Proclamation 6704—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 ("1974 Act") (19 U.S.C. 2461et 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. Pursuant to section 504(a)(1) of the 1974 Act (19 U.S.C. 2464(a)(1)), the President may withdraw, suspend, or limit the application of duty-free treatment accorded under section 501 of the 1974 Act (19 U.S.C. 2461) with respect to any article or with respect to any country, after considering the factors set forth in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2462(c)). Pursuant to section 504(c) of the 1974 Act (19 U.S.C. 2464(c)), beneficiary developing countries, except those designated as least-developed beneficiary developing countries pursuant to section 504(c)(6) of the 1974 Act, re 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 paragraph (c)(2)) during the preceding calendar year. Further, pursuant to section 504(d)(2) of the 1974 Act (19 U.S.C. 2464(d)(2), the President may disregard the limitations provided 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 that 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 poduct of the United States for calendar year 1979.

2. Pursuant to sections 501, 503(a), and 504(a) of the 1974 Act (19 U.S.C. 2461, 2463(a), and 2464(a)), in order to subdivide and amend the nomenclature of existing provisions of the HTS to modify tariff treatment under 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 section 504(a)(1) of the 1974 Act, having considered the factors set forth in sections 501 and 502(c) of the 1974 Act, and pursuant to sections 504(c)(1) and (c)(2) of the 1974 Act, that certain beneficiary countries should not rceive 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. Last, 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.

3. Proclamation 6641 of December 15, 1993, implemented the North American Free Trade Agreement. Certain conforming changes

and technical corrections to the HTS were omitted from this

proclamation. I have decided that it is appropriate to modify the HTS to make such changes and corrections.

4. 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, William J. Clinton, 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, do proclaim that:

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

(c) In order to terminate preferential tariff treatment under the GSP for certain articles imported from all designated beneficiary developing countries, the Rates of Duty 1-Special subcolumn for the HTS subheading in Annex II(c) to this proclamation is modified by deleting the symbol "A*" as set forth in such Annex.

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

(e) In order to provide that one or more countries should no longer be treated as a beneficiary developing country 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(e) to this proclamation is modified: (i) by deleting the symbol "A" in parentheses, and (ii) by inserting in such subcolumn the symbol "A*" in lieu thereof.

(3) In order to provide that one of more countries that have not been treated as beneficiary developing countries with respect to one or more eligible articles 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 4 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 certain Canadian goods, falling under HTS provisions modified in Annex I to this proclamation, effective with respect to goods of Canada under the terms of general note 12 to the HTS, 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 Annex IV to this proclamation is modified as provided in such Annex.

(5) In order to provide for the continuation of previously proclaimed staged reductions on certain Mexican goods, falling under HTS provisions modified in Annex I to this proclamation, effective with respect to goods of Mexico under the terms of general note 12 to the HTS, that are 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 "MX" in parentheses for each of the HTS subheadings enumerated in Annex V to this proclamation is modified as provided in such Annex.

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

(7) In order to correct certain technical errors and to make certain conforming changes in HTS provisions, the HTS is modified as provided in Annex VI 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 modifications made by Annexes I, II, and III 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, 1994.

(b) The modifications made by Annexes IV, V, VI, and VII to this proclamation shall be effective on or after the dates set forth in such Annexes.

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

WILLIAM J. CLINTON