Just two months after the Generalized System of Preferences was reauthorized, President Obama has issued a proclamation modifying GSP to eliminate benefits for some products and countries and restore or maintain benefits for others. Additional changes could be announced in the coming months based on the results of an ongoing review by the Office of the U.S. Trade Representative.
(Click here to access an on-demand webinar on retroactive and future GSP claims.)
Countries Removed. Seychelles, Uruguay and Venezuela have become high-income countries as defined by the official statistics of the World Bank and will thus be removed from GSP eligibility effective Jan. 1, 2017. Similarly, Seychelles will be removed as a beneficiary under the African Growth and Opportunity Act as of Jan. 1, 2017.
Products Removed. The competitive need limitation waivers for the following products have been revoked, removing them from GSP eligibility, as of Oct. 1.
- plywood sheets not over 6 mm thick (HTSUS 4412.31.40) from Indonesia
- copper, stranded wire (HTSUS 7413.00.10) from Turkey
- copper, cables, plaited bands and the like (HTSUS 7413.00.50) from Turkey
Cotton Products Added. Effective Oct. 1, the following cotton products are being added to the list of GSP-eligible goods when imported from least-developed beneficiary developing countries.
- cotton, not carded or combed, having a staple length under 28.575 mm (1-1/8 inches), not harsh or rough, not elsewhere specified or included (HTSUS 5201.00.18)
- cotton, not carded or combed, harsh or rough, staple length of 29.36875 mm or more but under 34.925 mm & white in color, not elsewhere specified or included (HTSUS 5201.00.28)
- cotton, not carded or combed, staple length of 28.575 mm or more but under 34.925 mm, not elsewhere specified or included (HTSUS 5201.00.38)
- cotton card strips made from cotton waste having staple length under 30.1625 mm and lap, sliver and roving waste, not elsewhere specified or included (HTSUS 5202.99.30)
- cotton fibers, carded or combed, of cotton fiber processed, but not spun, not elsewhere specified or included (HTSUS 5203.00.30)
Benefits Reinstated. The 50 percent CNL is being waived for two products from Thailand, thus reinstating them to GSP eligibility.
- coconuts, otherwise prepared or preserved, not elsewhere specified or included (HTSUS 2008.19.15)
- copper alloys (other than brass, cupro-nickel or nickel-silver), wire, coated or plated with metal (HTSUS 7408.29.10)
Redesignations. The following products that had previously exceeded the applicable CNL are redesignated as GSP-eligible effective Oct. 1.
- oilcake and other solid residues resulting from the extraction of vegetable fats or oils, of sunflower seeds (HTSUS 2306.30.00) from Ukraine
- rare gases other than argon (HTSUS 2804.29.00) from Ukraine
- insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships (HTSUS 8544.30.00) from Indonesia
- parts of railway/tramway locomotives/rolling stock, axles (HTSUS 8607.19.03) from Ukraine
CNL Waivers. The CNLs are being waived, thus maintaining GSP eligibility, for 100 products from 13 countries as of Oct. 1. These include certain flowers, vegetables, nuts, fruits, grains, chemicals, hides and skins, fabrics, carpets, sport gloves and mittens, ceramic tiles, jewelry, audiovisual equipment, brooms and smoking pipes.