Proclamation 6447—To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes

1. Pursuant to title V of the Trade of 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 (c)(6)), are subject to limitations on the preferential treatment afforded under the GSP. Pursuant to section 504(c)(5) of the 1974 Act (c)(5)), 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 paragraph (c)(2)) during the preceding calendar year. Pursuant to section 504((d)(1) of the 1974 Act (d)(1)), the limitation provided for in section 504(c)(1)(B) of the 1974 Act (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. Further pursuant to section 504(d)(2) of the 1974 Act (d)(2)), the President may disregard the limitation provided for in section 504(c)(1)(B) with respect to any eligible article if the appraised value of the total imports of such article into the United States during the preceding calendar year is not in excess of an amount which bears the same ratio to $5,000,000 as the gross national product of the United States for that calendar year (as determined by the Department of Commerce) bears to the gross national product of the United States for calendar year 1979.

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) of the 1974 Act (a)(4)), is ineligible for designation as a beneficiary developing country for purposes of the GSP. Pursuant to section 504(a) of the 1974 Act (a)), 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 of the HTS to modify 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 certain 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 certain other articles should be terminated. I have also determined, pursuant to sections 504(a), (c)(1), and (c)(2) of the 1974 Act (a), (c)(1), and (c)(2)), that certain beneficiary 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 certain 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. Further, pursuant to section 504(d)(1) of the 1974 Act, I have determined that the limitation provided for in 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. Finally, I have determined that section 504(c)(1)(B) of the 1974 Act should not apply with respect to certain eligible articles pursuant to section 504(d)(2) of the 1974 Act.

5. Pursuant to sections (502(b)(7), 502(c)(7), and 504(a) 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 Syria. Such suspension is the result of my determination that Syria 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 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 (c)(1)(A)) 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.

7. In order to correct certain typographical errors in the HTS, I have determined that certain technical rectifications to the HTS are necessary and appropriate.

8. 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 of America, including but not limited to title V and section 604 of the 1974 Act, do proclaim that:

(1) In order to designate certain articles as eligible articles for purposes of the GSP when imported from certain designated beneficiary developing countries 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 designate certain articles as eligible articles for purposes of the GSP when imported from any designated beneficiary developing country, the Rates of Duty 1-Special subcolumn for the HTS subheadings enumerated in Annex II(a) to this proclamation is modified by inserting in the parentheses the symbol "A" as provided in such Annex.

(b) In order to restore preferential tariff treatment under the GSP to a certain country that has been excluded from the benefits of the GSP for an eligible article, the Rates of Duty 1-Special subcolumn for the HTS provision set forth in Annex II(b) to this proclamation is modified: (i) by deleting the symbol "A*" in parentheses, and (ii) by inserting the symbol "A" in lieu thereof.

(c) 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(c) to this proclamation is modified: (i) by deleting the symbol "A" in parentheses, and (ii) by inserting the symbol "A*" in lieu thereof.

(3) In order to provide for the suspension of preferential treatment under the GSP for Syria, to provide that one or more countries which 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 which 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 Annex IV to this proclamation is modified as provided in such Annex.

(5) In order to correct certain typographical errors, the HTS is modified as set forth in Annex V to this proclamation.

(6) In order to provide for certain modifications to the GSP, the HTS is modified as set forth in Annex VI to this proclamation.

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

(8)(a) The amendments made by Annexes I, II, and III(a) to 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, 1992.

(b) The amendment made by Annex III(b) to this proclamation shall be effective on or after 60 days after the date of publication of this proclamation in the Federal Register.

(c) The modifications made by Annex IV(a) to this proclamation shall be effective with respect to goods originating in the territory of Canada which are entered, or withdraw from warehouse for consumption, on or after January 1, 1993.

(d) The modifications made by Annex IV(b) to this proclamation shall be effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after the dates indicated in such Annex.

(e) The amendments made by Annex V to this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of signature of this proclamation.

(f) The amendments made by Annex VI to 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 a date to be announced in the Federal Register by the United States Trade Representative.

In Witness Whereof, I have hereunto set by hand this fifteenth day of June, in the year of our Lord nineteen hundred and ninety-two, and of the Independence of the United States of America the two hundred and sixteenth.

GEORGE BUSH