• To : Automated Broker Interface
Subject: GSP ELIGIBILITY CHANGES
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