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

This proclamation modifies duty-free treatment under the Generalized System of Preferences (GSP) by withdrawing, limiting, and redesignating preferential tariff treatment for specific articles from certain beneficiary developing countries. It also waives competitive need limitations for particular articles and countries, with changes to the Harmonized Tariff Schedule taking effect on July 1, 2004 or the date of proclamation.

Federal Register Open PDF 69 FR 40299

Impact dates

Jul 1, 2004
Annex I HTS modifications effective for articles entered or withdrawn from warehouse for consumption
Jun 30, 2004
Annex III waiver effective

Key directives

Modify general note 4(d) to HTS to redesignate or remove beneficiary developing country status for specific articles
Amend and subdivide HTS nomenclature to withdraw designation of certain articles as GSP-eligible
Modify Rates of Duty 1-Special subcolumn for HTS subheadings to add or remove preferential tariff treatment
Waive competitive need limitation under section 503(c)(2)(A)(i)(II) for articles/countries in Annex II
Waive competitive need limitations under section 503(c)(2)(A) for article/country in Annex III
Supersede inconsistent provisions of previous proclamations or Executive Orders

Timeline

Immediate

Proclamation signed June 30, 2004
Annex III waiver effective immediately upon signing

Near term (90d)

Annex I HTS modifications effective July 1, 2004 for articles entered or withdrawn from warehouse
Annex II waiver effective July 1, 2004

Long term

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Risks & tensions

Specific countries and articles affected are in unpublished annexes, limiting full impact assessment from text alone
Supersession clause (section 6) may create compliance uncertainty for importers relying on prior proclamations
Competitive need waivers could adversely affect certain U.S. industries despite ITC consultation