Proclamation 6857

By the President of the United States of America A Proclamation

1. Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988 ("the 1988 Act") (19 U.S.C. 3005(a)) directs the United States International Trade Commission ("the Commission") to keep the Harmonized Tariff Schedule of the United States ("HTS") under continuous review and periodically to recommend to the President such modifications in the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.

2. Section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) authorizes the President to proclaim modifications to the HTS, based on the recommendations of the Commission under section 1205 of the 1988 Act (19 U.S.C. 3005), that he determines are in conformity with the obligations of the United States under the International Convention on the Harmonized Commodity Description and Coding System ("the Convention") and do not run counter to the national economic interest of the United States.

3. (a) Presidential Proclamation No. 6641 of December 15, 1993, implemented the North American Free Trade Agreement ("the NAFTA") with respect to the United States and, pursuant to sections 201 and 202 of the North American Free Trade Agreement Implementation Act ("the NAFTA Implementation Act") (19 U.S.C. 3331 and 3332), incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out the NAFTA.

(b) Because the substance of the changes to the Convention will be reflected in slightly differing form in the national tariff schedules of the three parties to the NAFTA, the rules of origin and interpretative rules set forth in Appendix 6.A of Annex 300-B, Annex 401, and other annexes to the NAFTA must be modified to ensure that the agreed tariff and certain other treatment accorded under the NAFTA to originating goods will continue to be provided under the tariff categories affected by the modifications to the Convention. The NAFTA parties agreed, on November 6, 1995, to the text of necessary revisions to the NAFTA.

4. Section 202 of the NAFTA Implementation Act (19 U.S.C. 3332) provides certain rules for determining whether goods imported into the United States originate in the territory of a NAFTA party and thus are eligible for the tariff and other treatment contemplated under the NAFTA. Section 202(q) of the NAFTA Implementation Act (19 U.S.C. 3332(q)) authorizes the President to proclaim the rules of origin set out in the NAFTA and any additional subordinate tariff categories necessary to carry out the NAFTA Implementation Act consistent with the NAFTA.

5. Pursuant to section 1206(a) of the 1988 Act (19 U.S.C. 3006(a)) and section 202 of the NAFTA Implementation Act (19 U.S.C. 3332), I have determined (1) that the modifications to the HTS being proclaimed pursuant to section 1206(a) of the 1988 Act are in conformity with the obligations of the United States under the Convention and do not run counter to the national economic interest of the United States; and (2) that the modifications to the HTS being proclaimed pursuant to section 202 of the NAFTA Implementation Act must be incorporated in the HTS in order to ensure that the tariff and certain other treatment accorded under the NAFTA will continue to be given to NAFTA originating goods. The report and lay-over requirements of section 1206(b) of the 1988 Act (19 U.S.C. 3006(b)) and section 202(q)(2) of the NAFTA Implementation Act (19 U.S.C. 3332(q)) have been complied with.

6. (a) Presidential Proclamation No. 6763 of December 23, 1994, implemented with respect to the United States the trade agreements resulting from the Uruguay Round of multilateral trade negotiations, entered into pursuant to sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 2902(a) and (e)), including Schedule XX-United States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 ("Schedule XX"). Certain provisions set forth in annexes to that proclamation contain technical errors in the instructions for implementing particular changes.

(b) Sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 2902(a) and (e)) authorize the President to proclaim such modification or continuance of any existing duty, such continuance of existing duty-free or excise treatment, or such additional duties, as he determines to be required or appropriate to carry out any trade agreements entered into under those sections. Section 111(a) of the Uruguay Round Agreements Act ("the URAA") (19 U.S.C. 3521(a)) authorizes the President to proclaim such other modification of any duty, such other staged rate reduction, or such additional duties as the President determines to be necessary or appropriate to carry out Schedule XX. To clarify the intent of the changes previously proclaimed, I have decided that such technical errors should be corrected.

7. Section 604 of the Trade Act of 1974, as amended ("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, 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, acting under the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to section 604 of the 1974 Act (19 U.S.C. 2483), sections 1102, 1205, and 1206 of the 1988 Act (19 U.S.C. 2902, 3005, and 3006), sections 201 and 202 of the NAFTA Implementation Act (19 U.S.C. 3331 and 3332), and section 111(a) of the URAA (19 U.S.C. 3521(a)), do hereby proclaim:

(1) In order to modify the rules of origin under the NAFTA to reflect the amendments agreed to by the NAFTA parties, and to make certain conforming changes, the general notes to the HTS are modified as set forth in Annex I to this proclamation.

(2) In order to make changes in the HTS to conform it to the Convention or any amendment thereto recommended for adoption, to promote the uniform application of the Convention, to establish additional subordinate tariff categories to carry out modifications to the rules of origin under the NAFTA, and to make technical and conforming changes to existing provisions, the HTS is modified as set forth in Annex II to this proclamation.

(3) In order to provide for the continuation of previously proclaimed staged duty reductions in the Rates of Duty 1-General subcolumn under section 111(a) of the URAA (19 U.S.C. 3521(a)), as provided in Presidential Proclamation No. 6763 of December 23, 1994, for goods in the provisions modified in Annex II to this proclamation that are entered or withdrawn from warehouse for consumption on or after the dates specified in section A of Annex III to this proclamation, the rate of duty in the HTS set forth in the Rates of Duty 1-General subcolumn for each of the HTS subheadings enumerated in section A of Annex III shall be deleted and the rate of duty provided in such section A inserted in lieu thereof.

(4) In order to provide for the continuation of previously proclaimed tariff modifications and staged duty reductions under section 201 of the NAFTA Implementation Act (19 U.S.C. 3331), as implemented with respect to the United States in Presidential Proclamation No. 6641 of December 15, 1993, for goods of Canada and of Mexico under the terms of general note 12 to the HTS classifiable in the tariff provisions set forth in or affected by Annex II to this proclamation that are entered or withdrawn from warehouse for consumption on or after the dates specified in sections B and C, respectively, of Annex III to this proclamation, the appropriate rate of duty in the HTS set forth in the rates of Duty 1-Special subcolumn followed by the symbol "CA" or "MX", respectively, for each of the HTS subheadings enumerated in sections B and C of Annex III shall be deleted and the rate of duty provided in such sections inserted in lieu thereof.

(5)(a) In order to make technical corrections to certain provisions of the annexes to Presidential Proclamation No. 6763 of December 23, 1994, such provisions are modified as set forth in Annex IV to this proclamation.

(b) All provisions of previous proclamations and Executive orders inconsistent with the actions taken in this proclamation are hereby superseded to the extent of such inconsistency.

(6)(a) The modifications to the HTS made by Annexes I and II to this proclamation shall be effective with respect to goods entered or withdrawn from warehouse for consumption on and after the later of (i) January 1, 1996, or (ii) the date that is 15 days after the date of publication of this proclamation in the Federal Register.

(b) The modifications to the HTS made by Annexes III and IV to this proclamation shall be effective with respect to goods entered or withdrawn from warehouse for consumption on and after the dates specified in such annexes to this proclamation for each action specified.

In Witness Whereof, I have hereunto set my hand this eleventh day of December, in the year of our Lord nineteen hundred and ninety-five, and of the Independence of the United States of America the two hundred and twentieth.

William J. Clinton

[Filed with the Office of the Federal Register, 8:45 a.m., December 14, 1995]