USTR Lists the Country/Tariff Number Pairs That May Lose GSP Benefits Effective July 1, 2007, Etc. (Part I)

(The USTR notes that CNL decisions will be based in part on full calendar year import statistics available from the International Trade Commission (ITC), not on the USTR's computer-generated lists which are highlighted below.)

This is Part I of a BP series of summaries of these four computer-generated lists. Part I includes information on the pairs for which the submission of comments may influence whether they lose or retain GSP duty-free treatment. See future issues for additional pairs that could be affected by the CNLs effective July 1, 2007.

Certain Pairs May Lose GSP Benefits Due to CNLs Effective July 1st

USTR's information provides, among other things, advance notice of the pairs that exceed or may exceed the CNLs for 2006, in order to inform the public of which pairs will lose, or may lose, GSP duty-free treatment on July 1, 2007.

Submission of Comments to Influence CNL Decisions due March 16 or March 23

This notice also affords the public an opportunity to comment on possible CNL de minimis waivers (see below) by 5 p.m., on March 16, 2007 that would allow a pair to retain GSP duty-free treatment. In addition, comments are due by 5 p.m. March 23, 2007 regarding the potential revocation of CNL waivers that have been in effect for at least five years, pursuant to recent amendments to the GSP program enacted in the “Tax Relief and Health Care Act of 2006”.

List I: 17 Pairs Slated to Lose GSP, But 5 of These Eligible for ‘Petitioned Waiver’

List I shows those pairs that appear to have already exceeded one or both of the CNLs based on 12 months of computer-generated data. According to List I, the following 17 pairs would lose GSP duty-free treatment on July 1, 2007 (however 5 pairs of the 17 are eligible for a petitioned waiver (bold), which if granted by the President would allow the pair to retain its GSP treatment):

(Petitioned waivers must be filed before the CNLs are exceeded. See ITT's Online Archives or 01/18/07 news, (Ref: 07011810) for relevant BP summary.)

List II: 99 Pairs Slated to Lose GSP That are Eligible for ‘DeMinimis Waiver’

List II includes 99 pairs which are currently GSP eligible but would exceed the 50% CNL based on 12 months of computer-generated data, and would lose GSP unless they receive a de minimis waiver. The 99 pairs, all eligible for a de minimis waiver, are listed below:

(De minimis waivers are automatically considered by the President, without the need for a petition.)

List IV: 9 Pairs Could Lose GSP Due to New CNL Rules

List IV contains pairs which 12 months of computer-generated data indicates are affected by recently enacted amendments to the GSP program, which allow the President to revoke a CNL waiver that has been in effect for at least five years, if certain thresholds are met. According to USTR sources, USTR is considering whether or not to recommend the revocation of GSP benefits for one or more of the pairs listed below.

(Note that List III pertains to GSP redesignations, and will be covered in a subsequent BP summary.)

(See ITT’s Online Archives or 11/07/06 news, (Ref: 06110705) for BP summary of earlier USTR computer-generated statistics based on 8 months of data.)

USTR Federal Register notice on CNLs and announcement on availability of four CNL lists and ITC data (FR Pub 02/27/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-3394.pdf

USTR's CNL lists available at http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/GSP_Full-Year_2006_Import_Statistics_Relating_to_Competitive_Need_Limitations_(CNLs).html

ITC full calendar year 2006 data available at http://dataweb.usitc.gov

BP Notes on GSP's Two Competitive Needs Limitations, New CNL Rules, Etc.

According to the notice and USTR sources, a GSP beneficiary developing country that is subject to the CNLs test will lose GSP duty-free treatment for an eligible tariff number if exports of that tariff number from the country to the U.S. during a calendar year meet either of the following two CNLs (and no waivers are granted):

1. exports of the tariff number have a value in excess of the applicable amount for that year ($125 million for 2006) (the “value CNL”), or
2. exports of the tariff number have a value equal to or greater than 50% of the value of total U.S. imports of that tariff number from all countries (the “50 percent CNL”).

(Pursuant to 19 USC 2463(c)(2)(D), these CNLs do not apply to least-developed beneficiary developing countries (LDBDCs) or beneficiary AGOA GSP countries.)

In addition, amendments to the GSP program were recently enacted in the “Tax Relief and Health Care Act of 2006” which 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 level 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. (See ITT’s Online Archives or 12/22/06 news, (Ref: 06122205) for BP summary.)

Also, nesoi stands for “not otherwise specified or included”.