*EPF402 09/20/01
Texts: Bush Gives Special Duty-Free Status to 11 Indonesian Products
(Bush, USTR Zoellick meet with Indonesian president Sept. 19) (1530)
As part of an effort to help support Indonesia's economic reforms and democracy, the Bush administration says it will extend Indonesia's benefits under the Generalized System of Preferences (GSP) to 11 more products, ranging from lumber and mining to fishing, according to a September 19 news release from the Office of the U.S. Trade Representative.
"Today, the U.S. announced it will augment Indonesia's GSP benefits in order to support President Megawati as the leader of the world's largest Muslim democracy, and to help encourage growth prospects for the Indonesian economy," USTR Robert Zoellick said in the press release.
President Bush in his September 19 proclamation said he had determined that Indonesia should be re-designated "as a beneficiary developing country with respect to certain eligible articles."
The President's action is provided for in Title V section 604 of the Trade Act of 1974.
"I was honored that President Bush sent me last month to visit Indonesia, the world's most populous Muslim country, soon after President Megawati's new government took office," Zoellick said.
Zoellick is scheduled to meet September 20th with Indonesian Minister of Industry and Trade Rini Soewandi, according to the USTR announcement.
Following are the texts of the USTR news release and President Bush's proclamation letter redesignating Indonesia as a beneficiary developing country:
(begin text of USTR news release)
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C. 20508
September 19, 2001
U.S. Trade Representative Robert B. Zoellick Meets With Indonesian President Megawati To Discuss Strengthening U.S.-Indonesian Ties
In Support of Indonesian Democracy and Economic Reforms, Bush Administration to Provide Special Duty-Free Status to Certain Indonesian Products
WASHINGTON -- Following President Bush's meeting today with Indonesian President Megawati Soekarnoputri, U.S. Trade Representative Robert B. Zoellick met with President Megawati to discuss ways to further strengthen the relationship between the two countries by expanding trade.
As part of this effort to expand U.S.-Indonesian trade and as a measure of support for the new Megawati government, its economic reform efforts, and Indonesian democracy, the Bush Administration today announced it will expand Indonesia's benefits under the Generalized System of Preferences (GSP) to 11 more products ranging from lumber and mining to fishing. These new benefits will exempt these products from duties and encourage more trade. We estimate that these new trade benefits cover over $100 million in imports.
"I was honored that President Bush sent me last month to visit Indonesia, the world's most populous Muslim country, soon after President Megawati's new government took office," said Zoellick. "Today, the U.S. announced it will augment Indonesia's GSP benefits in order to support President Megawati as the leader of the world's largest Muslim democracy, and to help encourage growth prospects for the Indonesian economy."
"With U.S. exports of goods and services to Indonesia totaling nearly $4 billion in 2000, expanding trade with Indonesia means new opportunities for American workers, consumers, farmers, and entrepreneurs," Zoellick added.
President Megawati and Ambassador Zoellick also discussed the preparations for a new round of global trade negotiations in the World Trade Organization (WTO). "Trade is particularly vital today for developing nations that are increasingly relying on the international economy to overcome poverty and create opportunity. A successful WTO meeting in Doha will strengthen the world trading system as a dynamic engine of international growth, development, and openness," said Ambassador Zoellick.
Ambassador Zoellick will meet September 20th with Indonesian Minister of Industry and Trade Rini Soewandi.
GSP Background:
The GSP program was established in 1974. It offers duty-free access to the U.S. market for a wide range of products when imported from designated beneficiary developing countries. The program is a fundamental tool in encouraging trade and development, and reflects the U.S. commitment to an open world trading system.
The GSP statute authorizes the President to restore GSP treatment for products from individual beneficiary developing countries that previously lost GSP eligibility because imports from such countries in a prior year exceeded the statute's quantitative limits. Once imports of these products from any such beneficiary country again fall below these limits, the President may restore that country's GSP eligibility for imports of these products. He has exercised that authority with regard to the 11 products for Indonesia. In recent years redesignations have been infrequent.
The GSP statute is scheduled to expire on September 30th. The Administration has requested the Congress to promptly reauthorize the program. In the past the Congress has reauthorized GSP on a retroactive basis.
Below is a list of the GSP products covered by today's announcement:
List of Indonesian Products To Be Given GSP Benefits
HTS No. Description
1301.90.40 Turpentine gum (oleoresinous exudate from living trees)
1604.14.50 Tuna and skipjack, not in airtight containers, not in bulk
1605.90.55 Prepared or preserved snails, other than sea snails
2603.00.00 Copper ores and concentrates
3824.60.00 Sorbitol other than that of subheading
2905.44 4412.13.25 Plywood sheet not over 6 mm thick, tropical hardwood outer ply
4412.14.30 Plywood sheets not over 6 mm thick, outer ply of nontropical hardwood 4412.14.55 Plywood sheets not over 6 mm thick, outer ply of nonconiferous wood 4412.92.50 Plywood of softwood outer plies, at least 1 ply tropical hardwood 4602.10.23 Rattan or palm leaf articles of a kind normally carried in the pocket or in the handbag
9001.30.00 Contact lenses
(end text of USTR press release)
(begin text of presidential proclamation)
THE WHITE HOUSE
Office of the Press Secretary
TO MODIFY DUTY-FREE TREATMENT UNDER THE
GENERALIZED SYSTEM OF PREFERENCES
- - - - - - -
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
1. Section 503(c)(2)(C) of the Trade Act of 1974, as amended (the "1974 Act") (19 U.S.C. 2463(c)(2)(C)), provides that a country that is no longer treated as a beneficiary developing country with respect to an eligible article for purposes of the Generalized System of Preferences (GSP) because imports of the article from that country exceeded the competitive need limitations in section 503(c)(2)(A) of the 1974 Act (19 U.S.C. 2463(c)(2)(A)) may be redesignated as a beneficiary developing country with respect to the article if imports of the article from that country did not exceed those limitations during the preceding calendar year.
2. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have determined that Indonesia should be redesignated as a beneficiary developing country with respect to certain eligible articles that previously had been imported in quantities exceeding the competitive need limitations of section 503(c)(2)(A).
3. Section 604 of the 1974 Act (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTS) the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
NOW, THEREFORE, I, GEORGE W. BUSH, 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 title V and section 604 of the 1974 Act, do proclaim that:
(1) In order to provide that Indonesia, which has not been treated as a beneficiary developing country with respect to certain eligible articles, should be redesignated as a beneficiary developing country with respect to those articles for purposes of the GSP:
(a) general note 4(d) to the HTS is modified as provided in paragraph (1) of the Annex to this proclamation; and
(b) the Rates of Duty 1-Special subcolumn for each of the HTS subheadings enumerated in paragraph (2) of the Annex to this proclamation is modified as provided in such paragraph.
(2) 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.
(3) The modifications made by the Annex to this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of publication of this proclamation in the Federal Register.
IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of September, in the year of our Lord two thousand one, and of the Independence of the United States of America the two hundred and twenty-sixth.
GEORGE W. BUSH
Annex
Modifications to the Harmonized Tariff
Schedule of the United States (HTS)
Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of publication of this proclamation in the Federal Register.
(1). General note 4(d) to the HTS is modified by:
(a). deleting the following subheadings and Indonesia set out opposite such subheading:
1301.90.40
1605.90.55
4412.13.25
4602.10.23
9001.30.00
(b). deleting Indonesia set out opposite the following subheadings:
1604.14.50
2603.00.00
3824.60.00
4412.14.30
4412.14.55
4412.92.50
(2). For the following subheadings, the Rates of Duty 1-Special subcolumn is modified by deleting the symbol "A*" and inserting an "A" in lieu thereof.
1301.90.40
1605.90.55
4412.13.25
4602.10.23
9001.30.00
(end text of presidential proclamation)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
NNNN