To Implement the Nepal Preference Program and for Other Purposes

Proclamation 9555 of December 15, 2016

To Implement the Nepal Preference Program and for
Other Purposes

By the President of the United States of America

A Proclamation

1. Section 915(b) of the Trade Facilitation and Trade
Enforcement Act of 2015 (the ``TFTEA'') (19 U.S.C.
4454) confers authority upon the President to provide
preferential treatment for eligible articles imported
directly from Nepal into the customs territory of the
United States if the President determines that Nepal
meets the eligibility requirements specified in section
915(b)(1)(A) of the TFTEA, taking into account the
factors specified in section 915(b)(1)(B) of the TFTEA.

2. Pursuant to section 915(b) of the TFTEA, I have
determined that Nepal meets the eligibility
requirements of section 915(b)(1)(A), taking into
account the factors specified in section 915(b)(1)(B).

3. Section 915(c) of the TFTEA describes the
requirements for articles from Nepal to be considered
eligible for duty-free treatment. Pursuant to section
915(c)(2)(A)(iv) of the TFTEA, the President may
designate certain articles as eligible for duty-free
treatment when imported from Nepal if, after receiving
the advice of the United States International Trade
Commission (Commission) in accordance with section
503(e) of the Trade Act of 1974 (the ``Trade Act'') (19
U.S.C. 2463(e)), the President determines that such
articles are not import-sensitive in the context of
imports from Nepal.

4. Pursuant to sections 915(c)(2)(A)(iv) of the TFTEA,
and after receiving advice from the Commission in
accordance with section 503(e) of the Trade Act, I have
determined to designate the articles included in Annex
I of this proclamation as eligible for duty-free
treatment when imported from Nepal.

5. Section 604 of the Trade Act (19 U.S.C. 2483), as
amended, authorizes the President to embody in the
Harmonized Tariff Schedules of the United States (the
``HTS'') (19 U.S.C. 1202) the substance of the relevant
provisions of the Trade Act and of other Acts affecting
import treatment, and actions thereunder, including
removal, modification, continuance, or imposition of
any rate of duty or other import restriction.

6. In order to implement the duty-free treatment
provided in accordance with the provisions of the
TFTEA, it is necessary to modify the HTS, thus
incorporating the substance of relevant provisions of
the TFTEA, and of actions taken thereunder, into the
HTS, pursuant to section 604 of the Trade Act.

7. In Proclamation 7748 of December 30, 2003, President
Bush determined that the Central African Republic was
not making continual progress in meeting the
requirements described in section 506A(a)(1) of the
Trade Act (19 U.S.C. 2466a(a)), as added by section
111(a) of the African Growth and Opportunity Act (the
``AGOA''). Thus, pursuant to section 506A(a)(3) of the
Trade Act (19 U.S.C. 2466a(a)(3)), President Bush
terminated the designation of the Central African
Republic as a beneficiary sub-Saharan African country
for purposes of section 506A of the Trade Act.

8. Section 506A(a)(1) of the Trade Act authorizes the
President to designate a country listed in section 107
of the AGOA (19 U.S.C. 3706) as a ``beneficiary

sub-Saharan African country'' if the President
determines that the country meets the eligibility
requirements set forth in section 104 of the AGOA (19
U.S.C. 3703), as well as the eligibility criteria set
forth in section 502 of the Trade Act (19 U.S.C. 2462).

9. Pursuant to section 506A(a)(1) of the Trade Act,
based on actions that the Central African Republic has
taken, I have determined that the Central African
Republic meets the eligibility requirements set forth
in section 104 of the AGOA and the eligibility criteria
set forth in section 502 of the Trade Act, and I have
decided to designate the Central African Republic as a
beneficiary sub-Saharan African country.

10. On April 22, 1985, the United States and Israel
entered into the Agreement on the Establishment of a
Free Trade Area between the Government of the United
States of America and the Government of Israel (the
``USIFTA''), which the Congress approved in section 3
of the United States-Israel Free Trade Area
Implementation Act of 1985 (the ``USIFTA Act'') (19
U.S.C. 2112 note).

11. Section 4(b) of the USIFTA Act provides that,
whenever the President determines that it is necessary
to maintain the general level of reciprocal and
mutually advantageous concessions with respect to
Israel provided for by the USIFTA, the President may
proclaim such withdrawal, suspension, modification, or
continuance of any duty, or such continuance of
existing duty-free or excise treatment, or such
additional duties, as the President determines to be
required or appropriate to carry out the USIFTA.

12. In order to maintain the general level of
reciprocal and mutually advantageous concessions with
respect to agricultural trade with Israel, on July 27,
2004, the United States entered into an agreement with
Israel concerning certain aspects of trade in
agricultural products during the period January 1,
2004, through December 31, 2008 (the ``2004 US-Israel
Agreement'').

13. In Proclamation 7826 of October 4, 2004, consistent
with the 2004 US-Israel Agreement, President Bush
determined, pursuant to section 4(b) of the USIFTA Act,
that, in order to maintain the general level of
reciprocal and mutually advantageous concessions with
respect to Israel provided for by the USIFTA, it was
necessary to provide duty-free access into the United
States through December 31, 2008, for specified
quantities of certain agricultural products of Israel.

14. Each year from 2008 through 2015, the United States
and Israel entered into agreements to extend the period
that the 2004 US-Israel Agreement was in force for 1-
year periods to allow additional time for the two
governments to conclude an agreement to replace the
2004 US-Israel Agreement.

15. To carry out the extension agreements, the
President in Proclamation 8334 of December 31, 2008;
Proclamation 8467 of December 23, 2009; Proclamation
8618 of December 21, 2010; Proclamation 8770 of
December 29, 2011; Proclamation 8921 of December 20,
2012; Proclamation 9072 of December 23, 2013;
Proclamation 9223 of December 23, 2014; and
Proclamation 9383 of December 21, 2015, modified the
HTS to provide duty-free access into the United States
for specified quantities of certain agricultural
products of Israel, each time for an additional 1-year
period.

16. On December 5, 2016, the United States entered into
an agreement with Israel to extend the period that the
2004 US-Israel Agreement is in force through December
31, 2017, and to allow for further negotiations on an
agreement to replace the 2004 US-Israel Agreement.

17. Pursuant to section 4(b) of the USIFTA Act, I have
determined that it is necessary, in order to maintain
the general level of reciprocal and mutually
advantageous concessions with respect to Israel
provided for by the USIFTA, to provide duty-free access
into the United States through the close of December
31, 2017, for specified quantities of certain
agricultural products of Israel.

18. Section 1206(a) of the Omnibus Trade and
Competitiveness Act of 1988 (the ``1988 Act'') (19
U.S.C. 3006(a)) authorizes the President to proclaim
modifications to the HTS based on the recommendations
of the Commission under section 1205 of the 1988 Act
(19 U.S.C. 3005) if he determines that the
modifications are in conformity with United States
obligations under the International Convention on the
Harmonized Commodity Description and Coding System
(Convention) and do not run counter to the national
economic interest of the United States. In 2006 and
2011, the Commission recommended modifications to the
HTS pursuant to section 1205 of the 1988 Act to conform
the HTS to amendments made to the Convention. In
Proclamation 8097 of December 29, 2006, and
Proclamation 8771 of December 29, 2011, President Bush
and I, respectively, modified the HTS pursuant to
section 1206 of the 1988 Act to conform the HTS to the
amendments to the Convention.

19. Proclamation 8332 of December 29, 2008, implemented
the United States-Oman Free Trade Agreement (the
``USOFTA'') with respect to the United States and,
pursuant to section 201 of the United States-Oman Free
Trade Agreement Implementation Act (the ``USOFTA Act'')
(19 U.S.C. 3805 note), the staged reductions in rates
of duty that President Bush determined to be necessary
or appropriate to carry out or apply articles 2.3, 2.5,
2.6, 3.2.8, and 3.2.9, and the schedule of duty
reductions with respect to Oman set forth in Annex 2-B
of the USOFTA.

20. In order to ensure the continuation of the staged
reductions in rates of duty for originating goods from
Oman in categories that were modified to conform to the
Convention, President Bush and I proclaimed in
Proclamation 8097 and Proclamation 8771, respectively,
modifications to the HTS that we determined were
necessary or appropriate to carry out the duty
reductions proclaimed in Proclamation 8332.

21. The United States and Oman are parties to the
Convention. Because the substance of changes to the
Convention are reflected in slightly differing form in
the national tariff schedules of the United States and
Oman, the rules of origin set out in Annex 3-A and
Annex 4-A of the USOFTA must be changed to ensure that
the tariff and certain other treatment accorded under
the USOFTA to originating goods will continue to be
provided under the tariff categories that were modified
in Proclamation 8097 and Proclamation 8771. The United
States and Oman have agreed to make these changes.

22. Section 202 of the USOFTA Act (19 U.S.C. 3805 note)
provides certain rules for determining whether a good
is an originating good for the purposes of implementing
preferential tariff treatment under the USOFTA. Section
202(j) of the USOFTA Act authorizes the President to
proclaim the rules of origin set out in the USOFTA and
any subordinate tariff categories necessary to carry
out the USOFTA, subject to the exceptions stated in
section 202(j)(2)(A) of the USOFTA Act.

23. I have determined that the modifications to the HTS
proclaimed pursuant to section 202 of the USOFTA Act
and section 1206(a) of the 1988 Act are necessary or
appropriate to ensure the continuation of tariff and
certain other treatment accorded originating goods
under tariff categories modified in Proclamation 8097
and Proclamation 8771 and to carry out the duty
reductions proclaimed in Proclamation 8332.

24. Section 604 of the Trade Act authorizes the
President to embody in the HTS the substance of the
relevant provisions of that Act, and of other Acts
affecting import treatment, and actions thereunder,
including removal, modification, continuance, or
imposition of any rate of duty or other import
restriction. Section 1206(c) of the 1988 Act (19 U.S.C.
3006(c)), as amended, provides that modifications
proclaimed by the President may not take effect before
the thirtieth day after the date on which the text of
the proclamation is published in the Federal Register.

25. Proclamation 8894 of October 29, 2012, implemented
the United States-Panama Trade Promotion Agreement (the
``USPTPA'') with respect to the

United States and, pursuant to section 201 of the
United States-Panama Trade Promotion Agreement
Implementation Act (the ``USPTPA Act'') (19 U.S.C. 3805
note), the staged reductions in duty that the President
determined to be necessary or appropriate to carry out
or apply articles 3.3, 3.5, 3.6, 3.26, 3.27, 3.28, and
3.29, and the schedule of duty reductions with respect
to Panama set forth in Annex 3.3 of the USPTPA.

26. The United States and Panama are parties to the
Convention. Because changes to the Convention are
reflected in slight differences of form between the
national tariff schedules of the United States and
Panama, the rules of origin set out in Annex 4.1 of the
USPTPA must be changed to ensure that the tariff and
certain other treatment accorded under the USPTPA Act
to originating goods will continue to be provided under
the tariff categories that were proclaimed in
Proclamation 8894. The United States and Panama have
agreed to make these changes.

27. Section 202 of the USPTPA Act (19 U.S.C. 3805 note)
provides certain rules for determining whether a good
is an originating good for the purposes of implementing
tariff treatment under the USPTPA. Section 202(o) of
the USPTPA Act authorizes the President to proclaim the
rules of origin set out in the USPTPA and any
subordinate tariff categories necessary to carry out
the USPTPA, subject to the exceptions stated in section
202(o) of the USPTPA Act.

28. I have determined that the modifications to the HTS
proclaimed pursuant to section 202 of the USPTPA Act
and section 1206(a) of the 1988 Act are necessary or
appropriate to ensure the continuation of tariff and
certain other treatment accorded originating goods
under tariff categories modified in Proclamation 8097
and Proclamation 8771 and to carry out the duty
reductions proclaimed in Proclamation 8894.

29. Section 604 of the Trade Act authorizes the
President to embody in the HTS the substance of
relevant provisions of that Act, or other Acts
affecting import treatment, and of actions taken
thereunder, including removal, modification,
continuance, or imposition of any rate of duty or other
import restriction. Section 1206(c) of the 1988 Act
provides that modifications proclaimed by the President
may not take effect before the thirtieth day after the
date on which the text of the proclamation is published
in the Federal Register.

30. Proclamation 7987 of February 28, 2006, implemented
the Dominican Republic-Central America-United States
Free Trade Agreement (the ``CAFTA-DR'') with respect to
the United States and, pursuant to section 201 of the
Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act (the ``CAFTA-DR
Act'') (19 U.S.C. 4031), the staged reductions in duty
that the President determined to be necessary or
appropriate to carry out or apply articles 3.3, 3.5,
3.6, 3.21, 3.26, 3.27, and 3.28, and Annexes 3.3
(including the schedule of United States duty
reductions with respect to originating goods), 3.27,
and 3.28 of the CAFTA-DR.

31. The United States, Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, and
Nicaragua (the ``CAFTA-DR countries'') are parties to
the Convention. Because changes to the Convention are
reflected in slight differences of form between the
national tariff schedules of the United States and the
other CAFTA-DR countries, Annexes 4.1, 3.25, and 3.29
of the CAFTA-DR must be changed to ensure that the
tariff and certain other treatment accorded under the
CAFTA-DR to originating goods will continue to be
provided under the tariff categories that were
proclaimed in Proclamation 7987. The United States and
the other CAFTA-DR countries have agreed to make these
changes.

32. Section 201 of the CAFTA-DR Act authorizes the
President to proclaim such modifications or
continuation of any duty, such continuation of duty-
free or excise treatment, or such additional duties, as
the President determines to be necessary or appropriate
to carry out or apply articles 3.3, 3.5, 3.6,

3.21, 3.26, 3.27, and 3.28, and Annexes 3.3 (including
the schedule of United States duty reductions with
respect to originating goods), 3.27, and 3.28 of the
CAFTA-DR.

33. I have determined that the modifications to the HTS
proclaimed pursuant to section 201 of the CAFTA-DR Act
and section 1206(a) of the 1988 Act are necessary or
appropriate to ensure the continuation of tariff and
certain other treatment accorded originating goods
under tariff categories modified in Proclamation 8097
and Proclamation 8771 and to carry out the duty
reductions proclaimed in Proclamation 7987.

34. Section 604 of the Trade Act authorizes the
President to embody in the HTS the substance of
relevant provisions of that Act, or other Acts
affecting import treatment, and of actions taken
thereunder, including removal, modification,
continuance, or imposition of any rate of duty or other
import restriction. Section 1206(c) of the 1988 Act
provides that modifications proclaimed by the President
may not take effect before the thirtieth day after the
date on which the text of the proclamation is published
in the Federal Register.

NOW, THEREFORE, I, BARACK OBAMA, President of the
United States of America, by virtue of the authority
vested in me by the Constitution and the laws of the
United States of America, including but not limited to
section 915 of the TFTEA (19 U.S.C. 4454), section
506A(a)(1) of the Trade Act (19 U.S.C. 2466a(a));
section 4(b) of the USIFTA Act (19 U.S.C. 2112 note);
section 301 of title 3, United States Code; section
1206(a) of the 1988 Act (19 U.S.C. 3006(a)); section
202 of the USOFTA Act (19 U.S.C. 3805 note); section
202 of the USPTPA Act (19 U.S.C. 3805 note); section
201 of the CAFTA-DR Act (19 U.S.C. 4031); and section
604 of the Trade Act (19 U.S.C. 2483), do proclaim
that:

(1) In order to provide for the preferential treatment provided for in
section 915 of the TFTEA, the HTS is modified as provided in Annex I to
this proclamation. The modifications to the HTS set forth in Annex I shall
continue in effect through December 31, 2025.

(2) The Central African Republic is designated as a beneficiary sub-Saharan
African country.

(3) In order to reflect this designation in the HTS, general note 16(a) and
U.S. note 1 to subchapter XIX of chapter 98 to the HTS are each modified by
inserting in alphabetical sequence in the list of beneficiary sub-Saharan
African countries ``Central African Republic.'' Further, note 2(d) to
subchapter XIX of chapter 98 is modified by inserting in alphabetical
sequence in the list of lesser developed beneficiary sub-Saharan African
countries ``Central African Republic.''

(4) In order to implement U.S. tariff commitments under the 2004 US-Israel
Agreement through December 31, 2017, the HTS is modified as provided in
Annex II to this proclamation.

(5) The modifications to the HTS set forth in Annex II to this proclamation
shall be effective with respect to eligible agricultural products of Israel
that are entered, or withdrawn from warehouse for consumption, on or after
January 1, 2017.

(6) The provisions of subchapter VII of chapter 99 of the HTS, as modified
by Annex II to this proclamation, shall continue in effect through December
31, 2017.

(7) In order to reflect in the HTS the modifications to the rules of origin
under the USOFTA, general note 31 to the HTS is modified as provided in
Annex III to this proclamation.

(8) The modifications and technical rectifications to the HTS set forth in
Annex III to this proclamation shall be effective with respect to goods
entered, or withdrawn from warehouse for consumption, on or after the later
of (i) February 1, 2017, or (ii) the thirtieth day after the date of
publication of this proclamation in the Federal Register.

(9) In order to provide generally for the modifications in the rules for
determining whether goods imported into the customs territory of the United
States are eligible for preferential tariff treatment under Annex 4.1 of
the USPTPA, to provide preferential tariff treatment for certain other
goods under the USPTPA, and to make technical and conforming changes in the
general notes to the HTS, the HTS is modified as set forth in Annex IV to
this proclamation.

(10) The modifications to the HTS made by paragraph (9) of this
proclamation shall enter into effect on the date, as announced by the
United States Trade Representative in the Federal Register, that the
conditions set forth in the Agreement have been fulfilled, and shall be
effective with respect to goods entered, or withdrawn from warehouse for
consumption, on or after that date.

(11) In order to provide generally for the modifications in the rules for
determining whether goods imported into the customs territory of the United
States are eligible for preferential tariff treatment under the CAFTA-DR,
to provide preferential tariff treatment for certain other goods under the
CAFTA-DR, and to make technical and conforming changes in the general notes
to the HTS, the HTS is modified as set forth in Annex V to this
proclamation.

(12) The modifications to the HTS made by paragraph (11) of this
proclamation shall enter into effect on the date, as announced by the
United States Trade Representative in the Federal Register, that the
applicable conditions set forth in the CAFTA-DR have been fulfilled, and
shall be effective with respect to goods entered, or withdrawn from
warehouse for consumption, on or after that date.

(13) Any provisions of previous proclamations and Executive Orders that are
inconsistent with the actions taken in this proclamation are superseded to
the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this
fifteenth day of December, in the year of our Lord two
thousand sixteen, and of the Independence of the United
States of America the two hundred and forty-first.

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