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Proc 8783ProclamationObama · D Quiet signal

Proclamation 8783

To Implement the United States-Korea Free Trade Agreement

This proclamation implements the U.S.-Korea Free Trade Agreement (KORUS) by modifying the Harmonized Tariff Schedule to establish preferential tariff treatment for Korean goods, with staged duty reductions. It delegates presidential authorities to the Secretary of Commerce, the Committee for the Implementation of Textile Agreements (CITA), and the U.S. Trade Representative for administering textile rules of origin, trade remedies, and congressional consultation requirements.

Federal Register Open PDF 77 FR 14265

Impact dates

  1. HTS modifications effective for goods entered or withdrawn from warehouse for consumption

  2. Initial stage duty elimination and future staged reductions per Annex II of Publication 4308

Key directives

  • Modify HTS per Annex I of USITC Publication 4308 for preferential tariff treatment and rules of origin
  • Modify HTS per Annex II of Publication 4308 for staged duty elimination with future reductions
  • Secretary of Commerce to establish/designate office within Commerce for administrative assistance to dispute panels
  • CITA to exercise authority for commercial availability determinations of fabrics/yarns/fibers under section 202(o)
  • CITA to exercise enforcement authority to exclude textile/apparel goods and deny preferential treatment under section 207
  • CITA to review requests and provide relief for serious damage to domestic textile/apparel industries under subtitle C
  • USTR to fulfill congressional consultation obligations under section 104
  • USTR to modify HTS notes via Federal Register notice to reflect CITA changes to Annex 4-B-1 list
  • Supersede inconsistent prior proclamations and Executive Orders

Who is ordered

Timeline

Immediate

  • HTS modifications effective for goods entered/withdrawn on or after relevant dates in Publication 4308 Annexes
  • Delegation of authorities to Commerce Secretary, CITA, and USTR

Near term (90d)

  • Staged duty reductions begin per Annex II of Publication 4308 schedules

Long term

  • Ongoing preferential tariff treatment for qualifying Korean goods
  • Continued CITA administration of textile commercial availability determinations and trade remedies
  • Potential future HTS modifications by USTR via Federal Register notice

Risks & tensions

  • Textile/apparel safeguard mechanisms (subtitle C) create ongoing tension between market access and domestic industry protection
  • Commercial availability determinations for fabrics/yarns/fibers involve subjective 'timely manner' standard with potential for dispute
  • Delegation of significant trade remedy authority to CITA (non-Cabinet interagency committee) may raise accountability concerns
  • Supersession clause (paragraph 10) is broad but vague—scope of 'inconsistency' not defined
Proclamation 8783: To Implement the United States-Korea Free Trade Agreement · Executive Orders