The annual review of the GSP program has led to changes in GSP eligibility for several products handled by AFI members. This review expands GSP benefits for Southeast Asian countries affected by last December’s tsunami and removes from GSP over $1 billion in developing country imports that are now competitive in the U.S. market.
Competitive-need limitations impose ceilings on GSP benefits for each product and country. A country will automatically lose its GSP eligibility for a product when the levels are exceeded unless the CNLs are waived. A beneficiary country loses GSP eligibility for a product if, during the previous calendar year, U.S. imports of a GSP article from that country account for 50 percent or more of the value of total U.S. imports of that product or exceed a certain dollar value. Legislation reauthorizing GSP in 1996 set the dollar limit at $75 million for 1996 with an annual increase of $5 million for each subsequent calendar year.
In this year’s review, the competitive need limitation is removed from the following products, meaning they remain duty-free:
Tariff No. - Origin - Product Description
0711.40.00 - India - Cucumbers, including gherkins
0802.50.20 - Turkey - Pistachios in-shell
0804.10.60 - Pakistan - Dates with pits removed
0813.40.10 - Thailand - Dried papaya
0813.40.80 - Thailand - Dried tamarinds
1202.10.40 - Egypt - Peanuts, other
1806.10.43 - Brazil - Cocoa powder
2008.99.35 - Thailand - Lychees and logans
2008.99.50 - Thailand - Fruits, nuts, other
2009.39.20 - Brazil - Fruit juices, other
Duty-free treatment has been extended on the following products:
1604.14.50 - Thailand - Tuna, not in airtight containers (in water but only if in bulk or immediate containers weighing 6.8 kg or less, and in oil regardless of weight)
NOTE: This is usually cooked or frozen tuna loins packed in plastic bags in refrigerated containers.
GSP eligibility is extended to all beneficiary developing countries (BDCs), not just least-developed BDCs for the following products:
0804.10.40 - Dates, with pits
0804.10.60 - Dates, w/pits removed
The following products are removed from GSP eligibility:
0804.50.80 - Philippines - Mangoes, dried
0710.29.15 - India - Lentils, frozen
Additionally, member countries of the South Asian Association for Regional Cooperation (SAARC) who currently qualify for GSP benefits (Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka) will be treated as one country for GSP purposes.
These changes are effective with respect to products entered or withdrawn from warehouse for consumption on or after July 1, 2005.
