ExecutiveOrdersEO
Proc 7870ProclamationG.W. Bush · R Quiet signal

Proclamation 7870

To Modify Rules of Origin Under the North American Free Trade Agreement

This proclamation modifies the rules of origin under NAFTA by amending general note 12 to the Harmonized Tariff Schedule of the United States. The changes take effect for Canadian goods on January 1, 2005, while the effective date for Mexican goods will be determined and announced by the U.S. Trade Representative in the Federal Register.

Federal Register Open PDF 70 FR 7611

Impact dates

  1. USTR announcement in Federal Register of effective date for goods of Mexico

  2. Effective date for modifications applicable to goods of Canada

Key directives

  • Modify general note 12 to the HTS as provided in the Annex
  • Supersede inconsistent provisions of previous proclamations and Executive Orders
  • Apply modifications to Canadian goods entered or withdrawn from warehouse on or after January 1, 2005
  • Apply modifications to Mexican goods on or after date announced by USTR in Federal Register

Who is ordered

Timeline

Immediate

  • Proclamation issued February 9, 2005
  • Supersession of inconsistent prior proclamations and Executive Orders

Near term (90d)

  • USTR to announce effective date for Mexican goods in Federal Register

Long term

  • Ongoing application of modified rules of origin for NAFTA trade

Risks & tensions

  • Split effective dates between Canada and Mexico create implementation complexity
  • USTR discretionary timing for Mexican goods introduces uncertainty for cross-border supply chains
  • Supersession clause may create confusion about which prior rules remain valid
Proclamation 7870: To Modify Rules of Origin Under the North American Free Trade Agreement · Executive Orders