USTR sets March 23 deadline for comments on GSP eligibility of imported goods
March 5, 2009
World Trade\Interactive
The Office of the U.S. Trade Representative has issued a notice announcing the availability of full calendar year 2008 import statistics relating to competitive need limitations under the Generalized System of Preferences. These statistics will be used in determining whether changes will be made to the GSP eligibility of certain goods.
GSP provides for the duty-free importation of designated articles when imported from designated beneficiary developing countries. When the president determines that a BDC exported to the U.S. during a given calendar year a quantity of a GSP-eligible article having a value that is either (a) in excess of the applicable amount for that year ($135 million for 2008) or (b) equal to or greater than 50 percent of the value of total U.S. imports of the article from all countries, the president must terminate GSP duty-free treatment for that article from that BDC by no later than July 1 of the next calendar year. However, the following considerations apply.
• The president may waive the 50 percent CNL with respect to an eligible article imported from a BDC if the value of total imports of that article from all countries during the calendar year did not exceed the applicable de minimis amount for that year ($19 million for 2008).
• If imports of an eligible article from a BDC ceased to receive duty-free treatment due to exceeding a CNL in a prior year, the president may redesignate such article for duty-free treatment if imports in the most recently completed calendar year did not exceed the CNL.
• A CNL waiver remains in effect until the president determines that it is no longer warranted due to changed circumstances. In addition, a law passed several years ago provides that not later than July 1 of each year the president should revoke any CNL waiver that has been in effect with respect to an article for five years or more if the BDC has exported to the U.S. (directly or indirectly) during the preceding calendar year a quantity of the article that (a) has an appraised value in excess of 1.5 times the applicable amount for that calendar year ($202.5 million in 2008) or (b) exceeds 75 percent of the appraised value of the total imports of that article into the U.S. during that calendar year.
In order to provide notice of articles whose eligibility for GSP treatment may be changing due to these considerations, the USTR will be publishing on its Web site the following lists.
• articles that became ineligible for GSP treatment on or before July 1, 2008, and GSP-eligible articles that exceeded a CNL
• GSP-eligible articles that are above the 50 percent CNL but are eligible for a de minimis waiver
• GSP-eligible articles that are currently not receiving GSP duty-free treatment but may be considered for redesignation based on 2008 trade data and certain statutory factors
• articles subject to the new CNL waiver thresholds
The USTR cautions that these lists are for informational purposes only and may not include all articles to which the CNLs may apply. All determinations and decisions regarding CNLs will be based on full calendar year 2008 import data, and each interested party is advised to conduct its own review of that data with respect to the possible application of the CNL provisions. Import statistics for individual tariff subheadings may be viewed on the International Trade Commission Web site.
Comments on the potential revocation of CNL waivers that meet the statutory thresholds, possible de minimis CNL waivers and possible redesignations of articles not currently eligible for GSP benefits are due by 5:00 p.m. March 23.
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