To Modify Duty-Free Treatment Under the Generalized

___________________________________________________________________

Title 3--
The President

Proclamation 7454 of June 29, 2001

To Modify Duty-Free Treatment Under the
Generalized

System of Preferences
By the President of the United States of America

A Proclamation

1. Sections 501 and 502 of the Trade Act of 1974, as
amended (the ``1974 Act'') (19 U.S.C. 2461 and 2462),
authorize the President to designate countries as
beneficiary developing countries for purposes of the
Generalized System of Preferences (GSP).

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

3. Section 503(c)(2)(C) of the 1974 Act (19 U.S.C.
2463(c)(2)(C)) provides that a country that is no
longer treated as a beneficiary developing country with
respect to an eligible article may be redesignated as a
beneficiary developing country with respect to such
article if imports of such article from such country
did not exceed the competitive need limitations in
section 503(c)(2)(A) during the preceding calendar
year.

4. Section 503(c)(2)(F) of the 1974 Act (19 U.S.C.
2463(c)(2)(F)) provides that the President may
disregard the competitive need limitation provided in
section 503(c)(2)(A)(i)(II) (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) (19 U.S.C. 2463(c)(2)(F)(ii)).

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

6. Pursuant to sections 501 and 502 of the 1974 Act,
and having due regard for the eligibility criteria set
forth therein, I have determined that it is appropriate
to designate Georgia as a beneficiary developing
country for purposes of the GSP.

7. Pursuant to section 503(c)(2)(A) of the 1974 Act, I
have determined that certain beneficiary countries
should no longer receive preferential tariff treatment
under the GSP with respect to certain eligible articles
imported in quantities that exceed the applicable
competitive need limitation.

8. Pursuant to section 503(c)(2)(C) of the 1974 Act, I
have determined that certain countries should be
redesignated as beneficiary developing countries with
respect to certain eligible articles that previously
had been imported in quantities exceeding the
competitive need limitations of section 503(c)(2)(A).
For certain articles, I have decided that the effective
date of the redesignation shall be determined by the
United States Trade Representative (USTR).

9. Pursuant to section 503(c)(2)(F) of the 1974 Act, I
have determined that the competitive need limitation
provided in section 503(c)(2)(A)(i)(II) should

be waived with respect to certain eligible articles
from certain beneficiary developing countries. For
certain articles, I have decided that the effective
date of the waiver shall be determined by the USTR.

10. Pursuant to section 503(d) of the 1974 Act, I have
determined that the competitive need limitations of
section 503(c)(2)(A) should be waived with respect to
certain eligible articles from a beneficiary developing
country. I have received the advice of the
International Trade Commission on whether any
industries in the United States are likely to be
adversely affected by such waivers, and I have
determined, based on that advice and on the
considerations described in sections 501 and 502(c),
that such waivers are in the national economic interest
of the United States. I have decided that the effective
date of the waivers shall be determined by the USTR.

11. Section 604 of the 1974 Act (19 U.S.C. 2483)
authorizes the President to embody in the Harmonized
Tariff Schedule of the United States (HTS) the
substance of the relevant provisions of that Act, and
of other acts affecting import treatment, and actions
thereunder, including the removal, modification,
continuance, or imposition of any rate of duty or other
import restriction.

NOW, THEREFORE, I, GEORGE W. BUSH, President of the
United States of America, acting under the authority
vested in me by the Constitution and the laws of the
United States, including section 301 of title 3, United
States Code, and title V and section 604 of the 1974
Act, do proclaim that:

(1) In order to reflect in the HTS the addition of
Georgia as a beneficiary developing country under the
GSP, general note 4(a) to the HTS is modified as
provided in section A(1) of Annex I to this
proclamation.
(2) In order to provide that one or more countries
that have not been treated as beneficiary developing
countries with respect to one or more eligible articles
should be redesignated as beneficiary developing
countries with respect to such article or articles for
purposes of the GSP, and 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, general
note 4(d) to the HTS is modified as provided in section
A(2) of Annex I and paragraph (1) of Annex III to this
proclamation.
(3) (a) In order to provide preferential tariff
treatment under the GSP to a beneficiary developing
country that has been excluded from the benefits of the
GSP for certain eligible articles, the Rates of Duty 1-
Special subcolumn for each of the HTS subheadings
enumerated in section A(3)(a) of Annex I and paragraph
(2) of Annex III to this proclamation is modified as
provided in such section and paragraph.

(b) In order to provide that one or more countries should not be treated
as beneficiary developing countries with respect to certain eligible
articles for purposes of the GSP, the Rates of Duty 1-Special subcolumn for
each of the HTS subheadings enumerated in section A(3)(b) of Annex I to
this proclamation is modified as provided in such section.

(4) A waiver of the application of section
503(c)(2)(A)(i)(II) of the 1974 Act shall apply to the
eligible articles in the HTS subheadings and to the
beneficiary developing countries listed in section B of
Annex I to this proclamation.
(5) A waiver of the application of section
503(c)(2)(A) of the 1974 Act shall apply to the
eligible articles in the HTS subheadings and to the
beneficiary developing country set forth in Annex II to
this proclamation.
(6) 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.
(7) (a) The modifications made by Annex I to this
proclamation shall be effective with respect to
articles entered, or withdrawn from warehouse for
consumption, on or after July 1, 2001.

(b) The action taken in paragraph (5) of this proclamation shall be
effective on the date of signature of this proclamation.

(c) The modifications made by Annex III to this
proclamation shall be effective with respect to
articles entered, or withdrawn from warehouse for
consumption, on or after a date to be announced in the
Federal Register by the USTR.

IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-ninth day of June, in the year of our Lord two
thousand one, and of the Independence of the United
States of America the two hundred and twenty-fifth.

(Presidential Sig.)B

[GRAPHIC] [TIFF OMITTED] TD05JY01.008

[GRAPHIC] [TIFF OMITTED] TD05JY01.009

[GRAPHIC] [TIFF OMITTED] TD05JY01.010