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 lists¹ indicating the possible GSP changes due to the CNLs, which are highlighted below.

USTR Seeks Comments on Potential Revocation of GSP for Pairs, Etc.

USTR seeks comments, by 5 p.m. on March 25, 2010, regarding certain country/tariff number pairs that could lose their GSP eligibility (1) due to certain 2006 statutory thresholds for pairs with CNL waivers, (2) for exceeding one or both CNLs (value and/or 50%) or (3) for exceeding the 50% CNL (see BP note for details).

Comments are also sought on the possible re-designations of articles currently ineligible for GSP benefits, as they previously exceeded the CNL thresholds.

Two Pairs Could Lose GSP Due to 2006 CNL Rules

List IV contains the pairs affected by the 2006 GSP program amendments that allow the President to revoke a CNL waiver that has been in effect for at least five years, if certain thresholds are met. Such revocation would lead to loss of GSP benefits. Comments regarding these potential revocations are invited.

Four Pairs Slated to Lose GSP, but CNL Waiver Petition Accepted for One

List I shows those pairs that have already exceeded one or both of the CNLs. According to List I, the following four pairs are slated to lose GSP duty-free treatment on July 1, 2010 (however, a CNL waiver petition was accepted for 1 of the 4 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.)

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

List II includes 108 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% 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 ($19.5 million for 2009).

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

177 Pairs May Regain GSP Benefits if Re-Designated

List III contains 177 pairs currently without GSP benefits that are eligible for possible re-designation by the President based on 2009 trade data (i.e., imports in 2009 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.

¹USTR notes that the computer-generated lists published on the USTR website 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 2009 full calendar year import data with respect to each GSP-eligible article. In addition, interested parties should conduct their own data review for pairs of concern.

(See ITT’s Online Archives or 01/06/10 news, 10010605, for BP summary of USTR accepting the CNL waiver on tires from Thailand for review.

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.

See ITT’s Online Archives or 03/06/09 news, 09030610, for BP summary of last year’s listing of pairs that could lose/gain GSP on July 1, 2009)

-Comments due by 5:00 p.m. on March 25, 2010

USTR contact- Tameka Cooper (202) 395-6971

Lists I-IV are available http://edocket.access.gpo.gov/2010/pdf/2010-4706.pdf

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 ($140 million for 2009) (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 ($210 million in 2009) or comprises 75% of all U.S. imports of that product. (See ITT’s Online Archives or 12/20/06 news, 06122005, for BP summary.)