ExecutiveOrdersEO
Proc 8405ProclamationObama · D

Proclamation 8405

To Adjust the Rules of Origin Under the North American Free Trade Agreement and for Other Purposes

This proclamation modifies U.S. tariff rules of origin under NAFTA to align with updated international commodity classification standards, makes technical corrections to the Harmonized Tariff Schedule, and extends duty-free treatment for certain Israeli agricultural products through December 31, 2009. The changes implement agreements with Canada and Mexico and maintain reciprocal trade concessions with Israel.

Federal Register Open PDF 74 FR 45529

Impact dates

  1. Expiration of extended duty-free treatment for Israeli agricultural products under 2004 Agreement

  2. Earliest possible effective date for NAFTA HTS modifications (Annexes I and II)

  3. Alternative effective date for NAFTA HTS modifications: 30 days after Federal Register publication

Key directives

  • Modify general note 12 to HTS per Annexes I and II of USITC Publication 4095 to adjust NAFTA rules of origin
  • Make technical corrections to HTS per Annex III of Publication 4095
  • Modify HTS per Annex IV of Publication 4095 to extend Israeli agricultural duty-free treatment through December 31, 2009
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Timeline

Immediate

  • Proclamation signed August 31, 2009
  • Federal Register publication triggers 30-day countdown for NAFTA modifications

Near term (90d)

  • NAFTA rule modifications effective October 1, 2009 or 30 days after Federal Register publication, whichever is later
  • Israeli agricultural duty-free treatment extended through December 31, 2009

Long term

  • Ongoing application of revised NAFTA rules of origin for qualifying goods
  • Potential successor agreement negotiations for US-Israel agricultural trade beyond 2009

Risks & tensions

  • Dual-trigger effective date creates implementation uncertainty for customs administration
  • Israeli agricultural provisions are temporary stopgap requiring further negotiation
  • Technical corrections suggest prior proclamation contained errors potentially affecting trade compliance
Proclamation 8405: To Adjust the Rules of Origin Under the North American Free Trade Agreement and for Other Purposes · Executive Orders