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THE WHITE HOUSE

Office of the Press Secretary


For Immediate Release October 2, 2000
          TO IMPLEMENT THE AFRICAN GROWTH AND OPPORTUNITY ACT
      AND TO DESIGNATE ERITREA AS A BENEFICIARY DEVELOPING COUNTRY
         FOR PURPOSES OF THE GENERALIZED SYSTEM OF PREFERENCES

                             - - - - - - -

            BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

                             A PROCLAMATION
  1. Section 111(a) of the African Growth and Opportunity Act (Title I of Public Law 106-200) (AGOA) amends Title V of the Trade Act of 1974, as amended (the "1974 Act"), to provide, in new section 506A(a) (19 U.S.C. 2466a(a)), that the President is authorized to designate countries listed in section 107 of the AGOA as "beneficiary sub-Saharan African countries."
  2. Section 112(a) of the AGOA (19 U.S.C. 3721(a)) provides that eligible textile and apparel articles that are imported directly into the customs territory of the United States from a beneficiary sub-Saharan African country shall enter the United States free of duty and free of quantitative limitations, provided that the country has satisfied the requirements of section 113(a) of the AGOA (19 U.S.C. 3722(a)) relating to the establishment of procedures to protect against unlawful transshipments, and section 113(b)(1)(B) of the AGOA (19 U.S.C. 3722(b)(1)(B)) relating to the implementation of procedures and requirements similar to those in chapter 5 of the North American Free Trade Agreement (NAFTA).
  3. Section 112(b)(3)(B) of the AGOA (19 U.S.C. 3721(b)(3)(B)) provides special rules for certain apparel articles imported from "lesser developed beneficiary sub-Saharan African countries."
  4. Section 112(c) of the AGOA (19 U.S.C. 3721(c)) provides that the President shall eliminate the existing quotas on textile and apparel articles imported into the United States (a) from Kenya within 30 days after that country adopts an effective visa system to prevent unlawful transshipment of textile and apparel articles and the use of counterfeit documents relating to the importation of the articles into the United States, and (b) from Mauritius within 30 days after that country adopts such a visa system.
  5. In order to implement the tariff treatment provided under the AGOA, it is necessary to modify the Harmonized Tariff Schedule of the United States (HTS), thereby incorporating the substance of the relevant provisions of the AGOA.
  6. Sections 501 and 502 of 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).
  7. 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 the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
  8. I have determined that it is appropriate to authorize the United States Trade Representative (USTR) to perform the functions specified in sections 112(c) and 113(b)(1)(B) of the AGOA and to make the findings identified in section 113(a) of the AGOA and to perform certain functions under section 604 of the 1974 Act.
  9. For Sierra Leone, I have determined that it is appropriate to authorize the USTR to determine the effective date of its designation as a beneficiary sub-Saharan African country.

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, including section 301 of title 3, United States Code, sections 111, 112, and 113 of the AGOA, and sections 501, 502, 506A, and 604 of the 1974 Act, do proclaim that:

(1) In order to provide for the preferential treatment provided for in section 112(a) of the AGOA, the HTS is modified as provided in the Annex to this proclamation.

(2) The following countries are designated as beneficiary sub-Saharan African countries pursuant to section 506A(a) of the 1974 Act:

     Republic of Benin
     Republic of Botswana
     Republic of Cape Verde
     Republic of Cameroon
     Central African Republic
     Republic of Chad
     Republic of Congo
     Republic of Djibouti
     State of Eritrea
     Ethiopia
     Gabonese Republic
     Republic of Ghana
     Republic of Guinea
     Republic of Guinea-Bissau
     Republic of Kenya
     Kingdom of Lesotho
     Republic of Madagascar
     Republic of Malawi
     Republic of Mali
     Islamic Republic of Mauritania
     Republic of Mauritius
     Republic of Mozambique
     Republic of Namibia
     Republic of Niger
     Federal Republic of Nigeria
     Republic of Rwanda
     Democratic Republic of Sao Tome and Principe
     Republic of Senegal
     Republic of Seychelles
     Republic of Sierra Leone
     Republic of South Africa
     United Republic of Tanzania
     Republic of Uganda
     Republic of Zambia

     (3) For purposes of section 112(b)(3)(B) of the AGOA, the following

designated beneficiary sub-Saharan African countries shall be considered lesser developed beneficiary sub-Saharan African countries:

     Republic of Benin
     Republic of Cape Verde
     Republic of Cameroon
     Central African Republic
     Republic of Chad
     Republic of Congo
     Republic of Djibouti
     State of Eritrea
     Ethiopia
     Republic of Ghana
     Republic of Guinea
     Republic of Guinea-Bissau
     Republic of Kenya
     Kingdom of Lesotho
     Republic of Madagascar
     Republic of Malawi
     Republic of Mali
     Islamic Republic of Mauritania
     Republic of Mozambique
     Republic of Niger
     Federal Republic of Nigeria
     Republic of Rwanda
     Democratic Republic of Sao Tome and Principe
     Republic of Senegal
     Republic of Sierra Leone
     United Republic of Tanzania
     Republic of Uganda
     Republic of Zambia

     (4) The USTR is authorized to determine whether each designated

beneficiary sub-Saharan African country has satisfied the requirements of section 113(a) of the AGOA relating to the establishment of procedures to protect against unlawful transshipments and section 113(b)(1)(B) of the AGOA relating to the implementation of procedures and requirements similar in all material respects to the relevant procedures and requirements under chapter 5 of the NAFTA. The determination or determinations of the USTR under this paragraph shall be set forth in a notice or notices that the USTR shall cause to be published in the Federal Register. Such notice or notices shall modify the HTS by listing the countries that satisfy the requirements of sections 113(a) and 113(b)(1)(B) of the AGOA. To implement such determination or determinations, the USTR is authorized to exercise the authority provided to the President under section 604 of the 1974 Act to embody modifications and technical or conforming changes in the HTS.

(5) The USTR is authorized to determine whether Kenya and Mauritius have satisfied the requirements of section 112(c) of the AGOA. The determination or determinations of the USTR under this paragraph shall be set forth in a notice or notices that the USTR shall cause to be published in the Federal Register. Within 30 days after any such determination by the USTR, the USTR shall cause the existing quotas on textile and apparel articles imported into the United States from such country to be elimi-nated by direction to the appropriate agencies or departments. To implement such determination or determinations, the USTR is authorized to exercise the authority provided to the President under section 604 of the 1974 Act to embody modifications and technical or conforming changes in the HTS.

(6) The USTR is authorized to determine the effective date of the designation of the Republic of Sierra Leone as a beneficiary sub-Saharan African country and, therefore, the date upon which Sierra Leone will be considered a lesser developed beneficiary sub-Saharan African country. The deter-mination of the USTR under this paragraph shall be set forth in a notice that the USTR shall cause to be published in the Federal Register. To implement such determination, the USTR is authorized to exercise the authority provided to the President under section 604 of the 1974 Act to embody modifications and technical or conforming changes in the HTS.

(7) Pursuant to sections 501 and 502 of the 1974 Act, Eritrea is designated as a beneficiary developing country for purposes of the GSP.

(8) In order to reflect in the HTS the designation of Eritrea as a beneficiary developing country under the GSP, general note 4(a) to the HTS is modified by inserting in alphabetical sequence "Eritrea" in the list of independent countries.

(9) 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.

(10) This proclamation is effective on the date of signature of this proclamation, except that (a) the modifications to the HTS made by the Annex to this proclamation, as further modified by any notice to be published in the Federal Register as described in paragraph 4 of this proclamation, shall be effective on the date announced by the USTR in such notice, and (b) the designation of the Republic of Sierra Leone as a beneficiary sub-Saharan African country shall be effective on the date announced by the USTR in the Federal Register.

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

WILLIAM J. CLINTON

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ANNEX

Effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after the date published in the Federal Register by the United States Trade Representative, chapter 98 of the Harmonized Tariff Schedule of the United States is modified as set forth herein, with the material in the new tariff provisions being inserted in the columns labeled "Heading/Subheading", "Article Description", and "Rates of Duty 1-Special".

(1). The following new U.S. note is inserted in numerical sequence in

subchapter II of chapter 98 of the tariff schedule:

     "7.  For purposes of the special tariff treatment authorized by the
          African Growth and Opportunity Act (AGOA) (title I of Pub.L.
          No.  106-200) for certain goods of heading 9802.00.80 imported
          directly from those beneficiary sub-Saharan African countries
          previously designated by proclamation that are subsequently
          enumerated in a notice published in the Federal Register by
          the United States Trade Representative (USTR) as having been
          determined to have satisfied the requirements of the AGOA and
          therefore to be afforded such tariff treatment, the duty-free
          treatment indicated for such heading shall apply only to
          apparel articles assembled in one or more such beneficiary
          countries from fabrics wholly formed and cut in the United
          States, from yarns wholly formed in the United States
          (including fabrics not formed from yarns, if such fabrics are
          classifiable under heading 5602 or 5603 of chapter 56 and are
          wholly formed and cut in the United States).  Articles
          otherwise eligible to enter under this heading, and which
          satisfy the conditions set forth in U.S. note 3 to subchapter
          XIX of this chapter, shall not be ineligible to enter under
          this heading.  Such countries shall be enumerated in this note
          whenever the USTR issues a Federal Register notice as
          described herein.  Articles covered by the provisions of this
          note shall be eligible to enter the customs territory of the
          United States free of quantitative limitations."

(2).      (a)  The article description of heading 9802.00.80 is modified
          by inserting immediately after "heading 9802.00.90" the
          expression "and goods imported under provisions of subchapter
          XIX of this chapter".

     (b)  The Rates of Duty 1-Special subcolumn for such heading is
          modified by inserting below the last rate in such subcolumn
          the expression "Free, for qualifying articles from sub-Saharan
          African countries enumerated in U.S. note 7 to this
          subchapter".

(3). The following new subchapter XIX is inserted in chapter 98 of the

HTS, together with its U.S. notes and tariff provisions:

                                 "SUBCHAPTER XIX
                                 TEXTILE AND APPAREL GOODS ELIGIBLE FOR
                                 SPECIAL TARIFF BENEFITS
                                 UNDER THE AFRICA GROWTH AND OPPORTUNITY
                                 ACT

U.S. Notes

  1. For purposes of this subchapter, the tariff treatment provided herein shall be accorded only to textile and apparel articles that are described in such subheadings and imported directly into the customs territory of the United States from those beneficiary sub-Saharan African countries previously designated by proclamation which have subsequently been determined in a Federal Register notice issued by the United States Trade Representative (USTR) to have satisfied the requirements of the African Growth and Opportunity Act (AGOA) (title I of Pub.L. No. 106-200) and therefore should be afforded the tariff treatment authorized in such Act and set forth in the provisions of this subchapter. Such countries shall be enumerated in this note whenever the USTR issues a Federal Register notice as described herein. Such articles shall be eligible to enter free of duty and free of any quantitative limitations, except as provided in the notes to this subchapter.
  2. (a) Imports of apparel articles under subheadings 9819.11.09 and 9819.11.12 shall be limited, in the period beginning on the date announced in a notice published in the Federal Register by the United States Trade Representative and continuing through the close of September 30, 2001, to an aggregate quantity not to exceed 1.5 percent of the aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available. Of that aggregate quantity, an amount not to exceed 1 percent of such aggregate square meter equivalents shall be eligible to enter under such subheadings during the period beginning on the date announced in such Federal Register notice and continuing through the close of December 31, 2000. The remaining 0.5 percent of such aggregate square meter equivalents, together with any quantity remaining unfilled from the 1 percent eligible to enter prior to January 1, 2001, shall be eligible to enter under such subheadings during the period beginning on January 1, 2001 and continuing through the close of September 30, 2001.
     (b)  Such imports of apparel articles under subheadings 9819.11.09
          and 9819.11.12 shall be limited, in each of the seven one-year
          periods beginning on October 1, 2001, to an aggregate quantity
          not to exceed the applicable percentage set forth herein of
          aggregate square meter equivalents of all apparel articles
          imported into the United States in the preceding 12-month
          period for which data are available:

                                   Annex (con.)
                                   5

                    12-Month Period                Applicable Percentage

            October 1, 2001 through September 30, 2002            1.7857
            October 1, 2002 through September 30, 2003            2.0714
            October 1, 2003 through September 30, 2004            2.3571
            October 1, 2004 through September 30, 2005            2.6428
            October 1, 2005 through September 30, 2006            2.9285
            October 1, 2006 through September 30, 2007            3.2142
            October 1, 2007 through September 30, 2008            3.5

     (c)  The aggregate quantity of imports allowed during each
          enumerated 12-month period shall be published in the Federal
          Register by the Committee for the Implementation of Textile
          Agreements.

     (d)  For purposes of subheading 9819.11.12, only those designated
          beneficiary sub-Saharan African countries that have been
          enumerated in U.S. note 1 to this subchapter, following
          publication of a notice by the United States Trade
          Representative, shall be eligible to be treated as lesser
          developed beneficiary countries pursuant to section
          112(b)(3)(B) of the AGOA (19 U.S.C. 3721(b)(3)(B)).  Countries
          qualifying for designation as a lesser developed beneficiary
          country shall be enumerated in this note whenever the USTR
          issues a Federal Register notice as described herein and shall
          be eligible to enter goods under such subheading as of the
          effective date announced in such notice.

3.        (a)  An article otherwise eligible for preferential treatment
          under any provision of this subchapter shall not be ineligible
          for such treatment because the article contains--

          (i)  findings or trimmings of foreign origin, if the value of
               such findings and trimmings does not exceed 25 percent of
               the cost of the components of the assembled article; or

          (ii) certain interlinings of foreign origin, if the value of
               such interlinings (and any findings and trimmings of
               foreign origin) does not exceed 25 percent of the cost of
               the components of the assembled article; or

          (iii) fibers or yarns not wholly formed in the United States
               or in one or more designated beneficiary countries
               enumerated in U.S. note 1 to this subchapter, provided
               that the total weight of all such fibers and yarns is not
               more than 7 percent of the total weight of the article.

     (b)  For purposes of subdivision (a)(i) above, findings or
          trimmings eligible under such subdivision include sewing
          thread, hooks and eyes, snaps, buttons, "bow buds", decorative
          lace trim, elastic strips, and zippers, including zipper tapes
          and labels.  Elastic strips are considered findings or
          trimmings only if they are each less than 2.54 cm in width and
          used in the production of brassieres.  For purposes of
          articles described in subheading 9819.11.06, sewing thread
          shall not be considered to be findings or trimmings.

     (c)  For purposes of subdivision (a)(ii) above, the interlinings
          eligible under such subdivision include only a chest type
          plate, a "hymo" piece, or "sleeve header", of woven or
          weft-inserted warp knit construction and of coarse animal hair
          or man-made filaments.

4. For purposes of subheading 9819.11.27, goods entered under this

     provision must be certified, by a competent authority of a
     designated beneficiary country enumerated in U.S. note 1 to this
     subchapter, as eligible products of such country, in accordance
     with any requirements established by the appropriate U.S.
     government authority.
           : Articles imported from a designated           :   :      :
           : beneficiary sub-Saharan African country       :   :      :
           : enumerated in U.S. note 1 to this subchapter  :   :      :
9819.11.03 :   Apparel articles of chapter 61 or 62        :   :      :
           :   assembled in one or more such countries     :   :      :
           :   from fabrics wholly formed and cut in the   :   :      :
           :   United States, from yarns wholly formed in  :   :      :
           :   the United States (including fabrics not    :   :      :
           :   formed from yarns, if such fabrics are      :   :      :
           :   classifiable in heading 5602 or 5603 and    :   :      :
           :   are wholly formed and cut in the United     :   :      :
           :   States), the foregoing which (1) are        :   :      :
           :   embroidered or were subjected to            :   :      :
           :   stone-washing, enzyme-washing, acid         :   :      :
           :   washing, permapressing, oven-baking,        :   :      :
           :   bleaching, garment-dyeing, screen printing  :   :      :
           :   or other similar processes, and (2) but for :   :      :
           :   such embroi dery or processing are of a     :   :      :
           :   type otherwise described in heading         :   :      :
           :   9802.00.80 of the tariff schedule...........:   : Free :
           :                                               :   :      :
9819.11.06 :   Apparel articles cut in one or more such    :   :      :
           :   countries from fabric wholly formed in the  :   :      :
           :   United States from yarns wholly formed in   :   :      :
           :   the United States (including fabrics not    :   :      :
           :   formed from yarns, if such fabrics are      :   :      :
           :   classifiable in heading 5602 or 5603 and    :   :      :
           :   are wholly formed in the United States),    :   :      :
           :   where such articles are assembled in one or :   :      :
           :   more such countries with thread formed in   :   :      :
           :   the United States...........................:   : Free :
           :                                               :   :      :
           :[Articles...(con.):]                           :   :      :
9819.11.09 :   Apparel articles wholly assembled in one or :   :      :
           :   more such countries from fabric wholly      :   :      :
           :   formed in one or more such countries from   :   :      :
           :   yarn originating in either the United       :   :      :
           :   States or one or more such countries        :   :      :
           :   (including fabrics not formed from yarns,   :   :      :
           :   if such fabrics are classifiable under      :   :      :
           :   heading 5602 or 5603 and are wholly formed  :   :      :
           :   and cut in one or more such countries),     :   :      :
           :   subject to the provisions of U.S. note 2 to :   :      :
           :   this subchapter.............................:   : Free :
           :                                               :   :      :
9819.11.12 :   Apparel articles wholly assembled in a      :   :      :
           :   lesser developed such country enumerated in :   :      :
           :   U.S. note 2(d) to this subchapter, subject  :   :      :
           :   to the provisions of U.S. note 2 to this    :   :      :
           :   subchapter, if entered during the period    :   :      :
           :   beginning on the date announced in a        :   :      :
           :   Federal Register notice issued by the       :   :      :
           :   United States Trade Representative and      :   :      :
           :   continuing through September 30, 2004,      :   :      :
           :   inclusive...................................:   : Free :
           :                                               :   :      :
9819.11.15 :   Sweaters, in chief weight of cashmere,      :   :      :
           :   knit-to-shape in None or more such          :   :      :
           :   countries, the foregoing classifiable in    :   :      :
           :   subheading 6110.10..........................:   : Free :
           :                                               :   :      :
9819.11.18 :   Sweaters containing 50 percent or more by   :   :      :
           :   weight of wool measuring 18.5 microns in    :   :      :
           :   diameter or finer, knit-to-shape in one or  :   :      :
           :   more such countries.........................:   : Free :
           :                                               :   :      :
9819.11.21 :   Apparel articles both cut (or knit-to-shape):   :      :
           :   and sewn or otherwise assembled in one or   :   :      :
           :   more such countries from fabrics or yarn    :   :      :
           :   that is not formed in the United States or  :   :      :
           :   a beneficiary country, provided that such   :   :      :
           :   apparel articles of such fabrics or yarn    :   :      :
           :   would be considered an originating good     :   :      :
           :   under the terms of general note 12(t) to    :   :      :
           :   the tariff schedule without regard to the   :   :      :
           :   source of the fabric or yarn if such        :   :      :
           :   apparel article had been imported from the  :   :      :
           :   territory of Canada or the territory of     :   :      :
           :   Mexico directly into the customs territory  :   :      :
           :   of the United States........................:   : Free :
           :                                               :   :      :
9819.11.24 :   Apparel articles both cut (or knit-to-shape):   :      :
           :   and sewn or otherwise assembled in one or   :   :      :
           :   more such countries from fabrics or yarn    :   :      :
           :   designated by the appropriate U.S.          :   :      :
           :   government authority in the Federal         :   :      :
           :   Register as fabrics or yarn not available   :   :      :
           :   in commercial quantities in the United      :   :      :
           :   States, under any terms as such authority   :   :      :
           :   may provide.................................:   : Free :
           :                                               :   :      :
9819.11.27 :   Handloomed, handmade or folklore textile    :   :      :
           :   and apparel goods, under the provisions of  :   :      :
           :   U.S. note 4 to this subchapter..............:   : Free :"
           :                                               :   :      :

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