India and Thailand Gold Jewelry, Brazil Brake/Parts and 5 Other Combos Could Lose GSP Due to New CNL Rules
The Office of the U.S. Trade Representative (USTR) has issued a press release regarding the impact of recently enacted competitive need limitation (CNL) waiver amendments to the Generalized System of Preferences (GSP) program contained in the "Tax Relief and Health Care Act of 2006."
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the USTR, the amendments allow the President to revoke a CNL waiver that has been in effect for at least five years for a GSP-eligible product from a specific country, if its annual trade level1 in the previous calendar year exceeds 150 percent of the annual monetary threshold or comprises 75 percent of all U.S. imports of that product.
Preliminary List of Country/Product Combos that Could Lose GSP
Based on available January through October 2006 import data, the USTR's preliminary assessment indicates that CNL waivers for the following country/product combinations, meet one or both of the new statutory thresholds:
| million |
Updated List of Country/Product Combos that Could Lose GSP to be Issued
The USTR states that it expects to issue a Federal Register notice in late February 2007, when full-year 2006 data are available, that will identify those waivers that meet either of the new thresholds and are subject to potential revocation.
1i.e., has exported to the U.S. (either directly or indirectly)
BP Note and Correction
- The "Tax Relief and Health Care Act of 2006" states that the President should revoke CNL waivers that meet the thresholds outlined above not later than July 1 of each year. However, U.S. government sources have opined that any such waiver revocations are likely to take effect with the "regular" annual GSP changes on July 1st. BP will update readers when more details are known.
- Please correct the subtitle in the email version of ITT's 12/20/06 news, 06122005, which incorrectly states that the GSP CNL Waivers would be tightened beginning July 1, 2007. The new law states "not later than July 1". The Online version of the news is already corrected.
USTR press release (dated 12/20/06) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/December/Ambassador_Schwab_Announces_Process_to_Respond_to_Congressional_Changes_to_GSP_Progam.html.