes

1. Pursuant to Title V of the Trade Act of 1974, as amended (the 1974 Act) et seq.), the President may designate 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 504(c) of the 1974 Act (c)), beneficiary developing countries, except those designated as least-developed beneficiary developing countries pursuant to section 504(c)(6) of the 1974 Act, are subject to limitations on the preferential treatment afforded under the GSP. Pursuant to section 504(c)(5) of the 1974 Act, 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 limitations in section 504(c)(1) (after application of section 504(c)(2)) during the preceding calendar year. Further, pursuant to section 504(d)(1) of the 1974 Act (d)(1)), the limitations provided in section 504(c)(1)(B) shall not apply with respect to an eligible article if a like or directly competitive article was not produced in the United States on January 3, 1985.

3. Sections 502(b)(7) and 502(c)(7) of the 1974 Act (b)(7) and 2462(c)(7)) provide that a country that has not taken or is not taking steps to afford internationally recognized worker rights, as defined in section 502(a)(4) of the 1974 Act (a)(4)), is ineligible for designation as a beneficiary developing country for purposes of the GSP. Pursuant to section 504 of the 1974 Act, the President may withdraw, suspend, or limit the application of duty-free treatment under the GSP with respect to any article or with respect to any country upon consideration of the factors set forth in sections 501 and 502(c) of the 1974 Act and 2462(c)).

4. Pursuant to sections 501, 503(a), and 504(a) of the 1974 Act 2463(a), and 2464(a)), in order to subdivide and amend the nomenclature of existing provisions for the purposes of the GSP, I have determined, after taking into account information and advice received under section 503(a), that the HTS should be modified to adjust the original designation of eligible articles. In addition, pursuant to Title V of the 1974 Act, I have determined that it is appropriate to designate specified articles provided for in the HTS as eligible for preferential tariff treatment under the GSP when imported from designated beneficiary developing countries, and that such treatment for other articles should be terminated. I have also determined, pursuant to sections 504(a) and (c)(1) of the 1974 Act, that certain beneficiary developing countries should no longer receive preferential tariff treatment under the GSP with respect to certain eligible articles. Further, I have determined, pursuant to section 504(c)(5) of the 1974 Act, that certain countries should be redesignated as beneficiary developing countries with respect to specified previously designated eligible articles. These countries have been previously excluded from benefits of the GSP with respect to such eligible articles pursuant to section 504(c)(1) of the 1974 Act. Last, I have determined that section 504(c)(1)(B) of the 1974 Act should not apply with respect to certain eligible articles because no like or directly competitive article was produced in the United States on January 3, 1985.

5. Pursuant to sections 502(b)(7), 502(c)(7), and 504 of the 1974 Act, I have determined that it is appropriate to provide for the suspension of preferential treatment under the GSP for articles that are currently eligible for such treatment and that are imported from Liberia. Such suspension is the result of my determination that Liberia has not taken and is not taking steps to afford internationally recognized worker rights, as defined in section 502(a)(4) of the 1974 Act.

6. Section 504(c)(6) of the 1974 Act provides that section 504(c) of the 1974 Act shall not apply to any beneficiary developing country that the President determines, based on the considerations described in sections 501 and 502(c) of the 1974 Act, to be a least-developed beneficiary developing country. Accordingly, after taking into account the considerations in sections 501 and 502(c) of the 1974 Act, I have determined to designate the beneficiary developing countries of Kiribati, Mauritania, Mozambique, Tuvalu, and Vanuatu as least-developed beneficiary developing countries.

7. Section 503(c)(1) of the 1974 Act (c)(1)) provides that the President may not designate certain specified categories of import-sensitive articles as eligible articles under the GSP. Section 503(c)(1)(A) of the 1974 Act provides that textile and apparel articles that are subject to textile agreements are import-sensitive. Pursuant to section 504(a) of the 1974 Act, I am acting to modify the HTS to remove from eligibility under the GSP those articles that have become subject to textile agreements and to make certain conforming changes in the HTS.

8. Section 1204(b)(1)(C) of the Omnibus Trade and Competitiveness Act of 1988 (the 1988 Act) (b)(1)(C)) authorizes the President to proclaim such modifications to the HTS as are necessary or appropriate to implement such technical rectifications to the HTS as the President considers necessary. Pursuant to section 1204(b)(1)(C) of the 1988 Act, I have determined that certain technical rectifications to the HTS are necessary.

9. Section 242 of the Compact of Free Association (the Compact), entered into by the Government of the United States and the Governments of the Marshall Islands and of the Federated States of Micronesia (the freely associated states), as given effect by section 401(a) of the Compact of Free Association Act of 1985 (the Association Act) (Public Law 99-239; 99 Stat. 1770, 1838), provides that, upon implementation of the Compact, the President shall proclaim duty-free treatment for most products of the freely associated states, subject to the limitations provided in sections 503(b) and 504(c) of the 1974 Act (b) and 2464(c)). Pursuant to section 401 of the Association Act, I proclaimed duty-free treatment for such products in Proclamation No. 6030 of September 28, 1989. In order to conform the tariff treatment of goods from the freely associated states more closely with the limitations imposed under sections 503(b) and 504(c) of the 1974 Act and to provide more equitable tariff treatment for the freely associated states as afforded beneficiary developing countries under the GSP, I have determined that changes should be made in general note 3(c)(viii) to the HTS.

10. Section 604 of the 1974 Act 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.

Now, Therefore, I, George 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 but not limited to Title V and section 604 of the 1974 Act, section 1204(b) of the 1988 Act, and section 401 of the Association Act, do proclaim that:

(1) In order to provide benefits under the GSP to specified designated eligible articles when imported from any designated beneficiary developing country and to remove from eligibility under the GSP those articles that have become subject to textile agreements, the HTS is modified as provided in Annex I to this proclamation.

(2) (a) In order to provide benefits under the GSP to specified designated eligible articles when imported from any designated beneficiary developing country, the Rates of Duty 1-Special subcolumn for the HTS subheadings enumerated in Annexes II(a) and II(b)(1) is modified by inserting in the parentheses the symbol "A" as provided in such Annexes to this proclamation.

(b) In order to terminate preferential tariff treatment under the GSP for articles imported from all designated beneficiary developing countries, the Rates of Duty 1-Special subcolumn for the HTS subheadings enumerated in Annex II(b)(2) is modified by deleting the symbol "A" in the parentheses.

(c) In order to provide preferential tariff treatment under the GSP to certain countries that have been excluded from the benefits of the GSP for certain eligible articles imported from such countries, following my determination that a country not previously receiving such benefits should again be treated as a beneficiary developing country with respect to such articles, the Rates of Duty 1-Special subcolumn for each of the HTS provisions enumerated in Annex II(b)(3) to this proclamation is modified: (i) by deleting from such subcolumn for such HTS provisions the symbol "A*" in parentheses, and (ii) by inserting in such subcolumn the symbol "A" in lieu thereof.

(d) In order to provide that one or more countries should no longer be treated as beneficiary developing countries with respect to an eligible article for purposes of the GSP, the Rates of Duty 1-Special subcolumn for each of the HTS provisions enumerated in Annex II(b)(4) to this proclamation is modified: (i) by deleting from such subcolumn for such HTS provisions the symbol "A" in parentheses, and (ii) by inserting in such subcolumn the symbol "A*" in lieu thereof.

(3) In order to provide for the suspension of preferential treatment under the GSP for Liberia, to provide for the designation of Kiribati, Mauritania, Mozambique, Tuvalu, and Vanuatu as least-developed beneficiary developing countries, to provide that one or more countries that have not been treated as beneficiary developing countries with respect to an eligible article should be redesignated as beneficiary developing countries with respect to such article for purposes of the GSP, and to provide that one or more countries should no longer be treated as beneficiary developing countries with respect to an eligible article for purposes of the GSP, general note 3(c)(ii) to the HTS is modified as provided in Annex III to this proclamation.

(4) In order to provide for the continuation of previously proclaimed staged reductions on Canadian goods in the HTS provisions modified in Annex I to this proclamation, effective with respect to goods originating in the territory of Canada that are entered, or withdrawn from warehouse for consumption, on or after the dates specified in Annex IV to this proclamation, the rate of duty in the HTS set forth in the Rates of Duty 1-Special subcolumn followed by the symbol "CA" in parentheses for each of the HTS subheadings enumerated in such Annex shall be deleted and the rate of duty provided in such Annex inserted in lieu thereof.

(5) In order to provide for the continuation of previously proclaimed staged reductions on products of Israel in the HTS subheadings modified in Annex I to this proclamation, effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the dates specified in Annex V to this proclamation, the rate of duty in the HTS set forth in the Rates of Duty 1-Special subcolumn followed by the symbol "IL" in parentheses for each of the HTS subheadings enumerated in such Annex shall be deleted and the rate of duty provided in such Annex inserted in lieu thereof.

(6) In order to make technical rectifications in particular provisions, the HTS is modified as set forth in Annex VI to this proclamation.

(7) In order to make changes in the tariff treatment of goods from the freely associated states, general note 3(c)(viii) to the HTS is modified as set forth in Annex VII to this proclamation.

(8) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.

(9) (a) The amendments made by Annexes I(a), II(a), and III(a) of this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after May 1, 1990.

(b) The amendments made by Annexes I(b), II(b), and III(b) of this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after July 1, 1990.

(c) The amendments made by Annexes IV and V of this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the dates indicated for the respective Annex columns.

(d) The amendments made by Annex VI of this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1989.

(e) The amendments made by Annex VII of this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after October 18, 1989.

In Witness Whereof, I have hereunto set my hand this twenty-sixth day of April, in the year of our Lord nineteen hundred and ninety, and of the Independence of the United States of America the two hundred and fourteenth.

GEORGE BUSH