According to sources, the International Trade Commission (ITC) is expected to post an updated version of the 2005 Harmonized Tariff Schedule (HTS) dated July 1, 2005 to its Web site during the week of July 4, 2005.
Generalized System of Preferences (GSP)
The Generalized System of Preferences (GSP) is a trade preference program established by the Trade Act of 1974, which promoted economic development by eliminating duties on many products when they were imported from one of the 119 countries and territories designated as developing. The program expired in December 2020 and is pending renewal in Congress. Should Congress renew the program with a retroactive refund clause, CBP will refund duties for entries eligible for GSP. Under the GSP, goods that are entirely produced or manufactured in a beneficiary developing country may qualify for duty-free entry under GSP; all third-party materials must undergo a substantial transformation defined as at least 35% of the good’s value having been added in the beneficiary country. The goods must also be “imported directly” from the GSP eligible country.
On June 29, 2005, President Bush issued Proclamation 7912 in order to implement certain Generalized System of Preferences (GSP) changes effective July 1, 2005; restore suspended GSP benefits for a number of India or Pakistan articles; grant GSP benefits for the country of Serbia and Montenegro; implement certain North American Free Trade Agreement (NAFTA) rules of origin changes; delineate certain Caribbean Basin Trade Partnership Act (CBTPA) benefits for footwear; treat certain members of the South Asian Association for Regional Cooperation (SAARC) as one country for purposes of GSP, etc.
On June 29, 2005, President Bush issued Proclamation 7912 to "modify duty-free treatment under the Generalized System of Preferences and certain rules of origin under the North American Free Trade Agreement, and for other purposes."
According to European Union (EU) sources, on June 27, 2005, the European Council (Council) adopted, with certain changes, a new Generalized System of Preferences (GSP). An EU press release explains that on June 23, 2005, a qualified majority of EU member states backed a compromise which amended certain aspects of the new EU GSP as it had been proposed. The adoption of this compromise ends a three month deadlock in the Council that had delayed the adoption of the new EU GSP.
U.S. Customs and Border Protection (CBP) has issued an ABI administrative message announcing that its most recent Harmonized System (HS) update (No. 0505) contains:
The Wall Street Journal reports that despite the threat of steep tariffs and other trade barriers, retailers are still flocking to China to buy garments. Some hope to buy before more protectionist barriers kick in on some clothing categories. Others plan to source in China during "window periods," the time after one safeguard quota ends, and another on the same category begins. The article adds that foreign buyers should have more room to buy from China in 2006, as quotas imposed in 2006 would be calculated from a larger 12-month base, due to the sharp rise in imports during the first five months of 2005. (WSJ, dated 05/27/05, www.wsj.com )
U.S. Customs and Border Protection (CBP) has issued an ABI administrative message advising the trade on the ABI system requirements needed to file a U.S.-Morocco Free Trade Agreement (Morocco FTA) claim.
The Office of the U.S. Trade Representative (USTR) has announced the opportunity to submit petitions (requests) for the 2005 Generalized System of Preferences (GSP) Product and Country Eligibility Practices Review (GSP Annual Review). All petitions to modify the list of articles eligible for duty-free treatment under the GSP program or to review the GSP status of any beneficiary developing country must be received no later than 5:00 p.m. on June 15, 2005.
The International Trade Commission (ITC) has instituted an investigation at the request of the U.S. Trade Representative (USTR) entitled, Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2004 Special Review.
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