===========================================================================
To Modify Duty-Free Treatment Under the Generalized System of Preferences,
Take Certain Actions Under the African Growth and Opportunity Act, and for
Other Purposes
===========================================================================

For Immediate Release Office of the Press Secretary June 30, 2008

To Modify Duty-Free Treatment Under the Generalized System of Preferences,
Take Certain Actions Under the African Growth and Opportunity Act, and for
Other Purposes A Proclamation by the President of the United States of
America

ÿÿWhite House News


1. Pursuant to section 503(c)(2)(A) of the Trade Act of 1974, as amended
(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 as
provided in 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 Generalized System of Preferences (GSP) to eligible
articles.

2. Pursuant to sections 501 and 503(a)(1)(A) of the 1974 Act (19 U.S.C.
2461 and 2463(a)(1)(A)), the President may designate articles as eligible
for preferential tariff treatment under the GSP.

3. Section 503(c)(2)(F)(i) of the 1974 Act (19 U.S.C. 2463(c)(2)(F)(i))
provides that the President may disregard the competitive need limitation
provided in section 503(c)(2)(A) (i)(II) of the 1974 Act (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 the preceding
calendar year does not exceed an amount set forth in section
503(c)(2)(F)(ii) of the 1974 Act (19 U.S.C. 2463(c)(2)(F)(ii)).

4. Pursuant to section 503(d)(1) of the 1974 Act (19 U.S.C. 2463(d)(1)),
the President may waive the application of the competitive need limitations
in section 503(c)(2)(A) of the 1974 Act with respect to any eligible
article from any beneficiary developing country if certain conditions are
met.

5. Pursuant to section 503(d)(5) of the 1974 Act (19 U.S.C. 2463(d)(5)),
any waiver granted under section 503(d) shall remain in effect until the
President determines that such waiver is no longer warranted due to changed
circumstances.

6. Section 502(e) of the 1974 Act (19 U.S.C. 2462(e)) provides that the
President shall terminate the designation of a country as a beneficiary
developing country for purposes of the GSP if the President determines that
such country has become a "high income" country as defined by the official
statistics of the International Bank for Reconstruction and Development.
Termination is effective on January 1 of the second year following the year
in which such determination is made.

7. Pursuant to section 503(c)(2)(A) of the 1974 Act, I have determined that
in 2007 certain beneficiary developing countries have exported certain
eligible articles in quantities exceeding the applicable competitive need
limitations, and I therefore terminate the duty-free treatment for such
articles from such beneficiary developing countries.

8. 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) of
the 1974 Act should be disregarded with respect to certain eligible
articles from certain beneficiary developing countries.

9. Pursuant to section 503(d)(1) of the 1974 Act, I have received the
advice of the United States International Trade Commission on whether any
industries in the United States are likely to be adversely affected by such
waivers, and I have determined, based on that advice and on the
considerations described in sections 501 and 502(c) of the 1974 Act (19
U.S.C. 2462(c)), and after giving great weight to the considerations in
section 503(d)(2) of the 1974 Act (19 U.S.C. 2463(d)(2)), that such waivers
are in the national economic interest of the United States. Accordingly, I
have determined that the competitive need limitations of section
503(c)(2)(A) of the 1974 Act should be waived with respect to certain
eligible articles from certain beneficiary developing countries.

10. Pursuant to section 503(d)(5) of the 1974 Act, I have determined that
certain previously granted waivers of the competitive need limitations of
section 503(c)(2)(A) of the 1974 Act are no longer warranted due to changed
circumstances.

11. Pursuant to section 502(e) of the 1974 Act, I have determined that
Trinidad and Tobago has become a "high income" country, and I am
terminating the designation of that country as a beneficiary developing
country for purposes of the GSP, effective January 1, 2010.

12. Section 502(a)(1) of the 1974 Act (19 U.S.C. 2462(a)(1)) authorizes the
President to designate countries as beneficiary developing countries for
purposes of the GSP. In Proclamation 7912 of June 29, 2005, I designated
Serbia and Montenegro as a beneficiary developing country for purposes of
the GSP. On June 3, 2006, upon Montenegro's declaration of independence
from Serbia and Montenegro, the country separated into two independent
republics: the Republic of Serbia and the Republic of Montenegro. Pursuant
to section 502 of the 1974 Act, and taking into account the factors set
forth in section 502(c) of that Act, I have determined that, in light of
the separation of Serbia and Montenegro into two countries, the Republic of
Serbia and the Republic of Montenegro should each be designated as a
beneficiary developing country for purposes of the GSP.

13. Section 506A(a)(1) of the 1974 Act (19 U.S.C. 2466a(a)(1)), as added by
section 111(a) of the African Growth and Opportunity Act (title I of Public
Law 106-200, 114 Stat. 254)(AGOA), authorizes the President to designate a
country listed in section 107 of the AGOA (19 U.S.C. 3706) as a beneficiary
sub-Saharan African country if the President determines that the country
meets the eligibility requirements set forth in section 104 of the AGOA (19
U.S.C. 3703) and the eligibility criteria set forth in section 502 of the
1974 Act (19 U.S.C. 2462).

14. Section 104 of the AGOA authorizes the President to designate a country
listed in section 107 of the AGOA as an eligible sub-Saharan African
country if the President determines that the country meets certain
eligibility requirements.

15. Section 112(c) of the AGOA (19 U.S.C. 3721(c)), as added by section
6002(a) of the Africa Investment Incentive Act of 2006 (division D of title
VI of Public Law 109-432, 120 Stat. 2922), provides special rules for
certain apparel articles imported from lesser developed beneficiary
sub-Saharan African countries.

16. Pursuant to section 104 of the AGOA and section 506A(a)(1) of the 1974
Act, I have determined that the Union of the Comoros (Comoros) meets the
eligibility requirements set forth or referenced therein, and I have
decided to designate Comoros as an eligible sub-Saharan African country and
beneficiary sub-Saharan African country.

17. I have further determined that Comoros satisfies the criterion for
treatment as a lesser developed beneficiary sub-Saharan African country
under section 112(c)(5)(D)(i) of the AGOA.

18. On August 5, 2004, the United States entered into the Dominican
Republic-Central America-United States Free Trade Agreement (the
"Agreement") with Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, and Nicaragua. The Congress approved the Agreement in
section 101(a) of the Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act (the "CAFTA-DR Act") (19 U.S.C. 4011).

19. Pursuant to section 403(a) of the CAFTA-DR Act (19 U.S.C. 4111(a)), the
President is to report biennially to the Congress on the matters described
in that section and, as the President deems appropriate, in section
403(b)(2) of the CAFTA-DR Act (19 U.S.C. 4111(b)(2)).

20. Pursuant to section 403(a)(4) of the CAFTA-DR Act (19 U.S.C.
4111(a)(4)), the President is to establish a mechanism to solicit public
comments on the matters described in section 403(a)(3)(D) of the CAFTA-DR
Act (19 U.S.C. 4111(a)(3)(D)).

21. In Presidential Proclamation 8213 of December 20, 2007, I modified the
Harmonized Tariff Schedule of the United States (HTS) pursuant to section
1634 of the Pension Protection Act of 2006 (Public Law 109-280, 120 Stat.
780) to carry out the understandings described in that section. Technical
rectifications to the HTS are required to provide the intended tariff
treatment.

22. In Presidential Proclamation 8240 of April 17, 2008, pursuant to
section 503(c)(2)(A) of the 1974 Act, I modified the HTS to withdraw
duty-free treatment for certain articles from Jamaica. A technical
rectification to the HTS is required to provide the intended tariff
treatment.

23. Section 604 of the 1974 Act (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, 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, including but not limited to title V and
section 604 of the 1974 Act, section 104 of the AGOA, section 301 of title
3, United States Code (3 U.S.C. 301), and section 403 of the CAFTA-DR Act,
do proclaim that:

(1) In order to provide that one or more countries should no longer be
treated as beneficiary developing countries with respect to one or more
eligible articles for purposes of the GSP, general note 4(d) to the HTS is
modified as set forth in section A of Annex I to this proclamation.

(2) In order to provide that one or more countries should not be treated as
beneficiary developing countries 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 set forth in section B of Annex I to this
proclamation.

(3) In order to designate certain articles as eligible articles for
purposes of the GSP, the Rates of Duty 1-Special subcolumn for such HTS
subheadings is modified as set forth in section C of Annex I to this
proclamation.

(4) The competitive need limitation provided in section 503(c)(2)(A)(i)(II)
of the 1974 Act is disregarded with respect 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 subheadings and to the
beneficiary developing countries set forth in Annex III to this
proclamation.

(6) The waivers of the application of section 503(c)(2)(A) of the 1974 Act
to the articles in the HTS subheadings and to the beneficiary developing
countries listed in Annex IV to this proclamation are revoked.

(7) The designation of Trinidad and Tobago as a beneficiary developing
country for purposes of the GSP is terminated, effective on January 1,
2010.

(8) In order to reflect this termination in the HTS, general note 4(a) to
the HTS is modified by deleting "Trinidad and Tobago" from the list of
independent countries, effective with respect to articles entered, or
withdrawn from warehouse for consumption, on or after January 1, 2010.

(9) The Republic of Serbia is designated as a beneficiary developing
country for purposes of the GSP.

(10) In order to reflect this designation in the HTS, general note 4(a) is
modified by deleting "Serbia and Montenegro" and adding in alphabetical
order "Serbia" to the list of independent countries, effective with respect
to articles entered, or withdrawn from warehouse for consumption, on or
after the thirtieth day after the date of this proclamation.

(11) The Republic of Montenegro is designated as a beneficiary developing
country for purposes of the GSP.

(12) In order to reflect this designation in the HTS, general note 4(a) is
modified by adding in alphabetical order "Montenegro" to the list of
independent countries, effective with respect to articles entered, or
withdrawn from warehouse for consumption, on or after the thirtieth day
after the date of this proclamation.

(13) Comoros is designated as an eligible sub-Saharan African country and
as a beneficiary sub-Saharan African country for purposes of the AGOA.

(14) In order to reflect this designation in the HTS, general note 16(a) to
the HTS is modified by inserting in alphabetical sequence in the list of
beneficiary sub-Saharan African countries "Union of the Comoros," effective
with respect to articles entered, or withdrawn from warehouse for
consumption, on or after July 1, 2008.

(15) For purposes of section 112(c) of the AGOA, Comoros is a lesser
developed beneficiary sub-Saharan African country.

(16) The modifications to the HTS set forth in Annexes I and IV to this
proclamation shall be effective with respect to articles entered, or
withdrawn from warehouse for consumption, on or after the dates set forth
in the respective annex.

(17) The Secretary of Labor, in consultation with the United States Trade
Representative, shall carry out the reporting function under sections
403(a) and 403(b)(2) of the CAFTA-DR Act.

(18) The Secretary of Labor, in consultation with the United States Trade
Representative, shall solicit public comments under section 403(a)(4) of
the CAFTA-DR Act.

(19) In order to provide the intended tariff treatment to certain articles
of Jamaica, the HTS is modified as set forth in Annex V to this
proclamation.

(20) The modifications to the HTS set forth in Annex V to this proclamation
shall be effective with respect to articles entered, or withdrawn from
warehouse for consumption, on or after the date set forth in Annex V.

(21) In order to provide the intended tariff treatment to goods subject to
the understandings carried out in Proclamation 8213, the HTS is modified as
set forth in Annex VI to this proclamation.

(22) The modifications to the HTS set forth in Annex VI to this
proclamation shall enter into effect on the date that the modifications to
the HTS set out in section C or D of the Annex to Proclamation 8213, as
appropriate, enter into force, and shall be effective with respect to goods
entered, or withdrawn from warehouse for consumption, on or after that
date.

(23) Any provisions of previous proclamations and Executive Orders that are
inconsistent with the actions taken in this proclamation are superseded to
the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of June
in the year of our Lord two thousand eight, and of the Independence of the
United States of America the two hundred and thirty-second.

GEORGE W. BUSH

# # #
===========================================================================
Return to this article at:
http://www.whitehouse.gov/news/releases/2008/06/20080630-12.html