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GSP Eligibility Rejected for Numerous Products

Friday, November 16, 2018
Sandler, Travis & Rosenberg Trade Report

Requests to grant or extend duty-free treatment for dozens of products under the Generalized System of Preferences were denied in the 2016/2017 annual review of this program. At the same time, the review also resulted in other products retaining or receiving GSP eligibility. The Office of the U.S. Trade Representative has provided the following overview of these changes, which were implemented as of Nov. 1 through a recent presidential proclamation.

Additions Denied

Petitions to add the following products to the list of those eligible for GSP duty-free treatment from all beneficiary developing countries were denied, and these products may not be reconsidered for addition to GSP for the next three years. However, these goods remain eligible for GSP when imported from least-developed BDCs.

- fresh pears (HTSUS 0808.30.40)

- melon and citrus fruit peel (HTSUS 0814.00.80)

- cottonseed (HTSUS 1207.29.00)

- crude sunflower seed or safflower oil (HTSUS 1512.11.00)

- prepared or preserved apples (HTSUS 2008.99.05)

- p-Anisic acid, clofibrate, and 3-phenoxybenzoic acid (HTSUS 2918.99.05)

- aromatic carboxylic acids and their derivatives (HTSUS 2918.99.43 and 2918.99.47)

- rubber transmission V-belts (HTSUS 4010.33.30)

Removals Approved

Tart cherry juice concentrate and other cherry juice (HTSUS 2009.89.6011 and 2009.89.6019) from Turkey has been removed from GSP eligibility and is now subject to normal trade relations duty rates under new subheadings 2009.89.65 and 2009.89.70.

Removals Denied

A petition to remove non-adhesive plates, sheets, film, foil and strip of polymethyl methacrylate (HTSUS 3920.51.50) from Indonesia and Thailand from GSP was denied. As a result, these products will continue to enter the U.S. duty-free.

Redesignations Approved

Ammonium perrhenate (HTSUS 2841.90.20) from Kazakhstan has been redesignated as eligible for GSP and will therefore once again enter the U.S. duty-free.

Redesignations Denied

Petitions to redesignate the following products as GSP-eligible were denied. These products will continue to enter the U.S. at NTR duty rates and may not be reconsidered for addition to GSP for the next three years.

- apple, quince, and pear pastes and purees (HTSUS 2007.9948) from Argentina

- sunflower seed oilcake (HTSUS 2306.30.00) from Argentina

- odoriferous or flavoring compounds (HTSUS 2909.50.40) from Indonesia

- fancy bovine and equine leather (full grain, whole, unsplit) (HTSUS 4107.11.80) from Argentina

- tropical plywood sheets (HTSUS 4412.31.41) from Indonesia

- granite monumental or building stone and articles thereof (HTSUS 6802.93.00) from India

- ferroniobium (HTSUS 7202.93.80) from Brazil

New Exclusions by CNL

The following products exceeded the applicable competitive need limits in 2017 and no petition to waive these CNLs was received. As a result, these products will now enter the U.S. at NTR duty rates.

- ethers of acyclic monohydric alcohols (HTSUS 2909.19.18) from Brazil

- refined copper (HTSUS 7403.19.00) from Brazil

- washing machines (HTSUS 8450.20.00) from Thailand

CNL Waivers Granted

Waivers from the applicable CNLs were granted for the following products, which will continue to enter the U.S. duty-free.

- edible birds’ nests (HTSUS 0410.00.00) from Indonesia

- lithium carbonates (HTSUS 2836.91.00) from Argentina

- ferrosilicon chromium (HTSUS 7202.50.00) from Kazakhstan

CNL Waivers Denied

The following products did not receive a CNL waiver and are therefore subject to NTR duty rates.

- essential oils of lemon (HTSUS 3301.03.00) from Argentina

- monumental or building stone and articles thereof (HTSUS 6802.99.00) from Brazil

In addition, no waivers were granted for 92 products (see list VI in the attached document) that exceeded the 50 percent import share CNL but for which the aggregate value of all U.S. imports of that article was below the 2017 de minimis level of $23.5 million. These products are now subject to NTR duty rates.

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