USTR Lists 156 Products That Could Lose GSP Benefits Effective July 1, 2008

There are two types of CNLs -- the value CNL (which is $130 million for 2007) and the 50% CNL (equal to or greater than 50% of the value of total U.S. imports of the tariff number from all countries).

Country/Tariff Number Combinations that Exceed CNL, Lose GSP on July 1st Unless Waiver Granted

The 156 country/tariff number combinations on the warning list could exceed one or both CNLs, depending on final calendar year 2007 import statistics. Combinations that exceed either CNL, based on full calendar year 2007 import statistics, will lose GSP duty-free treatment on July 1, 2008, unless a waiver is granted by the President.

Presidential Discretion to Waive CNLs in Certain Situations, Etc.

According to the USTR, the President has the authority to waive both of these CNLs for a country/tariff number combination if an interested party petitions for a waiver before the combination exceeds a CNL. The deadline for filing such CNL waiver petitions is November 16, 2007.

The President also considers de minimis waivers for all GSP countries that exceed the 50% CNL for a tariff number, if the value of total imports of that tariff number from all countries during the calendar year did not exceed the applicable de minimis amount for the year ($18.5 million for 2007). No petition is required to be filed.

Petitions to Waive CNLs Must be Submitted by November 16, 2007

The USTR states that product petitions to waive one or both of the CNLs for a country/tariff number combination are due by 5 p.m. on November 16, 2007. The USTR states that petitions must conform to the requirements set forth in its May 21, 2007 Federal Register notice. (See ITT's Online Archives or 05/23/07 news, (Ref: 07052310), for BP summary of the USTR's petition requirements.)

Comments on De Minimis Waivers to be Requested in February 2008

The USTR states that comments regarding possible de minimis waivers will be requested in February 2008 in a subsequent Federal Register notice.

156 Country/Tariff Number Combinations on USTR’s Warning List

The 156 country/tariff number combinations that are on the USTR’s Warning List (based on 8 months of data) include:

1. GSP-eligible articles from countries that have already exceeded the CNLs because their import levels in 2007 already amount to more than $130 million, or by an amount greater than 50 percent of the total value of U.S. imports of that product in 2007; and
2. GSP-eligible articles that, based upon the eight-month 2007 data, exceed $100 million or an amount greater than 42 percent of the total value of U.S. imports of that product.

(Note that the few not eligible for a de minimis waiver are in bold. Any CNL decision will be based on full 12-month calendar year 2007 data, which will be available at http://dataweb.usitc.gov in February 2008.)

(The USTR's warning list is computer-generated and may not include all combinations affected by the CNLs.)

USTR contact - GSP subcommittee (202) 395-6971

USTR 8-month warning list, dated August 2007 (includes description of tariff item, value of imports and percent share information) available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/asset_upload_file477_13396.pdf

USTR summary sheet preceding the 8-month warning list, available at http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/GSP_January-August_2007_Trade_Data_Relating_to_CNLs.html

GSP Guidebook (dated January 2006) available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/asset_upload_file26_5430.pdf

USTR notice (FR Pub 10/24/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-20964.pdf

BP Note

Pursuant to 19 USC 2463(c)(2)(D), the CNLs do not apply to GSP least-developed beneficiary developing countries (LDBDCs) or beneficiary African Growth and Opportunity Act (AGOA) GSP countries.