USTR Announces Results of 2009 GSP Annual Review (Certain Gold Jewelry, Tires, Etc. Lose GSP)

(In 2009, the GSP program facilitated $20.3 billion¹ in imports of nearly 5,000 types of products from 131 developing countries. The U.S. conducts an annual review of the countries covered under the GSP program and products that are eligible for duty-free treatment under the program. The statute includes commercial thresholds and waiver provisions regarding imports of products. Interested parties also file petitions seeking changes in the treatment of countries and products.)

Proclamation to Implement GSP Review Changes Has Been Signed

The Proclamation to amend the Harmonized Tariff Schedule to implement the changes resulting from the 2009 Annual GSP Review was signed on June 30, 2010. However, it’s Annexes (containing full details and effective dates) are not yet available, nor has it been published in the Federal Register.

Annual GSP Review changes usually take effect on July 1 of each year.

5 Country/Tariff Number Pairs Expected to Lose GSP

According to the USTR and sources at the International Trade Commission, the following 5 country/tariff number pairs are expected to be removed from GSP eligibility, as they are now sufficiently competitive in the U.S. market:

• 1605.20.05 Thailand: Shrimp and prawn products containing fish meat; prepared meals of shrimp or prawns
• 4011.10.10 Thailand: New pneumatic radial tires, of rubber, of a kind used on motor cars
• 4409.29.05 Brazil: Nonconiferous wood continuously shaped along any of its ends
• 7113.19.21 India: Gold rope necklaces and neck chains
• 7113.19.25 India: Gold mixed link necklaces and neck chains

2 Tariff Numbers Expected to Become GSP-Eligible from All GSP Countries

The USTR also indicates that the following products are expected to become eligible for GSP duty-free treatment from any beneficiary country:

• 0710.22.40 Beans, uncooked or cooked by steaming or boiling in water, frozen, reduced in size
• 0710.90.91 Mixtures of vegetables, uncooked or cooked by steaming or boiling in water, frozen

Denial of Petition to Remove GSP from Certain Sleeping Bags

The USTR has denied a petition to remove sleeping bags, not containing 20% or more by weight of feathers and/or down (HTS 9404.30.80), from GSP eligibility for all countries.

De Minimis Waivers Granted for 108 Pairs

The USTR has granted de minimis waivers for 108 country/tariff number pairs. All 108 pairs were already GSP-eligible prior to July 1, so there will be no change in their GSP status that results from these grants. (See results for list.)

Re-Designation for 36 Pairs Denied

The USTR has denied the re-designation of 36 country/tariff number pairs that were without GSP benefits and were eligible for possible GSP re-designation based on 2009 trade data (i.e., imports in 2009 did not exceed the competitive needs limits²) and consideration of certain statutory guidelines. (See results for list.)

Decisions on Whether to Withdraw or Limit a Country's GSP Benefits

The GSP 2009 Annual Review also involved an analysis of petitions to withdraw or limit a country's GSP benefits for not meeting GSP eligibility criteria. These criteria include the extent to which a country provides adequate and effective protection of intellectual property rights (IPR), whether it provides important investor protections including enforcement of arbitral rights, and whether a country is taking steps to afford internationally recognized worker rights.

In the context of the 2009 review USTR accepted petitions to review whether Sri Lanka met GSP eligibility criteria related to worker rights and whether Argentina met the criteria related to enforcement of arbitral awards. Several countries remain under review of whether they meet eligibility criteria. Those countries are Lebanon, Russia and Uzbekistan regarding IPR protection and Bangladesh, Niger, the Philippines and Uzbekistan regarding worker rights. (See USTR's results for country practice review information.)

GSP Program for Most Countries Scheduled to Expire at End of Year

In late December 2009, the GSP program (i.e., A, A*, and A+) for most beneficiary countries, i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, was extended for one year, until December 31, 2010. At that time, the leadership of the Senate Finance Committee and the House Ways and Means Committee had stated they wanted to undertake a comprehensive review of all preference programs, including GSP, and introduce reform legislation in 2010.

¹According to last year’s GSP annual review, the figure was $31.7 billion for 2008.

²There are two types of CNLs - the value CNL (which is $135 million for 2008) and the 50% CNL (equal to or greater than 50% of the 2009 value of total U.S. imports of the tariff number from all countries). Once either limit is reached, trade is considered "competitive" and imports of the article automatically become ineligible for GSP treatment, unless a waiver is granted.

(See ITT’s Online Archives or 03/10/10 news, 10030510, for BP summary of USTR’s listing of the country/tariff number pairs that could lose GSP due to 2009 Annual GSP Review.

See ITT’s Online Archives or 12/30/09 news, 09123005, for BP summary on the one year extension of the GSP program.

See ITT’s Online Archives or 07/01/09 news, 09070105, for BP summary of the results of 2008 GSP annual review.)

Presidential Proclamation (dated 06/30/10 , unnumbered and without annexes) available here