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USTR Lists Goods That Could Lose or Regain Eligibility for GSP Duty-Free Treatment

Thursday, March 21, 2013

USTR Lists Goods That Could Lose or Regain Eligibility for GSP Duty-Free Treatment

The Office of the U.S. Trade Representative has made available full calendar year 2012 import statistics showing products that could be excluded from or reinstated to the duty-free treatment available under the Generalized System of Preferences based on competitive need limitations. However, USTR states that its lists may not include all articles to which the CNLs may apply and that each interested party should conduct its own review of 2012 import data with respect to the possible application of the CNL provisions.

Exclusions from GSP duty-free treatment where CNLs have been exceeded will be effective July 1, 2013, unless granted a waiver by the president. USTR is therefore accepting public comments through April 12 on the following issues.

De minimis CNL waivers. When the president determines that a beneficiary developing country exported to the United States during a calendar year either (1) a quantity of a GSP-eligible article having a value in excess of the applicable amount for that year ($155 million for 2012) or (2) a quantity of a GSP-eligible article having a value equal to or greater than 50% 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 unless a waiver is granted in response to a petition previously submitted by an interested party. The 2012 import statistics show that corn (other than seed and yellow dent corn) from Brazil and calcium silicon ferroalloys from Brazil have both exceeded the 50% CNL but that a petition has been filed only with respect to the latter product.

The president may also waive the 50% 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 ($21 million for 2012). USTR has listed over 100 products that qualify for such a waiver.

Redesignation of goods as GSP-eligible. 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 an article for duty-free treatment if imports in the most recently completed calendar year did not exceed the CNLs. USTR’s statistics include approximately 150 products that could be reinstated to GSP eligibility based on this criterion.

Revocation of CNL waivers. A CNL waiver remains in effect until the president determines that it is no longer warranted due to changed circumstances. In addition, not later than July 1 of each year the president should revoke any CNL waiver that has then 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 (1) having an appraised value in excess of 1.5 times the applicable amount for that calendar year ($232.5 million in 2012) or (2) exceeding 75% of the appraised value of total imports of that article into the U.S. during that calendar year. Only one product – new pneumatic radial tires used on automobiles from Indonesia – is listed this year as qualifying to have its CNL waiver revoked. 

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