Reminder on the Country/HTS Pairs that May Lose/Gain GSP on July 1st
In February 2008, the Office of the U.S. Trade Representative issued its full calendar year 2007 import statistics relating to competitive need limitation (CNL) waivers under the Generalized System of Preferences (GSP) program, including those products whose CNL waivers may be revoked due to new CNL rules.
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USTR had also made available four computer-generated lists indicating the possible GSP changes due to the CNLs.
(Note that the GSP program for most beneficiary countries is scheduled to expire on December 31, 2008. See ITT's Online Archives or 06/19/08 news, 08061920, for BP summary of recent GAO testimony on U.S. trade preference programs due to expire this year.)
Certain Pairs to Lose or Gain GSP on July 1, 2008
USTR's lists provide 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.
Five Pairs Could Lose GSP Due to New CNL Rules
Five pairs could lose their GSP benefits due to CNL rules that were enacted as part of the Tax Relief and Health Care Act of 2006 (Public Law 109-432), which allows 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 levelin the previous calendar year exceeds 150% of the annual monetary threshold or comprises 75% of all U.S. imports of that product. These pairs are listed as:
| Country | Product | HTS No. |
| Argentina | Peanuts (ground-nuts), not roasted or cooked, shelled, subject to HTS Chapter 12, Additional U.S. Note 2 | 1202.20.40 |
| Brazil | Ferroniobium, nesoi | 7202.93.80 |
| Colombia | Miniature (spray) carnations, fresh cut | 0603.12.30 |
| India | Gold necklaces and neck chains (other than of rope or mixed links) | 7113.19.29 |
| Turkey | Precious metal (other than silver) articles of jewelry and parts thereto, whether or not plated or clad with precious metal, nesoi1 | 7113.19.50 |
Nine Pairs Slated to Lose GSP, But Three Eligible for 'Petitioned Waiver'
In addition, nine pairs have exceeded one or both of the CNLs based on 12 months of computer-generated data and are slated to lose GSP duty-free treatment on July 1, 2008 (however 3 of the 9 pairs are eligible for a petitioned waiver (*), which if granted by the President, will allow the pair to retain its GSP treatment). These pairs are listed as:
| Country | Product | HTS No. |
| Colombia | Vegetable, mineral or gum materials, worked and articles of these materials | 9602.00.50 |
| India | Cucumbers including gherkins, prepared or preserved by vinegar or acetic acid * | 2001.10.00 |
| India | Essential oils of peppermint (Mentha piperita) | 3301.24.00 |
| Indonesia | Fatty substances of animal or vegetable origin and mixtures thereof, not otherwise specified or included | 3824.90.40 |
| Indonesia | New pneumatic radial tires, of rubber, of a kind used on motor cars (including station wagons and racing cars)* | 4011.10.10 |
| Indonesia | Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft, or ships | 8544.30.00 |
| Kazakhstan | Ferrochromium containing by weight more than 4 percent of carbon | 7202.41.00 |
| Kazakhstan | Zinc (o/than alloy), unwrought, o/than casting-grade zinc, containing at least 97.5% but less than 99.99% by wt. of zinc | 7901.12.50 |
| Turkey | Copper, cables, plaited bands and the like, not fitted with fittings and not made up into articles * | 7413.00.50 |
Certain Other Pairs May Lose/Gain GSP
USTR's two other lists indicate other pairs that could experience GSP changes due to the CNLs.
One list includes 109 pairs which are currently GSP eligible but exceed the 50% CNL and are therefore slated to lose GSP unless they receive a de minimis waiver. (De minimis waivers are automatically considered by the President, without the need for a petition.)
The other list contains the pairs currently without GSP benefits that are eligible for possible redesignation. USTR and the GSP Guidebook indicate that redesignation determinations are normally based on 2007 trade data, as well as certain factors, such as the country's general level of development, its competitiveness in the particular product, etc.
(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 two pairs. See ITT's Online Archives or 09/11/07, 12/14/07, and 01/29/08 news, 07091115, 07121420, and 08012915, for BP summaries.)
(See ITT's Online Archives or 03/10/08 news, 08031005, for BP summary of the USTR's announcement of availability of its 2007 full calendar year import statistics, including its four lists indicating possible GSP changes due to CNLs.
See ITT's Online Archives or 12/20/06 news, 06122005, for BP summary on the Tax Relief and Health Care Act of 2006'sextension of the GSP program for non-AGOA countries through December 31, 2008.
See ITT's Online Archives or 05/22/08 news, 08052200, for BP reminder that the GSP program will expire on December 31, 2008 for non-AGOA beneficiary countries, unless a law extending it is enacted.)
USTR 2007 List IV statistics available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/asset_upload_file820_14512.pdf
USTR Federal Register notice (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