Proclamation Adds South Sudan, Removes Mali & Guinea Bissau as AGOA Beneficiaries; Makes Other HTS Changes

South Sudan Becomes AGOA Beneficiary; Mali and Guinea Bissau Out

The proclamation designates South Sudan as an AGOA beneficiary sub-Saharan country, after Obama determined that it is meeting eligibility requirements. Accordingly, the proclamation modifies general note 16(a) of the HTS to add South Sudan to the list of beneficiaries.

The administration determined, however, that Mali and Guinea-Bissau are “not making continual progress” in meeting AGOA requirements, and so is terminating AGOA beneficiary status for the two countries. The proclamation thus deletes Mali and Guinea Bissau from the list of AGOA beneficiary sub-Saharan countries in general note 16(a) of the HTS, effective Jan. 1, 2013.

St. Kitts and Nevis Now ‘High-Income,’ GSP Beneficiary Status to End

The proclamation also terminates the status of St. Kitts and Nevis as a GSP beneficiary, because the administration found that the Caribbean nation has now become a “high-income” country. Effective Jan. 1, 2014, St. Kitts and Nevis will be removed from the list of GSP beneficiary independent countries in general note 4(a) of the HTS.

Israel FTA Agricultural TRQ Provisions Extended

Provisions granting duty-free treatment to some Israeli agricultural goods through tariff rate quotas were set to lapse in 2004, but were extended by an agreement until 2008. While a new agreement hasn’t yet been negotiated, TRQ provisions for these products have been extended every year since. The proclamation again extends duty-free treatment and TRQ levels for these products from Israel, pursuant to USIFTA, for another year, until Dec. 31, 2013.

To implement the extension, the proclamation amends subchapter VIII to chapter 99 (“Temporary Modifications Established Pursuant to the Agreement with Israel Concerning Certain Aspects of Trade in Agricultural Products”) by changing U.S. Note 1 to subchapter VIII to set the end date for the TRQs to Dec. 31, 2013. The proclamation also modifies subchapter VIII to add maximum quantities for the following products from Israel for calendar year 2013, at the same levels as TRQs for 2008-2012:

• Butter and fresh or sour cream containing over 45 percent by weight of butterfat entering under subheading 9908.04.01
• Dried milk whether or not containing added sugar or other sweetening matter entering under subheading 9908.04.03
• Cheese and substitutes for cheese entering under subheading 9908.04.05
• Peanuts entering under subheading 9908.12.01
• Ice cream entering under subheading 9908.21.01

Corrections and Conforming Changes to USCFTA, KFTA, GSP

The proclamation also amends the HTS by making changes to conform Chile FTA rules of origin to recent HTS revisions implementing World Customs Organization Harmonized System changes, and makes technical corrections to KFTA and GSP provisions.

USCFTA rules of origin. Because of recent changes by both the U.S. and Chile to their respective tariff schedules, some Chile FTA provisions no longer provide the intended tariff treatment. The proclamation amends USCFTA rules of origin in HTS general note 26, effective Jan. 1, 2013, to conform the rules of origin to the WCO HS changes.

GSP ineligible country-product pairs. Presidential Proclamation 8840 included an error that added the country-product pair “3923.21.50 -- Thailand” to the list of products ineligible for GSP treatment. This proclamation removes this country product pair, effective July 1, 2013.

KFTA rules of origin. The proclamation also corrects an error to the KFTA rules of origin for HTS chapter 61 caused an earlier proclamation. Effective March 15, 2012, the proclamation amends tariff classification rule 17 to chapter 61 of general note 33.