To Implement the World Trade Organization Declaration on the Expansion of Trade in Information Technology Products and for Other Purposes

Proclamation 9466 of June 30, 2016

To Implement the World Trade Organization
Declaration on the Expansion of Trade in Information
Technology Products and for Other Purposes

By the President of the United States of America

A Proclamation

1. On July 28, 2015, the United States and other
Members of the World Trade Organization (WTO) issued a
Declaration on the Expansion of Trade in Information
Technology Products (Declaration), which established a
framework for eliminating duties on certain information
and communication technology products. These products
include advanced semiconductors, medical equipment, and
a range of audio and video equipment. The Declaration
sets forth commitments for immediate or staged
elimination of duties on the covered products,
expanding on duty-elimination commitments set forth in
the 1996 Declaration on Trade in Information Technology
Products, which the United States implemented in
Proclamation 7011 of June 30, 1997.

2. On December 16, 2015, the United States and other
WTO Members issued a Ministerial Declaration in which
ministers endorsed the Declaration of July 28, 2015,
and acknowledged that the conditions for implementation
had been met.

3. Section 111(b) of the Uruguay Round Agreements Act
(URAA) (19 U.S.C. 3521(b)) authorizes the President to
proclaim the modification of any duty or staged rate
reduction of any duty set forth in Schedule XX for
products in tariff categories that were the subject of
reciprocal duty elimination or harmonization
negotiations during the Uruguay Round, if the United
States agrees to such action in a multilateral
negotiation under the auspices of the WTO, and after
compliance with the requirements of section 115 of the
URAA (19 U.S.C. 3524). The products covered by the
Declaration were the subject of reciprocal duty
elimination negotiations during the Uruguay Round, and
the requirements of section 115 of the URAA have been
met.

4. Accordingly, pursuant to section 111(b) of the URAA,
I have determined to proclaim modifications to the
tariff categories and rates of duty set forth in the
Harmonized Tariff Schedule (HTS), as set forth in
Annexes I and II to this proclamation.

5. Section 103(a) of the Trade Preferences Extension
Act of 2015 (TPEA) (Public Law 114-27) amended section
506B of the Trade Act of 1974 (the ``1974 Act'') (19
U.S.C. 2466b) and section 103(b)(1) amended section
112(g) of the African Growth and Opportunity Act (AGOA)
(19 U.S.C. 3721(g)), to provide that in the case of a
beneficiary sub-Saharan African country, duty-free
treatment provided under title V of the 1974 Act shall
remain in effect through September 30, 2025.

6. Accordingly, pursuant to section 506B of the 1974
Act and section 112(g) of the AGOA, I have determined
that general note 16(c) of the HTS is modified by
striking ``September 30, 2015'' and by inserting in
lieu thereof ``September 30, 2025''.

7. Section 103(b)(2) of the TPEA amended section
112(b)(3)(A) of the AGOA (19 U.S.C. 3721(b)(3)(A)) to
extend the regional apparel article program and section
103(b)(3) of the TPEA amended section 112(c)(1) of the
AGOA

(19 U.S.C. 3721(c)(1)) to extend the third-country
fabric program through September 30, 2025.

8. Accordingly, pursuant to sections 112(b)(3)(A) and
112(c)(1) of the AGOA, I have determined that chapter
98, subchapter XIX, U.S. note 2(b) of the HTS is
modified by striking ``September 30, 2015'' where
stated in ``through the period October 1, 2014 through
September 30, 2015'' and in ``each 1-year period
thereafter through September 30, 2015'' and by
inserting in lieu thereof ``September 30, 2025''.

9. Section 104(c) of the TPEA authorizes the President
to proclaim modifications that may be necessary to add
the special tariff treatment symbol ``D'' in the
``Special'' subcolumn of the HTS for each article
classified under a heading or subheading with the
special tariff treatment symbol ``A'' or ``A*'' in the
``Special'' subcolumn of the HTS.

10. Accordingly, pursuant to section 104(c) of the
TPEA, I have determined it is necessary to add the
special tariff treatment symbol ``D'' in the HTS as set
forth in Annex III to this proclamation.

11. Pursuant to sections 501 and 503(a)(1)(B) of the
1974 Act (19 U.S.C. 2461 and 2463(a)(1)(B)), the
President may designate certain articles as eligible
for preferential tariff treatment under the Generalized
System of Preferences (GSP) when imported from a least-
developed beneficiary developing country if, after
receiving the advice of the United States International
Trade Commission (Commission), the President determines
that such articles are not import-sensitive in the
context of imports from least-developed beneficiary
developing countries.

12. Pursuant to sections 501, 503(a)(1)(B), and
503(b)(5) of the 1974 Act (19 U.S.C. 2461,
2463(a)(1)(b), and 2463(b)(5)), and after receiving
advice from the Commission in accordance with section
503(e) of the 1974 Act (19 U.S.C. 2463(e)), I have
determined to designate certain articles as eligible
articles when imported from a least-developed
beneficiary developing country.

13. Pursuant to sections 503(b)(1)(E) and 506A(b)(1) of
the 1974 Act (19 U.S.C. 2463(b)(1)(E) and 2466A(b)(1)),
the President may designate certain articles as
eligible for preferential tariff treatment under the
AGOA when the articles are the growth, product, or
manufacture of a beneficiary sub-Saharan African
country if, after receiving the advice of the
Commission, the President determines that such articles
are not import-sensitive in the context of imports from
beneficiary sub-Saharan African countries.

14. Pursuant to sections 503(b)(1)(E) and 506A(b)(1) of
the 1974 Act, and after receiving advice from the
Commission in accordance with section 503(e) of the
1974 Act, I have determined to designate certain
articles as eligible articles when the articles are the
growth, product, or manufacture of a beneficiary sub-
Saharan African country.

15. Pursuant to section 503(c)(1) of the 1974 Act (19
U.S.C. 2463(c)(1)), the President may withdraw,
suspend, or limit application of the duty-free
treatment accorded to specified articles under the GSP
when imported from designated beneficiary developing
countries.

16. Pursuant to section 503(c)(1) of the 1974 Act, and
having considered the factors set forth in sections 501
and 502(c) of the 1974 Act (19 U.S.C. 2462(c)), I have
determined to limit the application of duty-free
treatment accorded to certain articles from certain
beneficiary developing countries.

17. Section 503(c)(2)(A) of the 1974 Act (19 U.S.C.
2463(c)(2)(A)) provides that beneficiary developing
countries, except those designated as least-developed
beneficiary developing countries or beneficiary sub-
Saharan African countries as provided in section
503(c)(2)(D) of the 1974 Act (19 U.S.C. 2463(c)(2)(D)),
are subject to competitive need limitations on the
preferential treatment afforded under the GSP to
eligible articles.

18. Pursuant to section 503(c)(2)(A) of the 1974 Act, I
have determined that in 2015 certain beneficiary
developing countries exported eligible articles

in quantities exceeding the applicable competitive need
limitations, and I therefore terminate the duty-free
treatment for such articles from such beneficiary
developing countries.

19. Section 503(c)(2)(F)(i) of the 1974 Act (19 U.S.C.
2463(c)(2)(F)(i)) provides that the President may
disregard the competitive need limitation provided in
section 503(c)(2)(A)(i)(II) of the 1974 Act (19 U.S.C.
2463(c)(2)(A)(i)(II)) with respect to any eligible
article from any beneficiary developing country if the
aggregate appraised value of the imports of such
article into the United States during the preceding
calendar year does not exceed an amount set forth in
section 503(c)(2)(F)(ii) of the 1974 Act (19 U.S.C.
2463(c)(2)(F)(ii)).

20. Pursuant to section 503(c)(2)(F)(i) of the 1974
Act, I have determined that the competitive need
limitation provided in section 503(c)(2)(A)(i)(II) of
the 1974 Act should be disregarded with respect to
certain eligible articles from certain beneficiary
developing countries.

21. Section 503(d)(1) of the 1974 Act (19 U.S.C.
2463(d)(1)) provides that the President may waive the
application of the competitive need limitations in
section 503(c)(2) of the 1974 Act (19 U.S.C.
2463(c)(2)) with respect to any eligible article from
any beneficiary developing country if certain
conditions are met.

22. Pursuant to section 503(d)(1) of the 1974 Act, I
have received the advice of the Commission on whether
any industry in the United States is likely to be
adversely affected by waivers of the competitive need
limitations provided in section 503(c)(2) of the 1974
Act, and I have determined, based on that advice and on
the considerations described in sections 501 and 502(c)
of the 1974 Act and after giving great weight to the
considerations in section 503(d)(2) of the 1974 Act (19
U.S.C. 2463(d)(2)), that such waivers are in the
national economic interest of the United States.
Accordingly, I have determined that the competitive
need limitations of section 503(c)(2) of the 1974 Act
should be waived with respect to certain eligible
articles from certain beneficiary developing countries.

23. Section 604 of the 1974 Act (19 U.S.C. 2483)
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.

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 111(b) of the URAA, section 506B of the 1974
Act, sections 112(g), 112(b)(3)(A), and 112(c)(1) of
the AGOA, section 104(c) of the TPEA, and title V and
section 604 of the 1974 Act, do proclaim that:

(1) In order to provide for the immediate or staged
elimination of duties on the information technology
products covered by the Declaration, the HTS is
modified as set forth in Annexes I and II to this
proclamation;
(2) In order to provide that duty-free treatment
provided under the AGOA shall remain in effect through
September 30, 2025, general note 16(c) of the HTS is
modified by striking ``September 30, 2015'' and by
inserting in lieu thereof ``September 30, 2025'';
(3) In order to provide that the regional apparel
article program and the third-country fabric program
are effective through September 30, 2025, chapter 98,
subchapter XIX, U.S. note 2 of the HTS is modified by
striking ``September 30, 2015'' where stated in
``through the period October 1, 2014 through September
30, 2015'' and in ``each 1-year period thereafter
through September 30, 2015'' and by inserting in lieu
thereof ``September 30, 2025'';
(4) In order to provide for the addition of the
special tariff treatment symbol ``D'' in the
``Special'' subcolumn where necessary in the HTS, the
HTS is modified as set forth in Annex III to this
proclamation;

(5) In order to designate certain articles as
eligible articles only when imported from a least-
developed beneficiary developing country for purposes
of the GSP, the Rates of Duty 1-Special subcolumn for
the corresponding HTS subheadings is modified as set
forth in Annex IV to this proclamation;
(6) In order to designate certain articles as
eligible articles only when imported from a beneficiary
sub-Saharan African country for purposes of the AGOA,
the Rates of Duty 1 Special subcolumn for the
corresponding HTS subheadings is modified as set forth
in Annex IV to this proclamation;
(7) In order to provide that one or more countries
should no longer be treated as beneficiary developing
countries with respect to one or more eligible articles
for purposes of the GSP, the Rates of Duty 1-Special
subcolumn for the corresponding HTS subheadings and
general note 4(d) to the HTS are modified as set forth
in sections A and B of Annex V to this proclamation;
(8) The modifications to the HTS set forth in Annex
V to this proclamation shall be effective with respect
to articles entered, or withdrawn from warehouse for
consumption, on or after the dates set forth in the
relevant sections of Annex V to this proclamation;
(9) The competitive need limitation provided in
section 503(c)(2)(A)(i)(II) of the 1974 Act is
disregarded with respect to the eligible articles in
the HTS subheadings and to the beneficiary developing
countries listed in Annex VI to this proclamation,
effective July 1, 2016;
(10) A waiver of the application of section
503(c)(2) of the 1974 Act shall apply to the articles
in the HTS subheadings and to the beneficiary
developing countries set forth in Annex VII to this
proclamation, effective July 1, 2016; and
(11) 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
thirtieth day of June, in the year of our Lord two
thousand sixteen, and of the Independence of the United
States of America the two hundred and fortieth.

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