CBP is still waiting for some details on the termination of Turkey's eligibility for benefits under the Generalized System of Preferences, a CBP official said during a May 23 conference call. Asked about the specific effective date for goods being entered from Turkey and why there has not been a CSMS message, a CBP official said "we don't have the confirmed information for that." CBP sometimes has to work "behind the curve" when reacting to executive orders, the official said. President Donald Trump announced that Turkey would no longer be part of GSP program effective May 17 (see 1905170004). Annex A of the proclamation, published in the May 21 Federal Register, says the removal of Turkey from tariff schedule provisions on GSP takes effect "for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 17, 2019 ... ."
The Coalition for GSP criticized Turkey’s removal from the Generalized System of Preferences program in a statement following the White House's May 16 announcement, saying the move will impose “tens of million of dollars in taxes annually.” President Donald Trump said Turkey no longer qualifies as a developing country, which means Turkey will also be subject to Section 201 safeguards on solar cells and washing machines. The removal of Turkey from GSP takes effect May 17. In a separate proclamation, the White House announced that the 50 percent Section 232 tariff on Turkish steel in place since August will return to 25 percent on May 21
Turkish exports are no longer eligible for the Generalized System of Preferences, and Turkish solar cells and residential washers are also now subject to safeguard tariffs. The changes took effect May 17.
Commerce Secretary Wilbur Ross, speaking May 7 in New Delhi, chided India for its high tariffs and non-tariff barriers, blaming them for the trade deficit with the U.S. He did not acknowledge the termination of the Generalized System of Preferences benefits for India. Although the administration warned India could be terminated from the GSP program as of May 4, so far, that has not happened. However, Ross did tell a local TV station, according to Reuters, that retaliation for the end of GSP would be inappropriate.
Twenty-five House members, led by former New Dems Chairman Jim Himes, D-Conn., asked U.S. Trade Representative Robert Lighthizer not to terminate India as a beneficiary under the Generalized System of Preferences program before a new government is seated in that country. India is in the midst of elections now. India could be terminated as early as May 4, since notice was given March 4. India is the top beneficiary of GSP, accounting for $5.6 billion of the program's $21.1 billion in imports last year, according to USTR. Almost 12 percent of India's exports to the U.S. are covered by GSP.
Companies that save thousands or even hundreds of thousands on tariffs by sourcing under the Generalized System of Preferences program will likely shift sourcing to China, or cut back on hours or workers, a new survey from a pro-GSP coalition found. The group, which published its report May 1, talked to about 125 businesses that use GSP -- to import from India and Turkey, but also those that import from Thailand and Indonesia. Those countries are currently under review. The terminations for India and Turkey could take effect as soon as May 4.
Uzbekistan human rights activists who traveled to Washington -- and the Uzbek ambassador -- are asking the textile industry to ends its boycott of Uzbek cotton, because of new government policies that have ended child labor and greatly reduced forced labor during the harvest.
The Court of International Trade on April 22 ordered a novice importer to pay a $141,984.98 penalty, plus $146,368.64 in unpaid duties, for failure to declare stainless steel flanges subject to an antidumping duty order. Despite the Titan Metals’ small size, the court found the importer’s false statements on entry documentation “particularly egregious,” setting the penalty at 50 percent of the legal maximum.
Please consider delaying India's removal from the Generalized System of Preferences by at least 30 days, Sen. John Cornyn, R-Texas, and Sen. Mark Warner, D-Va., asked U.S. Trade Representative Robert Lighthizer in a letter sent April 12. While the two senators, who chair the Senate's India Caucus, say they recognize there are issues with market access into India, the period shortly before India's elections is not the most productive time to negotiate. They asked that the termination -- announced March 4 to occur 60 days hence -- be delayed beyond those elections, which will conclude May 23. They also said they are concerned that the higher tariffs on imports that used to be covered by GSP could be passed on to consumers, at least in part.
More than 430 businesses and trade groups asked the leaders of the Senate and House committees with jurisdiction over tariffs to ask the U.S. trade representative for a delay in his decision to bar India and Turkey from the Generalized System of Preferences program (see 1903040073). India accounted for more than $5 billion of the $21 billion in imports covered by GSP.