USTR Lists the Country/Tariff Number Pairs that May Lose/Gain GSP on July 1 Due to CNLs
The Office of the U.S. Trade Representative is asking for comments by April 6, 2012 on the competitive needs limits (CNLs) for the 2011 GSP Annual review and the potential revocation of GSP benefits for certain country/tariff number pairs, the possibility of de minimis waivers for other pairs slated to lose GSP, and the possible redesignation for pairs currently ineligible for GSP. The President's decisions regarding these potential actions are expected to take effect on July 1, 2012.
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USTR is also announcing the availability of 2011 import statistics relating to the CNLs for this review, and its lists of pairs that are affected by the CNLs.
Four Lists Highlight Pairs that May Lose or Gain GSP
USTR has posted four lists of beneficiary country/product pairs that may lose or gain Generalized System of Preferences benefits. USTR is seeking comment, by 5 p.m. on April 6, 2012, regarding the beneficiary country/tariff number pairs that could (1) lose their GSP eligibility by exceeding one or both CNLs (value and/or 50%), (2) lose their eligibility for exceeding the 50% CNL, (3) gain GSP eligibility through redesignation, or (4) lose GSP eligibility due to exceeding certain 2006 statutory thresholds. Full 2011 import data is also available.
See future issue for details of the pairs on these four lists.
(A GSP beneficiary developing country that is subject to the CNLs test will lose GSP duty-free treatment for an eligible tariff number if exports of that tariff number from the country to the U.S. during a calendar year meet either of the following two CNLs (and no waiver is granted by the President):
1. exports of the tariff number have a value in excess of the applicable amount for that year ($150 million for 2011) (the “value CNL”), or
2. exports of the tariff number have a value equal to or greater than 50% of the value of total U.S. imports of that tariff number from all countries (the “50 percent CNL”).
Pursuant to 19 USC 2463(c)(2)(D), these CNLs do not apply to least-developed beneficiary developing GSP countries (LDBDCs) or beneficiary AGOA GSP countries.
In addition, the “Tax Relief and Health Care Act of 2006” tightened the GSP CNL waiver criteria by allowing the President to revoke a CNL waiver that has been in effect for at least five years for a GSP-eligible product from a specific country, if its annual trade level in the previous calendar year exceeds 150% of the annual monetary threshold ($225 million in 2011) or comprises 75% of all U.S. imports of that product. (See ITT’s Online Archives 06122005, for summary.)
The President may also redesignate as GSP eligible certain beneficiary country/product pairs that lost eligibility in a prior year if imports in 2011 did not exceed the CNLs and certain other guidelines are considered.)
USTR contact: Tameka Cooper (202) 395-9674
USTR's four lists for the pairs that are in the (1)-(4) groupings above here.
Full 2011 calendar year data for individual tariff numbers may also be viewed at the ITC's DataWeb here.
(FR Pub 03/16/12)