GSP Guidebook April 2018 Guidebook April... · SAARC South Asian Association for Regional...

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U.S.GeneralizedSystemofPreferences

GUIDEBOOKOfficeoftheUnitedStatesTradeRepresentativeExecutiveOfficeofthePresidentWashington,D.C.

April2018

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TABLEOFCONTENTSIntroduction..........................................................................................................................................................3

AbbreviationsandAcronyms........................................................................................................................4

GSPProgramInquiries.....................................................................................................................................5

FrequentlyAskedQuestionsaboutGSP....................................................................................................6

CountriesEligibleforGSP..............................................................................................................................17

CriteriaforCountryEligibilityunderGSP..............................................................................................20

ArticlesandCountriesGrantedWaiversoftheCompetitiveNeedLimitations....................23

InformationonSubmittingaGSPPetition.............................................................................................27

OtherInformationSources...........................................................................................................................30

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INTRODUCTIONTheU.S.GeneralizedSystemofPreferences(GSP),aprogramdesignedtopromoteeconomicgrowthinthedevelopingworld,providespreferentialduty‐freetreatmentforover3,500productsfromawiderangeofdesignatedbeneficiarycountries(BDCs),includingmanyleast‐developedbeneficiarydevelopingcountries(LDBDCs).*Anadditional1,500productsareGSP‐eligibleonlywhenimportedfromLDBDCs.TheGSPprogram,firstauthorizedbytheTradeActof1974(19U.S.C.§2461–2467),wasinstitutedonJanuary1,1976.AuthorizationoftheGSPprogramexpiredonDecember31,2017.OnMarch23,2018,thePresidentsignedlegislationauthorizingtheGSPprogramthroughDecember31,2020,retroactivetoJanuary1,2018.ThepurposeofthisGuidebookistofacilitatepublicunderstandingoftheGSPprogramandtheinformationcontainedinthebasicimplementingdocuments.Thestatuteandimplementingdocumentsremainthecontrollingauthorities.ThestatutoryauthorizationoftheGSPprogrammaybefoundinTitleVoftheTradeActof1974(19U.SC.§2461–2467).GSPregulationsmaybefoundat15CFRPart2007.BotharealsoavailableontheOfficeoftheU.S.TradeRepresentative(USTR)website:https://ustr.gov/issue-areas/trade-development/preference-programs/generalized-system-preference-gsp/gsp-program-inf .TheGSPregulationsoftheDepartmentofHomelandSecurity’sU.S.CustomsandBorderProtection(CBP)maybefoundat19CFRPart10.171through10.178.Inaddition,CBPhaspostedavarietyofinformationthatmaybeusefultoimportersandexportersusingtheGSPprogramathttp://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences .

* As of January 2018, there were121BDCs,including17non‐independentterritoriesand44LDBDCs.SeeGeneralNote4oftheU.S.HarmonizedTariffScheduleforthemostup‐to‐datenumberofGSPbeneficiaries:https://hts.usitc.gov/current.

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ABBREVIATIONS AND ACRONYMS

ASEAN AssociationofSoutheastAsianNationsBDC BeneficiaryDevelopingCountryCARICOM CaribbeanCommonMarketCBP DepartmentofHomelandSecurity’sU.S.CustomsandBorderProtectionCFR CodeofFederalRegulationsCNL CompetitiveNeedLimitationGNI GrossNationalIncomeGNP GrossNationalProductCROSS CustomsRulingsOnlineSearchSystemGSP U.S.GeneralizedSystemofPreferencesHTSUS HarmonizedTariffScheduleoftheUnitedStatesIMF InternationalMonetaryFundLDBDC LeastDevelopedBeneficiaryDevelopingCountryNTR NormalTradeRelationsSAARC SouthAsianAssociationforRegionalCooperationSADC SouthernAfricanDevelopmentCommunitySIC StandardIndustrialClassificationSITC StandardInternationalTradeClassificationSPI SpecialProgramIndicatorTPSC TradePolicyStaffCommitteeUSC U.S.CodeUSITC U.S.InternationalTradeCommissionUSTR OfficeoftheU.S.TradeRepresentativeWAEMU WestAfricanEconomicandMonetaryUnionWTO WorldTradeOrganization

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GSPPROGRAMINQUIRIESTheGSPprogramisadministeredbytheOfficeoftheU.S.TradeRepresentative.PublicinquiriesabouttheprogrammaybedirectedtotheGSPProgramOfficeatUSTR,usingthefollowingcontactinformation:

e‐mail:[email protected]:+1(202)395‐2974

PublicDocumentsconcerningGSPProductandCountryPracticeReviewsare

availableonlineatwww.regulations.gov

GSPProgramInformationisavailableat:

https://ustr.gov/issue-areas/trade-development/preference-programs/generalized-system-preference-gsp

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FREQUENTLYASKEDQUESTIONSABOUTGSP

1.GSP‐EligibleArticlesWhichimportsintotheUnitedStatesqualifyforduty‐freetreatmentundertheGSP?Tobeeligibleforduty‐freetreatmentpursuanttoGSP,animportmustmeetthefollowingrequirements(describedinmoredetailbelow):(1)ItmustbeincludedinthelistofGSP‐eligiblearticles;

(2)ItmustbeimporteddirectlyfromaBDC;

(3)TheBDCmustbeeligibleforGSPtreatmentforthatarticle;

(4)Thearticlemustbethegrowth,product,ormanufactureofaBDCandmustmeetthevalue‐addedrequirements;

(5)Theimportermustrequestduty‐freetreatmentunderGSPbyplacingtheappropriateGSPSpecialProgramIndicator(SPI)(A,A+,orA*)beforetheHTSUSnumberthatidentifiedtheimportedarticleontheappropriateshippingdocuments(CBPForm7501).

Whicharticlesareeligibleforduty‐freetreatment?ArticlesclassifiedbyCBPunderapproximately3,500eight‐digittariffratelinesaregenerallyeligibleforduty‐freetreatmentfromallGSPbeneficiaries.Anadditionalapproximately1,500articlesareeligibleforduty‐freetreatmentwhenimportedfromLDBDCs.Thecombinedlistsincludemostdutiablemanufacturedandsemi‐manufacturedproductsandcertainagricultural,fishery,andprimaryindustrialproductsthatarenototherwiseduty‐free.LDBDCsaredesignatedassuchpursuanttosection502(a)(2)oftheTradeActof1974,asamended,and,inpractice,aretypicallyGSPbeneficiariesthatareontheUnitedNations’listofleastdevelopedcountries.HowdoIdetermineifaparticularitemisGSP‐eligible?ArticleseligibleforGSPtreatmentareidentifiedinthecurrenteditionoftheHarmonizedTariffScheduleoftheUnitedStates(HTSUS),whichispublishedbytheU.S.InternationalTradeCommission(USITC).ThecompleteHTSUScanbedownloadedfromtheUSITCwebsitehttp://www.usitc.gov/tata/hts/index.htm. ThereisalsoasearchableversionoftheHTSUSavailableattheUSITCwebsite.Inaddition,theUSITCmaintainsthe“InteractiveTariffandTradeDataWeb,”asearchabledatabaseofimportstatisticsandotherinformation,includingproducteligibilityinformationforGSPandotherU.S.preferenceprograms,whichcanbefoundat:http://dataweb.usitc.gov.Anothersource(althoughnotofficialandonlyupdatedperiodically)isontheUSTRwebsiteathttps://ustr.gov/issue‐areas/trade‐development/preference‐programs/generalized‐system‐preferences‐gsp/gsp‐program‐i‐0

1. GSP‐EligibleArticles2. HowtoClaimGSPBenefits

forEligibleArticlesuponEntryintotheUnitedStates

3. GSPBeneficiaryDevelopingCountries

4. CompetitiveNeedLimitationsandRequestsforWaivers

5. GraduationofaBeneficiaryCountryfromGSP

6. Rules‐of‐OriginRequirements

7. “ImportedDirectly”Requirement

8. HandicraftTextiles9. OtherTopics

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CananyarticlebedesignatedaseligibleforGSP?No.Certainarticlesareprohibitedbylaw(see19U.S.C§2463)fromreceivingGSPtreatment.Theseincludemosttextilesandapparelarticles,watches,footwear,workgloves,andleatherapparel.Inaddition,theGSPstatuteprecludeseligibilityforimport‐sensitivesteel,glass,andelectronicarticles.HowisanarticleidentifiedasGSP‐eligibleintheHTSUS?TheletterAinthe“Special”tariffcolumnoftheHTSUSidentifiesGSP‐eligiblearticlesataneight‐digitlevel.ThefollowingtablepresentsthreeHTSUStarifflinestoillustratevariationsinthetreatmentgiventodifferentGSParticles.UndereachentryforaGSP‐eligiblearticleintheHTSUS,theSPIcodeA,A+,orA*inthe“Special”columnidentifiesthearticleasGSP‐eligibleundercertainconditions.TheSPIcodeAdesignatesarticlesthatareGSP‐eligiblefromanyBDC.TheSPIcodeA+indicatesarticlesthatareGSP‐eligibleonlyfromLDBDCs.TheSPIcodeA*indicatesthatoneormorespecificBDCs,listedinGeneralNote4(d)totheHTSUS,havelostGSPeligibilityforthatarticle.

HTSUS Subheading

Article description

Rate of Duty (%)

Column 1 Column 2

General Special

8406.10.10 Steam turbines for marine propulsion

6.70% Free (A,…) 20%

8413.30.10 Fuel‐injection pumps for compression‐ignition engines

2.50% Free (A*, ...) 35%

8708.92.50 Mufflers and exhaust pipes, not for trackers

2.50% Free (A+,…) 25%

CanthePresidentlimitproducts’GSPeligibility?Yes.ThePresidentmay:

(1)removeproductsfromGSPeligibilityinresponsetopetitionssubmittedbyinterestedpartiesinanannualreview;

(2)precludecertainBDCsfromGSPeligibilityforcertainnewlydesignatedproductswhenthoseproductsaredesignated;

(3)limittheredesignationofGSPeligibilitytocertainBDCswhenspecificarticlesareredesignatedasGSP‐eligible;and

(4)removeproductsforanindividualBDCcountrywhichhasexceededcompetitiveneedlimitations(CNLs).

HowisthecorrectHTSUSclassificationdetermined?CBPclassifiesimportsundertheHTSUS.ArulingontheappropriateclassificationofaproductmayberequestedunderPart177oftheCBPRegulations(see19CFRPart177)byanypersonwho,asanimporterorexporterofmerchandise,hasadirectanddemonstrableinterestintherulingrequest.Theauthorizedagentofsuchpersonmayalsorequestaruling.A"person"inthiscontextincludesanindividual,corporation,partnership,association,orotherentity.Therulingsareprovidedwithoutcost,

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providecertaintytomakeaninformedbusinessdecision,and,ifsubmittedtoCBP’sNewYorkofficeasaneRulingrequest,areprovidedwithin30daysofreceipt.QuestionsconcerningtheappropriateclassificationofaparticularproductshouldbedirectedtoCBPofficersattheportofentryorto:

Director,NationalCommoditySpecialistDivisionU.S.CustomsandBorderProtection

Attn:CIE/RulingRequestOnePennPlaza‐10thFloor

NewYork,NY10119Rulingsmaybeobtainedbyemailorpostalmail.Requirementsforrulingrequestsmaybefoundat:http://www.cbp.gov/trade/rulings/eruling-requirements .TheeRulingtemplateisavailableat:https://apps.cbp.gov/erulings/index.asp.TheeRulingtemplatemaybeusedifyoudonotneedtoprovideaphysicalsampleofthegoodsforwhichyouneedaruling.CBPrulingsarepublishedandavailableon‐lineinasearchabledatabasecalledCustomsRulingsOnlineSearchSystem(CROSS)athttp://rulings.cbp.gov.Requestsforvaluationandpreferenceprogramqualificationrulingsshouldbeaddressedto:

TheCommissionerofCustomsandBorderProtectionAttention:OfficeofRegulationsandRulings

Washington,DC20229

CBPalsoprovidesacompliancedocumenttoinformimportersofthebasicrequirementsoftheGSPprogram,includingguidanceaboutestablishinginternalcontrolstodocumenttheregulatoryrequirementsforsubstantiatingGSPclaims.Thisdocumentisavailableat:https://www.cbp.gov/trade/priority‐issues/trade‐agreements/special‐trade‐legislation/generalized‐system‐preferences.

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2.HowtoClaimGSPBenefitsforEligibleArticlesuponEntryintotheUnitedStates

HowdoesanimporterrequestGSPtreatment?TheimporterisresponsibleforclaimingthepreferencebenefitbyusingtheGSP’sSPIcode“A”“A*”,or“A+”,asaprefix,beforetheHTSUStariff‐linenumberwhencompletingtheshipmententrydocumentation(see19CFR10.172).IfGSPtreatmentisnotclaimedontheentrysummary,thereareotherwaystoclaimit.OneistofileaPostEntryAmendmentwithCustomsatleast20workingdayspriortoliquidationoftheentry.Anothermethodistofileaprotest,assetoutin19U.S.C§1514.AsampleofCBPEntryForm7501,usedforentryofmerchandise,canbefoundontheCBPwebsiteathttp://www.cbp.gov/sites/default/files/documents/CBP%20Form%207501_0.pdf.

WhatdocumentsareneededtoensureGSPduty‐freetreatment?ThedocumentsthatCBPmayrequestvaryonacase‐by‐casebasis.ExamplesofthetypesofdocumentsthatshouldbeavailabletoestablishanddocumentaGSPclaimare:

GSPDeclaration(see19CFR10.173) BillofMaterials Invoices PurchaseOrders Productionrecordskeptintheordinarycourseofbusiness Payrollinformationtodocumentlaborcosts Factoryprofile Affidavitwithsupportingdocumentation

ThedocumentationnecessarytosubstantiateaGSPclaimmustbekeptreadilyaccessible,shouldCBPrequestit.CBPmayrequestrecordsfromtheimporter,fromtheforeignexporter,orboth.Thesubstantiatingdocumentationmustbekeptforaperiodoffiveyears.3.GSPBeneficiaryDevelopingCountriesWherearetheofficiallistsofGSP‐eligiblebeneficiariesandcountry‐specificrestrictionsoneligibilityfound?GeneralNote4,foundatthebeginningoftheHTSUS,containsinformationaboutGSP.GeneralNote4(a)containstheofficiallistofGSP‐eligiblebeneficiaries.GeneralNote4(b)containsthelistofLDBDCs.GeneralNote4(d)containsthelistoftheimportedarticlesthatarenoteligibleforGSPtreatmentfromcertainGSPcountries.WhenaBDCisfirstdesignated,orundergoesachangeinGSPeligibility,anoticeispublishedintheFederalRegisterindicatingthechangeandtheeffectivedateofthechange.ThelistscontainedinGeneralNote4areperiodicallymodifiedtoreflectthesechanges.Arethelistsofeligiblearticlesandcountriesevermodified?Yes.TheGSPSubcommitteeoftheTradePolicyStaffCommittee(TPSC),chairedbyUSTRandcomprisedofrepresentativesofotherexecutivebranchagencies,conductsanannualreviewduringwhichchangesareconsideredtothelistsofarticlesandcountrieseligibleforduty‐freetreatmentunderGSP.Modificationsmadepursuanttotheannualreviewareimplementedbyexecutiveorder,orPresidentialProclamation,andarepublishedintheFederalRegister.Themodificationsarereflectedintheelectronic

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andhardcopyversionsoftheHTSUSpublishedbytheUSITC.HowdoessomeonerequestmodificationofthelistofGSP‐eligiblearticles?AnypersonmaypetitiontheGSPSubcommitteetorequestmodificationstothelistofcountrieseligibleforGSPtreatment.However,onlyan“interestedparty”maypetitionformodificationstothelistofarticleseligibleforGSPtreatment.ForpurposesofGSP,aninterestedpartyisanypartywhohassignificanteconomicinterestinthesubjectmatteroftherequest,oranyotherpartyrepresentingasignificanteconomicinterestthatwouldbemateriallyaffectedbytheactionrequested,suchasadomesticproducerofalikeordirectlycompetitivearticle,acommercialimporterorretailerofanarticlewhichiseligibleforGSPorforwhichGSPeligibilityisrequested,oraforeigngovernment.Inordertobeconsideredinaparticularannualreview,petitionsmustbesubmittedtotheGSPSubcommitteebythedeadlineforsubmissionsforthatreviewasannouncedintheFederalRegister(See“InformationonSubmittingaGSPPetition”below).Petitionsmustconformtotheapplicablerulesandregulations.PetitionsacceptedforreviewaresubjecttopublichearingsandafullreviewbytheGSPSubcommittee.Whatfactorsaretakenintoaccountinmodifyingthelistofeligiblearticles?InmodifyingtheGSPlistofarticles,thefollowingfactorsmustbeconsideredunderthestatute:

(1)theeffectsuchactionwillhaveonfurtheringtheeconomicdevelopmentofdevelopingcountriesthroughtheexpansionoftheirexports;

(2)theextenttowhichothermajordevelopedcountriesareundertakingacomparableefforttoassistdevelopingcountriesbygrantinggeneralizedpreferenceswithrespecttoimportsofproductsofsuchcountries;

(3)theanticipatedimpactofsuchactiononU.S.producersoflikeordirectlycompetitiveproducts;and

(4)theextentofthecountry’scompetitivenesswithrespecttoeligibleproducts.Whatfactorsaretakenintoaccountinmodifyingthelistofeligiblecountries?Inaddition,thestatuteprovidesmandatoryanddiscretionaryfactorsthePresidenttakesintoaccountindesignatingacountryaseligibleforGSP.Thesefactorsincludewhetheracountryhastakenoristakingstepstoaffordtoworkersinthatcountryinternationallyrecognizedworkerrightsandtheextenttowhichacountryisprovidingadequateandeffectiveprotectionofintellectualpropertyrights.Thefulllistoffactorsmaybefoundat19U.S.C§2462(b)and(c).Finally,thestatutealsoprovidesalistofarticlesthatmaynotbedesignatedaseligibleforGSP(see19U.S.C§2463(b)).Arechangesincountryeligibilitybasedonlyonpetitionsfromstakeholders?No,asannouncedinapressreleaseinOctober,2017,anewadditionalprocesswillinvolveatriennialassessmentbyUSTRandotherrelevantagenciesofeachGSPbeneficiarycountry’scompliancewiththestatutoryeligibilitycriteria.Iftheassessmentofabeneficiarycountryraisesconcernsregardingthecountry’scompliancewithaneligibilitycriterion,theAdministrationmayself‐initiateafullcountrypracticereviewofthatcountry’scontinuedeligibilityforGSP.ThefirstassessmentperiodwillfocusonGSPbeneficiarycountriesinAsia.TheTrumpAdministrationwillassessGSPbeneficiarycountriesinotherpartsoftheworldinthesecondandthirdyearsofthisprocess.WhomakesthedeterminationsregardingGSPproductandcountryeligibility?ThePresidentdetermineswhichcountriesandwhichproductsareeligibleforGSPbenefits,basedonthe

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recommendationsoftheU.S.TradeRepresentative.TheGSPSubcommitteeconductstheannualreviewsofGSPproductandcountryeligibility.Thesereviewstypicallyinvolvebothpublichearingsandapubliccommentperiod.TheGSPSubcommitteereportsthefindingsofthesereviewstotheTPSCandtheU.S.TradeRepresentative.TheDeputyAssistantUSTRforGSPoverseestheday‐to‐dayoperationoftheGSPprogramandchairstheGSPSubcommittee.Doallbeneficiarycountriesreceiveduty‐freetreatmentontheentirelistofarticles?No.SomeotherwiseGSP‐eligibleproductsfromparticularBDCsmaybeineligiblebecause:(1)theyexceedtheCNLs(seebelow);(2)theproducts’GSPeligibilityhasbeenremovedfromoneormoreparticularcountriesinresponsetopetitionssubmittedaspartofanannualreview;(3)aparticularBDChasbeenfoundtobesufficientlycompetitivewithrespecttothatproductorproducts;(4)theimportedarticlesfailtomeetthestatutoryrequirementsofGSP;or(5)theimportedarticlesfailtomeetotherCBPorotheragencyrequirements.4.CompetitiveNeedLimitationsandRequestsforWaiversWhatarecompetitiveneedlimitations?CNLsarequantitativeceilingsonGSPbenefitsforeachproductandBDC.TheGSPstatuteprovidesthataBDCistoloseitsGSPeligibilitywithrespecttoaproductiftheCNLsareexceededandifnowaiverisgranted(seebelow).TherearetwodifferentmeasuresforCNLs:whenU.S.importsofaparticularproductfromaBDCduringanycalendaryear(1)accountfor50percentormoreofthevalueoftotalU.S.importsofthatproduct;or(2)exceedacertaindollarvalue.InaccordancewiththeGSPstatute,thedollar‐valuelimitisincreasedby$5millionannually;the2017limitis$180million,anditis$185millionfor2018.Productsfromaspecifiedbeneficiaryareconsidered“sufficientlycompetitive”whenimportsexceedoneoftheselimits.Bystatute,GSPtreatmentforanarticleexceedingeitherCNLterminatesonNovember1ofthenextcalendaryear.Bystatute,CNLsdonotapplytoLDBDCsandBDCsthatarealsobeneficiariesoftheAfricanGrowthandOpportunityAct(see19U.S.C.§2463(c)(2)).Arethecompetitiveneedlimitationseverwaived?Yes.CNLscanbewaivedunderthreecircumstances:

(1)Petitionedwaivers:ThePresidentmaygrantaCNLwaiverforaproductimportedfromaBDC.Interestedpartiesmaypetitionforawaiverduringtheannualreviewprocess.Indecidingwhethertograntawaiver,thePresidentisrequiredtoplace“greatweight”ontheextenttowhichthecountryisprovidingequitableandreasonableaccesstoitsmarketandbasiccommodityresourcesandtheextenttowhichthecountryisprovidingreasonableandeffectiveprotectiontoU.S.intellectualpropertyrights.Ifawaiverisgranted,boththepercentagelimitandthedollarlimitarewaived.AwaiverremainsineffectuntilthePresidentdeterminesthatitisnolongerwarrantedduetochangedcircumstances.ThestatutealsoprovidesthatthePresidentshouldrevokeanywaiverthathasbeenineffectforatleastfiveyears,ifaGSP‐eligibleproductfromaspecificcountryhasanannualtradelevelinthepreviouscalendaryearthatexceeds150percentoftheannualdollar‐valuelimitorexceeds75percentofallU.S.imports.(2)“NPUS”waiver:ThepercentageprovisioniswaivedforcertainGSPeligiblearticleswhichwerenotproducedintheUnitedStatesinthethreeyearspriortothetimeofaction.Interestedpartiesmaypetitionforawaiverduringtheannualreviewprocess.

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(3)Deminimiswaiver:AwaivermayalsobeprovidedwhentotalU.S.importsfromallcountriesofaproductare“deminimis”.Likethedollar‐valueCNLs,thedeminimislevelisadjustedeachyear,inincrementsof$500,000.Thedeminimislevelin2017is$23.5million,andis$24millionfor2018.Eachyear,theGSPSubcommitteeautomaticallyconsidersdeminimiswaiversforallproductsfromBDCsthatexceededthepercentage‐basedCNL.Deminimiswaiversaregenerallygiventoeligibleproducts,butdenialofademinimiswaiverisnowsubjecttoapetitionprocessandifacceptedforreview,toastudybytheU.S.InternationalTradeCommission.

Whathappensifthevalueofimportsofaneligibleproductfromabeneficiarycountryreachesorexceedscompetitiveneedlimitationsinagivenyear?GSPeligibilityforarticlesfromsuchcountriesterminatesonNovember1ofthenextcalendaryearunlessthoseproductsandbeneficiariesaregrantedaCNLwaiverbeforethatdate.WhenshouldaninterestedpartypetitionforaCNLwaiver?WiththechangeinthestatutorydeadlinetoNovember1,stakeholderscandetermineifcalendaryearimportsexceededtheCNLbycheckingtheUSTRGSPwebsite.Partiesshouldfileapetitionseekingawaiverbeforethedeadlineforthatyear’sannualGSPreviewlistedintheFederalRegister.OnceanarticleisremovedfromGSPeligibilitybecauseitexceededtheCNL,canthatarticlefromthecountryeverbereturnedtoGSPeligibility?Yes.DuringtheannualGSPproductreview,interestedpartieswillhavetheopportunitytopetitionforredesignationofaproductexportedbyaparticularBDCifU.S.importsofthatarticlefromthatcountryfallbelowthecompetitiveneedlimitationsinasubsequentyear.This includes possible redesignation of products for which imports are below the dollar value Competitive Need Limitation ($180 million for 2017), but for which imports exceed 50 percent, in the event that a petitioner believes that there is no production in the United States. USTR anticipates that redesignations will continue to be granted in only a limited number of cases, and will prioritize redesignations of products that do not compete with U.S. production. The new petition process will require that accepted petitions on these topics will now be included in the advice provided by the United States International Trade Commission.

5.GraduationofaBeneficiaryCountryfromGSPWhatisgraduationandhowisitimplemented?Graduationistheremovalofacountry’sGSPeligibilityonthebasisoffactorsrelatedtonationalincomeorcompetitiveness.ThePresidentmayremoveaBDCfromtheGSPprogrambecausethecountryissufficientlydevelopedorcompetitive,ormaysuspendorlimittheBDC’saccesstoduty‐freetreatmentwithrespecttooneormoreproducts.Countrygraduationoccurs:

(1)whenthePresidentdeterminesthatabeneficiarycountryisa“high‐incomecountry,”asdefinedbytheGSPstatute(basedonWorldBankstatistics)(“mandatorygraduation”);

Or

(2)astheresultofareviewofaBDC’sadvancesineconomicdevelopmentandtradecompetitiveness.

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ThepercapitaGrossNationalIncome(GNI)limitformandatorygraduationissetatthelowerboundoftheWorldBank’sdefinitionofa“high‐income”country(whichwas$12,235for2016,themostrecentdataavailable,announcedinJuly2017).MandatorygraduationtakeseffectJanuary1ofthesecondyearaftertheyearinwhichthePresidentmakesthegraduationdetermination,whichisannouncedintheFederalRegister.Whatfactorsareconsideredingraduationactions?Forcircumstancesotherthanmandatorygraduation,theGSPSubcommitteenormallyreviews:(1)thecountry’sgenerallevelofdevelopment;(2)itscompetitivenessinregardtotheparticularproduct;(3)thecountry’spracticesrelatingtotrade,investment,andworkerrights;(4)theoveralleconomicinterestsoftheUnitedStates,includingtheeffectcontinuedGSPtreatmentwouldhaveontherelevantU.S.producers,workersandconsumers;and(5)anyotherrelevantinformation.6.Rules‐of‐OriginRequirements

Whataretherules‐of‐originrequirements?ForanimportedarticletobeGSP‐eligible,itmustbethegrowth,product,ormanufactureofaBDC,andthesumofthecostorvalueofmaterialsproducedintheBDCplusthedirectcostsofprocessingmustequalatleast35percentoftheappraisedvalueofthearticleatthetimeofentryintotheUnitedStates.CBPischargedwithdeterminingwhetheranarticlemeetstheGSPrulesoforigin.Animporter,exporterorproducerwhoisuncertainaboutwhetheraparticularimportedarticlesatisfiestherulesoforiginrequirements,maycheckCROSS,CBP’ssearchabledatabase,http://rulings.cbp.gov/,toseeifCBPhasissuedarulingonthesameorasimilarproduct,ormaycontactCBPforabindingruling.Seepageeightofthisbookletforinformationonhowtoobtainaruling.Canimportedmaterialsbecountedtowardthe35percentvalue‐addedrequirement?Yes,iftheimportedmaterialundergoesadoublesubstantialtransformation.ThismeansthattheimportedmaterialmustundergoasubstantialtransformationintheBDC,whichmeansthattheimportedmaterialistransformedintoanewanddifferentconstituentmaterialwithanewname,characteranduse.ThentheconstituentmaterialmustbetransformedintheBDCintoanewanddifferentfinishedarticlewithanewname,characteranduse.InputsfrommembercountriesofGSP‐eligibleregionalassociationswillbetreatedassingle‐countryinputsforpurposesofdeterminingorigin.ThecalculationofthecostorvalueofmaterialsproducedintheBDCisdescribedin19CFR10.177.Alistoftheitemsincludedinthe“directcostsofprocessing”isprovidedin19CFR10.178.CBP’scustomsvaluehandbookmaybefoundonCBP’swebsiteat:http://www.cbp.gov/document/publications/customs-value .Animporter,exporterorproducerwhoisuncertainifanimportedmaterialundergoesadoublesubstantialtransformationorifaparticularcostmaybeincludedinthecalculation,maycheckCROSS(http://rulings.cbp.gov/)toseeifCBPhasissuedarulingonthesameorasimilarproductorcostormaycontactCBPforabindingruling.Seepageeightofthisbookletforinformationonhowtoobtainaruling.

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7.“ImportedDirectly”RequirementWhatismeantbytherequirementthatthearticlebe“importeddirectly”?Generally,theimportedarticlemusteitherbeshippeddirectlyfromtheBDCtotheUnitedStateswithoutpassingthroughtheterritoryofanyothercountry.IfashipmentfromaBDCpassesthroughtheterritoryofanyothercountryonthewaytotheUnitedStates,theimportedarticlesmustnotenterthecommerceoftheothercountry(see19CFR10.175formoreinformation).Questionsaboutthe“importeddirectly”requirementmayberesearchedinCROSSordirectedtoCBPforabindingruling.DoestheGSPprogrammakeanyspecialprovisionsforBDCsthataremembersofaregionalassociation?Yes.IfmembersofregionalassociationsrequestandaregrantedrecognitionasregionalassociationsundertheGSPprogram,theassociation’smembercountrieswillbeconsideredasonecountryforpurposesoftheGSPrulesoforigin.Articlesproducedintwoormoreeligiblemembercountriesofanassociationwillbeaccordedduty‐freetreatmentifthecountriescollectivelymeettherulesoforigin.Inaddition,anarticleproducedinanLDBDCmaycountinputsfromLDBDCsandBDCsinitsregionalassociationtowardsthe35percentdomesticcontentrequirementforsatisfyingtherulesoforiginforqualifyingarticles.CBPmakesthefinaldeterminationofrulesoforigin.Foranyquestionrelatedtothesematters,orforadefinitiverulingonwhetheraproductproducedinaregionalassociationqualifiesforduty‐freetreatment,contactCBP(http://www.cbp.gov/contact ).CNLcriteriaareappliedonlytothecountryoforiginandnottheentireassociation.GeneralNote4oftheHTSUShasthemostrecentlistofGSP‐eligiblecountries,territories,andassociations.TherearecurrentlysixassociationswhoseGSP‐eligiblebeneficiarymemberscanbenefitfromthisprovision:theSouthAsianAssociationforRegionalCooperation(SAARC);theAndeanGroup(orCartagenaAgreement);theAssociationofSoutheastAsianNations(ASEAN);theCaribbeanCommonMarket(CARICOM);theSouthernAfricanDevelopmentCommunity(SADC);andtheWestAfricanEconomicandMonetaryUnion(WAEMU). 8.HandicraftTextilesWhatisthecertifiedhandicrafttextileagreement?CertaintextileproductsareeligibleforGSPtreatmentwhentheGSPBDChassignedanagreementwiththeUnitedStatestoprovidecertificationthattheitemsarehand‐loomedfolkloricproductsoftheexportingBDC.Theagreementauthorizesduty‐freetreatmenttohand‐loomedandfolklorewallhangings(HTSUS6304.99.10)andhand‐loomedandfolklorepillowcovers(HTSUS6304.99.40)whichhavebeencertifiedbytheBDC.ThecertificationprocessrequiresanofficialexchangeoflettersbetweentheU.S.GovernmentandtheBDCgovernment.Theimageofthetriangularsealcertifyingtheproducts’authenticitymustbestampedonthecommercialinvoiceandsignedbyoneoftheindividualsidentifiedbytheBDCduringtheexchangeofletterscomprisingtheagreement.AswithotherGSP‐eligibleimports,thebenefitisclaimedbytheimporterofrecord’suseoftheSPI“A”beforetheHTSUStariffnumberontheentrydocuments.Formoreinformation,contactCBP.

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Todate,suchagreementshavebeensignedwiththefollowingbeneficiaries:Afghanistan,Botswana,Cambodia,Egypt,Jordan,Mongolia,Nepal,Pakistan,Paraguay,Thailand,Timor‐Leste,TunisiaandTurkey.9.OtherTopicsIftheGSPprogramauthorizationexpiresandislaterrenewedretroactivelybyCongress,howdoesanimporterarrangetobereimbursedfortariffspaidduringtheperiodaftertheexpirationandbeforethereauthorizationofGSP?Inthepast,CBPhasinstructedimporterswhofiletheirentrieselectronicallytocontinuetousetheappropriateSPI(e.g.,“A”)asaprefixtothetariffnumbersofarticlesthatwouldqualifyforGSPifGSPwereineffectatthetimeoftheentry.WhenGSPhasbeenreauthorizedretroactively,CBPhasautomaticallyprocessedrefundsofdutiesdepositedontheseGSP‐eligibleentrieswithoutrequiringfurtheractionbytheimporter.UseoftheSPI,ineffect,constitutedtheimporter’srequestforarefundofduties.ForentriesmadewithoutusingtheSPI,refundsofdutiesdepositedmustberequestedinwriting.ForfurtherinformationonCBPproceduresduringalapseofGSPcoverage,contactCBP(www.cbp.gov).DoothercountriesmaintainGSPprograms?Yes.Morethan25othernationsmaintaintheirownGSPprograms.Thebeneficiaries,products,andtypesofpreferencesgrantedvaryforeachprogramcountry.WheremayIfindFederalRegisternoticespertinenttotheGSPprogram?RelevantFederalRegisternoticesmaybeaccessedviatheUSTRwebsite(https://ustr.gov/issue‐areas/trade‐development/preference‐programs/generalized‐system‐preference‐gsp) andarealsoavailableathttp://www.regulations.gov.

16

COUNTRIESELIGIBLEFORGSP

GSP‐EligibleBeneficiaries(asofMarch2018)

IndependentcountriesThefollowingindependentcountriesareGSP‐eligiblebeneficiarydevelopingcountries:Afghanistan Congo(Brazzaville) Jamaica Nepal Tanzania

Albania Congo(Kinshasa) Jordan Niger Thailand

Algeria Côted'Ivoire Kazakhstan Nigeria Timor‐Leste

Angola Djibouti Kenya Pakistan Togo

Argentina Dominica Kiribati PapuaNewGuinea Tonga

Armenia Ecuador Kosovo Paraguay Tunisia

Azerbaijan Egypt Kyrgyzstan Philippines Turkey

Belize Eritrea Lebanon Rwanda Tuvalu

Benin Ethiopia Lesotho SaintLucia Uganda

Bhutan Fiji Liberia St.VincentandtheGrenadines Ukraine

Bolivia Gabon Macedonia Samoa UzbekistanBosniaandHerzegovina

Gambia,The Madagascar SaoToméandPrincipe

Vanuatu

Botswana Georgia Malawi Senegal Yemen(Republicof)

Brazil Ghana Maldives Serbia Zambia

BurkinaFaso Grenada Mali SierraLeone Zimbabwe

Burma Guinea Mauritania SolomonIslands

Burundi Guinea‐Bissau Mauritius Somalia

Cambodia Guyana Moldova SouthAfrica

Cameroon Haiti Mongolia SouthSudan

CapeVerde India Montenegro SriLanka CentralAfricanRepublic Indonesia Mozambique Suriname

Chad Iraq Namibia Swaziland

Comoros

17

Non‐independentcountriesandterritoriesThefollowingnon‐independentcountriesandterritoriesareGSP‐eligiblebeneficiaries:Anguilla FalklandIslands

(IslasMalvinas)PitcairnIslands WestBankandGaza

Strip

BritishIndianOceanTerritory

HeardIslandandMcDonaldIslands

SaintHelena WesternSahara

ChristmasIsland

Montserrat Tokelau

Cocos(Keeling)Islands

Niue

VirginIslands,British

CookIslands NorfolkIsland WallisandFutuna

PleaseseeGeneralNote4oftheHTShttp://www.usitc.gov/tata/hts/bychapter/index.htm

forthemostcurrentlistsofcountries,territoriesandassociations.Least‐developedbeneficiarydevelopingcountriesAfghanistan Congo

(Kinshasa)Malawi SolomonIslands

Angola Djibouti Mali SomaliaBenin Ethiopia Mauritania SouthSudanBhutan Gambia,The Mozambique TanzaniaBurkinaFaso Guinea Nepal Timor‐LesteBurma Guinea‐Bissau Niger TogoBurundi Haiti Rwanda TuvaluCambodia Kiribati Samoa Uganda

CentralAfricanRepublic Lesotho SaoToméandPrincipe Vanuatu

Chad Liberia Senegal Yemen(Republicof)Comoros Madagascar SierraLeone Zambia

18

Associationsofcountries(treatedasonecountryforGSPrule‐of‐originrequirements)

MemberCountriesoftheCartagenaAgreement (AndeanGroup):

Qualifying MemberCountriesoftheSouthernAfricaDevelopmentCommunity(SADC):

Bolivia BotswanaEcuador Mauritius Tanzania

MemberCountriesoftheWestAfricanEconomicandMonetaryUnion(WAEMU):

Qualifying MemberCountriesoftheSouthAsianAssociationforRegionalCooperation(SAARC):

Benin AfghanistanBurkinaFaso BhutanCôted'Ivoire IndiaGuinea‐Bissau NepalMali PakistanNiger SriLankaSenegal Togo

QualifyingMemberCountriesoftheAssociationofSouthEastAsianNations(ASEAN):

QualifyingMemberCountriesoftheCaribbeanCommonMarket(CARICOM):

Burma Belize

Cambodia DominicaIndonesia GrenadaPhilippines GuyanaThailand Jamaica

Montserrat

SaintLucia

SaintVincentandtheGrenadines

19

CriteriaforCountryEligibilityunderGSP Mandatory criteria 19U.S.C§2462(b)(2)oftheGSPstatutesetsforththecriteriathateachcountrymustsatisfybeforebeingdesignatedaGSPbeneficiary.Thesecriteriaaresummarizedbelowforinformationalpurposesonly.PleaseseetheGSPstatuteforthecompletetext.1) AGSPbeneficiarymaynotbeaCommunistcountry,unlesssuchcountryreceivesNormalTrade

Relations(NTR)treatment,isaWorldTradeOrganization(WTO)memberandamemberoftheInternationalMonetaryFund(IMF),andisnotdominatedorcontrolledbyinternationalcommunism;

2) AGSPbeneficiarymaynotbeapartytoanarrangementofcountriesnorparticipateinactionsthe

effectofwhichare(a)towithholdsuppliesofvitalcommodityresourcesfrominternationaltradeortoraisethepriceofsuchcommoditiestoanunreasonableleveland(b)tocauseseriousdisruptionoftheworldeconomy;

3) AGSPbeneficiarymaynotaffordpreferentialtreatmenttoproductsofadevelopedcountrythat

has,orislikelytohave,asignificantadverseeffectonU.S.commerce;4) Abeneficiarymaynothavenationalized,expropriatedorotherwiseseizedpropertyofU.S.

citizensorcorporationswithoutproviding,ortakingstepstoprovide,prompt,adequate,andeffectivecompensation,orsubmittingsuchissuestoamutuallyagreedforumforarbitration;

5) AGSPbeneficiarymaynothavefailedtorecognizeorenforcearbitralawardsinfavorofU.S.

citizensorcorporations;6) AGSPbeneficiarymaynotaidorabet,bygrantingsanctuaryfromprosecution,anyindividualor

groupthathascommittedanactofinternationalterrorism;7) AGSPbeneficiarymusthavetakenoristakingstepstoaffordinternationallyrecognizedworker

rights,including1)therightofassociation,2)therighttoorganizeandbargaincollectively,3)aprohibitionontheuseofanyformofforcedorcompulsorylabor,4)aminimumagefortheemploymentofchildren,andaprohibitionontheworstformsofchildlabor,and5)acceptableconditionsofworkwithrespecttominimumwages,hoursofworkandoccupationalsafetyandhealth.

8) AGSPbeneficiarymustimplementanycommitmentsitmakestoeliminatetheworstformsof

childlabor.

20

Discretionarycriteria19U.S.C§2462(c)oftheGSPstatutesetsforththefollowingcriteriathatthePresidentmusttakeintoaccountindeterminingwhethertodesignateacountryasabeneficiarycountryforpurposesoftheGSPprogram.Thesecriteriaaresummarizedbelowforinformationalpurposesonly;pleaseseetheGSPstatuteforthecompletetext.1) AnexpressionbyacountryofitsdesiretobedesignatedasaGSPbeneficiarycountry;2) Thelevelofeconomicdevelopment,includingpercapitaGrossNationalProduct(GNP),theliving

standardsoftheinhabitantsandanyothereconomicfactorsthatthePresidentdeemsappropriate;

3) Whetherothermajordevelopedcountriesareextendinggeneralizedpreferentialtarifftreatment

tosuchcountry;4) TheextenttowhichsuchcountryhasassuredtheUnitedStatesthatitwillprovideequitableand

reasonableaccesstoitsmarketsandbasiccommodityresourcesandtheextenttowhichithasassuredtheUnitedStatesitwillrefrainfromengaginginunreasonableexportpractices;

5) Theextenttowhichsuchcountryprovidesadequateandeffectiveprotectionofintellectual

propertyrights;6) Theextenttowhichsuchcountryhastakenactiontoreducetradedistortinginvestmentpractices

andpolicies,includingexportperformancerequirements,andtoreduceoreliminatebarrierstotradeinservices;and

7) Whethersuchcountryhastakenoristakingstepstoaffordinternationallyrecognizedworker

rights,including1)therightofassociation,2)therighttoorganizeandbargaincollectively,3)freedomfromcompulsorylabor,4)aminimumagefortheemploymentofchildren,and5)acceptableconditionsofworkwithrespecttominimumwages,hoursofworkandoccupationalsafetyandhealth.

21

INFORMATIONONGSP–ELIGIBLEPRODUCTS

ArticlesandCountriesGrantedWaiversofCompetitiveNeedLimitations(CurrentasofJuly2017)

(*indicates2017HTSnomenclaturechanges;priorHTSnumberlistedwithyearofaction)

HTSUS8‐Digit

ProductDescription Country YearofAction

08041060

Dates,freshordried,whole,withoutpits,packedinunitsweighingover4.6kg

Tunisia 2016

*17011305 Canesugar,raw,specifiedinsubheading2tochapter17,insolidform,w/oaddedflavoringorcoloring,subjecttogen.note

15oftheHTS

Philippines 1989‐17011105

*17011310 Canesugar,raw,specifiedinsubheading2andsubjecttoadd'lnote5tothischapter,insolidform,w/oaddedflavoringor

coloring


*17011320 Canesugar,raw,specifiedinsubheading2tochapter17,tobeusedforcertain

polyhydricalcohols


*17011405 Othercanesugar,raw,insolidform,w/oaddedflavoringorcoloring,subjecttogen.

note15oftheHTS


*17011410 Othercanesugar,raw,insolidform,w/oaddedflavoringorcoloring,subjecttoadd.

US5toCh.17


*17011420 Othercanesugar,raw,insolidform,tobeusedforcertainpolyhydricalcohols


20011000 Cucumbersincludinggherkins,preparedorpreservedbyvinegaroraceticacid

India 2008

20081915 Coconuts,otherwisepreparedorpreserved,nesi

Thailand 2015

20089915 Bananas,otherthanpulp,otherwisepreparedorpreserved

Philippines 1989

21022060

Single‐cellmicro‐organisms,dead,excludingyeasts(butnotincluding

vaccinesofheading3002)

Brazil 2016

*22029990

Non‐alcoholicbeverages,nesi,notincludingfruitorvegetablejuicesof

heading2009

Thailand 2016‐22029090

29157001 Palmiticacid,stearicacid,theirsaltsandesters

Philippines 1989

22

HTSUS8‐Digit


29159010 Fattyacidsofanimalorvegetableorigin,nesoi

Philippines 1989

*29211961 Acylcicmonoaminesandtheirderivatives,nesoi


29333925 Herbicidesnesoi,ofheterocycliccompoundswithnitrogenhetero‐atom(s)only,containinganunfusedpyridinering

Brazil 1997

29334930 Pesticidesofheterocycliccompoundswithnitrogenhetero‐atom(s)&aquinolineor

isoquinolinering‐system

Brazil 1997

*29359032 Acetylsulfisoxazole;Sulfacetamide,sodium;andSulfamethazine,sodium

Bosnia‐Hercegovina

1991‐29350032


Kosovo 2009‐29350032


Macedonia 1991‐29350032


Montenegro 2008


Serbia 2008

33074100 "Agarbatti"andotherodoriferouspreparationswhichoperatebyburning,toperfumeordeodorizeroomsorused

duringreligiousrites

India 2012

38231920 Industrialmonocarboxylicfattyacidsoracidoilsfromrefiningderivedfromcoconut,palm‐kernel,orpalmoil

Philippines 2005

40151910 Seamlessglovesofvulcanizedrubberotherthanhardrubber,otherthan

surgicalormedicalgloves

Thailand 2012

41071940 Buffaloleather,w/ohairon,parchment‐dressedorpreparedaftertanning,o/than

fullgrains&grainsplits

Thailand 1997

41079940 Buffaloleather,w/ohairon,parchment‐dressedorpreparedaftertanning,o/than

fullgrains&grainsplits

Thailand 1997

42032120 Battinggloves,ofleatherorofcompositionleather

Indonesia 1997

44091005 Coniferouswoodcontinuouslyshapedalonganyofitsends,whetherornotalsocontinuouslyshapedalonganyitsedges

orfaces

Brazil 2017

46021216 Basketsandbagsofrattanorpalmleafotherthanwickerwork

Philippines 1989

46021918 Basketsandbagsofvegetablematerial,nesoi

Philippines 1989

46021980 Basketworkandotherarticles,nesoi,ofvegetablesmaterials,nesoi

Philippines 1989

23

HTSUS8‐Digit


67029065 Artificialflowers/foliage/fruit&ptsthereof;articlesofartif.flowers,etc.;all

theforegoingofmaterialso/thanplast./feath./mmf

Thailand 1995

71131120 Silverarticlesofjewelryandpartsthereof,nesoi,valuednotover$18perdozen

piecesorparts

Thailand 1995

71131929 Goldnecklacesandneckchains(o/thanofropeormixedlinks)

Turkey 2003

72029920 Calciumsiliconferroalloys Brazil 2013

74082910 Copperalloys(o/thanbrass,cupro‐nickelornickel‐silver),wire,coatedorplated

withmetal

Thailand 2015

74181000 Copper&copperalloytable,kitchen,householdarticles&parts;scouring&

polishingpads,gloves

India 2001

84022000 Super‐heatedwaterboilers Philippines

1994

84073418 Spark‐ignitionreciprocatingpistonenginesforvehiclesof8701.20or8702‐8704,cylindercap.over1000ccto2000

cc,new

Brazil 1994

84073448 Spark‐ignitionreciprocatingpistonenginesforvehiclesof8701.20or8702‐8704,cylindercapacityover2000cc,new

Brazil 1994

84099130 Aluminumcylinderheadsforspark‐ignitioninternalcombustionpiston

enginesforvehiclesof8701.20or8702‐8704

Brazil 1994

84145130 Ceilingfansforpermanentinstallation,withaself‐containedelectricmotorofan

outputnotexceeding125W

Thailand 2003

84159080 Partsforairconditioningmachines,nesi Thailand 2012

84433920 Electrostaticphotocopyingapparatus,operatingbyreproducingtheoriginalimageviaanintermediateontothecopy

(indirectprocess)

Thailand 2005

84831030 Camshaftsandcrankshaftsnesi Brazil 1999

85258050 Stillimagevideocameras(otherthandigital)andothervideocamerarecorders

Indonesia 2004

85272110 Radio‐tapeplayercombinationsnotoperablewithoutexternalpowersource,

formotorvehicles

Brazil 1997

85279140 Radiobroadcastreceivercombinationsincorporatingtapeplayers,nesi

Indonesia 1997

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HTSUS8‐Digit


85279915 Radiobroadcastreceiversnotcombinedwithsoundrecordingapparatusorclock

Indonesia 1999

85279940 Receptionapparatusforradiotelegraphy,radiotelephony,radiobroadcasting,nesoi

Philippines 1997

85287228 Non‐highdefinitioncolortelevisionreceptionapp.,non‐projection,w/CRT,videodisplaydiag.over35.56cm,incorporatingaVCRorplayer

Thailand 2003

85443000 Insulatedignitionwiringsetsandotherwiringsetsofakindusedinvehicles,

aircraftorships

Thailand 2003

90013000 Contactlenses Indonesia 2005

90328960 Automaticregulatingorcontrollinginstrumentsandapparatus,nesi

Philippines 1997

94055020 Non‐electricalincandescentlampsdesignedtobeoperatedbypropaneorothergas,orbycompressedairand

keroseneorgasoline

India 2003

94055040 Non‐electricallampsandlightingfixturesnesoi,notofbrass

India 2003

96131000 Cigarettelightersandsimilarlighters,gasfueled,notrefillable,forthepocket

Philippines 1989

25

InformationonSubmittingaGSPPetitionGeneralinstructions*†ThemostimportantsourceforinstructionsonsubmittingaGSPpetitionistheFederalRegister.Eachyear,announcementsarepublishedintheFederalRegisterforannualProductandCountryPracticeReviews.Theseannouncementsincludespecificinstructions––whichmustbefollowed––regardingapetition’sformat,timing,andmethodofsubmissiontotheGSPSubcommittee.Thefollowingdescriptionsaregeneralguidelinestothepetitionsubmissionprocess.FormatThefollowingprovidesanindicativelistofinformationthatshouldbeincludedinaGSPpetition.Itisintended(1)tohelpensurethatinterestedpartiesmeettheinformationrequirementsoftheGSPregulationsforrequestingmodificationsinGSPeligibilityforproductsandcountries;and(2)toserveasaguideforinterestedpartiesrequestingmodifications.SuchpartiesshouldreviewtheofficialU.S.GSPstatuteandregulations(whichcanbefoundat:https://ustr.gov/issue‐areas/trade‐development/preference‐programs/generalized‐system‐preference‐gsp/gsp‐program‐inf)beforesubmittingtheinformationrequestedbelow.AllinformationrequestedinthelistbelowisrequiredbytheregulationsgoverningtheGSPprogram.Petitionsthatdonotincludetherequiredinformationmayberejected,unlessthepetitionerdemonstratesthatagood‐faitheffortwasmadetoobtaintherequiredinformation.Informationthatissubmittedinconfidenceshouldbemarkedassuch(followingtheguidelinesonsubmittingbusinessconfidentialinformationprovidedintherelevantFederalRegisternoticeandsummarizedbelow).Generalinformationrequiredofallpetitionersper15CFR2007.1(a) Providethenameofthepetitioner,andtheperson,firm,orassociationrepresentedbythepetitioner.

DescribebrieflyhowtheGSPprogramaffectsthepetitioner’sinterests. Identifytheproductorproductsofinterest,includingadetaileddescriptionoftheproductandthe

eight‐digittariffnumber(i.e.,subheading)fortheitemintheHTSUS.(Thisisthelevelofproductdescriptionatwhichtherateofdutyisindicated.)IftheproductorproductsofinterestareincludedwithotherproductsinabasketcategoryoftheHTSUS,provideadetaileddescriptionofthespecificproductorproductsofinterest.

Describetheactionrequested,togetherwithastatementofthereasonsfortheaction,andanysupportinginformation.

Indicatewhether,tothebestofthepetitioner’sknowledge,thereasonsfortheactionandinformationintherequesthavebeenpreviouslypresentedtotheTPSCbythepetitioneroranyotherparty.Ifthepetitionerknowsthattherequesthasbeenmadepreviouslyandrejected,thepetitionermustincludeinformationthatindicatesthatchangedcircumstancesexistsuchthatthepetitionshouldbegranted.(Requestsforaproductadditionwillnotbeconsideredifapreviousrequestastothatproductwasformallyacceptedforafullreviewwithintheprecedingthreecalendaryears.)

Provideastatementofthebenefitsthepetitioneranticipatesiftherequestisgranted.

* Except where indicated, the following instructions apply not only to petitions but to responses, pre- and post-hearing briefs, and any other written submissions or testimony presented to the GSP Subcommittee. .

26

SupportinginformationThefollowingsectionsoutlinetheinformationthatmustaccompanyrequests:1.Requesttowithdraw,limit,orsuspendeligibilityfordesignatedarticlesPer15CFR2007.1(b),inordertorequestthateligibilityfordesignatedarticlesbewithdrawn,limited,orsuspended,petitionersmustprovidethespecificinformationontherelevantU.S.industryforthemostrecentthreecalendaryearssuchasproduction,capacity,employment,andsalesdataandthecompetitivesituationoftheU.S.domesticindustry.Forthelistofrequiredinformationsee15CFR2007.1(b)athttps://ustr.gov/sites/default/files/USTR‐Regulations‐Pertaining‐Eligibility‐GSP‐Program‐15‐CFR‐Part‐2007_0.pdfTheinformationshouldbesubmittedforeacharticlethatisthesubjectofarequest,bothforthepartymakingtherequestand,totheextentpossible,fortheindustrytowhichthepetitionpertains.Thisformatshouldalsobeusedforpetitionstodenyademinimiswaiver.2.RequesttodesignatenewarticlesorforwaiverofcompetitiveneedlimitationsPer15CFR2007.1(c),petitionersmustprovidecertaininformationonproducersinthebeneficiarycountryonwhosebehalftherequestisbeingmade,includingactualproduction,capacity,employment,exports,andsalesdataaswellastheestimatedfuturechangesinthesedataifGSPeligibilityisgranted.Thisinformationshouldbeprovidedforthemostrecentthreecalendaryearsforthebeneficiarydevelopingcountryonwhosebehalftherequestisbeingmadeand,totheextentpossible,otherprincipalbeneficiarydevelopingcountrysuppliers.Forthelistofrequiredinformationsee15CFR2007.1(c)athttps://ustr.gov/sites/default/files/USTR‐Regulations‐Pertaining‐Eligibility‐GSP‐Program‐15‐CFR‐Part‐2007_0.pdf.Thisformatshouldalsobeusedforpetitionsforredesignation.

3.SuggestedoutlineofacountrypracticepetitionProvidethefollowinginformation,ataminimum,onthepertinentbeneficiarycountry: Thename,address,phoneandfaxnumbers,ande‐mailaddressofthepersonorinterestedparty

submittingtherequest: Therequest:thattheduty‐freetreatmentaccordedtoeligiblearticlesundertheGSPbe(withdrawn,

suspended,ortheapplicationoftheduty‐freetreatmentbelimited)withrespectto(typesof,includingreferencingHTSUScodes),importstotheUnitedStatesfrom(country);

Thespecificfactorsuponwhichtherequestforthecountrypracticereviewisbeingmade.Thesefactorsarelistedin19U.S.C§2461and2462;

Statementofreasonswhythebeneficiarycountry’sstatusshouldbereviewedandpossiblychanged,ifthepetitionisaccepted,alongwithavailablesupportinginformation;and

Ifthesubjectmatteroftherequesthasbeenreviewedpursuanttoapreviousrequest,therequestmustincludesubstantialnewinformationwarrantingfurtherconsiderationoftheissue.

PublicversusBusinessConfidentialversionsIfapetitionorothersubmissioncontainsbusinessconfidentialinformation,anon‐confidentialversionofthesubmissionmustalsobesubmittedthatindicateswhereconfidentialinformationwasredactedbyinsertingasteriskswherematerialwasdeleted.Forexample,supposeapetitionerwantstoreportthat“In2001,InternationalWidgetssufferedlossesof$20millionduetolow‐pricedwidgetsimportedfromGSPsources,andhadtoreducecapacityutilizationby30percent.”Ifthedatainthesentencewerebusinessconfidential,thiswouldbereportedinthebusinessconfidentialversionofthepetitionwithbracketsaroundthebusinessconfidentialinformation:

27

“In2001,InternationalWidgetssufferedlossesof[$20million]duetolow‐pricedwidgetsimportedfromGSPsources,andhadto[reducecapacityutilizationby30percent.]”Inthepublicversion,however,itwouldread“In2001,InternationalWidgetssufferedlossesof[***]duetolow‐pricedwidgetsimportedfromGSPsources,andhadto[***].”Itisthepetitioner’sresponsibilitytodistinguishaccuratelybetweenbusinessconfidentialandpublicinformation.Theconfidentialsubmissionmustbeclearlymarked“BUSINESSCONFIDENTIAL”atthetopandbottomofeverypage,andthenon‐confidentialsubmissionmustbeclearlymarkedeither“PUBLICVERSION”or“NON‐CONFIDENTIAL”atthetopandbottomofeverypage.Bothversionsmustbesubmitted,asaseparatedocument,butonlythepublicversionofthesubmissionwillbemadeavailableforpublicinspectiononwww.regulations.gov.HowtosubmitapetitionInordertofacilitatepromptprocessingofsubmissions,theGSPSubcommitteeacceptspublicandconfidentialversionsofthesubmissionsonlyviawww.regulations.gov.Submissionsthatarehand‐deliveredorsentviaregularmailwillnotbeaccepted.TherelevantFederalRegisterwillprovidedetailedinstructionsforeachsubmission.

OTHERINFORMATIONSOURCES

HarmonizedTariffScheduleoftheUnitedStates(HTSUS)(www.usitc.gov)TheU.S.tariffscheduleisdividedintoalmost100chapters,groupedbyproducttype.Ifyoudonotknowthetariffnumberforyourproduct,youcanfindtheHTSUSontheUSITCwebsite,http://www.usitc.gov/tata/hts/index.htmorsearchtheCBPrulingsmodulefoundathttp://rulings.cbp.gov.GSPeligibilityforanHTSUSsubheadingisshownbythecodeA(forBeneficiaryDevelopingCountries)orA+(forLeastDevelopedBeneficiaryDevelopingCountries)inthe“Special”columnofratesofduty.(Forexample,caviarisGSP‐eligible,asshownbytheAinthe“Special”columnofratesofdutyforHTSUS1604.30.20.)Ifnosuchcodeisshown,theproductisGSP‐ineligible.IfthecodeA*isshown,thatmeansthatatleastoneGSPcountryisineligibleforthatparticularproduct.Asdescribedabove,instancesofcountry‐specificGSPineligibilityarelistedinGeneralNotes4(d)atthebeginningoftheHTSUS.DepartmentofHomelandSecurity:Customs&BorderProtection(CBP)(http://www.cbp.gov).TheCBPwebsiteprovidescustomsformsviahttp://www.cbp.gov/newsroom/publications/forms.TheCBPwebsitealsooffersextensiveinformationontheimportingprocessandimportrequirements.Thisincludesentryofgoods,informedcompliance,invoices,assessmentofduty,classificationandvalue,marking,andspecialrequirements.CBPpublicationsareavailableat:http://www.cbp.gov/newsroom/publications.Rulingsareavailableat:http://rulings.cbp.gov.USITCInteractiveTariffandTradeDataWeb(http://dataweb.usitc.gov/).

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Registrationisrequired,butisfree.ThiscomprehensivedatabaseprovidesstatisticsonU.S.importsandexports,byHTSUS,StandardIndustrialClassification(SIC),StandardInternationalTradeClassification(SITC),andothergroupings,byproduct,andcountry(orcountrygroup,suchasEuropeanUnionorspecialprogram,suchasGSP).Dataareavailableonanannual,quarterly,ormonthlybasis,from1989tothemostrecentavailablemonth(usuallytwomonthspriortothepresent).Inaddition,therearelinkstolistsofmanyforeigncountries=tariffs.

BureauoftheCensus(http://www.census.gov/foreign‐trade/statistics/index.html)TheCensusForeignTradeDivisionissuestheimportantandwell‐knownmonthlytradereport,U.S.InternationalTradeinGoodsandServices.Onthissiteyoucanalsofindup‐to‐datestatisticsonimportsandexports,bytradingpartner,andbystate.USDAForeignAgriculturalService(http://www.fas.usda.gov/)BetweenfiveandtenpercentofU.S.GSPimportsareintheagriculturesector.TheForeignAgriculturalService,withrepresentativesinmostU.S.embassiesaroundtheworld,providesawealthofstatistics,researchreports,andotherinformationonagriculturalproductionandtradeinGSPcountries(http://www.fas.usda.gov/data/).Regulations.gov(http://www.regulations.gov) ThiswebsitecontainspublicrecordsthatarepartofGSPannualreviews,countrypracticereviews,andcountryeligibilityreviews.EachreviewisgivenanindividualdocketnumberwhichislistedintherelevantFederalRegisternoticeandwhichcanalsobefoundonUSTR’sGSPwebsiteathttps://ustr.gov/issue‐areas/trade‐development/preference‐programs/generalized‐system‐preference‐gsp/current‐review‐0.

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