Proclamation Details More GSP Changes in HTS; Flat-Panel ADP Monitors Get Duty-Free

(See ITT’s Online Archives 12070322 for summary of Supplement 1 to HTS 2012, which includes other recent changes made to the HTS, including the country-product pairs that were not given CNL waivers by this Proclamation.)

GSP Changes

CNL waivers. The proclamation grants the following country-product pairs Competitive Need Limitation (CNL) waivers:

As such, these country-product pairs will continue to receive GSP benefits.

Termination of two GSP beneficiaries. The President determined that Gibraltar and the Turks and Caicos Islands have become high income countries. Therefore, the designation of Gibraltar and the Turks and Caicos Islands as GSP beneficiary developing countries will be terminated, effective Jan. 1, 2014.

Designation of Senegal as new LDC GSP beneficiary. The Proclamation designates Senegal as a least-developed beneficiary developing country for the purposes of the GSP, effective Sept. 4.

Flat Panel Monitors for ADP Machines Given Duty Free Treatment

According to the Proclamation, products included in Attachment B to the WTO Information Technology Agreement are entitled to duty-free treatment wherever classified. In order to maintain the intended tariff treatment for certain products covered in Attachment B, the Proclamation added a new U.S. note in Chapter 85, deleted two subheadings in Chapter 85 and added new subheadings in their places, and made conforming changes to heading 9902.23.52. These changes provide for duty free treatment of certain flat panel display devices designed for use with an automatic data processing machine, effective July 1. Specifically, the Proclamation makes the following changes to implement the ITA:

New U.S. note in Chapter 85. The proclamation adds the following U.S. note to Chapter 85:

“For the purposes of subheadings 8528.59.21 and 8528.59.31, the term “flat panel display devices designed for use with an automatic data processing machine” refers to monitors that have as a purpose operation with an automatic data processing (ADP) machine of heading 8471, such monitors being able to display signals or data from an ADP machine in a form that meets the requirements of the user.

“Such monitors need not be shown to be solely or principally for use with an ADP machine and may also be capable of displaying signals or data from devices other than ADP machines.”

New subheading 8528.59.21 for duty-free monitors w/ recording apparatus. The Proclamation deletes subheading 8528.59.20, which has a duty rate of 3.9% (“monitors and projectors, not incorporating television reception apparatus: reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; other monitors; other; color; with a flat panel screen; incorporating video recording or reproducing apparatus; other”).

In its place, the Proclamation inserts new subheading 8528.59.21 (…color; with a flat panel screen; incorporating video recording or reproducing apparatus; other; flat panel display devices designed for use with an automatic data processing machine as defined in additional U.S. note 13 to chapter 85”), with a duty rate of “Free,” and new subheading 8528.59.23 (“other; other”), with a duty rate of 3.9%.

New subheading 8528.59.31 for “other” duty-free monitors. Similarly, the Proclamation deletes subheading 8528.59.30, with a duty rate of 3.9% (“monitors and projectors, not incorporating television reception apparatus: reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; other monitors; other; color; with a flat panel screen; other; other”).

In its place, the Proclamation inserts new subheading 8528.59.31 21 (…color; with a flat panel screen; other; other; flat panel display devices designed for use with an automatic data processing machine as defined in additional U.S. note 13 to chapter 85”), with a duty rate of “free,” and new subheading 8528.59.33 (“other; other”) with a duty rate of 5%.

Conforming change to subheading 9902.23.52. Subheading 9902.23.52 modified to refer to new 8528.59.33 instead of the removed 8528.59.30.

(Note that the conforming change to 9902.23.52 is not yet enumerated in the HTS. However, the Proclamation says that these changes supersede matter now in the HTS.)

Proclamation 8840 available here. See also Annexes I (here), II (here), III (here), and IV (here).