USTR to Consider Removing GSP for India Gold Chains, Etc., in 2009 Annual Review
The Office of the U.S. Trade Representative has issued a notice announcing that it accepted seven petitions in connection with the 2009 Generalized System of Preferences Annual Review to modify the list of products that are eligible for duty-free treatment under the GSP program.
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USTR states that acceptance of a petition for review does not indicate any opinion with respect to the disposition on the merits of the petition. Acceptance indicates only that the listed petitions have been found eligible for review by the TPSC and that such review will take place1.
List of Product Petitions Do Not Include Those Requesting CNL Waivers
The accepted petitions were product petitions otherthan product petitions requesting competitive needs limitation (CNL) waivers.
The deadline for the submission of product petitions requesting CNL waivers as part of the 2009 GSP Annual is 5 p.m., November 17, 2009 (in order to allow petitioners an opportunity to review additional annual U.S. import statistics). The USTR states that a review of those petitions will be conducted later.
(There are two types of CNLs - the value CNL (which is $140 million for 2009) and the 50% CNL (equal to or greater than 50% of the 2009 value of total U.S. imports of the tariff number from all countries). Once either limit is reached, trade is considered "competitive" and imports of the article automatically become ineligible for GSP treatment, unless a waiver is granted.)
Two Petitions to Remove GSP-Eligibility for Certain Gold Necklaces/Chains from India
USTR has accepted the following petitions to remove GSP duty-free eligibility from a country/Harmonized Tariff Schedule number combination:
| HTS Number | Request | Brief Description of Product |
| 7113.19.21 | Remove for India | Gold rope necklaces and neck chains |
| 7113.19.25 | Remove for India | Gold mixed link necklaces and neck chains (remove CNL waiver, thus removing from duty-free status) |
Five Petitions to Make Certain Vegetables, Wire, Fatty Alcohols, Etc. GSP-Eligible
USTR has accepted five petitions to make the following HTS numbers eligible for GSP:
| HTS Number | Brief Description of Product |
| 0710.22.40 | Beans nesi, uncooked or cooked by steaming or boiling in water, frozen, reduced in size (green beans, lima beans, misc.) |
| 0710.90.91 | Mixtures of vegetables nesi, uncooked or cooked by steaming or boiling in water, frozen |
| 2905.17.00 | Dodecan-1-ol (Lauryl alcohol); hexadecan-1-ol (Cetyl alcohol); octadecan-1-ol (Stearyl alcohol) |
| 3823.70.40 | Industrial fatty alcohols, other than oleyl, derived from fatty substances of animal or vegetable origin |
| 7614.10.10 | Aluminum stranded wire, cables & the like with steel core, not electrically insulated, not fitted with fittings & not made up into articles |
GSP Subcommittee Invites Comments, Announces Schedule for Proceedings
The GSP Subcommittee will hold a public hearing on all product petitions (otherthan product petitions requesting CNL waivers) accepted for the 2009 GSP Annual Review on November 19, 2009 in Washington, DC. USTR's notice provides the deadlines for the submission of pre-hearing briefs and requests to appear at the hearing, as well as the deadline for post-hearing briefs.
Modifications to the list of articles eligible for GSP duty-free treatment resulting from the review will be announced on or about June 30, 2010, and any changes will take effect on the effective date announced (usually July 1st).
The ITC's is scheduled to publish a public version of its report providing advice on the potential impacts on U.S. industry and consumers based on the product petitions accepted in the 2009 GSP Annual Review. Comments on the ITC report on these products is due 10 calendar days after the date of ITC's publication of the public version of the report.2
1The petitions that were received requested 164 modifications in the list of GSP-eligible products by adding new products for eligibility from all GSP beneficiaries, by removing products from eligibility when imported from specific GSP-eligible countries, or other changes. The interagency GSP Subcommittee of the Trade Policy Staff Committee (TPSC) has reviewed the product petitions, and the TPSC has decided to accept for review seven of the submitted petitions.
2The ITC recently announced that it is seeking input for its newly initiated investigation regarding the above-listed possible modifications to GSP. The ITC will hold a public hearing on its investigation on November 16, 2009 in Washington, DC.
(See ITT's Online Archives or 05/28/09 news, 09052820, for BP summary of the USTR announcing the 2009 GSP Annual Review and deadlines.
See ITT's Online Archives or 06/08/09 news, 09060805, for BP summary on CNL waiver requests being due on November 17th.)
USTR contact - Tameka Cooper(202) 395-6971 or Tameka_Cooper@ustr.eop.gov
USTR notice (FR Pub 10/22/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-25459.pdf
USTR list of petitions accepted (posted 10/22/09) available at http://www.ustr.gov/webfm_send/1428
ITC news release (09-086, dated 10/21/09) available at http://www.usitc.gov/press_room/news_release/2009/er1021gg1.htm
BP Note
GSP 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. Congressional sources recently stated that the House Ways and Means and Senate Finance Committees continue to actively work on a trade preference reform package, which would include GSP (and other trade preference programs).
(See ITT's Online Archives or 08/19/09 news, 09081915, for most recent BP summary on GSP being scheduled to expire on December 31st. See ITT's Online Archives or 10/09/09 news, 09100905, for BP summary of the trade asking Congress to make immediate GSP renewal a priority.)