Obama Administration Grants 100 CNL Waivers in GSP Review, Makes Other Eligibility Changes
The Obama administration announced the results of its 2014 Generalized System of Preferences review on Sept. 30, making a number of changes, effective Oct. 1, to product eligibility in the program. President Barack Obama issued a presidential proclamation (here) to implement those changes. The proclamation wraps up the shortened 2014 GSP review (see 1507060025).
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The Office of the U.S. Trade Representative spelled out the changes in more detail and released the results of the GSP Limited Product Review (here). The administration granted competitive need limitation (CNL) waivers for 100 products from 13 countries, “including both petitioned and de minimis waivers,” said USTR in a release (here). Those 100 products would have been eliminated from the GSP program without the waivers.
The administration added five upland cotton fiber products to GSP in order to comply with the U.S.’ pledge at the World Trade Organization to make duty-free all such products from least-developed countries, USTR said. The new cotton products are classified under Harmonized Tariff Schedule subheadings 5201.00.18, 5201.00.28, and 5201.00.38 (Certain cotton, not carded or combed, of various specified staple lengths), as well as 5202.99.30 (Certain cotton card strips made from cotton waste) and 5203.00.30 (Certain cotton fibers, carded or combed).
The review granted CNL waivers for Thai coconuts (HTS 2008.19.15) and copper alloys (HTS 7408.29.10). Administration officials cut three Ukrainian products, two Turkish products and two Indonesia products. The administration also revoked three CNL waivers for surpassing competitive limitations. Those cut products are as follows: HTS 4412.31.40 (For Indonesia: Certain plywood sheets not over 6 mm thick), HTS 7413.00.10 (For Turkey: Certain copper, stranded wire) and HTS 7413.00.50 (For Turkey: Certain copper cables and plaited bands).
President Barack Obama also removed Seychelles, Uruguay and Venezuela from GSP eligibility. The administration determined those countries to be of “high income,” and therefore ineligible for benefits under GSP. The determinations will take effect on Jan. 1, 2017. On that date, Seychelles will also no longer be eligible for preferential status in the African Growth and Opportunity Act. The administration removed Russia as a beneficiary in 2014, citing its economic progress as well (see 14100613). The U.S. bases its economic analysis on International Bank for Reconstruction and Development, according to current trade law (here).