USTR Lists the Country/Tariff Number Pairs That May Lose/Gain GSP on July 1st Due to CNLs

USTR has also made available four computer-generated lists indicating the possible GSP changes due to the CNLs, which are highlighted below.

USTR Seeks Comments on Potential Revocation of CNL Waivers, Etc.

USTR seeks comments, by 5 p.m. on March 23, 2009, regarding the (1) potential revocation of CNL waivers that meet the 2006statutory thresholds, (2) possible de minimis CNL waivers, and (3) possible re-designations of articles currently not eligible for GSP benefits because they previously exceeded the CNL thresholds.

Two Pairs Could Lose GSP Due to 2006 CNL Rules

List IV contains the pairs which 12 months of computer-generated data indicates are affected by amendments to the GSP program enacted in 2006 which allow the President to revoke a CNL waiver that has been in effect for at least five years, if certain thresholds are met (see BP note for details). Comments regarding these potential revocations are invited.

14 Pairs Slated to Lose GSP, But CNL Waiver Petitions Accepted for Three

List I shows those pairs that have already exceeded one or both of the CNLs based on 12 months of computer-generated data. According to List I, the following 14 pairs are slated to lose GSP duty-free treatment on July 1, 2009 (however, CNL waiver petitions were accepted for 3 of the 14 pairs (bold), which if granted by the President, will allow the pair to retain its GSP treatment)

(Petitions for such waivers must have beenfiled before the CNLs were exceeded.)

109 Pairs Slated to Lose GSP, But All are Eligible for ‘De Minimis Waiver’

List II includes 109 pairs which are currently GSP eligible but exceed the 50% CNL and are therefore slated to lose GSP unless they receive a de minimis waiver.

The President may waive the 50 percent CNL for a particular pair 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).

De minimis waivers are automatically considered by the President, without the need for a petition. Comments regarding any possible de minimis waivers are invited.

142 Pairs May Regain GSP Benefits if Re-Designated

List III contains 142 pairs currently without GSP benefits that are eligible for possible re-designation based on 2008 trade data (i.e., imports in 2008 did not exceed the CNLs) and consideration of certain statutory guidelines, such as (1) the country's general level of development; (2) its competitiveness in regard to the particular product; (3) the country's practices relating to trade, investment, and worker's rights; (4) the overall economic interests of the U.S., including the effect continued GSP treatment would have on the relevant U.S. producers, workers, and consumers; and (5) any other relevant information. Comments regarding these possible re-designations are invited.

¹nesoi stands for “not elsewhere specified or included”.

(USTR notes that the computer-generated lists published on the USTR Web site are for informational purposes only. They may not include all articles to which the GSP CNLs may apply. USTR adds that all determinations and decisions regarding the CNLs of the GSP program will be based on 2008 full calendar year import data with respect to each GSP-eligible article.)

(See ITT’s Online Archives or 10/17/08 news, (Ref: 08101705), for BP summary announcing that the USTR would not be publishing a "warning list" of country/HTS pairs that could lose GSP on July 1, 2009 due to the CNLs.

See ITT's Online Archives or 01/28/09 news, (Ref: 09012815), for BP summary of CNL waiver petitions accepted and country practice petitions under evaluation for 2008 GSP Annual Review.

See ITT's Online Archives or 09/15/08 news, (Ref: 08091505), for BP summary of the product and country practice petitions filed/ongoing and accepted for 2008 GSP Annual Review.)

-Comments due by 5:00 p.m. on March 23, 2009

USTR contact- Tameka Cooper (202) 395-6971

USTR notice (FR Pub 03/05/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-4646.pdf

Lists I-IV available via email by sending a request to documents@brokerpower.com; should eventually be posted to http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/GSP_2008_Annual_Review/Section_Index.html

BP Note

According to the notice and USTR sources previously contacted, a GSP beneficiary developing country that is subject to the CNLs test will lose GSP duty-free treatment for an eligible tariff number if exports of that tariff number from the country to the U.S. during a calendar year meet either of the following two CNLs (and no waivers are granted):

1. exports of the tariff number have a value in excess of the applicable amount for that year ($135 million for 2008) (the “value CNL”), or

2. exports of the tariff number have a value equal to or greater than 50% of the value of total U.S. imports of that tariff number from all countries (the “50 percent CNL”).

(Pursuant to 19 USC 2463(c)(2)(D), these CNLs do not apply to least-developed beneficiary developing GSP countries (LDBDCs) or beneficiary AGOA GSP countries.)

In addition, the “Tax Relief and Health Care Act of 2006” tightened the GSP CNL waiver criteria by allowing the President to revoke a CNL waiver that has been in effect for at least five years for a GSP-eligible product from a specific country, if its annual trade level in the previous calendar year exceeds 150% of the annual monetary threshold ($202.5 million in 2008) or comprises 75% of all U.S. imports of that product. (See ITT’s Online Archives or 12/20/06 news, (Ref: 06122005), for BP summary.)