US – President issues Proclamation 9771, suspending Rwanda from AGOA duty-free benefits and modifying the HTS

On August 2, 2018, the Federal Register published Proclamation 9771 of July 30, 2018 – To Take Certain Actions Under the African Growth and Opportunity Act and for Other Purposes. The Proclamation:

• Suspends the application of duty-free treatment for Rwanda as the President determined that Rwanda is not meeting the statutory requirements, and modifies notes and subheadings to subchapter XIX of chapter 98 of the Harmonized System of the United States (HTS), accordingly. These changes shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after July 31, 2018 (Annex I).
• Implements changes to the US-Bahrain Free Trade Agreement (USBFTA) Rules of Origin (HTS General Note 30) that the Parties to the FTA agreed to in a protocol to the USBFTA that went into effect on November 30, 2017 to conform to changes in the tariff schedules of both countries as a result of Harmonized System revisions. These changes shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after the date that is 30 days after the date of publication of the proclamation in the Federal Register (Annex II).
• Modifies the HTS In order to conform the HTS to the most recent amendments to the Harmonized System Convention. These modifications to the HTS shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after the later of (i) the date that is 30 days after the date of publication of the proclamation in the Federal Register, or (ii) the first day of the month that follows after such thirtieth day (Annex III).
• Modifies the HTS in order to correct technical errors in the annex to Proclamation 9693, Note 18(c)(iii) in subchapter III of chapter 99 of the HTS, by deleting the phrase “Subheadings 9903.45.21 and 9903.45.22 shall likewise” and by inserting in lieu thereof the phrase “Subheading 9903.45.25 shall”; and Note 18(g) is modified by deleting “For purposes of” and by inserting in lieu thereof “Subject to the provisions of subdivision (c)(iii) of this note, for purposes of”.