ExecutiveOrdersEO
Proc 7689ProclamationG.W. Bush · R Quiet signal

Proclamation 7689

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

This proclamation modifies U.S. tariff preferences under the Generalized System of Preferences (GSP) by redesignating certain beneficiary developing countries, adding new eligible articles, removing preferential treatment for countries that exceeded competitive need limits in 2002, and waiving competitive need limitations for specific articles and countries. The changes update the Harmonized Tariff Schedule to reflect these determinations, with most taking effect July 1, 2003.

Federal Register Open PDF 68 FR 39795

Impact dates

  1. Annex I modifications effective for articles entered or withdrawn from warehouse

  2. Annex II waivers effective

  3. Annex III waivers effective upon Federal Register publication

Key directives

  • Redesignate certain countries as beneficiary developing countries for specific articles via HTS general note 4(d) modification
  • Amend and subdivide HTS nomenclature for new eligible articles
  • Modify Rates of Duty 1-Special subcolumn for articles from any beneficiary developing country
  • Modify Rates of Duty 1-Special subcolumn for articles from any beneficiary developing country other than India
  • Modify Rates of Duty 1-Special subcolumn for articles from least-developed beneficiary developing countries
  • Restore preferential treatment to excluded countries for certain articles
  • Remove preferential treatment for countries exceeding competitive need limitations
  • Waive section 503(c)(2)(A)(i)(II) competitive need limitation for articles/countries in Annex II
  • Waive section 503(c)(2)(A) competitive need limitations for articles/countries in Annex III
  • Supersede inconsistent provisions of previous proclamations or Executive orders

Timeline

Immediate

  • Modifications to HTS general note 4(d) and subheadings effective July 1, 2003 for articles entered or withdrawn from warehouse
  • Annex II waivers effective July 1, 2003

Near term (90d)

  • Annex III waivers effective upon Federal Register publication (July 1-2, 2003)

Long term

  • Ongoing trade flows affected by country redesignations and article eligibility changes
  • Potential future competitive need limitation reviews based on 2003 import data

Risks & tensions

  • Specific countries and HTS subheadings are not enumerated in the provided text (contained in annexes not fully reproduced)
  • India specifically singled out for differential treatment in section C(2)
  • Potential domestic industry opposition to waivers despite ITC consultation
  • Supersession clause may create uncertainty about prior proclamation provisions
Proclamation 7689: To Modify Duty-Free Treatment Under the Generalized System of Preferences · Executive Orders