USTR to Accept Petitions for Deferred Travel Goods Additions to GSP, Info for 2016/2017 Review
The Office of the U.S. Trade Representative is seeking additional comments on the potential addition of travel goods for more developed Generalized System of Preferences (GSP) countries, as well as possible changes to the wider list of products eligible for GSP duty-free treatment, USTR said (here). House lawmakers (see 1607280024) and industry (see 1608090012) recently directly appealed to President Barack Obama to reconsider his June 30 decision to defer approval of GSP duty benefits for 27 travel goods imported from non-least developed beneficiary developing countries (LDBDCs) (see 1607010008). The agency is also considering modifications of the GSP status of beneficiary developing countries (BDCs) due to certain practices, it said.
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The travel goods comment period will “supplement” information collected during the 2015/2016 Annual GSP Product and Country Practices Review, and the interagency Trade Policy Staff Committee’s GSP Subcommittee will convene a hearing on Oct. 18 regarding those products’ GSP eligibility, particularly those produced in BDCs, USTR said. Comments on travel goods’ GSP eligibility are due Oct. 4. “In the 2015/2016 GSP Annual Review, the President determined that a consideration of [GSP eligibility] factors justified the immediate provision of duty-free treatment to travel and luggage goods from LDBDCs and [African Growth and Opportunity Act] countries, but that more analysis was needed with respect to such goods from other, generally more advanced, beneficiary countries,” USTR said. “The request for public comments and hearing announced in this notice are intended to create an additional formal process to collect supplemental information relevant to a decision on whether to extend duty-free treatment to this last category of GSP beneficiaries.” USTR hopes to complete its travel goods review by January, it said.
The American Apparel & Footwear Association lauded USTR's decision to reopen the deferrals for GSP consideration, saying it will chart a clear process and timeline for a final decision, according to a statement by AAFA CEO Rick Helfenbein (here). AAFA member companies were disappointed with the word "deferred" used in Obama's final determination, and USTR's release of a comment and hearing schedule should help allay their concerns, he said. "While the June 30 proclamation did provide duty-free treatment for travel goods from 'least-developed beneficiary countries' and AGOA, we strongly felt that it did not live up to the expectation of the original legislative effort," Helfenbein said. "Today's decision opens the opportunity to revisit those countries that were left out, furthering their economic development without harming the competitiveness of the countries that were already approved for travel goods." Furthermore, a spokeswoman for Coach apparel company said in an email the company views the reopening of the GSP process as a "promising, positive development."
The more general information collection, which also includes a solicitation for petitions requesting competitive needs limitation (CNL) waivers, is part of USTR’s 2016/2017 Annual GSP Review, USTR said. Broader petitions to modify the list of articles subject to duty-free treatment are due on Oct. 4, and petitions requesting CNL waivers are due Dec. 2. All petitions must describe the product in detail and include its eight-digit HTS subheading, USTR said.
(Federal Register 08/25/16)