Excessive Import Threatens Specific GSP Product Removals, Says USTR
Certain Indonesian tin and Thai copper alloys, along with a host of other products currently eligible for duty free status in the Generalized System of Preferences (GSP), are in jeopardy of being removed from the GSP system, due to excessive proportionate import, said the U.S. Trade Representative (USTR). Should GSP eligible products from a specific country exceed 50 percent of total U.S. imports of that product, the product must be removed from GSP status, unless the president waives the competitive need limitations (CNLs).
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According to USTR data from January to August 2013, certain Indonesia tin registered 69.1 percent of total U.S. imports of that tin, while certain Thai copper alloys registered 58.2 percent of total U.S. imports of that copper alloy. There are nearly 20 products in total that are hovering around the 50 percent threshold. The administration postponed the waiver request deadline to Dec. 20 (see [ref:13112119).
“The administration will not make any final decisions before June 2014. It will use the year-end data (available in February 2014), but this puts importers in the unfortunate situation of having to decide whether to file a petition with only partial information,” said Dan Anthony, director-research and government relations at the Coalition for GSP. “If no petition is filed and imports exceed the CNL threshold, the product automatically loses benefits no later than July 1.” The administration will not make any decision on CNL waivers until Congress passes GSP renewal legislation (see 13080110).