Presidential Proclamation Implements July 1st GSP Changes, Etc . (Part I)

This is Part I of a multi-part series of summaries on this proclamation and its annexes, and focuses on the GSP changes and the addition and termination of certain GSP and AGOA designations. See future issues of ITT for additional changes made by the proclamation.

Three Aluminum Product Tariff Numbers Now Eligible for All GSP Countries

Effective for goods entered or withdrawn from warehouse for consumption on or after July 1, 2008, three tariff numbers for aluminum products are added to the list of GSP-eligible products from all beneficiary countries. Previously, these aluminum products were only GSP-eligible from least developed GSP beneficiary countries.

No Country/Tariff Number Pairs Gain GSP

No country/tariff number pairs gained GSP benefits on July 1, 2008.

25 Country/Tariff Number Pairs Lose GSP

The following country/tariff number pairs lost their GSP benefits (and were therefore added to HTS General Note 4(d)), effective for goods entered or withdrawn from warehouse for consumption on or after July 1, 2008:

The Office of the U.S. Trade Representative (USTR) states that in 2007, imports of these 25 country/tariff number pairs that lost their GSP benefits were valued at approximately $1.4 billion.

This group includes 21 products that exceeded the statutory competitive needs limitations (CNLs) and four products that have had waivers to the CNLs for the past five years and are now subject to statutory "super-competitiveness" thresholds (new CNL rules). Products that lost their GSP due to the new CNL rules include certain gold necklaces and neck chains from India and certain precious metal (other than silver) jewelry from Turkey. (See ITT's Online Archives or 03/10/08 news, 08031005, for earlier BP summary.)

Conforming amendments are also made to the HTS "Rates of Duty-Special" subcolumn by deleting the symbol "A" and inserting "A*."

Serbia and Montenegro Designated as Separate GSP Countries

The Republic of Serbia and the Republic of Montenegro are designated as independent beneficiary developing countries (BDCs) for purposes of the GSP. In order to reflect these designations in the HTS, General Note 4(a) is modified by deleting "Serbia and Montenegro" and adding in alphabetical order "Montenegro" and "Serbia" to the list of independent countries, effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the thirtieth day after June 30, 2008.

Trinidad and Tobago to Lose GSP on January 1, 2010

The Proclamation also terminates the designation of Trinidad and Tobago as a BDC for purposes of the GSP, effective on January 1, 2010, as the President has determined that Trinidad and Tobago has become a "high income" country.

Comoros Designated as a "Beneficiary" and "Lesser Developed" AGOA Country

Comoros is designated as an eligible AGOA country¹, effective for goods entered or withdrawn from warehouse on or after July 1, 2008.

Comoros is also determined to be a "lesser developed" beneficiary AGOA country.

(See ITT's Online Archives or 06/19/08 news, 08061905, for most recent BP summaryof the USTR lists of country/tariff number pairs that may lose/regain GSP benefits effective July 1, 2008.)

¹Note that the Proclamation uses the term "beneficiary sub-Saharan African country(ies)" while this ITT notice uses the term AGOA beneficiary country(ies).

USTR press release on GSP changes, etc. (dated 06/30/08), available at http://www.ustr.gov/Document_Library/Press_Releases/2008/June/Bush_Administration_Completes_2007_Annual_Review_of_Generalized_System_of_Preferences_Program.html

USTR's version of proclamation (dated 06/30/08) available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/GSP_Results_of_the_2007_Annual_Review/asset_upload_file725_14977.pdf

GSP 2007 annual review results lists available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/GSP_Results_of_the_2007_Annual_Review/asset_upload_file947_14976.pdf