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Proc 8840ProclamationObama · D Quiet signal

Proclamation 8840

To Modify Duty-Free Treatment Under the Generalized System of Preferences, and for Other Purposes

This proclamation modifies U.S. tariff preferences under the Generalized System of Preferences (GSP) by adding new eligible articles for least-developed countries, terminating duty-free treatment for certain countries that exceeded competitive need limits, revoking long-standing waivers, redesignating some countries, terminating GSP beneficiary status for Gibraltar and Turks and Caicos Islands effective January 1, 2014, designating Senegal as a least-developed beneficiary developing country, updating the HTS to reflect East Timor's name change to Timor-Leste, and making technical corrections to implement information technology product tariff commitments.

Federal Register Open PDF 77 FR 39885

Impact dates

  1. Turks and Caicos Islands GSP termination effective; HTS modification deleting Turks and Caicos Islands from general note 4(a) effective

  2. Senegal designation as least-developed beneficiary developing country effective; HTS modification adding Senegal to general note 4(b)(i) effective

Key directives

  • Modify HTS Rates of Duty 1-Special subcolumn for least-developed beneficiary developing country articles per Annex I section A
  • Modify HTS for redesignated articles per Annex I section B
  • Terminate duty-free treatment for countries exceeding competitive need limitations per Annex I section C
  • Disregard competitive need limitation for specified articles and countries in Annex II
  • Waive competitive need limitations for specified articles and countries in Annex III
  • Terminate Gibraltar GSP designation effective January 1, 2014
  • Terminate Turks and Caicos Islands GSP designation effective January 1, 2014
  • Designate Senegal as least-developed beneficiary developing country effective 60 days after Federal Register publication
  • Update HTS general notes to reflect East Timor name change to Timor-Leste
  • Make technical corrections to HTS for ITA products per Annex IV

Timeline

Immediate

  • Proclamation signed and issued
  • Certain HTS modifications effective on signing date or as specified in Annex I sections
  • Competitive need limitation disregards take effect per Annex II
  • Waivers apply per Annex III

Near term (90d)

  • Senegal designation as least-developed beneficiary developing country effective 60 days after Federal Register publication
  • Corresponding HTS modifications for Senegal effective 60 days after Federal Register publication

Long term

  • Gibraltar GSP termination effective January 1, 2014
  • Turks and Caicos Islands GSP termination effective January 1, 2014
  • HTS modifications for Gibraltar and Turks and Caicos Islands effective January 1, 2014
  • ITA technical corrections effective per Annex IV date

Risks & tensions

  • Congressional notification required for Senegal designation may create political friction if lawmakers object
  • Termination of GSP benefits for Gibraltar and Turks and Caicos Islands may strain diplomatic relations with UK (territorial administering power)
  • Revocation of waivers for countries exceeding competitive need limits may trigger retaliatory trade measures or diplomatic protests
  • Competitive need limitation adjustments create tension between promoting development and protecting U.S. domestic industries
  • Technical ITA corrections suggest ongoing implementation challenges with complex tariff classification system
Proclamation 8840: To Modify Duty-Free Treatment Under the Generalized System of Preferences, and for Other Purposes · Executive Orders