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ITC Releases Report on Possible GSP Modifications; Public Version Censors Advice

The International Trade Commission released a public version of its confidential report on the probable economic effect of possible modifications to the Generalized System of Preferences (GSP), which provides duty-free treatment for specified U.S. imports from certain developing countries. The confidential version of the report, “Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2011 Review of Additions and Competitive Need Limitation Waivers,” was submitted to the U.S. Trade Representative May 14. The public version censors the ITC’s advice on each modification.

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Advice on Addition of GSP-Eligible Products, CNL Waivers

This report contains the advice of the ITC to the President on the effects of certain proposed modifications to the U.S. Generalized System of Preferences (GSP). Specifically, the report contains advice on:

Adding certain bags as GSP-eligible products. The ITC's report contains advice on the probable economic effect on U.S. industries, imports, and consumers of adding 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 also reviewed for LDC GSP-eligibility. Twelve cotton products were reviewed, and advice was provided on the possible designation as eligible for GSP benefits for LDC beneficiary countries. The cotton products were 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

Nine petitions to waive CNLs. USTR 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. Specifically, the ITC provided its advice on granting CNL waivers for the following country/product combinations:

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

Public version of report available here.

(See ITT's Online Archives 12022128 for summary of the USTR's announcement that it had accepted the relevant petitions. See also ITT's Online Archives 12022417 for summary of the institution of the ITC's investigation.)