USTR to Again Consider Removing GSP for Sleeping Bags, also Plastic Tape
The Office of the U.S. Trade Representative has received and accepted for review two petitions in connection with the 2010 Generalized System of Preferences Annual Review to modify the list of products that are eligible for duty-free treatment under the GSP program (2010 GSP Annual Product Review).
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USTR Accepts Petitions to Remove GSP Eligibility for Sleeping Bags, Plastic Tape
The USTR has decided to accept for review the following product petitions:
Sleeping bags. A petition submitted by Exxel Outdoors, Inc., of Haleyville, Alabama for withdrawal from GSP eligibility of certain types of sleeping bags (HTS 9404.30.80) and
Plastic tape. A petition submitted by the Pressure Sensitive Tape Council of Naperville, Illinois, and others, for withdrawal from GSP eligibility, from Indonesia only, of two types of self-adhesive plastic tape (HTS 3919.10.20 and 3919.10.50).
(Note that the USTR was petitioned to similarly remove GSP eligibility for sleeping bags as part of the 2009 GSP Annual Review, but the USTR denied the petition. GSP eligibility for sleeping bags has been an issue for GSP extension legislation, see below for details.
See ITT’s Online Archives or 07/02/10 news, 10070221, for BP summary of USTR denying the sleeping bags petition as part of the 2009 GSP Annual Review.)
USTR to Hold Hearing on Petitions, ITC to Issue Report on Impact
On November 30, 2010, the GSP Subcommittee will hold a public hearing on the product petitions accepted for the 2010 GSP Annual Product Review. (Pre-hearing briefs and requests to appear at the hearing are due by November 18, 2010. Submission of product petition post-hearing briefs are due by December 13, 2010.)
The International Trade Commission is scheduled to issue a confidential report to USTR providing advice on the potential impacts on U.S. industry and consumers based on the product petitions accepted in the 2010 GSP Annual Product Review in February 2011. USTR has directed ITC to then publish a public version of that report as soon as possible. Comments on that public version are due 10 calendar days after the date of ITC’s publication of that version.
Any Modifications to GSP to be Announced on/about June 30
Any modifications to the list of articles eligible for duty-free treatment under the GSP resulting from the 2010 Annual Review will be announced on or about June 30, 2011, in the Federal Register, and any changes will take effect on the effective date announced. Notification of any changes to this date will be published in the Federal Register.
GSP for Most Countries Scheduled to Expire on Dec 31 Unless Extended
GSP (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, 2010, unless a law extending it is enacted.
Some in Congress working to extend. According to Congressional sources, the House Ways and Means and Senate Finance Committees are still discussing an extension of the GSP and ATPA/ATPDEA programs. Sources have previously expressed the opinion that due to time constraints, any such legislation is likely to be a straight extension, rather than a reform of these trade preference programs. One source has previously stated that the committees are considering a multi-year extension of GSP and ATPA/ATPDEA.
In addition, if legislation is not enacted before these programs expire on December 31, any subsequent extension legislation is expected to be retroactive.
Sleeping bags may be an issue for extension. In 2009, prior to the enactment of a one-year extension of the GSP and ATPA/ATPDEA programs, sources had reported that Senate passage of the GSP extension legislation was threatened by objections raised by Senators Sessions (R) and Shelby (R) over GSP eligibility for sleeping bags made in Bangladesh. It is not yet known whether Senators Sessions and Shelby will take similar action in 2010.
On September 22, 2010, Senator Sessions introduced S. 3823, a bill to remove sleeping bags in HTS 9404.30.80 from GSP eligibility. In his press release on the bill, Senator Sessions noted that his legislation could be attached to a broad authorization of the GSP program that the Senate is expected to consider in 2010.
(See ITT’s Online Archives or 10/25/10 news, 10102515, for BP reminder on GSP’s scheduled expiration. See ITT’s Online Archives or 08/16/10 news, 10081609, for BP summary of USTR extending the deadline for product petitions for the 2010 GSP Review.)
USTR contact- Tameka Cooper (202) 395--6971 or tameka_cooper@ustr.eop.gov