Proclamation 6579—To Implement an Accelerated Tariff Schedule of Duty Elimination and To Modify Rules of Origin Under the United States-Canada Free-Trade Agreement

1. On January 2, 1988, the President entered into the United States-Canada Free-Trade Agreement ("the Agreement"). The Agreement and certain letters exchanged between the Governments of Canada and the United States were approved by the Congress in section 101(a) of the United States-Canada Free-trade Agreement Implementation Act of 1988 ("Implementation Act"), Public Law 100-449. The Agreement entered into force on January 1, 1989.

2. Section 201(b) of the Implementation Act grants the President, subject to the consultation and lay-over requirements of section 103(a) of the Implementation Act, the authority to proclaim such modifications as to which the United States and Canada may agree regarding the staging of any duty treatment set forth in Annexes 401.2 and 401.7 to the Agreement as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada provided for by the Agreement.

3. Consistent with Article 401(5) of the Agreement, I, through my duly empowered representative, on June 30, 1993, entered into an agreement with the Government of Canada providing an accelerated schedule of duty elimination for specific goods of Annex 401.2 to the Agreement. The consultation and lay-over requirements of section 103(a) of the Implementation Act with respect to such schedule have been complied with.

4. Pursuant to section 201(b) of the Implementation Act, I have determined that the modifications hereinafter proclaimed to existing duties on goods originating in the territory of Canada are necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada provided for by the Agreement and to carry out the agreement with Canada providing an accelerated schedule of duty elimination for specific goods of Annex 401.2 to the Agreement.

5. Section 202(d)(1) of the Implementation Act authorizes the President to proclaim, as a part of the Harmonized Commodity Description and Coding System, implemented by the United States as the Harmonized Tariff Schedule of the United States ("HTS"), the rules of origin set forth in Annex 301.2 of the Agreement. Section 202(d)(2) of the Implementation Act authorizes the President to proclaim, subject to the consultation and lay-over requirements of section 103(a) of the Implementation Act, such modifications to the rules as may from time to time be agreed to by the United States and Canada. I have decided, pursuant to an agreement entered into on June 30, 1993, between the United States and Canada, that certain modifications in the Agreement's rules of origin for particular goods of the HTS should be proclaimed as part of the HTS. The consultation and lay-over requirements of section 103 of the Implementation Act with respect to such modifications have been complied with.

6. Section 201(a) of the Implementation Act authorizes the President to proclaim such modifications to or continuance of existing duties, such continuance of existing duty-free or excise treatment, or such additional duties as the President determines to be necessary or appropriate to carry out Article 401 of the Agreement and the schedule of duty reductions with respect to goods originating in the territory of Canada set forth in Annexes 401.2 and 401.7 to the Agreement.

7. Proclamation 6515 of December 16, 1992, among other actions, provided for the continuation of previously proclaimed staged duty reductions on Canadian goods in the HTS provisions modified in Annex I to Proclamation 6515. An error was made concerning the staged reductions for HTS subheading 4421.90.95. Therefore, I have decided that it is necessary and appropriate to correct this error.

8. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, of other acts affecting import treatment, and actions thereunder, including removal, modification, continuance, or imposition of any rate of duty or other import restriction.

Now, Therefore, I, William J. Clinton, President of the United States of America, acting under the authority vested in me by the Constitution and laws of the United States, including but not limited to section 604 of the Trade Act of 1974, and sections 201 and 202 of the Implementation Act, do proclaim that:

(1) In order to provide for an accelerated schedule of duty elimination for specific goods of Annex 401.2 to the United States-Canada Free-Trade Agreement and to modify the rules of origin for certain goods under the Agreement, the tariff treatment provided for in the HTS for certain goods originating in the territory of Canada and general note 3(c)(vii) to the HTS are modified as provided in sections A and B of the Annex to this proclamation.

(2) In order to correct the continued staged duty reductions on Canadian goods provided for in HTS subheading 4421.90.95, the HTS is modified as set forth in section C of the Annex to this proclamation.

(3) In order to implement accelerated elimination of the rate of duty otherwise applicable under section 466 of the Tariff Act of 1930 to the equipments, or any part thereof, including boats, originating in the territory of Canada and the expenses of repairs made in the territory of Canada upon U.S.-documented vessels (other than civil aircraft, as defined in general note 3(c)(iv) of the HTS), such equipments, parts (including boats), and expenses of repairs shall be subject to duty at a rate of free, effective with respect to any U.S.-documented vessel arriving in ny port of the United States on or after the date specified in a notice by the United States Trade Representative and published in the Federal Register.

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

(5) The modifications made by paragraph (1) of this proclamation shall be effective with respect to goods originating in the territory of Canada entered, or withdrawn from warehouse for consumption, on or after the dates set forth in sections A and B of the Annex to this proclamation.

(6) The modifications made by paragraph (2) of this proclamation shall be effective with respect to goods originating in the territory of Canada entered, or withdrawn from warehouse for consumption, on or after the dates set forth in section C of the Annex to this proclamation.

In Witness Whereof, I have hereunto set my hand this fourth day of July, in the year of our Lord nineteen hundred and ninety-three, and of the independence of the United States of America the two hundred and eighteenth.

WILLIAM J. CLINTON