Presidential Proclamation Grants Permanent NTR to Ukraine, Cuts Duty of Multi-Chip Integrated Circuits to Zero
The President has issued Proclamation 7995, which pertains both to Ukraine and multi-chip integrated circuits, as follows:
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Permanent NTR for Ukraine
The President has determined that Ukraine is in full compliance with the freedom of emigration requirements under Title IV of the Trade Act of 1974 (19 USC 2431).
As a result of this determination, the President has proclaimed that effective March 31, 2006, products of Ukraine receive permanent normal trade relations (including permanent column 1 duty rates). In addition, Ukraine is no longer subject to chapter 1 of Title IV of the 1974 Act (19 USC 2431 - 2439).
(Government sources state that Ukraine is not yet a member of the World Trade Organization (WTO); however, it could become a member in late 2006/early 2007. These sources explain that the U.S. completed its bilateral WTO negotiations with Ukraine on March 6, 2006, and that multilateral WTO negotiations are occurring. Once Ukraine becomes a WTO member, its four wool apparel quotas will terminate.)
Zero Duty for Multi-Chip Integrated Circuits
In order to carry out an agreement that was negotiated between the United States and the European Union (EU), Japan, Korea, and Taiwan in September 2005, the President is cutting the duty rate for imported multi-chip integrated circuits entered under HTS 8543.89.96 to zero, effective for goods entered, or withdrawn from warehouse, for consumption on or after April 1, 2006.
(According to a USTR press release on this 2005 agreement, these multi-chip integrated circuits, also known as "multi-chip packages" (MCPs), are a new semiconductor used wherever miniaturization is desirable, such as cell phones, digital cameras, and personal digital assistants (PDAs). The USTR had also stated that U.S. headquartered companies account for over 50% of global MCP production. (See ITT's Online Archives or 11/04/06 news, 051100405 for BP summary.)
Presidential Proclamation 7995 (FR Pub date 04/04/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-3298.pdf