ITC Investigating Impact of Granting 4 CNL Waivers as Part of 2010 GSP Review
The International Trade Commission announced on January 10, 2011 that it is seeking input for a newly initiated investigation concerning possible modifications to the Generalized System of Preferences. In particular, it is investigating the impact of granting waivers of the competitive need limit (CNL) for four country/tariff number combinations.
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Comments are due February 24, 2011.
(The investigation, “Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2010 Review of Competitive Need Limitation Waivers”, was requested by the U.S. Trade Representative (USTR) on December 22, 2010 as part of the 2010 GSP Annual Review.)
Evaluating Impact of Granting CNL Waivers for 4 Country/Tariff Combinations
As requested, the ITC will provide advice as to the impact of granting CNL waivers for the following country/tariff number combinations:
- lysine and its esters from Brazil (HTS subheading 2922.41.00);
- pneumatic tires from Sri Lanka (HTS subheading 4011.93.80);
- certain rubber gloves from Thailand (HTS subheading 4015.19.10); and
- calcium silicon ferroalloys from Argentina (HTS subheading 7202.99.20).
These Combinations Could Lose GSP if CNL Exceeded and Waiver Not Granted
"Competitive need limits" represent the maximum import level of a product that is eligible for duty-free treatment under the GSP. Once the limit is reached, trade is considered "competitive," benefits are no longer needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted.
There are two types of CNLs - the value CNL (which is $145 million for 2010) and the 50% CNL (equal to or greater than 50% of the 2010 value of total U.S. imports of the tariff number from all countries). The USTR has previously explained that the President has the authority to waive both the value and 50% CNLs for country/tariff number combinations if an interested party petitions for a waiver before the country/tariff number combination exceeds a CNL.
Therefore, the four country/tariff number combinations described above (which are currently eligible for GSP duty-free benefits) could lose their benefits on July 1, 2011 if the CNL is exceeded and a waiver is not granted.
ITC Seeks Comments on Investigation, to Hold Public Hearings
The ITC is seeking input for its investigation from all interested parties and requests that the information focus on the articles for which the ITC is requested to provide information and advice.
The agency will hold a public hearing in connection with the investigation on February 17, 2011. Requests to appear at the public hearing should be filed by January 28, 2011.
Confidential Report Expected in April 2011, Public Report Soon Thereafter
The USITC is expected to submit its confidential report to USTR by April 11, 2011. As soon as possible thereafter, the ITC, as requested by USTR, will issue a public version of the report containing only the unclassified sections, with any business confidential information and classified information deleted.
(See ITT’s Online Archives or 12/29/10 news, 10122908, for BP summary of USTR announcing it would review these four country/tariff number combinations as part of the 2010 GSP Annual Review.
See ITT’s Online Archives or 07/15/10 and 08/16/10 news, 10071523 and 10081609, for BP summaries of USTR announcing it was accepting product petitions for additional GSP benefits, for CNL waivers, etc. as part of the 2010 GSP Annual Review and extending the deadline for non-CNL product petitions, respectively.)
(Inv. No. 332-522)