The International Trade Commission is launching an investigation into possible additions and removals of products from the Generalized System of Preferences program, it said in a June 7 press release. Conducted in response to a request from the U.S. trade representative, the investigation will inform USTR’s decisions on product eligibility in the ongoing 2018 GSP annual review. ITC and the USTR will also in the review consider whether to grant requests for de minimis and competitive need limitations waivers.
The International Trade Commission recently issued Revision 6 to the Harmonized Tariff Schedule. Changes include the removal of Turkey from the Generalized System of Preferences program (see 1905170004), including its elimination from the list of GSP countries in General Note 4 and the removal of Turkish goods from the list of country-product pairs ineligible for GSP. The new version also removes Turkey from the lists in U.S. Notes 17 and 18 to Chapter 99 of developing countries exempt from safeguard duties on washing machines and solar cells. These changes took effect May 17. Effective May 20, the tariff schedule is amended to remove additional Section 232 tariffs on steel products from Turkey provided for in U.S. Note 16 to Chapter 99 and in subheading 9903.80.02, so that Turkey is now subject to the 25% tariff applicable to most other countries. Finally, Revision 6 includes changes to reflect the recently announced exemption of Mexico and Canada from Section 232 tariffs on steel and aluminum (see 1905170044), with modifications to U.S. Note 16 to Chapter 99 and subheadings 9903.80.01 and 9903.85.01 that took effect May 20.
India was removed as a Generalized System of Preferences beneficiary country on June 5. As a result, India is no longer exempt from the Section 201 safeguards on solar cells and residential washers and parts, CBP said in a recent CSMS message. CBP said it updated ACE with the changes on June 3 (see 1906040007).
CBP created Harmonized System Update (HSU) 1910 on June 3, containing 1,379 Automated Broker Interface records and 283 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes modifications related to USTR's extension of the Section 301 tariff increase from 10% to 25% to June 15 for ships that were already on the water as of May 10 (see 1905310070). It also includes changes related to the removal of India from eligibility for the Generalized System of Preferences program (see 1905310072). Modifications required by the verification of the 2019 HTS are included as well.
India's Commerce Department said it had "offered resolution on significant U.S. requests" for better market access, but they were not accepted. The statement was issued June 1, after an evening announcement from the U.S. the day before that India would no longer receive Generalized System of Preferences program benefits after June 5 (see 1905310072). "India, like the US and other nations shall always uphold its national interest in these matters. We have significant development imperatives and concerns and our people also aspire for better standards of living. This will remain the guiding factor in the Government’s approach," the government said. But it said it will continue to work intensively with the U.S. to resolve economic issues to mutual benefit.
India will be removed from the Generalized System of Preferences on June 5, because President Donald Trump "determined that India has not assured the United States that India will provide equitable and reasonable access to its markets." The announcement came just after 8 p.m. on May 31. The end of GSP eligibility and removal of India's developing country status also means India will be subject to safeguard duties on solar cells and washing machines as of June 5.
The following lawsuits were filed at the Court of International Trade during the week of May 20-26:
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Turkey is now subject to the Section 201 safeguard tariffs on solar cells and residential washers, CBP said in a CSMS message. Turkey is no longer a beneficiary developing country under the Generalized System of Preferences and is therefore subject to the tariffs (see 1905170004), effective May 17, CBP said.
Many U.S. importers "tend to just assume things are on the up and up" with their vendors, said Pete Mento, vice president for global trade and managed services at Crane Worldwide Logistics. Mento, who conducted a webinar on free trade deals May 24, said that's a mistake. Mento said often "people are claiming free trade agreements simply because it was flown to the U.S." from a free-trade partner country. "You gotta be able to prove your stuff qualifies. Because if you can’t prove it, the government’s going to come down on you like the hammer of the gods," he said.