ExecutiveOrdersEO
Proc 7107--ProclamationClinton · D Quiet signal

Proclamation 7107--

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

This proclamation modifies U.S. tariff preferences under the Generalized System of Preferences (GSP) by designating new eligible articles and beneficiary countries, removing preferences for others that exceeded competitive need limits, waiving competitive need limitations for certain articles, and treating three African regional economic communities (WAEMU, SADC, EAC) as single countries for GSP purposes. The changes are implemented through amendments to the Harmonized Tariff Schedule of the United States (HTS), with varying effective dates including July 1, 1998, the signature date, and future dates to be announced by USTR.

Federal Register Open PDF 63 FR 36531

Impact dates

  1. Annex IV modifications effective date to be announced by USTR in Federal Register

  2. SADC member designation and effective date to be announced by USTR in Federal Register

  3. Annex I HTS modifications effective for articles entered or withdrawn from warehouse

  4. Annex II waivers effective

  5. Annex V WAEMU single-country treatment effective

Key directives

  • Designate certain articles as eligible for GSP from additional beneficiary developing countries (Annex I, section B)
  • Limit duty-free treatment for certain articles from certain beneficiary developing countries (section 8)
  • Remove preferential treatment for countries exceeding competitive need limitations (section 9)
  • Redesignate countries as beneficiary developing countries for certain articles (section 10)
  • Waive competitive need limitations for certain eligible articles (sections 11-12, Annex II)
  • Treat WAEMU members as one country for GSP purposes (section 13, Annex V)
  • Treat SADC members as one country for GSP purposes with USTR determining specific members and effective dates (section 14)
  • Treat EAC members as one country for GSP purposes with USTR determining specific members and effective dates (section 15)
  • Modify HTS general notes and subheadings as specified in Annexes I-V
  • Supersede inconsistent prior proclamations and Executive orders (section 10 of proclamation)

Who is ordered

Timeline

Immediate

  • Annex II competitive need limitation waivers effective on signature date (June 30, 1998)
  • Annex V WAEMU single-country treatment effective on signature date (June 30, 1998)

Near term (90d)

  • Annex I HTS modifications effective July 1, 1998 for articles entered or withdrawn from warehouse

Long term

  • USTR to announce effective dates for Annex IV modifications via Federal Register
  • USTR to determine SADC member inclusion and effective dates via Federal Register notice
  • USTR to determine EAC member inclusion and effective dates via Federal Register notice
  • Annex III staged duty reductions effective on dates specified in that Annex

Risks & tensions

  • USTR discretion over effective dates for Annex IV and regional association members creates implementation uncertainty
  • Potential adverse effects on U.S. industries from competitive need waivers, though ITC advice was obtained
  • Supersession clause (section 10) may create confusion with prior proclamations but scope is limited to inconsistency
Proclamation 7107--: To Modify Duty-Free Treatment Under the Generalized System of Preferences · Executive Orders