ITC Reports on Possible GSP Additions and Removals for 2009 Annual Review (India Gold Chains, Etc)
The International Trade Commission has released the public version of a report requested by the U.S. Trade Representative as part of the 2009 GSP Annual Review on the probable economic effect of possible additions to and removals from the Generalized System of Preferences.
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Public Report Contains Industry and Import Data, Not Economic Effect
As this report is the public version, all confidential national security and business information, including the ITC's findings regarding probable economic effect, has been removed. The report does, however, contain profiles of the U.S. industry and market and GSP import data for each product.
Highlights of U.S. Market & GSP Import Data for Products Under Review
The following are highlights of the U.S. market/GSP import data for 2004-2008 for the seven HTS subheadings1 being considered for possible GSP additions or removals:
Removal of gold necklaces/chains from India - rope style (7113.19.21), mixed link style (7113.19.25). The subject necklaces and neck chains are finished (ready-to-wear) and are made of gold, in either a rope style or mixed links. U.S. production and exports of the subject products decreased substantially during 2004-08, while imports, especially from India, increased. In 2008, India accounted for a little over one-half of total U.S. imports of the subject gold necklaces and chains.
According to the U.S. industry, the substantial increase in U.S. imports of the subject products between 2007 and 2008 was largely attributable to importers switching from importing certain products (principally from India) under a dutiable HTS category to importing these products under the subject HTS subheadings, which are duty-free for GSP-eligible countries.
Addition of frozen beans (0710.22.40) &frozen mixed vegetables (0710.90.91). The U.S. is a major producer and consumer of frozen beans and frozen mixed vegetables, as well as a major importer and exporter of frozen mixed vegetables. Egypt and India were the U.S.' primary GSP-eligible import sources for frozen beans, accounting for 80 and 20% of such imports in 2008. However, the two countries combined accounted for less than 5% of total U.S. imports in 2008. Egypt and Ecuador were the largest GSP-eligible import sources for frozen mixed vegetables, accounting for 53 and 21% of such imports in 2008. Like frozen beans, GSP-eligible suppliers accounted for only 3% of total U.S. imports of frozen mixed vegetables in 2008.
Addition of lauryl, cetyl, and stearyl alcohols (2905.17.00) & certain other industrial fatty alcohols (3823.70.40). The subject products are industrial fatty alcohols derived from either oleochemical (natural) or petrochemical (synthetic) sources. HTS 2905.17.00 covers pure, single-length carbon-chain alcohols, whether natural or synthetic. Mixtures of natural alcohols fall under HTS 3823.70.40 (alcohols with varying carbonchain lengths). Almost 75% of U.S. consumption of these alcohols is for household applications, especially laundry detergent.
Due in part to rising imports, U.S. production of fatty alcohols has been declining. GSP-eligible countries collectively accounted for 32% of total U.S. imports of lauryl, cetyl, and stearyl alcohols (HTS 2905.17.00) in 2008, with India being the largest GSP-eligible source, supplying 16% of total U.S. imports of these products. Indonesia was the leading GSP-eligible source of U.S. imports of natural alcohol mixtures (HTS 3823.70.40), accounting for 26% of total U.S. imports from all sources and 59% of imports from GSP-eligible countries.
Addition of ACSR cable and wire (7614.10.10). Aluminum conductor steel-reinforced (ACSR) wire and cable is a specific type of high-capacity, large-diameter, high-strength stranded cable used in overhead power lines to transmit electric power. There are approximately four U.S. manufacturers of ACSR wire and cable. Canada and Mexico were the principal suppliers of ACSR wire and cable to the U.S. in 2008, supplying 75% and 15%, respectively, of imports. GSP-eligible nations supplied just 1% of total imports in 2008. Of GSP-eligible nations, Colombia was a steady supplier during 2004-2008, but accounted for no more than 4% of total U.S. imports of this article in any single year.
(See ITT's Online Archives or 10/23/09 and 10/27/09 news, 09102310 and 09102720, for BP summaries of USTR announcing its acceptance of these seven petitions as part of its 2009 annual review and ITC's initiation of this investigation.)
ITC press release (dated 03/18/10) available at http://www.usitc.gov/press_room/news_release/2010/er0318hh1.htm
ITC Investigation "Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2009 Review of Additions and Removals" (Inv. No. 332-507, dated March 2010) available at http://www.usitc.gov/publications/332/pub4126.pdf
1According to the USTR, the tariff nomenclature in the HTS for the listed subheadings is definitive; the product descriptions in the USTR's request and the ITC report are provided for informational purposes only, except in those cases where only part of a subheading is the subject of a petition.