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ALLOCATING TARIFF QUOTA ON CERTAIN PETROLEUM PRODUCTS UNDER THE VENEZUELAN TRADE AGREEMENT

1. WHEREAS (pursuant to the authority vested in the President by the Constitution and the statutes, including section 350(a) of the Tariff Act of June 12, 1934 (ch. 474, 48 Stat. 943), THE PERIOD FOR THE EXERCISE OF THE AUTHORITY UNDER THE SAID SECTION 350(A) HAVING BEEN EXTENDED BY THE JOINT RESOLUTION APPROVED March 1, 1937 (ch. 22, 50 Stat. 24), until the expiration of three years from June 12, 1937), the President of the United States of America entered into a definitive trade agreement with the President of the United States of Venezuela on November 6, 1939 (54 Stat. 2377) and proclaimed such trade agreement y proclamations dated November 16, 1939, (54 Stat. 2375) and November 27, 1940, (54 Sat. 2402);

2. WHEREAS Article II of the said definitive trade agreement with Venezuela provides as follows:

Articles the growth, produce or manufacture of the United States of Venezuela, enumerated and described in Schedule II annexed to this Agreement and made a part thereof, shall, on their importation into the United States of America, be exempt from ordinary customs duties in excess of those set forth and provided for in the said Schedule. The said articles shall also be exempt from all other duties, taxes, fees, charges or exactions, imposed on or in connection with importation, in excess of those imposed on the day of the signature of this Agreement or required to be imposed thereafter under laws of the United States of America in force on the day of the signature of this Agreement;

3. WHEREAS Schedule II annexed to the said definitive trade agreement with Venezuela provides in part as follows:

4. WHEREAS, BY VIRTUE OF Proclamation No. 2901 of September 6, 1950 (15 F.R. 6063),(8) the United States customs treatment to be applied on and after January 1, 1951, to imports of crude petroleum, topped crude petroleum, and fuel oil derived from petroleum including fuel oil known as gas oil will be that indicated in the third recital of this proclamation;

5. WHEREAS Article VII of the said definitive agreement with Venezuela reads as follows:

In the event the Government of the United States of America or the Government of the United States of Venezuela regulates imports of any article in which the other country has an interest either as regards the total amount permitted to be imported or as regards the amount permitted to be imported at a specified rate of duty, the Government taking such action shall establish in advance, and give public notice of, the total amount permitted to be imported from all countries during any specified period, which shall not be shorter than three months, and of any increase or decrease in such amount during the period, and if shares are allocated to countries of export, the share allocated to the other country shall be based upon the proportion of the total imports of such article from all foreign countries supplied by the other country in a previous representative period, account being taken in so far as practicable in appropriate cases of any special factors which may have affected or may be affecting the trade in that article.;

6. WHEREAS (pursuant to the authority vested in the President by the Constitution and the statutes, including section 350(a) of the Tariff Act of 1930, as amended by section 1 of the said act of June 12, 1934, by the joint resolution approved June 7, 1943, and by sections 2 and 3 of the act of July 5, 1945 (ch. 118, 57 Stat. 125; ch. 269, 59 Stat. 410 and 411), the period for the exercise of the authority under the said section 350 having been extended by section 1 of the said act of July 5, 1945, until the expiration of three years from June 12, 1945), on October 30, 1947, I (1.) entered into a trade agreement with the Governments of the Commonwealth of Australia, the Kingdom of Belgium, the United States of Brazil, Burma, Canada, Ceylon, the Republic of Chile, the Republic of China, the Republic of Cuba, the Czechoslovak Republic, the French Republic, India, Lebanon, the Grand Duchy of Luxemburg, the Kingdom of the Netherlands, New Zealand, the Kingdom of Norway, Pakistan, Southern Rhodesia, Syria, the Union of South Africa, and the United Kingdom of Great Britain and Northern Ireland, which trade agreement consists of the General Agreement on Tariffs and Trade and the related Protocol of Provisional Application thereof, together with the Final Act Adopted at the Conclusion of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment which authenticated the texts of the said General Agreement and the said Protocol (61 Stat. (Parts 5 and 6) A7, A11, and A2051); and (2.) by proclamation No. 2761A((9) of December 16, 1947 (61 Stat. 1103), proclaimed such modifications of existing duties and other import restrictions of the United States of America and such continuance of existing customs or excise treatment of articles imported into the United States of America as were then found to be required or appropriate to carry out such trade agreement;

7. WHEREAS Article XIII of the said General Agreement provides in part as follows:

2. In applying import restrictions to any product, contracting parties shall aim at a distribution of trade in such product approaching as closely as possible to the shares which the various contracting parties might be expected to obtain in the absence of such restrictions, and to this end shall observe the following provisions:

* * * * *

(d) in cases in which a quota is allocated among supplying countries, the contracting party applying the restrictions may seek agreement with respect to the allocation of shares in the quota with all other contracting parties having a substantial interest in supplying the product concerned. In cases in which this method is not reasonably practicable, the contracting party concerned shall allot to contracting parties having a substantial interest in supplying the product shares based upon the proportions, supplied by such contracting parties during a previous representative period, of the total quantity or value of imports of the product, due account being taken of any special factors which may have affected or may be affecting the trade in the product. No conditions or formalities shall be imposed which would prevent any contracting party from utilizing fully the share of any such total quantity or value which has been allotted to it, subject to importation being made within any prescribed period to which the quota may relate.

* * * * *

3. (c) In the case of quotas allocated among supplying countries, the contracting party applying the restrictions shall promptly inform all other contracting parties having an interest in supplying the product concerned of the shares in the quota currently allocated, by quantity or value, to the various supplying countries and shall give public notice thereof.

* * * * *

5. The provisions of this Article shall apply to any tariff quota instituted or maintained by any contracting party, * * *;

8. WHEREAS, after consultation with the Government of the United States of America, the Government of the United States of Venezuela has requested the allocation among the countries of export of the quantity of crude petroleum, topped crude petroleum, and fuel oil derived from petroleum including fuel oil known as gas oil entitled to a reduction in duty by virtue of the said item 3422 of Schedule II annexed to the said definitive trade agreement with Venezuela;

9. WHEREAS I find that, taking into account special factors affecting the trade, imports into the United States of America from all countries of such crude petroleum, topped crude petroleum, and fuel oil derived from petroleum including fuel oil known as gas oil during the calendar years 1946 through 1949 were representative of the trade in such products;

10. WHEREAS I find that the proportions of total imports into the United States of America of such petroleum and fuel oil supplied by Venezuela, by the Kingdom of the Netherlands (including its overseas territories), and by other foreign countries, respectively, during the years 1946 through 1949 were as follows:


Per centum
United States of Venezuela---------------59.4
Kingdom of the Netherlands (including
its overseas territories) ------------------- 18.7
Other foreign countries------------------- 21.9

NOW, THEREFORE, I, HARRY S. TRUMAN, President of the United States of America, acting under and by virtue of the authority vested in me by the Constitution and the statutes, including the said section 350 of the Tariff Act of 1930, as amended, do proclaim that, of the total aggregate quantity of crude petroleum, topped crude petroleum, and fuel oil derived from petroleum including fuel oil known as gas oil, entitled, during the calendar year 1951 to a reduction in the rate of import tax by virtue of the said item 3422 of Schedule II of the said definitive trade agreement with Venezuela, no more than 59.4 per centum shall be the produce or manufacture of the United States of Venezuela, nor more than 18.7 per centum, the produce or manufacture of the Kingdom of the Netherlands (including its overseas territories), nor more than 21.9 per centum, the produce or manufacture of other foreign countries.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the United States of America to be affixed.

DONE at the City of Washington this 29th day of December in the year of our Lord nineteen hundred and fifty, and of the Independence of the United States of America the one hundred and seventy-fifth. [SEAL]

HARRY S. TRUMAN

By the President:

DEAN ACHESON,
Secretary of State.

(1)3 CFR, 1947 Supp.
(2)3 CFR, 1948 Supp., p. 61.
(3)3 CFR, 1948 Supp., p. 87.
(4)3 CFR, 1948 Supp., p. 88
(5)3 CFR, 1949 Supp., p. 43.
(7)3 CFR, 1950 Supp., p. 44.
(8)3 CFR, 1950 Supp., p. 51.
(9)3 CFR, 1947 Supp.