Details of the Proclamation Implementing the DR-CAFTA for Honduras and Nicaragua (Part II)
On March 31, 2006, President Bush issued Proclamation 7996 to amend the Harmonized Tariff Schedule (HTS), etc., to implement the U.S. - Dominican Republic -Central America Free Trade Agreement (DR-CAFTA) for Honduras and Nicaragua.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the Proclamation, the DR-CAFTA for these two countries is generally in effect for goods entered, or withdrawn from warehouse, for consumption on or after April 1, 2006.
This is Part II of a multi-part series of BP summaries of Proclamation 7996 and highlights some of the changes in Annex I to the proclamation. See future issues of ITT for additional BP summaries. (See ITT's Online Archives or 04/04/06 news, 06040405, for Part I.
Highlights of April 1, 2006 Changes Made by Annex I
According to Annex I, the following changes are effective with respect to goods entered, or withdrawn from warehouse, for consumption on or after April 1, 2006 (partial list):
General Note 29 (DR-CAFTA). General Note 29 contains the specific rules of origin (including the tariff shift rules), definitions, and other provisions necessary to determine whether a good is an originating or qualifying good, eligible for DR-CAFTA tariff treatment, some of which are subject to quantitative limitations. Proclamation 7996 is amending GN 29 (a)(iii) to list Honduras and Nicaragua as beneficiaries.
GSP. General Note 4 (Generalized System of Preferences (GSP)) is modified by removing Honduras from the list of GSP beneficiary countries.
In addition, General Note 4(d) is amended by removing the following three entries listed for Honduras - HTS 2009.31.10, 2009.39.10, and 8544.30.00. The "Special" duty subcolumn for each of these three HTS numbers is also modified by replacing "A*" with "A."
CBERA. General Note 7 (Caribbean Basin Economic Recovery Act (CBERA)) is modified by removing Honduras and Nicaragua from the list of CBERA beneficiary countries.
General Note 7 is also amended by listing Honduras and Nicaragua as former CBERA beneficiary countries.
CBTPA. General Note 17 (U.S.-Caribbean Basin Trade Partnership Act (CBTPA)) is modified by removing Honduras and Nicaragua from the list of CBTPA beneficiary countries.
General Note 17 is also amended by listing Honduras and Nicaragua as former CBTPA beneficiary countries. For purposes of determining CBTPA eligibility, references to a CBTPA beneficiary shall also include former beneficiaries, if the article, or good used in the production of the article, undergoes production in a CBTPA beneficiary country.
Conforming changes are also made to Subchapter XX (CBTPA) of HTS Chapter 98.
Presidential Proclamation 7996, FR Pub 04/04/06, available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-3299.pdf
Proclamation 7996's Annexes (ITC publication 3845, dated March 2006) available at http://www.usitc.gov/tata/hts/other/rel_doc/annex/index.htm
BP Note
The U.S. had earlier implemented the DR-CAFTA for El Salvador. The U.S. has not yet implemented the DR-CAFTA for Guatemala, Dominican Republic, or Costa Rica. All but Costa Rica have ratified the Agreement.
(The DR-CAFTA is also referred to as the CAFTA-DR.)