US Defers Several GSP Decisions on GSP Eligibility, AAFA Disappointed With Limited Travel Goods Benefits
The U.S. government has deferred decisions for additions of travel goods produced in non-least developed beneficiary developing countries to the Generalized System of Preferences (GSP), bringing a disappointed response from the American Apparel and Footwear Association (here). The 2015/2016 GSP Annual Review (here) deferred decisions for 27 articles under subheading 4202 for non-LDBDCs, but granted approval for tariff benefits for the goods for GSP least developed countries and for countries benefiting from the African Growth and Opportunity Act (AGOA).
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AAFA on June 30 criticized President Barack Obama for giving “very limited” duty-free treatment for GSP-eligible travel goods, as well as his indefinite delay on a decision to grant travel-good benefits to GSP beneficiary countries outside of those designated under AGOA. AAFA CEO Rick Helfenbein said if Obama accorded duty-free benefits to travel goods from all GSP countries, the U.S. apparel industry could’ve saved $75 million during the first year of the program. “These benefits translate into jobs for our U.S. workers, value for our U.S. customers, and improvements for our global supply chains. The potential for that opportunity is now delayed indefinitely,” he said in a statement. "We will continue to fight for the addition of travel goods to the GSP program for all GSP-eligible countries. Delaying this decision adds costs in the form of uncertainties and lost duty savings.”
In addition to travel goods, the government deferred decisions on duty-free treatment for essential lemon oils from Bolivia and ferromanganese containing more than 4 percent of carbon by weight from Ukraine. The U.S. is also adding competitive needs limitations (CNLs) for certain juice from the Philippines, iron or steel balls from India, and parts and accessories of certain vehicles from India, the review says. Furthermore, the U.S. is granting CNL waivers for Tunisian dates, Brazilian single-cell micro-organisms, and certain Thai nonalcoholic beverages.