USTR issued a notice of interim 2007 import statistics relating to competitive need limitations (CNLs) under the Generalized System of Preferences (GSP). The 8-month import statistics identify those articles that could be removed from GSP eligibility because their 2007 import levels may exceed the CNLs.
GSP provides for the duty-free importation of designated articles when imported from beneficiary developing countries. When the president determines that a BDC exported to the U.S. during a calendar year a quantity of a GSP-eligible article having either (1) a value in excess of the applicable amount for that year ($130 million for 2007) or (2) a value equal to or greater than 50 percent of the value of total U.S. imports of that article (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.
USTR posted to its web site a list indicating (a) GSP-eligible articles from specific BDCs that have already exceeded the CNLs because their import levels have exceeded $130 million or are more than 50 percent of the total value of U.S. imports of that product, and (b) GSP-eligible articles that, based upon January – August 2007 import data, have already exceeded $100 million in trade or accounted for more than 42 percent of the total value of U.S. imports of that product. Depending on full calendar year 2007 import data, the articles on this list may lose GSP duty-free treatment on July 1, 2008, unless a waiver of the applicable CNL is granted.
The president may waive the CNL for specific GSP-eligible articles imported from individual BDCs. Petitions for such waivers are due by Nov. 16. The president may also 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 ($18.5 million for 2007). Comments on de minimis waivers will be requested after the publication of separate notice in February 2008. It should be noted that most of the items on the USTR list have been flagged as potentially eligible for a de minimis waiver.
USTR notes the list is computer-generated and based on January-August 2007 data. Therefore, it may not include all articles that may be affected by the GSP CNLs. Regardless of whether or not an article is included on the list, all determinations and decisions regarding the CNLs of the GSP program will depend on full, calendar-year 2007 import data with respect to each GSP-eligible article.
Listed in the attachment that can be accessed at the first link below are products of interest to AFI members. The complete list of products can be accessed via the second link.
