USTR Reinstates GSP Duty-Free Benefits for Ukraine
According to a press release from the U.S. Trade Representative (USTR) and USTR sources, duty-free benefits under the Generalized System of Preferences (GSP) program have been reinstated for Ukraine effective January 23, 2006.
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Ukraine's GSP benefits were suspended on August 24, 2001 in response to certain acts, policies, and practices of Ukraine regarding the protection of intellectual property rights (IPR), particularly the illegal manufacturing in Ukraine of optical media products, such as CDs and DVDs. (See ITT's Online Archives or 08/10/01, 01081015 for BP summary of USTR's GSP suspension notice for Ukraine.)
The USTR's press release states that this reinstatement is in recognition of the Government of Ukraine's efforts to improve the enforcement and protection of IPR, particularly with respect to copyright privacy.
USTR sources note that although qualifying Ukraine products are once again eligible for GSP duty-free treatment under tariff numbers designated by A or A* (except if the A* exclusion is for a Ukraine/product combination), Ukraine is not considered to be a least developed beneficiary developing country (LDBDC) for purposes of the GSP program, and as a result is ineligible for GSP duty-free treatment for products classified under tariff numbers designated by A.
The press release also states that the USTR is lowering Ukraine's designation under Special 301 from Priority Foreign Country to Priority Watch List.
(See ITT's Online Archives or 09/02/05 news, 05090205 for BP summary of USTR notice lifting, effective August 30, 2005, 100% duty rates on 23 8-digit tariff numbers that had been in place since 2002.)
USTR press release (dated 01/23/05) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/January/USTR_Reinstates_Generalized_System_of_Preferences_Benefits_for_Ukraine.html