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Practice Areas

Changes to Duty-Free Treatment Under Generalized System of Preferences

Monday, July 01, 2013
Sandler, Travis & Rosenberg Trade Report

As a result of its 2012 review of the Generalized System of Preferences, the Obama administration has announced the following actions concerning the products and countries eligible for duty-free treatment when imported into the U.S. under GSP. Product-specific changes (see attached document for details) will likely take effect July 1.

- GSP treatment for all products from Bangladesh will be suspended as of 60 days after a presidential proclamation setting forth that decision is published in the Federal Register.

- New pneumatic radial tires, of rubber, of a kind used on motor cars (HTSUS 4011.10.10) from Indonesia are being removed from GSP eligibility due to the revocation of the waiver of the competitive need limitation for this product.

- Corn other than seed and yellow dent corn (HTSUS 1005.90.40) from Brazil is being removed from GSP eligibility because imports of this product exceeded the CNL.

- A petition to review Ecuador’s compliance with GSP eligibility requirements concerning arbitral awards was accepted but a decision on accepting a petition to review Russia’s compliance concerning expropriation was again deferred.

- Refined copper wire with a maximum cross-sectional dimension of 6 mm or less (HTSUS 7408.19.0030) will not be granted GSP eligibility after a petition requesting such treatment was denied.

- Calcium silicon ferroalloys (HTSUS 7202.99.20) will continue to receive GSP treatment due to a CNL waiver.

- A decision on adding the following to the list of GSP-eligible products was deferred: sweetheart, spray and other roses, fresh cut (HTSUS 0603.11.00); broccoli, uncooked or cooked by steaming or boiling in water, frozen (HTSUS 0710.80.97); and artichokes, prepared or preserved otherwise than by vinegar or acetic acid, not frozen (HTSUS 2005.99.80).

- GSP treatment will continue to be available by virtue of de minimis waivers from the CNLs for more than one hundred products, including fresh cut orchids from Thailand (HTSUS 0603.13.00), shelled pistachios from Turkey (HTSUS 0802.52.00), hand-loomed cotton fabrics from India (HTSUS 5208.31.20 and 5208.31.30), cotton sports gloves from Indonesia (HTSUS 6216.00.35) and certain necklaces from India (HTSUS 7113.20.25).

- Petitions to redesignate as eligible for GSP treatment more than one hundred products that have previously exceeded the CNLs were denied.

- The following previously accepted country practice petitions remain under review: Fiji, Georgia, Iraq and the Philippines for worker rights; Indonesia, Russia, Ukraine and Uzbekistan for intellectual property rights; and Niger and Uzbekistan for forced and child labor.

- Technical corrections to the Harmonized Tariff Schedule of the U.S. are being made to reflect the proper tariff treatment of goods covered by the World Trade Organization’s Information Technology Agreement and the U.S.-Colombia free trade agreement (specific details will not be available until the presidential proclamation is published in the Federal Register).

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