Argentina's GSP to be Suspended May 28, South Sudan Added April 15, Etc.
Proclamation 8788 which suspends Argentina as a Generalized System of Preferences beneficiary country and designates the Republic of South Sudan as a least developed GSP beneficiary country will be published in the March 29, 2012 Federal Register. As a result, Argentina is slated to be suspended from the GSP program on May 28, 2012 . The Proclamation also adds South Sudan to GSP as a LDBDC on April 15, and makes certain changes to the HTS for DR-CAFTA apparel, etc. According to the U.S. Trade Representative, the U.S. will consider reinstating GSP for Argentina if it pays two long standing arbitral awards.
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(The U.S. Generalized System of Preferences program provides preferential duty-free treatment for over 3,400 products from more than one hundred designated beneficiary countries and territories, including more than forty least-developed beneficiary developing countries (LDBDCs). An additional 1,400 products are GSP-eligible only when imported from LDBDCs. The HTS notes GSP eligibility using the Special Program Indicators (SPIs) A, A+, or A*, variously.)
Argentina's Designation as GSP Beneficiary to be Suspended on May 28
Proclamation 8788 suspends Argentina's designation as a GSP beneficiary developing country on May 28 (60 days after the proclamation's March 29 publication date), as the Argentine government has failed to pay two longstanding arbitral awards in favor of U.S. companies, as required by the program's eligibility criteria. Should Argentina pay the subject awards, U.S. Trade Representative Kirk has stated that the U.S. could then consider reinstating its suspended GSP eligibility.
South Sudan to be Designated as a GSP LDBC Beneficiary on April 15
The Proclamation also adds a recently-created country, the Republic of South Sudan, as a GSP beneficiary country, effective 20 days after the April 26 signature date of the proclamation, which is April 15. The Proclamation additionally designates South Sudan as a GSP least-developed beneficiary developing country (LDBDC), which allows additional products from South Sudan to receive GSP duty-free treatment.
HTS Changes Made by the Proclamation for Argentina, South Sudan, Etc.
To reflect the May 28 suspension of Argentina's status and the designation of South Sudan as a GSP beneficiary, the Proclamation modifies HTS General Note 4 to remove the name "Argentina' and delete the 112 A* exclusions for Argentina (as the entire country is suspended). To reflect the April 15 addition of South Sudan as a GSP LDBDC, HTS General Note 4 is amended to list this country as a GSP beneficiary and a GSP LDBDC.
The Proclamation also makes the following technical changes:
DR-CAFTA apparel. With respect to the DR-CAFTA apparel, U.S. Note 21(a) and (b) of Subchapter XXII of HTS Chapter 98 are modified to exclude the Dominican Republic. This amendment is effective for goods entered or withdrawn from warehouse for consumption on or after March 1, 2012.
CBTPA. With respect to Carribean Basin Trade and Partnership Act tariff treatment, HTS General Note 17(f)(i) is amended to indicate that the expiration date of the CBTPA program is September 30, 2020. This amendment is effective for goods entered or withdrawn from warehouse for consumption on or after May 24, 2010.
WCO changes. With respect to the recently implementeed World Customs Organization-recommended tariff changes, the following additional amendments are effective for goods entered or withdrawn from warehouse for consumption on or after February 3, 2012:
- general note 4(d) is modified by deleting “1202.20.40 Argentina;”
- the article description of subheading 9608.50.00 is modified by deleting the phrase “9608.31, 9608.39" and inserting in lieu thereof “9608.30;”
- the article description of subheading 9608.99.40 is modified by deleting the phrase “9608.10, 9608.31 and 9608.39" and inserting in lieu thereof “9608.10 and 9608.30 ”; and
- the article description for subheading 9504.50.00 is modified by adding at the thereof “, and parts and accessories thereof.
(See ITT's Online Archives 12032738 for summary of President Obama's signing of this proclamation and the statements issued by U.S. Trade Representative Ron Kirk..)