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On June 30, 2016, President Obama signed a Presidential Proclamation — Implementing the World Trade Organization Declaration on the Expansion of Trade in Information Technology Products and For Other Purposes. The Proclamation implements the July 28, 2015, 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. The United States and other WTO Members issued a Ministerial Declaration on December 16, 2015, in which ministers endorsed the Declaration of July 28, 2015, and acknowledged that the conditions for implementation had been met. The Proclamation also implements various provisions of the Trade Preferences Extension Act of 2015 (TPEA) (Public Law 114-27) that amended the Trade Act of 1974 (the “1974 Act”) (19 U.S.C. 2466b), the African Growth and Opportunity Act (AGOA) (19 U.S.C. 3721(g)) and the Generalized System of Preferences (GSP). The Proclamation: · Modifies the Harmonized Tariff Schedule of the United States (HTS) as set forth in Annexes I and II to the proclamation in order to provide for the immediate or staged elimination of duties on the information technology products covered by the Declaration; · Modifies general note 16(c) of the HTS by striking “September 30, 2015” and by inserting in lieu thereof “September 30, 2025” in order to provide that duty-free treatment provided under the AGOA shall remain in effect throug September 30, 2025; · Modifies chapter 98, subchapter XIX, U.S. note 2 of the HTS 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” In order to provide that the regional apparel article program and the third-country fabric program are effective through September 30, 2025; · Modifies the HTS as set forth in Annex III to the proclamation in order to provide for the addition of the special tariff treatment symbol “D” in the “Special” subcolumn where necessary in the HTS; · Modifies the Rates of Duty 1-Special subcolumn for the corresponding HTS subheadings as set forth in Annex IV to the proclamation in order to designate certain articles as eligible articles only when imported from a least-developed beneficiary developing country for purposes of the GSP; · Modifies the Rates of Duty 1 Special subcolumn for the corresponding HTS subheadings as set forth in Annex IV to the proclamation In order to designate certain articles as eligible articles only when imported from a beneficiary sub-Saharan African country for purposes of the AGOA; · Modifies the Rates of Duty 1-Special subcolumn for the corresponding HTS subheadings and general note 4(d) to the HTS as set forth in sections A and B of Annex V to the proclamation 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 modifications to the HTS set forth in Annex V to the 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 the proclamation; · Disregards the competitive need limitation provided in section 503(c)(2)(A)(i)(II) of the 1974 Act with respect to the eligible articles in the HTS subheadings and to the beneficiary developing countries listed in Annex VI to the proclamation, effective July 1, 2016; · Waives the application of section 503(c)(2) of the 1974 Act to the articles in the HTS subheadings and to the beneficiary developing countries set forth in Annex VII to the proclamation, effective July 1, 2016; and · Supersedes any provisions of previous proclamations and Executive Orders that are inconsistent with the actions taken in this proclamation to the extent of such inconsistency. As of July 1, 2016 the Proclamation and annexes have not yet been published in the Federal Register. However, the U.S. International Trade Commission (ITC) has incorporated the changes in its 2016 HTSA Supplement Edition (July 2016). See the Change Record for revisions and effective dates. This edition also includes statistical changes adopted by the 484(f) Committee. U.S. Customs and Border Protection has incorporated all the changes in the ACE Harmonized System Update (HSU) 1607 created on June 30, 2016 according to CSMS# 16-000552.
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