ExecutiveOrdersEO
Proc 7996ProclamationG.W. Bush · R Quiet signal

Proclamation 7996

To Implement the Dominican Republic-Central America-United States Free Trade Agreement With Respect to Honduras and Nicaragua

President George W. Bush issued a proclamation implementing the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) for Honduras and Nicaragua, effective April 1, 2006. The proclamation modifies the Harmonized Tariff Schedule to provide preferential tariff treatment, removes both countries from trade preference programs (GSP, CBERA, CBTPA), and establishes staged duty reductions. It supersedes inconsistent prior proclamations and executive orders.

Federal Register Open PDF 71 FR 16971

Impact dates

  1. Future staged duty reductions effective on dates specified in relevant sections of Publication 3845

  2. Proclamation effective for goods entered or withdrawn from warehouse for consumption

Key directives

  • Modify HTS per Annex I of Publication 3845 for preferential tariff treatment
  • Modify HTS per Annex II of Publication 3845 for staged duty reductions
  • Remove Honduras and Nicaragua from GSP enumeration
  • Remove Honduras and Nicaragua from CBERA enumeration
  • Remove Honduras and Nicaragua from CBTPA enumeration
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Timeline

Immediate

  • HTS modifications take effect April 1, 2006 for most goods
  • Honduras and Nicaragua removed from GSP beneficiary list
  • Honduras and Nicaragua removed from CBERA and CBTPA beneficiary lists

Near term (90d)

  • Initial stage of duty elimination begins per Annex II of Publication 3845
  • Future staged duty reductions scheduled per Publication 3845 sections

Long term

  • Continued phased tariff reductions through CAFTA-DR schedule
  • Permanent trade preference structure replaces temporary GSP/CBERA/CBTPA benefits

Risks & tensions

  • Specific effective dates for Annex II staged reductions depend on Publication 3845 sections not fully reproduced in proclamation text
  • Removal from GSP/CBERA/CBTPA may disadvantage some producers not qualifying under CAFTA-DR rules of origin
  • Supersession clause in paragraph (4) creates legal uncertainty for parties relying on prior proclamations until inconsistency is determined
Proclamation 7996: To Implement the Dominican Republic-Central America-United States Free Trade Agreement With Respect to Honduras and Nicaragua · Executive Orders