USTR Issues 2008 Edition of GSP Guidebook
The Office of U.S. Trade Representative has posted an updated version of its "U.S. Generalized System of Preferences Guidebook," dated March 2008.
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(The GSP program, which was instituted on January 1, 1976, provides preferential duty-free treatment for 3,400 products from 131 designated beneficiary countries and territories, including 42 least-developed beneficiary developing countries (LDBDCs). In addition, USTR states that the GSP program was most recently renewed in 2006, which continued the GSP program through December 31, 20081.)
Various other documents relating to GSP are also on USTR's Web site.
Guidebook Covers Eligibility Criteria, CNLs, Petition Instructions
This GSP Guidebook is divided into a number of sections, including:
Frequently Asked Questions
GSP-Eligible Articles
How to Claim GSP Benefits for Eligible Articles upon entry into the U.S.
GSP Beneficiary Developing Countries
Competitive Need Limitations and Requests for Waivers
Graduation of a Beneficiary Country from GSP
Rules-of-Origin Requirements
"Imported Directly" Requirement
Handicraft Textiles
Other Topics
Mandatory and discretionary criteria for eligibility. The Guidebook lists the mandatory criteria for eligibility that each country must satisfy before being designated as a GSP beneficiary, as well as the discretionary criteria that the President must take into account in determining whether to designate a country as a beneficiary country for purposes of the GSP program.
Competitive Need Limitations. The Guidebook lists the articles (by HTS subheading) that the President has determined are exempt from the competitive need limitation, as like or directly competitive articles were not produced in the U.S. on January 1, 1995. The guidebook explains that a CNL mandates the termination of duty-free treatment of an article by July 1 of the calendar year following the year in which imports of that article by a beneficiary exceeded 50% of all U.S. imports of the article (the 50% CNL) or a dollar value set by a formula (the value CNL, $120 million in 2005, increasing by $5 million each year), unless a waiver is granted.
Submitting a GSP petition. The Guidebook also contains information on submitting a GSP petition, stating that the most important source for instructions on submitting a GSP petition is the Federal Register, which publishes annual Product and/or Country Practice Reviews. These announcements include specific instructions - which must be followed - regarding a petition's format, timing, and method of submission to the GSP Subcommittee.
Other GSP Documents Also Posted to USTR's Web Site
USTR has also posted general GSP program information to its Web site, including 2007 GSP-eligible products, GSP beneficiary countries, legislation authorizing the GSP program, and USTR regulations pertaining to eligibility of articles and countries for the GSP program.
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) will expire on December 31, 2008, unless a law is passed extending it.
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.
March 2008 GSP Guidebook, list of GSP eligible products, etc., available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/asset_upload_file666_8359.pdf