The office of the U.S. Trade Representative (USTR) extended the deadline for submission of petitions to waive competitive need limitations (CNLs) under the Generalized System of Preferences (GSP) program. The deadline is extended to 5 p.m. Dec. 20 from the previous Nov. 22 deadline (see 13072614). Unless President Barack Obama waives the CNL, the president must terminate duty-free treatment for GSP eligible countries that either (1) exported a quantity of a GSP-eligible article having a value in excess of the applicable amount for that year ($160 million for 2013), or (2) a quantity of a GSP-eligible article having a value equal to or greater than 50 percent of the value of total U.S. imports of the article from all countries. There will be no CNL action taken while GSP remains expired (see 13111808).
American importers in September paid $56.5 million in tariffs on products previously eligible under the Generalized System of Preferences (GSP), according to the Coalition for GSP. The GSP program expired on July 31 following Congressional failure to pass renewal legislation (see 13080110). The September $56.5 million figure, compiled independently by the Coalition for GSP from International Trade Commission (ITC) tariff data, represents a $20,000 increase from the Coalition for GSP August tariff totals. Since expiration, U.S. importers have paid roughly $1.85 million in daily tariffs on products previously eligible under GSP, the coalition said. Considering GSP will have expired for 119 days after Nov. 19, that daily figure translates to $205.4 million in additional tariffs for U.S. importers. The tariff hike estimate, prior to the ITC release of September data, was in the $180-200 million range, according to Dan Anthony, director of research and government relations at the Coalition for GSP, speaking at a Nov. 15 National Foreign Trade Council (NFTC) roundtable discussion (see 13111808).
Congressional lawmakers should overhaul African Growth and Opportunity Act (AGOA) and the General System of Preferences (GSP) eligibility criteria to punish countries that put up trade barriers against U.S. products, said a group of U.S. domestic producers in two joint letters to Congress. Numerous beneficiary countries are implementing “blatantly protectionist” barriers that are in “flagrant violation of international obligations,” such as World Trade Organization agreements.
The July expiration of the Generalization System of Preferences (GSP) program has delivered an estimated $180-200 million in additional tariffs for U.S. importers, and there is no immediate, viable option to pass renewal legislation, said Dan Anthony, director of research and government relations at the Coalition for GSP, at a Nov. 15 National Foreign Trade Council (NFTC) roundtable discussion. Moreover, congressional dysfunction and budget concerns are threatening retroactivity inclusion in future legislation, causing significant consternation among Coalition for GSP importers, said Anthony.
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The longer the Generalized System of Preferences (GSP) expiration continues, the less likely renewal legislation will include retroactivity provisions, said Marideth Sandler, CEO of Sandler Trade, during a Nov. 7 webinar on GSP. The webinar was co-sponsored by Sandler Trade, the Alliance of GSP Countries and the Coalition for GSP. Despite routine implementation of GSP duty retroactivity dating back to the program’s 1976 inception, political concerns render retroactivity uncertain, said Sandler.
The European Union issued the following trade-related releases Nov 6-7 (notices of most significance will be given separate headlines):
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The prospect for Miscellaneous Tariff Bill (MTB) and Generalized System of Preferences (GSP) renewal legislation to pass with retroactivity provisions remains high, according to industry executives and attorneys, despite the fiscal battles lawmakers continue to wage over federal appropriations and an administration-proposed debt ceiling hike. But political dysfunction is causing some anxiety for the the future of the largely non-controversial bills and retroactivity inclusions, they said. Typically, retroactive provisions allow the benefits of a law to extend beyond the law's expiration and through to when a new law is passed.
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