Proc 7515ProclamationG.W. Bush · R Quiet signal

Proclamation 7515

To Modify the Harmonized Tariff Schedule of the United States, To Provide Rules of Origin Under the North American Free Trade Agreement for Affected Goods, and for Other Purposes

This proclamation modifies the Harmonized Tariff Schedule of the United States to conform to amendments to the international Convention on the Harmonized Commodity Description and Coding System. It also updates NAFTA rules of origin and preserves previously proclaimed staged duty reductions for goods from Mexico, CBTPA beneficiary countries, and Jordan under various trade agreements, including an accelerated duty elimination schedule for specific Mexican goods.

Impact dates

  1. Respective effective dates for Annex III and IV modifications as specified in each section

  2. Latest effective date for Annexes I and II modifications (15 days after Federal Register publication)

  3. Earliest effective date for Annexes I and II modifications

Key directives

  • Modify HTS as set forth in Annex I to conform to Convention amendments
  • Modify general note 12 to HTS (NAFTA rules of origin) as provided in Annex II
  • Continue staged duty reductions in Rates of Duty 1-General subcolumn for URAA goods per Annex III section A
  • Continue staged duty reductions in Rates of Duty 1-Special subcolumn for NAFTA originating Mexican goods per Annex III section B
  • Continue staged duty reductions for CBTPA originating goods per Annex III section C
  • Continue staged duty reductions for Jordan originating goods per Annex III section D
  • Modify special tariff treatment for accelerated duty elimination for specific Mexican goods and identical CBTPA treatment per Annex IV
  • Supersede inconsistent provisions of previous proclamations and Executive Orders

Timeline

Immediate

  • Proclamation signed December 18, 2001
  • Supersession of inconsistent prior proclamations and Executive Orders

Near term (90d)

  • HTS modifications by Annexes I and II effective the later of January 1, 2002, or 15 days after Federal Register publication (approximately January 2, 2002, given December 19, 2001 filing date)
  • Staged duty reductions by Annexes III and IV effective on respective specified dates

Long term

  • Ongoing application of modified tariff categories and rules of origin for NAFTA trade
  • Continued preferential tariff treatment under CBTPA and Jordan FTA
  • Accelerated duty elimination schedule for specific Mexican goods

Risks & tensions

  • Technical complexity of tariff schedule modifications may create implementation challenges for customs officials and importers
  • Accelerated duty elimination for Mexico may generate domestic industry opposition
  • Supersession clause (section 8) is broad and could create uncertainty about which prior provisions remain valid
  • Annexes III and IV contain unspecified dates not provided in main text, creating compliance uncertainty
Proclamation 7515: To Modify the Harmonized Tariff Schedule of the United States, To Provide Rules of Origin Under the North American Free Trade Agreement for Affected Goods, and for Other Purposes · Executive Orders