Industry representatives on March 4 made their case to the Office of the U.S. Trade Representative to add all 29 HTS subheadings covering travel goods under review for addition to the list of eligible products under the U.S. Generalized System of Preferences. During USTR’s public hearing for the U.S. GSP Program 2015/2016 Annual Review of Products and Competitive Need Limitation Waivers, Allison Baron, a lawyer representing Michael Kors, claimed that, if added, the higher volume of “certain handbags and travel goods products” flowing to the U.S. would benefit U.S. consumers by allowing importers to offer “desirable goods” at competitive prices, defraying higher labor costs. USTR has published a list of subheadings for travel goods it accepted for GSP review during this cycle (here).
The International Trade Commission published notices in the March 3 Federal Register on the following AD/CV injury, Section 337 patent, and other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):
The addition of several industry-suggested travel items to the U.S. Generalized System of Preferences Program would help U.S. companies diversify sourcing and reduce about $75 million in duty costs, without hurting domestic production, American Apparel & Footwear Association Executive Vice President Stephen Lamar wrote in a Feb. 29 letter to the International Trade Commission (here). AAFA representation testified on Feb. 24 before the ITC, urging the body to consider according GSP benefits to all eligible travel goods from all GSP beneficiary countries. A U.S. government decision is expected in June, and if approved the products "should" be able to enter duty-free treatment on July 1, AAFA said in an email. Items suggested for GSP beneficiary treatment include luggage, backpacks, purses, and wallets, according to AAFA's letter. AAFA argued that goods from China, Vietnam, Italy, and France compose 86 percent of all U.S.-imported travel items by value, and added that travel goods "are not considered import-sensitive," as the U.S. has a 98-percent import penetration of these goods, meaning "very few" of them are made in the U.S. Another letter (here) written to ITC from a coalition of 23 industry organizations, including AAFA, reiterated this point. "There is virtually no production of these items in the United States and, as such, there will be no domestic industry that will be negatively affected by the proposed designation," the coalition letter states. "On the other hand, U.S. brands, private label designers, made-to-order producers, as well as the U.S. workers they employ and the consumers they serve, stand to benefit greatly from lower duty costs under the GSP."
The Office of the U.S. Trade Representative, as part of its 2015/2016 Generalized System of Preferences Annual Product Review, published a breakdown of 2015 import statistics (here). The agency lists six items set to be removed from GSP eligibility (though four have pending petitions for waivers), 103 products eligible for a de minimis waiver, and 145 non-GSP-eligible products that might be reconsidered for GSP designation. Re-designations could be given based on 2015 trade data and consideration of certain statutory factors, USTR said. USTR will accept public comments until April 1 regarding possible de minimis competitive needs limitation waivers (CNL) and potential re-designations, the agency said in a notice (here).
President Barack Obama intends to sign the comprehensive customs reauthorization legislation passed by the Senate on Feb. 11 (see 1602110018), White House Press Secretary Josh Earnest said in a statement (here). Despite some concerns with the legislation's mention of Israel, the bill's "passage is an important milestone in our overall trade agenda," Earnest said of the Trade Facilitation and Trade Enforcement Act of 2015. Among other things, the legislation (here) increases the de minimis level, directs the Secretary of Homeland Security to draft new importer of record regulations, fixes tariffs for recreational performance outerwear, and updates reliquidation procedures.
The European Union recently issued the following trade-related releases (notices of most significance will be given separate headlines):
In recent editions of the Official Journal of the European Union the following trade-related notices were posted (here):
The International Trade Commission published notices in the Jan. 22 Federal Register on the following AD/CV injury, Section 337 patent, and other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):
The Office of the U.S. Trade Representative recently took under consideration an additional five tariff subheadings covering handbags and travel goods for addition to the list of products eligible for the Generalized System of Preferences, according to its notice of petitions accepted for the 2015-16 GSP review (here). USTR released the list on Jan. 11 (see 1601110039), and added the new subheadings -- 4202.92.30.20, 4202.92.30.31, 4202.92.30.91, 4202.92.90.26 and 4202.92.90.60 – as a correction later that day. The ITC on Jan. 19 said (here) it will consider the subheadings in its investigation on possible GSP modifications (see 1601150031).
The International Trade Commission published notices in the Jan. 19 Federal Register on the following AD/CV injury, Section 337 patent, and other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):