The Treasury Department published its spring 2014 regulatory agenda for CBP, which lists no new rulemakings in the works. The agenda lists Treasury's CBP rulemakings that are pending at the proposed, interim final, final, and completed stages, as well as rulemakings that are long-term actions. The agenda lists the regulation title; past regulation(s), if any; the timeframe for the next regulatory action(s), if any; a brief description of the regulation; and a contact party name and telephone number. The Department of Homeland Security has also issued its spring 2014 regulatory agenda for CBP (see 14052911).
The U.S. is concerned that the Ghanaian adoption of the Economic Community of West African States (ECOWAS) tariff model will ramp up tariffs on seven World Trade Organization (WTO) tariff categories, said WTO Attaché Neil Beck on May 26 at the WTO Trade Policy Review of Ghana. The country’s accession into the ECOWAS model should instead enable Ghana to lower tariffs, according to Beck.
Products that entered duty-free under the Generalized System of Preferences accounted for only a small amount of total Russian exports to the U.S., said the Congressional Research Service (CRS) in a May 19 report. GSP-eligible ferrosilicon, chromium and ferrochromium, radial tires, ceramics for laboratory use, along with aluminum wire, alloy bars, and rods accounted for 2 percent of total Russian exports to the U.S. in 2012, it said. President Barack Obama earlier this month announced his intent to remove Russia from the preference program, citing economic development (see 14050805). The inclusion of Russia in the program has generated debate over recent years, with some industry officials challenging Russian protection of intellectual property rights commitments. The preference program continues to face an uphill climb as lawmakers struggle to find a vehicle to advance trade legislation (see 14032429). The program expired on July 31, 2013 (see 13080110). The Office of the U.S. Trade Representative pushed for Myanmar and Laos to be included in the program prior to expiration (here), said CRS, but expiration prevented any administrative additions.
Importers and brokers should not file requests to stop liquidation of claims potentially eligible for a renewed Generalized System of Preferences trade program, which expired last year, said CBP in a CSMS message. The National Customs Brokers & Forwarders Association of America recently advised filers to consider filing protests against liquidation to maintain rights to GSP benefits (see 14051211). Previous renewals of the GSP program allowed CBP to process retroactive refunds regardless of liquidation status, though it remains unclear if that would be the case even if GSP were renewed, the agency said.
Lawmakers should pass the GSP Update for Production Diversification and Trade Enforcement (Update) Act in order to incorporate travel goods into the Generalized System of Preferences (GSP) program, said more than a dozen industry officials in a recent letter. The letter was sent to Senate Finance and House Ways and Means Committee leadership. Sens, Mark Begich, D-Alaska, and Roy Blunt, R-Mo., introduced the legislation in December 2013, while House members introduced a companion bill months prior (see 13121820).
Importers and brokers should take steps to try and maintain rights for refunds under the Generalized System of Preferences (GSP), as GSP-eligible entries have started to liquidate as entered, with duty paid, said the National Customs Brokers & Forwarders Association of America in a note to members. "Faced with the liquidation of GSP eligible entries, importers (and their brokers) wishing to preserve their rights to potential refunds should consider filing protests against the liquidation of these GSP eligible entries and asking CBP to suspend action on the protest pending the passage of legislation re-authorizing GSP benefits." The trade program expired at the end of July last year.
Russian graduation from the Generalized System of Preferences (GSP) may give some momentum for renewal of the program in general, though Congressional action remains uncertain, said Scott Miller, Scholl chair in international business at the Center for Strategic and International Studies. The change will not significantly impact bilateral trade or the value of the GSP program, said Miller. U.S. importers could have only saved between $7-8 million on duty-free Russian imports since GSP expiration on July 31, 2013, said Miller.
President Barack Obama intends to remove Russia as a Generalized System of Preferences (GSP) beneficiary because the country can no longer be considered a developing economy, according to a letter submitted to Congress on May 7. The GSP program expired on July 31, 2013, and lawmakers continue to struggle to find a method of advancing the legislation (see 14032429). Obama did not mention the removal as a punitive measure.
Sub-Saharan African countries must develop independent, national strategies for the African Growth and Opportunity Act (AGOA) in order to fully embrace the trade preferences program, said Nicole Johnson, senior trade and investment officer at the State Department, at an Advancing Trade and Investment in Africa (ATIA) panel on May 1. Poor infrastructure continues to inhibit use of the program as well, said Johnson. “There’s broad agreement that AGOA has not lived up to its full potential. There are a number of eligible countries that have never taken advantage of the benefits and never exported a single product,” said Johnson. “Last year, two-thirds of [eligible countries] exported to the U.S. under AGOA and only 14 of them exported more than $10 million worth of products. So there are still a sizeable number of countries that are not exporting at all under AGOA.”
The National Customs Brokers & Forwarders Association of America raised and donated more money for political donations through its Political Action Committee than ever before, said the group's in its 2013 report. While expectations remain low for legislative progress on issues of interest to the association, "there are signs that -- gradually -- change is on its way," it said. The group added 92 new members in 2013, up to a total of 896 members, said the NCBFAA.