USTR Issues 2007 Edition of GSP Guidebook
The Office of U.S. Trade Representative (USTR) has posted to its Web site an updated version of its document entitled "U.S. Generalized System of Preferences (GSP) Guidebook," which is dated February 2007.
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(The GSP program, which was instituted on January 1, 1976, provides preferential duty-free treatment for 3,400 products from nearly 134 designated beneficiary countries and territories, including 43 least-developed beneficiary developing countries (LDBDCs). In addition, USTR states that the GSP program was most recently renewed in 2006, and its authorization will expire on December 31, 2008 unless extended by legislation.1 )
Various other documents relating to GSP are also on USTR's Web site.
Guidebook Updated to Reflect CNL Changes Made by P.L. 109-432, Etc.
The February 2007 GSP Guidebook was updated from the 2006 version to incorporate the modifications made to GSP by the Tax Relief and Health Care Act of 2006 (Public Law (P.L.) 109-432). Among other things, P.L. 109-432 authorizes the President to revoke any waiver that has been in effect for at least five years, if a GSP-eligible product from a specific country has an annual trade level in the previous calendar year that exceeds 150% of the annual dollar-value limit or exceeds 75% of all U.S. imports.
The 2007 GSP Guidebook was also updated for: the GSP-eligible beneficiaries; the CNL dollar-value limits for 2006, 2007, and 2008; the countries with whom the U.S. has certified handicraft textile arrangements; etc.
This GSP Guidebook is divided into a number of sections, including (partial list):
Frequently Asked Questions
which imports qualify for duty-free treatment under the GSP?
how are GSP articles identified in the HTS?
how are certain products removed from GSP eligibility?
what are CNLs, and are they ever waived?
what happens if imports reach or exceed CNLs during the year?
can imported materials be counted toward the 35% value-added requirement?
what may be included in the direct costs of processing?
what is the certified handicraft textile arrangement and what are the products covered under this arrangement?
etc.
Updated list of CNL waivers from 1989 to 2005.According to USTR sources, the Guidebook provides an updated list with 90 country/product combinations that have been granted CNL waivers (of either the value or percent limit) from 1989 to 2005 by tariff number, country, and brief article description.
1995 Articles Exempt from CNLs. According to the Guidebook, 19 USC 2463(c)(2)(e) exempts from the CNLs certain articles if like or directly competitive articles were not produced in the U.S. on January 1, 1995. The 131 8-digit tariff numbers for such articles are listed in the Guidebook, and span HTS Chapters 3, 4, 5, 7, 8, 9, 12,13, 14, 15, 16, 19, 20, 22, 23, 24, 25, 28, 29, 32, 33, 38, 39, 42, 46, 48, 53, 57, 58, 59, 63, 64, 65, 67, 68, 70, 71, 72, 76, 84, 85, 87, 91, 92, 94, 95, and 96.)
(Also included in the Guidebook is a list of the mandatory and discretionary criteria for country eligibility under GSP, information on submitting a GSP petition, etc.)
Other GSP Documents Also Posted to USTR's Web Site
Also posted to the USTR's Web site are (i) summaries of the U.S. GSP Program (in multiple languages), (ii) USTR regulations pertaining to eligibility of articles and countries for the GSP program, (iii) GSP Federal Register notices, (iv) contact information for GSP, (v) the interim and full-year 2006 import statistics relating to CNLs, (vi) products eligible for GSP treatment from all GSP beneficiary developing countries, (vii) products eligible for GSP treatment from LDBDCs, and (viii) etc.
1Subscribers should note that only the "standard" GSP program (i.e, A, A*, and A) for GSP countries other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries is scheduled to expire on December 31, 2008.
For AGOA beneficiary countries, both the standard GSP program (i.e., A, A*, and A) and the AGOA-GSP program (i.e., D) are scheduled to expire on September 30, 2015.
(See ITT's Online Archives or 07/14/04 news, 04071405, for BP summary of enactment of September 30, 2015 expiration date for AGOA beneficiaries. See ITT's Online Archives or 12/21/06 news, 06122100, for BP summary of P.L.109-432 which extended the standard GSP program for non-AGOA beneficiary countries through December 31, 2008 and states that CNL waivers are tightened.
See ITT's Online Archives or 03/02/07 and 03/06/07 news, 07030205 and 07030605, for Parts I & IIof BP's series of summaries of the list of country/tariff number pairs that may lose or regain GSP benefits effective July 1, 2007.)
February 2007 GSP Guidebook, list of GSP eligible products, etc., available at http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html