USTR Lists the Country/Tariff Number Pairs That May Lose/Gain GSP on July 1st Due to CNLs

USTR has also made available four computer-generated lists indicating the possible GSP changes due to the CNLs, which are highlighted below.

Certain Pairs that Will or May Lose/Gain GSP on July 1st

USTR's information provides, among other things, advance notice of the country/tariff number pairs ("pairs") that exceed the CNLs for 2007, in order to inform the public of which pairs will lose, or may lose, GSP duty-free treatment on July 1, 2008.

In addition, certain pairs that are currently ineligible due to the CNLs, may be redesignated for GSP benefits and are also listed.

(The 2007 GSP Annual Product and Country Practice Review will also consider making six tariff numbers GSP eligible for all beneficiary countries, as well as removing GSP benefits for a pair from India and for a pair from Brazil; see ITT's Online Archives or 09/11/07 and 01/29/08 news, 07091115 and 08012915, for BP summaries.)

Five Pairs Could Lose GSP Due to New CNL Rules

List IV contains the 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.

Comments regarding these potential revocations are due by 5 p.m. on March 21, 2008.

¹nesoi stands for "not otherwise specified or included".

(The USTR notes that its decisions will be based on the full calendar year import statistics, not on the computer-generated lists that are highlighted above.)

(See ITT's Online Archives or 10/25/07 news, 071025100, for BP summary of earlier USTR statistics based on 8 months of 2007 data. See ITT's Online Archives or 01/31/08 news, 08013110, for BP summary of CNL waiver petitions accepted for 2007 GSP Annual Review.)

USTR Federal Register notice on CNLs and announcement on availability of the four CNL lists and ITC data (FR Pub 02/28/08) available at http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E8-3805.pdf

USTR one-page summary and four CNL lists (link at bottom of page) available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/asset_upload_file695_14514.pdf

BP Note

According to the notice and USTR sources previously contacted, 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 ($130 million for 2007) (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 GSP countries (LDBDCs) or beneficiary AGOA GSP countries.)

In addition, amendments to the GSP program were 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, 06122205 for BP summary.)