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USTR Summarizes 2010 GSP Review Results, Status of Petitions

The Office of the U.S. Trade Representative has issued a notice summarizing the results of the 2010 GSP Annual Review. It describes the disposition of the product petitions accepted for review in the 2010 GSP Annual Review and the status of country practices petitions accepted as part of GSP annual reviews, including the 2010 GSP Annual Review.

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(USTR had previously announced that in view of the lapse in authorization of the GSP program through much of 2011, there would be no actions taken on July 1, 2011 or later in 2011 with respect to competitive need limitations (CNLs).1)

Product Petitions: Granted Sleeping Bag Petition, Denied Plastic Tape Petition

USTR states that in the 2010 GSP Annual Review, the Trade Policy Staff Committee (TPSC) reviewed two petitions to change product coverage of the GSP. Based on the TPSC’s review and the recommendation of the U.S. Trade Representative, President Obama removed one product -- sleeping bags, not containing 20 percent or more by weight of feathers and/or down (HTS 9404.30.80) -- from eligibility for duty free treatment under GSP, effective January 1, 2012, because it is import-sensitive in the context of GSP.

A petition to remove GSP duty-free treatment for two types of self-adhesive plastic tape (HTS 3919.10.20 and 3919.90.50) was denied.

(See ITT’s Online Archives 12010418 and 11123023 for summaries of Proclamation 8770 which removed these non-down sleeping bags from GSP, etc.

See ITT’s Online Archives 10102611 for summary announcing that the USTR accepted for review two product petitions as part of the 2010 GSP Annual Review: one for plastic tape and one for sleeping bags.)

Country Petitions: No Changes at This Time

According to USTR, there are no changes at this time to the status of those country practice petitions accepted in the 2010 GSP annual review and continued from earlier annual reviews.

The following is a list of all the country practice petitions under review (which are available here in List II - Petitions for Review of Country Practices):

CountryBasis of PetitionStatus
Argentinaarbitral awardsContinued
Argentinaarbitral awardsContinued
Bangladeshworker rightsContinued
Georgiaworker rightsAccepted
Iraqworker rightsDeferred Decision on Acceptance
Lebanonintellectual property rightsContinued
Nigerworker rightsContinued
Philippinesworker rightsContinued
Russiaintellectual property rightsContinued
Sri Lankaworker rightsContinued
Uzbekistanworker rights/child laborContinued
Uzbekistanintellectual property rightsContinued

(See ITT’s Online Archives 11121228 for summary of USTR announcing a January 24, 2012 hearing on certain pending GSP country practice petitions.

See ITT’s Online Archives 11110124 for summary of USTR accepting a country practice petition for Georgia for the 2010 GSP Annual Review.)

1USTR previously explained that the statute governing the GSP program provides that the President shall, not later than July 1 of the next calendar year, terminate the duty-free treatment for articles from GSP beneficiary countries that exceed the statutory CNL for the preceding year.

In view of the lapse in the authorization of the GSP program from January 1, 2011 to November 5, 2011, a review of products subject to CNLs based on calendar year 2010 trade data and petitions seeking waivers of CNLs based on calendar year 2010 trade data could not be completed prior to the statutory deadline. Therefore, USTR announced in November 2011 that no CNL-related actions would be taken in 2011, including no CNL-related removals of GSP-eligible products based on 2010 trade and no redesignations of GSP-eligible products currently subject to CNL exclusions for specific GSP beneficiary countries. Petitions for CNL waivers that were accepted in December 2010 were dismissed. (See ITT’s Online Archives 11110124 for summary of USTR’s announcement.)

USTR press release available here.

USTR contact -- Tameka Cooper (202) 395-6971

(FR Pub 01/10/12)