Proc 8770ProclamationObama · D Quiet signal

Proclamation 8770

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

This proclamation modifies U.S. tariff treatment in three ways: (1) removes certain import-sensitive articles from duty-free eligibility under the Generalized System of Preferences; (2) extends through December 31, 2012, duty-free access for specified Israeli agricultural products under the U.S.-Israel Free Trade Area agreement; and (3) makes technical corrections to the Harmonized Tariff Schedule for footwear products dating back to December 3, 2011.

Impact dates

  1. Israeli agricultural duty-free provisions expire unless extended

  2. GSP modifications effective for goods entered or withdrawn

  3. Israeli agricultural duty-free modifications effective for goods entered or withdrawn

  4. Technical corrections for footwear effective retroactively

Key directives

  • Modify HTS to remove certain articles from GSP eligibility (Annex I)
  • Modify HTS to extend Israeli agricultural duty-free access through December 31, 2012 (Annex II)
  • Modify HTS to make technical corrections for footwear products (Annex III)
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Timeline

Immediate

  • GSP modifications effective January 1, 2012 for goods entered or withdrawn from warehouse

Near term (90d)

  • Israeli agricultural duty-free access continues through December 31, 2012

Long term

  • GSP eligibility changes persist until further modification
  • Technical corrections to HTS for footwear remain in effect

Risks & tensions

  • Retroactive effective date (December 3, 2011) for footwear corrections may create compliance reconciliation challenges
  • Short 3-day implementation window between signing (December 29, 2011) and January 1, 2012 effective date
  • Israeli agricultural provisions require further negotiation for extension beyond 2012
  • GSP import-sensitive determinations may affect developing country exporters
Proclamation 8770: To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes · Executive Orders