As you know, the GSP program provides for the duty-free importation of designated articles when imported from designated beneficiary developing countries (BDCs). The Trade Act of 1974 sets out the two competitive need limitations (CNLs). When the President determines that a BDC exported to the United States during a calendar year either (1) a quantity of a GSP-eligible article having a value in excess of the applicable amount for that year, or (2) a quantity of a GSP-eligible article having a value equal to or greater than 50 percent of the value of total U.S. imports of the article from all countries (the “50 percent CNL”), the President must terminate GSP duty-free treatment for that article from that BDC by no later than July 1 of the next calendar year.

Under the 1974 Act, the President may waive the 50 percent CNL with respect to an eligible article imported from a BDC if the value of total imports of that article from all countries during the calendar year did not exceed the applicable de minimis amount for that year ($18.5 million for 2007).

If imports of an eligible article from a BDC ceased to receive duty-free treatment due to exceeding a CNL in a prior year, the President may redesignate such an article for duty-free treatment if imports in the most recently completed calendar year did not exceed the CNLs.

Exclusions from GSP duty-free treatment where CNLs have been exceeded will be effective July 1, 2008, unless previously granted a waiver by the President. CNL exclusions, as well as decisions with respect to de minimis waivers and redesignations, will be based on full 2007 calendar year import statistics.

Click on the links below to view the lists of affected products that are handled by AFI members as well as the complete lists of affected products.