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Presidential Proclamation Implements July 1st GSP Changes, Etc.

On June 29, 2009, President Obama issued Proclamation 8394 in order to amend the tariff schedule to modify duty-free treatment and certain designations under the Generalized System of Preferences, and for other purposes.

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Two Tariff Numbers Now Eligible for All GSP Countries

Effective for goods entered or withdrawn from warehouse for consumption on or after July 1, 2009, the following tariff numbers are added to the list of GSP-eligible products from all beneficiary countries. Previously, these products were only GSP-eligible from least developed GSP beneficiary countries.

0710.10.00*0710.30.00*

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

12 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pairs lost their GSP benefits (and were therefore added to HTS General Note 4(d)), effective for goods entered or withdrawn from warehouse for consumption on or after July 1, 2009:

1604.15.00*Thailand2933.59.59*India7113.11.50*India
2804.29.00*Ukraine3824.90.40Argentina7907.00.20*India
2819.10.00*Turkey3907.60.00Indonesia8607.19.03*Ukraine
2918.99.30*India3920.59.10*India8708.50.79*India

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

Technical and Conforming Changes

The Proclamation also makes the following technical and conforming changes to the HTS:

Personal exemptions. Effective with respect to goods entered or withdrawn from warehouse for consumption on or after December 3, 2004, HTS Chapter 98, Subchapter IV, U.S. Note 4 on personal exemptions extended to residents and non-residents has been modified to read as follows "As used in subheading 9804.00.72, the term "beneficiary country" means a country listed in general notes 7(a) or 11(a)." The phrase "subheadings of 9804.00.70 and" has been deleted.

U.S.-Chile FTA artichokes. Effective for goods of Chile entered or withdrawn from warehouse for consumption on or after January 1, 2009, HTS Chapter 99, Subchapter XI, U.S. Note 13 (TRQ for artichokes), and subheadings 9911.20.05 through 9911.20.15 (artichokes) and the immediate text thereto are deleted.

(Artichokes from Chile are now duty-free and no longer subject to a TRQ. (Artichokes from Chile were one of the CFTA agricultural goods benefiting from an acceleration in the elimination of duties. See ITT's Online Archives or 01/16/09 news, 09011625, for BP summary.)

U.S.-Oman FTA bovine carcasses. Effective with respect to goods of Oman entered or withdrawn from warehouse for consumption on or after January 1, 2009, the special duty rate for HTS subheading 0201.10.50 (certain bovine carcasses) has been modified to read as follows: "See 9916.02.05 - 9916.02.10 (OM)." (Prior to the modification it read as "See 9914.02.05 - 9916.02.10 (OM).")

(See Proclamation for information on the 109 country tariff number pairs granted a de minimis waiver for this year's review; the CNL waiver revoked for Kazakhstan 7202.50.00 (but this tariff number was also added to the 503(c)(1)(E) list); and the CNL waivers granted for Argentina 4107.91.80, and Turkey 7413.00.10 this year. These decisions allow these products to continue to receive their prior GSP treatment and do not require any amendments to the HTS.)

(See ITT's Online Archives or 07/01/09 news, 09070105, for BP summary of GSP changes effective July 1, 2009.

See ITT's Online Archives or 07/07/09 news, 09070705, for BP summary of the ITC posting the July 1, 2009 HTS to its website.)

Proclamation 8394 (FR Pub 07/02/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-15907.pdf

BP Note

Note that the GSP program (i.e., A, A*, and A) for most beneficiary countries, i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, will expire on December 31, 2009, unless a law extending it is enacted. Both House and Senate sources have stated that they are working on a trade preference reform package, which would include GSP. (See ITT's Online Archives or 06/16/09 news, 09061605, for BP summary)