President Removes DRC from AGOA, Extends Israel Ag TRQs, Eliminates Pharm Duties
On December 21, 2010, President Obama issued Presidential Proclamation 8618 to terminate the Democratic Republic of Congo (DRC) from the African Growth and Opportunity Act (AGOA), extend the Israel agriculture tariff rate quotas, and eliminate tariffs on certain pharmaceutical products and chemical intermediates.
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DRC Terminated from AGOA Effective January 1
The President has determined that the DRC is not making continual progress in meeting the requirements described in AGOA; therefore, he is terminating the designation of the DRC as a beneficiary sub-Saharan African country effective on January 1, 2011.
In order to reflect this termination in the HTS, General Note 16(a) is modified by deleting "Democratic Republic of Congo" from the list of beneficiary sub-Saharan African countries.
Israel Agriculture TRQs Extended Through 2011
The President is extending the following duty-free TRQs for certain agricultural products from Israel through December 31, 2011, effective for goods entered or withdrawn from warehouse for consumption on or after January 1, 2011. These TRQs are provided for in HTS Chapter 99, Subchapter VIII, U.S. Notes 3 - 7.
| U.S. Note | Description | 2011 Limit |
| U.S. Note 3 | Butter, and fresh or sour cream containing over 45% by weight of butterfat, entered under HTS 9908.04.01 | 466,000 kg |
| U.S. Note 4 | Dried milk, whether or not containing added sugar or other sweetening matter, entered under HTS 9908.04.03 | 1,304,000 kg |
| U.S. Note 5 | Cheese and substitutes for cheese, entered under HTS 9908.04.05 | 1,534,000 kg |
| U.S. Note 6 | Peanuts, entered under HTS 9908.12.01 | 131,000 kg |
| U.S. Note 7 | Ice cream, entered under HTS 9908.21.01 | 707,000 kg |
(These TRQs were set to expire on December 31, 2010. Similar one-year extensions have occurred in prior years and are to allow additional time for the U.S. and Israel to negotiate a new agreement.)
Duty-Free Access for Over 700 Pharmaceuticals, Chemical Intermediaries
In order to implement the multilateral agreement negotiated under the auspices of the World Trade Organization to eliminate tariffs on over 700 pharmaceutical products and chemical intermediates, and to make technical corrections in the tariff treatment accorded to such products, the HTS is modified as set forth in Publication 4208 of the International Trade Commission, entitled "Modifications to the Harmonized Tariff Schedule of the United States to Implement Changes to the Pharmaceutical Appendix", which is incorporated by reference into this proclamation.
The modifications to the HTS shall be effective with respect to articles entered or withdrawn from warehouse for consumption on or after January 1, 2011.
(See ITT’s Online Archives or 09/17/10 news, 10091718, for BP summary of ITC’s report on allowing over 700 pharmaceuticals, chemicals to enter duty-free.)