ExecutiveOrdersEO
Proc 7637ProclamationG.W. Bush · R Quiet signal

Proclamation 7637

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

This proclamation modifies U.S. trade preferences under the Generalized System of Preferences (GSP) by adding Afghanistan as both a beneficiary developing country and least-developed beneficiary developing country, withdrawing duty-free treatment for a specific article from Chile, terminating a previous waiver for Chile, and extending duty-free treatment to a certain article from sub-Saharan African countries. The changes are implemented through modifications to the Harmonized Tariff Schedule with staggered effective dates tied to Federal Register publication.

Federal Register Open PDF 68 FR 1951

Impact dates

  1. Termination of Chile waiver for HTS subheading 0811.20.20

  2. Section A modifications effective for articles entered or withdrawn from warehouse

Key directives

  • Designate Afghanistan as beneficiary developing country under GSP
  • Designate Afghanistan as least-developed beneficiary developing country under GSP
  • Withdraw duty-free treatment for certain article from Chile
  • Terminate waiver for Chile under HTS subheading 0811.20.20
  • Provide duty-free treatment for certain article from sub-Saharan African countries
  • Modify general note 4 to HTS (Section A)
  • Amend and subdivide HTS nomenclature (Section B)
  • Modify Rates of Duty 1-Special subcolumn for Chile (Section C)

Timeline

Immediate

  • Proclamation signed
  • Termination of Chile waiver upon Federal Register publication

Near term (90d)

  • Section B modifications effective 15 days after Federal Register publication
  • Section C modifications effective 30 days after Federal Register publication

Long term

  • Ongoing GSP benefits for Afghanistan
  • Continued duty-free treatment for sub-Saharan African article

Risks & tensions

  • Specific HTS subheadings and articles are redacted ('certain article'), limiting full assessment of trade impact
  • Section A effective date references dates 'set forth in that section' but Annex not provided in text
  • Chile withdrawal may affect bilateral trade relations
  • Afghanistan designation in 2003 occurred during active U.S. military engagement there
Proclamation 7637: To Modify Duty-Free Treatment Under the Generalized System of Preferences · Executive Orders