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Presidential Proclamation Adds/Deletes Numerous Countries from GSP

President Bush has issued Proclamation 7758 in order to delete ten countries from, and add one country to, the list of Generalized System of Preferences (GSP) beneficiary developing countries.

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Algeria Eligible for GSP Duty-Free Benefits Effective March 16, 2004

According to Proclamation 7758, President Bush has decided to designate Algeria as a GSP beneficiary developing country effective for articles entered, or withdrawn from warehouse, for consumption on or after March 16, 2004.

(See ITT's Online Archives or 07/18/03 news, 03071815, for BP summary on possible designation of Algeria as a GSP beneficiary developing country.)

GSP Duty-Free Benefits Scheduled to Terminate on May 1, 2004 for Seven New EU Members (i.e. Poland, Hungary, Czech Republic, etc.)

The proclamation also terminates the designation of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, and Slovakia as GSP beneficiary developing countries, effective for articles entered, or withdrawn from warehouse, for consumption on or after a date announced by the USTR in a Federal Register notice.

(As each of these countries is scheduled to become a European Union (EU) member state on May 1, 2004, it is expected that GSP will be terminated for these countries effective for articles entered, or withdrawn from warehouse, for consumption on or after May 1, 2004. 19 USC 2462(b)(1)(C)) specifies that EU member states may not be designated as GSP beneficiary developing countries.)

GSP Duty-Free Benefits Terminated on January 1, 2006 for Antigua and Barbuda, Bahrain, and Barbados

The proclamation also states that President Bush has also determined that Antigua and Barbuda, Bahrain, and Barbados have become "high income" countries and, as a result, is terminating the designation of those countries as GSP beneficiary developing countries effective for articles entered, or withdrawn from warehouse, for consumption on or after January 1, 2006.

Proclamation Also Makes Conforming Changes to HTS General Note 4(a)

Proclamation 7758 also provides for the modification of the Harmonized Tariff Schedule (HTS) General Note 4(a), which contains the list of GSP beneficiary developing countries, to reflect the GSP additions and deletions outlined above.

ACS Has Been Updated to Reflect GSP Additions and Deletions

U.S. Customs and Border Protection (CBP) sources have confirmed that the Automated Commercial System (ACS) has been updated to reflect all of the actual and scheduled GSP changes and effective dates outlined above.

Proclamation 7758, dated March 1, 2004, available at

http://www.whitehouse.gov/news/releases/2004/03/20040301-9.html.