USTR to Review CNL Waiver Petition for Tires from Thailand as Part of 2009 GSP Annual Review
The Office of the U.S. Trade Representative has issued a notice announcing the competitive need limitation waiver petitions that are accepted for further review as part of the 2009 Generalized System of Preferences Annual Review1.
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The USTR notes that acceptance of a petition for review does not indicate any opinion with respect to the merits of the petition. Acceptance indicates only that the listed petitions have been found eligible for review by the Trade Policy Staff Committee and that such review will take place.
One Combination Could Lose GSP if CNL Exceeded and Waiver Not Granted
According to the USTR, a CNL waiver petition was accepted for the following country/tariff number combination (which is currently eligible for GSP duty-free benefits, but could lose its benefits on July 1, 2010 if the CNL is exceeded and a waiver is not granted):
| HTS Number | Country | Brief Product Description |
| 4011.10.10 | Thailand | New pneumatic radial tires, of rubber, of a kind used on motor cars (including station wagons and racing cars) |
All other CNL waiver petitions have been rejected.
President can waive both value and 50% CNLs if petitioned. The USTR has previously explained that the President has the authority to waive both the value and 50% CNLs2 for country/tariff number combinations if an interested party petitions for a waiver before the country/tariff number combination exceeds a CNL.
(The President may also waive the 50% CNL with respect to an eligible article imported from a beneficiary developing country 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. USTR has previously stated that no petition is required to be filed for a de minimis waiver.)
1USTR also received petitions to determine that certain products were not produced in the U.S. as of January 1, 1995; however, none were accepted for further review.
2There are two types of CNLs - the value CNL (which is $140 million for 2009) and the 50% CNL (equal to or greater than 50% of the 2009 value of total U.S. imports of the tariff number from all countries). Country/tariff number combinations that exceed one or both CNLs, based on full calendar year 2009 import statistics, will lose GSP duty-free treatment on July 1, 2010, unless a waiver is granted by the President.
The Tax Relief and Health Care Act of 2006 also allows 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 (approximately $210 million in 2009) or comprises 75% of all U.S. imports of that product.
- prehearing briefs and comments, requests to appear at hearing, and hearing statements due by 5 p.m. on 01/21/10
- public hearing on CNL waiver petition accepted for 2009 GSP Annual Review is scheduled for 02/11/10
- post-hearing briefs and comments due by 5 p.m. on 03/04/10
- ITC scheduled to publish report on the product for which the CNL waiver was requested in April 2010
- comments on ITC report due 10 calendar days after date of publication of the ITC report
- Results of 2009 GSP Annual Review will be announced on/around June 30, 2010 and any changes will take effect on the effective date announced.
(See ITT's Online Archives or 10/23/09 news, 09102310, for BP summary of the seven product petitions accepted for review by USTR in connection with the 2009 GSP Annual Review.)
USTR contact - Tameka Cooper (202) 395-6971 or Tameka_Cooper@ustr.eop.gov
USTR notice (FR Pub 01/05/10) available at http://edocket.access.gpo.gov/2010/pdf/E9-31378.pdf