Implementation of U.S.–Morocco Free Trade Agreement

Issue 507, January 4, 2006

Presidential Proclamation 7971 was issued on December 22, 2005 to amend the U.S. Harmonized Tariff Schedule (HTSUS), etc., to implement the U.S.- Morocco Free Trade Agreement (MFTA).

Effective with respect to goods that are entered, or withdrawn from warehouse for consumption, on or after January 1, 2006, the HTSUS has been modified to incorporate and implement the MFTA. Highlights of the changes include:

	Discontinuance of GSP Benefits for Morocco by removal from HTSUS General Note 4
	Creation of HTSUS General Note 27, which outlines and details the MFTA for HTSUS purposes
	Ammendment to applicable HTSUS classification special preference indicator (SPI) fields to reflect the SPI for the MFTA, which is "MA"
	Addition of Subchapter XII of HTSUS Chapter 99, outlining MFTA benefits subject to tariff rate quantitative limits (TRQs)

Under the "MA" SPI, many classifications will become duty-free effective 01/01/06. Other subject classifications are subject to staged reductions over a period of up to 10 years.

Details on the amendments to the HTSUS can be found on the U.S. International Trade Commission (USITC) website at: http://www.usitc.gov/tata/hts/other/rel_doc/annex/index.htm

The U.S. Trade Representative's (USTR) information page and fact sheets on the MFTA are available at: http://www.ustr.gov/Trade_Agreements/Bilateral/Morocco_FTA/Section_Index.html

A copy of the 2006 HTSUS is now available online at the USITC website at: http://www.usitc.gov/tata/hts/index.htm