The American Apparel and Footwear Association and the U.S. Fashion Industry Association (USFIA) were among groups that filed briefs to the Office of the U.S. Trade Representative after the interagency Trade Policy Staff Committee held a hearing Oct. 18 as part of its consideration of whether to apply Generalized System of Preferences benefits for travel goods to all program beneficiaries. In an eight-page submission (here), AAFA asserted that the hearing provided “a strong and convincing record” that conferring benefits for travel goods originating in all GSP-eligible nations would align with statutory criteria, after USTR deferred GSP decisions for “beneficiary developing countries” (BDCs) on June 30 (see 1610180063). Expansion of the travel goods designation would support development throughout BDCs, including impoverished areas, AAFA said. “Countries excluded from the June 30 decision have huge pockets of poverty and significant development needs,” the association said. “Clearly, designating travel goods for these other countries would have huge development impacts.”
CBP appears to have backed away from a recently adopted policy of rejecting protests filed to claim benefits under the Generalized System of Preferences and several other trade programs, following a Court of International Trade decision issued in August that found GSP claims are protestable (see 1608050038). The importer behind the successful challenge, Zojirushi, had its protest granted and received its refund, said its lawyer, John Peterson of Neville Peterson. “There will be no appeal,” he said. “The Department of Justice appeared satisfied with the result, as well, and assisted us in getting the refunds.” CBP and DOJ did not immediately comment.
The Senate Finance Committee and American Apparel and Footwear Association CEO Rick Helfenbein were among those who urged the Office of the U.S. Trade Representative on Oct. 18 to apply duty-free benefits for all countries and all 28 travel goods eligible such treatment under the Generalized System of Preferences. The interagency Trade Policy Staff Committee (TPSC) on Oct. 18 heard public testimony from interested stakeholders, following a USTR request for additional public input after deferring GSP decisions for additions of travel goods produced in GSP beneficiary developing countries (see 1608240018). In written testimony (here), Helfenbein reiterated industry arguments submitted in comments to the TPSC that providing the benefits would help U.S. producers source outside of a dominant China, and that the benefits wouldn’t hurt a niche domestic market. “Productivity in developing countries just can’t match what the levels are in China,” Helfenbein said. “The elimination of duties will level the playing field so all can compete.”
President Barack Obama's executive order removing Myanmar sanctions (see 1610110029) included lifting an eight-year ban on Myanmar-origin jadeite and ruby imports, according to a Treasury Department fact sheet (here). Furthermore, the order removed all individuals and entities blocked under the Burmese Sanctions Regulations (BSR) from the Office of Foreign Assets Control's Specially Designated Nationals and Blocked Persons List, but doesn't impact Myanmar individuals or entities blocked pursuant to other OFAC sanctions authorities, including counter-narcotics sanctions, whose property and property interests remain blocked, Treasury said.
President Barack Obama removed sanctions on individuals under the Block Burmese Junta’s Anti-Democratic Efforts (JADE) Act of 2008, and lifted a 1997 emergency executive order that banned new investment in Myanmar, according to an Oct. 7 presidential document (here). Obama in September announced the addition of Myanmar as a least developed beneficiary developing country to the U.S. list of Generalized System of Preferences beneficiaries after a roughly 27-year absence from the program (see 1609140032), part of his administration’s actions to liberalize trade and investment with the country since it made several democratic reforms.
Foreign governments and apparel industry members submitted comments to the Office of the U.S. Trade Representative on why certain travel goods made in advanced developing countries meet the USTR's four criteria for inclusion in the Generalized System of Preferences (GSP) benefits package. Among other filers, the embassies of Sri Lanka (here) and Paraguay (here) said expanding GSP duty benefits to imported travel goods for beneficiary developing countries (BDCs) would not only increase their apparel exports to the U.S., but would also promote social benefits including human trafficking prevention and female access to healthcare and education. The comments were in response to USTR's request for additional public input (see 1608240018) after deferring GSP decisions for additions of travel goods produced in BDCs (see 1607060014) . The interagency Trade Policy Staff Committee GSP Subcommittee is scheduled to hear public testimony from interested stakeholders Oct. 18.
President Barack Obama is adding Myanmar as a least developed beneficiary developing country to the list of Generalized System of Preferences beneficiaries after a roughly 27-year absence from the program, he said in a proclamation to Congress (here). Harmonized Tariff Schedule General Notes 4(a) and 4(b)(i) will be modified to list “Burma.” Modifications to the HTS will take effect and apply to goods withdrawn from a warehouse for consumption or entered on or after Nov. 13, according to the proclamation. The announcement aligns with Obama’s meeting scheduled with Myanmar State Counsellor Aung San Suu Kyi in the Oval Office Sept. 14. The Office of the U.S. Trade Representative started reviews to consider Myanmar’s GSP eligibility in April 2013, after the nation’s qualification for the program was withdrawn in 1989 because of worker rights violations (see 13041521). A joint statement on the U.S.-Myanmar relationship said the Asian country has strengthened its protections for "internationally recognized worker rights."
International Trade Today is providing readers with some of the top stories for Sept. 6-9 in case they were missed.
Optimism is growing within industry and Congress that the Office of the U.S. Trade Representative will move in favor of duty-free benefits for 27 travel goods for all Generalized System of Preferences (GSP) beneficiary countries following a further review. The Obama administration on June 30 surprised industry and Congress when it decided to defer benefits for travel goods originating from non-least developed beneficiary developing countries (LDBDCs), as defined by GSP (see 1607060014). The USTR reopened its evaluation of whether to add the products in late August (see 1608240018).
The Office of the U.S. Trade Representative is seeking additional comments on the potential addition of travel goods for more developed Generalized System of Preferences (GSP) countries, as well as possible changes to the wider list of products eligible for GSP duty-free treatment, USTR said (here). House lawmakers (see 1607280024) and industry (see 1608090012) recently directly appealed to President Barack Obama to reconsider his June 30 decision to defer approval of GSP duty benefits for 27 travel goods imported from non-least developed beneficiary developing countries (LDBDCs) (see 1607010008). The agency is also considering modifications of the GSP status of beneficiary developing countries (BDCs) due to certain practices, it said.