ExecutiveOrdersEO
Proc 7125--ProclamationClinton · D Quiet signal

Proclamation 7125--

To Modify Certain Provisions of the Special Textile and Apparel Regime Implemented Under the North American Free Trade Agreement

This proclamation temporarily expands duty-free treatment under NAFTA for certain apparel assembled in Mexico using U.S.-cut interlining fabrics that are no longer manufactured in the United States. It modifies the Harmonized Tariff Schedule by adding new subchapter provisions with a time-limited effective period, and authorizes a possible one-year extension by the U.S. Trade Representative.

Federal Register Open PDF 63 FR 50739

Impact dates

  1. Deletion of U.S. note 28, subheadings, and superior text from HTS (one year after effective period closes)

  2. Effective period of new tariff provisions expires per Annex

  3. HTS subheadings 9906.98.02 and 9906.98.03 cease to apply (except in-transit goods)

  4. HTS modifications effective for goods entered or withdrawn from warehouse

Key directives

  • Modify Subchapter VI of chapter 99 of HTS per Annex
  • Supersede inconsistent prior proclamations and Executive orders to extent of inconsistency
  • Authorize USTR to extend effective period one additional year after advisory committee consultation and Federal Register notice

Who is ordered

Timeline

Immediate

  • Proclamation signed September 18, 1998

Near term (90d)

  • HTS modifications effective October 3, 1998 (15 days after signing)
  • New tariff provisions begin applying to eligible goods entered or withdrawn from warehouse

Long term

  • Effective period expires per Annex specifications (date not stated in text)
  • One-year post-expiration transition for goods in transit
  • Automatic deletion of subheadings and note one year after effective period closes
  • Possible one-year extension by USTR via Federal Register notice

Risks & tensions

  • Temporary nature creates planning uncertainty for industry; Annex specifying exact effective period not included in provided text
  • USTR extension authority contingent on advisory committee process, creating procedural gate
  • Supersession clause may create compliance ambiguity for prior tariff classifications
Proclamation 7125--: To Modify Certain Provisions of the Special Textile and Apparel Regime Implemented Under the North American Free Trade Agreement · Executive Orders