81 FR 92499 - To Implement the Nepal Preference Program and for Other Purposes

Executive Office of the President

Federal Register Volume 81, Issue 244 (December 20, 2016)

[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Presidential Documents]
[Pages 92499-92547]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30738]




                        Presidential Documents 



Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 92499]]

                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

[[Page 92500]]

                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.

[[Page 92501]]

                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

[[Page 92502]]

                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,

[[Page 92503]]

                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.

[[Page 92504]]

(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.
                
                
                    (Presidential Sig.)

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[FR Doc. 2016-30738
Filed 12-19-16; 8:45 a.m.]
Billing code 7020-02-C