[Code of Federal Regulations]
[Title 3, Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 3CFR7689]

Proc. 7689

Proclamation 7689 of June 30, 2003

To Modify Duty-Free Treatment Under the Generalized System of Preferences

By the President of the United States of America

A Proclamation

          1. Pursuant to sections 501, 503(a)(1)(A), and 503(c)(1) of 
          title V of the Trade Act of 1974, as amended (the ``1974 
          Act'') (19 U.S.C. 2461, 2463(a)(1)(A), and 2463(c)(1)), the 
          President may designate or withdraw designation of 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 503(a)(1)(B) of the 1974 Act (19 U.S.C. 
          2463(a)(1)(B)), the President may designate articles as 
          eligible articles only for countries designated as least-
          developed beneficiary developing countries under section 
          502(a)(2) (19 U.S.C. 2462(a)(2)), if the President determines 
          that such articles are not import-sensitive in the context of 
          imports from such least-developed beneficiary developing 
          countries.
          3. Pursuant to section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 
          2463(c)(2)(A)), beneficiary developing countries, except those 
          designated as least-developed beneficiary developing countries 
          or beneficiary sub-Saharan African countries pursuant to 
          section 503(c)(2)(D) of the 1974 Act (19 U.S.C. 
          2463(c)(2)(D)), are subject to competitive need limitations on 
          the preferential treatment afforded under the GSP to eligible 
          articles.
          4. Section 503(c)(2)(C) of the 1974 Act (19 U.S.C. 
          2463(c)(2)(C)), provides that 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 competitive 
          need limitations in section 503(c)(2)(A) during the preceding 
          calendar year.
          5. Section 503(c)(2)(F) of the 1974 Act (19 U.S.C. 
          2463(c)(2)(F)), provides that the President may disregard the 
          competitive need limitation provided in section 
          503(c)(2)(A)(i)(II) (19 U.S.C. 2463(c)(2)(A)(i)(II)) with 
          respect to any eligible article from any beneficiary 
          developing country if the aggregate appraised value of the 
          imports of such article into the United States during

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          the preceding calendar year does not exceed an amount set 
          forth in section 503(c)(2)(F)(ii) (19 U.S.C. 
          2463(c)(2)(F)(ii)).
          6. Pursuant to section 503(d) of the 1974 Act (19 U.S.C. 
          2463(d)), the President may waive the application of the 
          competitive need limitations in section 503(c)(2)(A) with 
          respect to any eligible article from any beneficiary 
          developing country if certain conditions are met.
          7. (a) Pursuant to sections 501 and 503(a)(1)(A) of the 1974 
          Act, and after receiving advice from the International Trade 
          Commission in accordance with section 503(e) (19 U.S.C. 
          2463(e)), I have determined to designate certain articles, 
          previously designated under section 503(a)(1)(B), as eligible 
          articles when imported from any beneficiary developing 
          country. In order to do so, it is necessary to subdivide and 
          amend the nomenclature of existing subheadings of the HTS.
           (b) Furthermore, I have determined that it is appropriate to 
          modify the application of duty-free treatment under title V of 
          the 1974 Act for a certain article, in particular for a good 
          previously eligible for such treatment that the Bureau of 
          Customs and Border Protection reclassified.
          8. Pursuant to section 503(a)(1)(B) of the 1974 Act, I have 
          determined to designate certain articles as eligible articles 
          under the GSP only for least-developed beneficiary developing 
          countries.
          9. Pursuant to section 503(c)(1) of the 1974 Act, and having 
          considered the factors set forth in sections 501 and 502(c), I 
          have determined to limit the application of duty-free 
          treatment accorded to certain articles from certain 
          beneficiary developing countries.
          10. Pursuant to sections 503(c)(1) and 503(c)(2)(A) of the 
          1974 Act, I have determined that certain beneficiary countries 
          should no longer receive preferential tariff treatment under 
          the GSP with respect to certain eligible articles that were 
          imported in quantities exceeding the applicable competitive 
          need limitation in 2002.
          11. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have 
          determined that certain countries should be redesignated as 
          beneficiary developing countries with respect to certain 
          eligible articles that previously had been imported in 
          quantities exceeding the competitive need limitations of 
          section 503(c)(2)(A).
          12. Pursuant to section 503(c)(2)(F) of the 1974 Act, I have 
          determined that the competitive need limitation provided in 
          section 503(c)(2)(A)(i)(II) should be waived with respect to 
          certain eligible articles from certain beneficiary developing 
          countries.
          13. Pursuant to section 503(d) of the 1974 Act, I have 
          determined that the competitive need limitations of section 
          503(c)(2)(A) should be waived with respect to certain eligible 
          articles from certain beneficiary developing countries. I have 
          received the advice of the International Trade Commission on 
          whether any industries in the United States are likely to be 
          adversely affected by such waiver, and I have determined, 
          based on that advice and on the considerations described in 
          sections 501 and 502(c), that such waivers are in the national 
          economic interest of the United States.
          14. 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

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          thereunder, including the removal, modification, continuance, 
          or imposition of any rate of duty or other import restriction.
          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 title V and section 604 of the 
          1974 Act, do proclaim that:
          (1) In order to provide that one or 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 or articles for purposes of the GSP, and, in 
          order to provide that one or more countries should no longer 
          be treated as a beneficiary developing country with respect to 
          one or more eligible articles for purposes of the GSP, general 
          note 4(d) to the HTS is modified as provided in section A of 
          Annex I to this proclamation.
          (2) In order to designate certain articles as eligible 
          articles for purposes of the GSP, the HTS is modified by 
          amending and sub-dividing the nomenclature of certain existing 
          HTS subheadings as provided in section B of Annex I to this 
          proclamation.
          (3)(a) In order to designate certain articles as eligible 
          articles for purposes of the GSP when imported from any 
          beneficiary developing country, the Rates of Duty 1-Special 
          subcolumn for such HTS subheadings is modified as provided in 
          section C(1) of Annex I to this proclamation.
          (b) In order to designate certain articles as eligible 
          articles for purposes of the GSP when imported from any 
          beneficiary developing country other than India, the Rates of 
          Duty 1-Special subcolumn for such HTS subheadings is modified 
          as provided for in section C(2) of Annex I to this 
          proclamation.
          (c) In order to designate certain articles as eligible 
          articles for purposes of the GSP when imported from any least- 
          developed beneficiary developing country, the Rates of Duty 1-
          Special subcolumn for such HTS subheadings is modified as 
          provided in section C(3) of Annex I to this proclamation.
          (d) In order to provide preferential tariff treatment under 
          the GSP to a beneficiary developing country that has been 
          excluded from the benefits of the GSP for certain eligible 
          articles, the Rates of Duty 1-Special subcolumn for such HTS 
          subheadings is modified as provided for in section C(4) of 
          Annex I to this proclamation.
          (e) In order to provide that one or more countries should not 
          be treated as a beneficiary developing country with respect to 
          certain eligible articles for purposes of the GSP, the Rates 
          of Duty 1-Special subcolumn for such HTS subheadings is 
          modified as provided for in section C(5) of Annex I to this 
          proclamation.
          (4) A waiver of the application of section 503(c)(2)(A)(i)(II) 
          of the 1974 Act shall apply to the eligible articles in the 
          HTS subheadings and to the beneficiary developing countries 
          listed in Annex II to this proclamation.
          (5) A waiver of the application of section 503(c)(2)(A) of the 
          1974 Act shall apply to the eligible articles in the HTS 
          subheading and to the beneficiary developing countries set 
          forth in Annex III to this proclamation.

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          (6) Any provisions of previous proclamations or Executive 
          orders that are inconsistent with the actions taken in this 
          proclamation are superseded to the extent of such 
          inconsistency.
          (7)(a) The modifications made by Annex I to this proclamation 
          shall be effective with respect to articles entered, or 
          withdrawn from warehouse for consumption, on or after July 1, 
          2003.
          (b) The actions taken in Annex II to this proclamation shall 
          be effective on July 1, 2003.
          (c) The actions taken in Annex III to this proclamation shall 
          be effective on the date of publication of this proclamation 
          in the Federal Register.
          IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth 
          day of June, in the year of our Lord two thousand three, and 
          of the Independence of the United States of America the two 
          hundred and twenty-seventh.

GEORGE W. BUSH

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