CSMS Message: 00-000846

0215071

AUGUST 1, 2000

TO: DIRECTORS, FIELD OPERATIONS
PORT DIRECTORS
ASSISTANT PORT DIRECTORS, TRADE

FROM: DIRECTOR, TRADE PROGRAMS

SUBJECT: EFFECT OF PRESIDENTIAL PROCLAMATION 7328 ON THE
GENERALIZED SYSTEM OF PREFERENCES (GSP)

PASS TO: IMPORT SPECIALISTS, ENTRY SPECIALISTS AND OTHER
INTERESTED PARTIES SUCH AS BROKERS AND IMPORTERS

ATTACHED PLEASE FIND PRESIDENTIAL PROCLAMATION 7328, DATED
JULY 6, 2000, AND PUBLISHED IN THE FEDERAL REGISTER ON JULY 10,
2000 (65 FR 42595), WHICH SUSPENDS THE DUTY-FREE TREATMENT UNDER
GSP FOR THE COUNTRY OF BELARUS AS A BENEFICIARY DEVELOPING COUNTRY.
THIS CHANGE IS EFFECTIVE SEPTEMBER 8, 2000 AND WILL MODIFY
GENERAL NOTE 4(A) OF THE HARMONIZED TARIFF SCHEDULE OF THE UNITED
STATES (HTSUS). THE AUTOMATED COMMERCIAL SYSTEM HAS BEEN
UPDATED TO REFLECT THIS CHANGE.

PRESIDENTIAL PROCLAMATION 7328 ALSO TERMINATES GSP BENEFITS
FOR MALTA, FRENCH POLYNESIA, NEW CALEDONIA, AND SLOVENIA EFFECTIVE
JANUARY 1, 2002.

NOTE: THE ATTACHMENT IS A MODIFIED ELECTRONIC VERSION OF THE FEDERAL
REGISTER NOTICE. IN ADDITION TO REVIEWING THIS NOTICE AND TAKING THE
APPROPRIATE ACTIONS, YOU ARE ALSO ADVISED TO REVIEW THE PUBLISHED
VERSION IN ITS ENTIRETY.

QUESTIONS REGARDING THIS NOTICE SHOULD BE DIRECTED TO DIXIE STAPLE,
TRADE AGREEMENTS BRANCH, AT (202) 927-1131.

/S/
ANNE K. LOMBARDI FOR
ELIZABETH G. DURANT

ATTACHED IS THE PRESIDENTIAL PROCLAMATION.

PRESIDENTIAL PROCLAMATION 7328 OF JULY 6, 2000 TO AMEND THE GENERALIZED
SYSTEM OF PREFERENCES BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

1. SECTION 502(C)(7) OF THE TRADE ACT OF 1974, AS
AMENDED (THE "TRADE ACT") (19 U.S.C. 2462(C)(7)),
PROVIDES THAT, IN DETERMINING WHETHER TO DESIGNATE ANY
COUNTRY A BENEFICIARY DEVELOPING COUNTRY UNDER THIS
SECTION, THE PRESIDENT SHALL TAKE INTO ACCOUNT WHETHER
THAT COUNTRY HAS TAKEN OR IS TAKING STEPS TO AFFORD
INTERNATIONALLY RECOGNIZED WORKER RIGHTS TO WORKERS IN
THAT COUNTRY. SECTION 502(D)(1) OF THE TRADE ACT (19
U.S.C. 2462(D)(1)) PROVIDES THAT THE PRESIDENT MAY
WITHDRAW, SUSPEND, OR LIMIT THE APPLICATION OF DUTY-
FREE TREATMENT UNDER THE GENERALIZED SYSTEM OF
PREFERENCES (GSP) WITH RESPECT TO ANY DESIGNATED
BENEFICIARY DEVELOPING COUNTRY BASED ON CONSIDERATION
OF THE FACTORS SET FORTH IN SECTIONS 501 AND 502(C) OF
THE TRADE ACT (19 U.S.C. 2461 AND 2462(C)). SECTION
502(F)(2) OF THE TRADE ACT (19 U.S.C. 2462(F)(2))
REQUIRES THE PRESIDENT TO NOTIFY THE CONGRESS AND THE
AFFECTED COUNTRY, AT LEAST 60 DAYS BEFORE TERMINATION,
OF THE PRESIDENT'S INTENTION TO TERMINATE THE AFFECTED
COUNTRY'S DESIGNATION AS A BENEFICIARY DEVELOPING
COUNTRY FOR PURPOSES OF THE GSP.

2. SECTION 502(E) OF THE TRADE ACT (19 U.S.C. 2462(E))
PROVIDES THAT THE PRESIDENT SHALL TERMINATE THE
DESIGNATION OF A COUNTRY AS A BENEFICIARY DEVELOPING
COUNTRY IF THE PRESIDENT DETERMINES THAT SUCH COUNTRY
HAS BECOME A "HIGH INCOME'' COUNTRY AS DEFINED BY THE
OFFICIAL STATISTICS OF THE INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT. TERMINATION IS
EFFECTIVE ON JANUARY 1 OF THE SECOND YEAR FOLLOWING THE
YEAR IN WHICH SUCH DETERMINATION IS MADE.

3. PURSUANT TO SECTION 502(D) OF THE TRADE ACT, AND
HAVING CONSIDERED THE FACTORS SET FORTH IN SECTIONS 501
AND 502(C), I HAVE DETERMINED THAT IT IS APPROPRIATE TO
SUSPEND BELARUS'S GSP BENEFITS BECAUSE IT HAS NOT TAKEN
AND IS NOT TAKING STEPS TO AFFORD WORKERS IN THAT
COUNTRY INTERNATIONALLY RECOGNIZED WORKER RIGHTS. IN
ORDER TO REFLECT THE SUSPENSION OF BENEFITS UNDER THE
GSP FOR ARTICLES IMPORTED FROM BELARUS, I HAVE
DETERMINED THAT IT IS APPROPRIATE TO MODIFY GENERAL
NOTE 4(A) OF THE HARMONIZED TARIFF SCHEDULE OF THE
UNITED STATES (HTS).

4. PURSUANT TO SECTION 502(E) OF THE TRADE ACT, I HAVE
DETERMINED THAT MALTA, FRENCH POLYNESIA, NEW CALEDONIA,
AND SLOVENIA MEET THE DEFINITION OF A ``HIGH INCOME''
COUNTRY AS DEFINED BY THE OFFICIAL STATISTICS OF THE
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.
ACCORDINGLY, PURSUANT TO SECTION 502(E) OF THE TRADE
ACT, I AM TERMINATING THE PREFERENTIAL TREATMENT UNDER
THE GSP FOR ARTICLES THAT ARE CURRENTLY ELIGIBLE FOR
SUCH TREATMENT AND THAT ARE IMPORTED FROM MALTA, FRENCH
POLYNESIA, NEW CALEDONIA, AND SLOVENIA, EFFECTIVE
JANUARY 1, 2002.

5. SECTION 604 OF THE TRADE ACT, AS AMENDED (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.

NOW, THEREFORE, I, WILLIAM J. CLINTON, PRESIDENT OF THE
UNITED STATES OF AMERICA, ACTING UNDER THE AUTHORITY
VESTED IN ME BY THE CONSTITUTION AND THE LAWS OF THE
UNITED STATES OF AMERICA, INCLUDING BUT NOT LIMITED TO
TITLE V AND SECTION 604 OF THE TRADE ACT, DO PROCLAIM
THAT:

(1) IN ORDER TO REFLECT THE SUSPENSION OF BENEFITS
UNDER THE GSP WITH RESPECT TO BELARUS, GENERAL NOTE
4(A) OF THE HTS IS MODIFIED BY DELETING ``BELARUS''
FROM THE LIST OF INDEPENDENT COUNTRIES, EFFECTIVE WITH
RESPECT TO ARTICLES ENTERED, OR WITHDRAWN FROM
WAREHOUSE FOR CONSUMPTION, ON OR AFTER 60 DAYS AFTER
THE DATE OF PUBLICATION OF THIS PROCLAMATION IN THE
FEDERAL REGISTER.
(2) IN ORDER TO TERMINATE THE DESIGNATION OF MALTA,
FRENCH POLYNESIA, NEW CALEDONIA, AND SLOVENIA AS
BENEFICIARY DEVELOPING COUNTRIES UNDER THE GSP, GENERAL
NOTE 4(A) OF THE HTS IS MODIFIED BY:
(A) DELETING ``MALTA'' AND ``SLOVENIA'' FROM THE
LIST OF INDEPENDENT COUNTRIES, AND
(B) DELETING ``FRENCH POLYNESIA'' AND ``NEW
CALEDONIA'' FROM THE LIST OF NONINDEPENDENT COUNTRIES
AND TERRITORIES, EFFECTIVE WITH RESPECT TO ARTICLES
ENTERED, OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION,
ON OR AFTER JANUARY 1, 2002.
(3) 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
SIXTH DAY OF JULY, IN THE YEAR OF OUR LORD TWO THOUSAND, AND
OF THE INDEPENDENCE OF THE UNITED STATES OF AMERICA THE TWO
HUNDRED AND TWENTY-FIFTH.

(PRESIDENTIAL SIG.) WILLIAM J. CLINTON