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USTR to Consider GSP for Certain Cotton, Bags, Etc. in 2011 Review

The Office of the U.S. Trade Representative has issued a notice on the petitions it has accepted for the 2011 Generalized System of Preferences Annual Review.1 USTR is considering whether certain plastic bags should become duty-free for all GSP beneficiaries, and if certain staple and fiber cotton should become duty-free for least-developed (LDC) beneficiaries. Additionally, USTR will review nine petitions to waive competitive need limits (CNLs) on imports of certain canned beef from Argentina, rubber gloves from Thailand, auto parts from India, etc., that could otherwise lose their GSP benefits, depending on 2011 levels of trade. Any approved GSP grants and waivers will take effect on July 1, 2012.

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Comments are due by March 6, 2012. USTR will also be holding a public hearing on the 2011 GSP Annual Product Review on March 20, 2012.

(See ITT's Online Archives 11110211 for summary of USTR announcing the initiation of the 2011 GSP Annual Review in November 2011. See ITT's Online Archives 11120642 for summary of USTR extending the deadline for all petitions to modify the list of products that are eligible for duty-free treatment under the GSP program, including those requesting CNL waivers, and to modify the GSP status of certain beneficiary countries due to country practices.)

USTR to Review Petition to Add Certain Bags as GSP-Eligible Products

The GSP Subcommittee of USTR's Trade Policy Staff Committee (TPSC) has decided to accept a petition to add one product to the list of GSP eligible products for all beneficiary countries. The petition requests to add sacks and bags (including cones) for the conveyance or packing of goods, of polymers of ethylene, under subheading 3923.21.00 to the list of products eligible for duty-free treatment under GSP.

12 Cotton Staple and Fiber Products to also Be Reviewed for LDC GSP-Eligibility

Twelve cotton products will also be reviewed for possible designation as eligible for GSP benefits for LDC beneficiary countries. The cotton products are being considered for GSP eligibility at the initiative of USTR consistent with USTR's December 2011 announcement of trade initiatives, mostly related to textile and apparel, intended to enable LDCs to benefit more fully from global trade. (See ITT's Online Archives 11121528 for summary of the December 2011 initiatives.)

HTS SubheadingDescription
5201.00.18Cotton, not carded or combed, having a staple length under 28.575 mm (1-1/8 inches), not harsh or rough, not elsewhere specified or included
5201.00.22Cotton, not carded or combed, staple length of 28.575 mm or more but under 34.925 mm, described in General Note 15
5201.00.24Cotton, not carded or combed, harsh or rough, staple length 29.36875 mm or more but under 34.925 mm, white in color, described in Chapter 52 Additional U.S. Note 6
5201.00.28Cotton, not carded or combed, harsh or rough, staple length of 29.36875 mm or more but under 34.925 mm, white in color, not elsewhere specified or included
5201.00.34Cotton, not carded or combed, staple length of 28.575 mm or more but under 34.925 mm, other, described in Chapter 52 Additional U.S. Note 7
5201.00.38Cotton, not carded or combed, staple length of 28.575 mm or more but under 34.925 mm, not elsewhere specified or included
5202.91.00Cotton garnetted stock
5202.99.30Cotton card strips made from cotton waste having staple length under 30.1625 mm and lap, sliver, and roving waste, not elsewhere specified or included
5203.00.05Cotton fibers, carded or combed, of cotton fiber processed but not spun, described in General Note 15
5203.00.10Cotton fibers, carded or combed, of cotton fiber processed but not spun, described in Chapter 52 Additional U.S. Note 10
5203.00.30Cotton fibers, carded or combed, of cotton fiber processed, but not spun, not elsewhere specified or included
5203.00.50Cotton carded or combed, excluding fibers of cotton processed but not spun

Will also Review Nine Petitions to Waive CNLs

USTR has also accepted to review nine petitions asked that CNL waivers be granted for the following country and product combinations that are currently GSP eligible, but might lose their eligibility, depending on final 2011 import statistics:

HTS SubheadingDescriptionCountry
1602.50.20Prepared or preserved beef in airtight containers, other than corned beef, not containing cereals or vegetablesArgentina
2840.19.00Disodium tetraborate (refined borax) except anhydrousTurkey
2921.19.60Other acyclic monamines and their derivativesPhilippines
2922.41.00Lysine and its esters and salts thereofBrazil
3307.41.00"Agarbatti" and other odoriferous preparations which operate by burning, to perfume or deodorize rooms or used during religious ritesIndia
4015.19.10Seamless gloves of vulcanized rubber other than hard rubber, other than surgical or medical glovesThailand
7606.12.30Aluminum alloy, plates/sheets/strip, with thickness of 0.2mm, rectangular (including square), not cladIndonesia
8415.90.80Parts for air conditioning machines, not elsewhere specified or includedThailand
8708.30.50Parts and accessories of motor vehicles of heading 8701, not elsewhere specified or included, and heading 8702-8705, brakes and servo-brakes & parts thereofIndia

USTR Provides 2011 GSP Annual Product Review Schedule

The schedule for the 2011 GSP Annual Product Review is as follows:

  • March 6, 2012 -- Due date for submission of comments, pre-hearing briefs and requests to appear at the GSP Subcommittee Public Hearing on the 2011 GSP Annual Product Review.
  • March 20, 2012 -- GSP Subcommittee Public Hearing on all proposed or petitioned product additions and CNL waiver petitions accepted for the 2011 GSP Annual Product Review. The hearing will be held in Rooms 1 and 2, 1724 F St., NW, Washington, DC 20508, beginning at 9:30 a.m.
  • Late March 2012 -- An ITC public hearing will be held on the probable economic effect of granting the proposed or petitioned product additions and CNL waiver petitions. (ITC will announce the date, time, and place of this hearing in a separate notice published in the Federal Register.)
  • April 10, 2012 -- Due date for submission of post-hearing comments or briefs in connection with the GSP Subcommittee Public Hearing.
  • Late May 2012 -- The ITC is scheduled to publish a public version of its report providing advice on the probable economic effect of the prospective addition of products and granting of CNL waiver petitions considered as part of 2011 GSP Annual Product Review. Comments on the ITC report on these products will be due 10 calendar days after the date of ITC’s publication of the public version of the report.
  • July 1, 2012 -- Effective date for any modifications that the President proclaims to the list of articles eligible for duty-free treatment under the GSP resulting from the 2011 Annual Product Review and for determinations related to CNL waivers.

(Notification of any other changes to this schedule will be published in the Federal Register.)

1On February 14, 2012, USTR Ron Kirk sent a letter notifying the International Trade Commission of the products it was considering for designation as eligible products for purposes of the GSP program. USTR requested ITC provide its advice as to the probable economic effect on U.S. industries producing like or directly competitive articles, on U.S. imports and on U.S. consumers of the elimination of U.S. import duties on those products for all beneficiary developing countries under the GSP program. USTR letter is available via email by sending a request to documents@brokerpower.com.

All submissions for the GSP Annual Review are available on USTR's website here, or by searching docket number "USTR-2011-0015" at www.regulations.gov.

USTR letter (dated 02/14/12) is available via email by sending a request to documens@brokerpower.com.

USTR Contact -- Tameka Cooper (202) 395-6971, Tameka_Cooper@ustr.eop.gov

(FR Pub 02/21/12)