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Ronald Reagan Administration:
Proclamation on U.S.-Israel Free Trade Act

(August 30, 1985)


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By the President of the United States of America

A Proclamation

1. Section 4 of the United States-Israel Free Trade Area Implementation Act of 1985 (the FTA Act) (19 U.S.C. 2112 note) confers authority upon the President to proclaim changes in tariff treatment which the President determines are required or appropriate to carry out the schedule of duty reductions for products of Israel set forth in Annex 1 to 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 Agreement), entered into on April 22, 1985, and submitted to the Congress on April 29, 1985. I have determined that the modifications to the Tariff Schedules of the United States (TSUS) (19 U.S.C. 1202) set forth in Annexes I, VIII, IX, and X to this Proclamation are required or appropriate to carry out such duty reductions.

2. Previously, pursuant to Title V of the Trade Act of 1974, as amended, (the Trade Act) (19 U.S.C. 2461, et seq.), I designated certain articles provided for in the TSUS as eligible articles under the Generalized System of Preferences (GSP) when imported from designated beneficiary developing countries, and determined that limitations on the preferential treatment for eligible articles from certain beneficiary developing countries were necessary or appropriate. Previously, pursuant to section 503(a)(2)(A) of the Trade Agreements Act of 1979 (the Trade Agreements Act) (19 U.S.C. 2119 note), I determined that certain articles provided for in the TSUS are not import sensitive and, if the product of a least developed developing country (LDDC), are eligible for full tariff reductions pursuant to certain trade agreements without staging. Previously, pursuant to sections 211 and 218 of the Caribbean Basin Economic Recovery Act (the CBERA) (19 U.S.C. 2701, 2706), I designated certain articles provided for in the TSUS as eligible articles under the CBERA when imported from designated beneficiary countries.

3. In order to provide, for purposes of the GSP, for the continued designation of eligible articles and beneficiary developing countries (including least developed beneficiary developing countries, pursuant to section 504(c)(6) of the Trade Act (19 U.S.C. 2464(c)(6)), and associations of countries to be treated as individual countries for purposes of limitations on preferential treatment), and for the continuation of existing limitations on preferential treatment for articles from certain beneficiary developing countries, and in accordance with Title V of the Trade Act, as amended, it is appropriate that such preferential treatment and designations be set forth in this Proclamation.

4. Section 604 of the Trade Act (19 U.S.C. 2483) confers authority upon the President to embody in the TSUS the substance of the relevant provisions of that Act, of other Acts affecting import treatment, and of actions taken thereunder. In addition, section 8(b)(2) of the FTA Act (which amends Title V of the Trade Act) confers authority upon the President to embody in the TSUS, by proclamation, actions taken with respect to the GSP. In order to implement the duty reductions authorized by the FTA Act and to facilitate the administration of the preferential tariff regimes described above, it is necessary or appropriate to incorporate the duty treatment provided pursuant to the relevant provisions of the GSP, the Trade Agreements Act, the CBERA, and the FTA Act, in a rate of duty column in the TSUS entitled ``Special'', and to make other necessary and conforming changes as set forth in Annexes I through XI to this Proclamation.

5. In Proclamation 5291 of December 28, 1984, I determined that modifications in the TSUS were appropriate in order to provide duty-free coverage comparable to the expanded coverage provided by other signatories to the Agreement on Trade in Civil Aircraft (31 UST (pt. 1) 619). Through technical error, the staged reductions in rates of duty for certain tariff items redesignated by the Proclamation were omitted. Accordingly, I have determined that due to the implementation of Proclamation 5291 that further modifications to Annex III to Proclamation 4707 of December 11, 1979, set forth in Annex XII to this Proclamation, are appropriate in order to ensure the application of such reductions in customs duties for articles classified in those tariff items.

6. In order to make technical corrections in the preferential treatment under the GSP for articles that are imported from countries designated as beneficiary developing countries consistent with the changes to the TSUS which have resulted from the implementation of Proclamation 5291 of December 28, 1984, and Proclamation 5305 of February 21, 1985, I have determined that the technical corrections to Executive Order No. 11888 of November 24, 1975, as amended, and general headnote 3 set forth in sections A and B, respectively, of Annex XIII to this Proclamation, are appropriate.

7. In Proclamation 5133 of November 30, 1983, as amended by Proclamation 5142 of December 29, 1983, and Proclamation 5308 of March 14, 1985, I designated certain countries and territories as ``beneficiary countries'' under section 212 of the CBERA. Section 213(c)(2)(A) of the CBERA provides that duty-free treatment under the CBERA for sugar and beef products that are the product of a beneficiary country shall be suspended if such beneficiary country, within the ninety-day period beginning on the date of its designation as a beneficiary country, does not submit a stable food production plan to the President. I have not received stable food production plans from five beneficiary countries (Antigua and Barbuda, Montserrat, Netherlands Antilles, St. Lucia, and St. Vincent and the Grenadines) within the required ninety-day period. As provided by section 213(c)(3) of the CBERA, I have entered into consultations with these five beneficiary countries. These countries do not export sugar or beef products to the United States and, therefore, have determined not to submit stable food production plans at this time. Should they wish to export either sugar or beef products in the future, they may submit a stable food production plan for review by the United States Government at that time. In accordance with section 213(c)(2)(A) of the CBERA, I am suspending duty-free treatment extended under the CBERA to sugar and beef products that are the product of these five beneficiary countries. I will terminate the suspension of duty-free treatment under the CBERA imposed by this Proclamation with regard to any affected beneficiary countries which take appropriate action to remedy the factors on which the suspension was based.

8. In Proclamation 5021 of February 14, 1983, as amended by Proclamation 5291 of December 28, 1984, I proclaimed temporary duty reductions on certain articles pursuant to legislation implementing the Nairobi Protocol to the Florence Agreement on the Importation of Educational, Scientific, and Cultural Materials. And, pursuant to section 604 of the Trade Act, I modified the Appendix to the TSUS by inserting a new part 4 to such Appendix providing temporary duty reductions for such articles which were entered, or withdrawn from warehouse for consumption, on and after February 11, 1983, and before the close of August 11, 1985, as set forth in the Annex to Proclamation 5021. The effective period for the temporary reduction of such duties having expired on August 11, 1985, I am modifying the Appendix to the TSUS, pursuant to section 604 of the Trade Act, by deleting part 4 thereof.

Now, Therefore, I, Ronald Reagan, President of the United States of America, acting under the authority vested in me by the Constitution and the statutes of the United States, including but not limited to sections 4 and 8(b)(2) of the FTA Act, section 213(c) of the CBERA, and section 604 of the Trade Act, do proclaim that:

(1) The rate of duty column in the TSUS entitled ``LDDC'' is retitled ``Special'' each place it appears, including part 1B of the Appendix to the TSUS.

(2) Part 1 of the Appendix to the TSUS is further modified by inserting a rate of duty column entitled ``Special'', following the rate of duty column numbered 1, opposite each item for which a rate of duty column entitled ``LDDC'' is not set forth.

(3) The column in the TSUS entitled ``GSP'' is deleted.

(4) The modifications to the TSUS made by Annex I to this Proclamation, including the designations of eligible articles and beneficiary developing countries and the limitations on preferential treatment necessary to continue existing GSP treatment incorporated therein, and the suspension of duty-free treatment extended under the CBERA to sugar and beef products of certain beneficiary countries, shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on and after the effective date of this Proclamation.

(5) Products of Israel provided for in TSUS items which are enumerated in Annex VIII to this Proclamation and which are imported into the customs territory of the United States in accordance with general headnote 3 of the TSUS (as modified by Annex I to this Proclamation) on or after the effective date of this Proclamation are eligible for duty-free treatment, and a rate of duty of ``Free'' applicable to such products is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``I'' in parentheses.

(6) Products of Israel provided for in TSUS items which are enumerated in Annex IX to this Proclamation and which are imported into the customs territory of the United States in accordance with general headnote 3 (as modified by Annex I) on or after the effective date of this Proclamation are subject to duty as described in such Annex IX, and the rate of duty applicable to such products is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``I'' in parentheses.

(7) Products of Israel provided for in TSUS items which are enumerated in Annex X to this Proclamation and which are imported into the customs territory of the United States in accordance with general headnote 3 (as modified by Annex I) on or after January 1, 1995, are eligible for duty-free treatment, and a rate of duty of ``Free'' applicable to such products shall be inserted on such date in the column in the TSUS entitled ``Special'' followed by the symbol ``I'' in parentheses. Until January 1, 1995, products of Israel provided for in the TSUS items enumerated in Annex X are subject to the rate of duty in column numbered 1 of the TSUS unless the tariff treatment of such products is expressly modified in accordance with section 5(c)(2) of the FTA Act.

(8) In order to provide duty-free treatment to articles hereby designated as eligible articles for purposes of the GSP when imported from any designated beneficiary developing country, for each of the TSUS items enumerated in Annex III to this Proclamation, a rate of duty of ``Free'' is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``A'' in parentheses for each such item.

(9) In order to provide duty-free treatment to articles hereby designated as eligible articles for purposes of the GSP, except when imported from the designated beneficiary countries set forth opposite those TSUS items enumerated in general headnote 3 (as modified by Annex I to this Proclamation), for each of the TSUS items enumerated in Annex IV to this Proclamation, a rate of duty of ``Free'' is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``A*'' in parentheses for each such item.

(10) For each of the TSUS items which are enumerated in section A of Annex V to this Proclamation, the rates of duty set forth for each item in such section A of Annex V is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``D'' in parentheses.

(11) For each of the TSUS items which are enumerated in sections B and C of Annex V to this Proclamation, effective as of the dates provided in such sections B and C, the rates of duty set forth for each item in such sections B and C of Annex V shall be inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``D'' in parentheses.

(12) For each of the TSUS items which are enumerated in Annex VI to this Proclamation, a rate of duty of ``Free'' is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``E'' in parentheses.

(13) For each of the TSUS items which are enumerated in Annex VII to this Proclamation, a rate of duty of ``Free'' is inserted in the column in the TSUS entitled ``Special'' followed by the symbol ``E*'' in parentheses.

(14) For each of the TSUS items which are enumerated in Annex XI to this Proclamation, the rate status set forth for each item in such Annex XI is inserted in the column in the TSUS entitled ``Special''.

(15) Annex III to Proclamation 4707 of December 11, 1979, is amended as set forth in Annex XII to this Proclamation effective as to articles entered, or withdrawn from warehouse for consumption, on and after the effective date specified in Annex XII to this Proclamation.

(16) Annexes II and III of Executive Order No. 11888, as amended, and general headnote 3 are further amended as set forth in sections A and B, respectively, of Annex XIII to this Proclamation effective with respect to articles both: (1) imported on or after January 1, 1976, and (2) entered, or withdrawn from warehouse for consumption, on and after the effective dates specified in sections A and B of Annex XIII to this Proclamation.

(17) Annex III of Proclamation 4707 and Annex III of Proclamation 4768 of June 28, 1980, are amended as set forth in Annex II to this Proclamation as of the effective date of this Proclamation.

(18) Except for articles provided for in items which are enumerated in Annex IV to Proclamation 4707 and Annex IV to Proclamation 4768 and which are not enumerated in Annex V to this Proclamation, Annex IV to Proclamation 4707 and Annex IV to Proclamation 4768 are superseded by Annex V to this Proclamation, to the extent inconsistent therewith, as of the effective date of this Proclamation.

(19) Executive Order No. 11888, as amended by subsequent Executive orders for purposes of the GSP, and as amended by subsequent proclamation to the extent they amend Executive Order No. 11888 for purposes of the GSP, is superseded by this Proclamation as of the effective date of this Proclamation.

(20) Proclamations 4707, 4768, 5133, 5142, 5291, 5305, and 5308, are superseded to the extent inconsistent with this Proclamation.

(21) Part 4 of the Appendix to the TSUS is deleted effective August 12, 1985.

(22) Except as provided in paragraphs (11), (15), (16), and (21), the provisions of this Proclamation shall be effective as to articles entered, or withdrawn from warehouse for consumption, on and after September 1, 1985.

In Witness Whereof, I have hereunto set my hand this thirtieth day of August, in the year of our Lord nineteen hundred and eighty-five, and of the Independence of the United States of America the two hundred and tenth.

Ronald Reagan


Sources: Public Papers of the Presidents, Ronald Reagan, 1982

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