USITC Begins Investigation Concerning Possible Modifications to the U.S. Generalized System of Preferences

The U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation concerning possible modifications to the Generalized System of Preferences (GSP).

The investigation, Generalized System of Preferences: Possible Modifications, 2016 Review (Investigation No. 332-560), was requested by the U.S. Trade Representative (USTR) in a letter  received on January 4, 2017.

As requested, the USITC, an independent, nonpartisan, fact finding federal agency, will provide advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of the addition of the following Harmonized Tariff Schedule (HTS) subheadings and statistical reporting numbers:

For all GSP beneficiary developing countries:

  • 1104.19.90 (Rolled or flaked grains of cereals, other than of barley or oats),
  • 2008.20.00 (Pineapples, otherwise prepared or preserved, nesi),
  • 2915.90.18 (Saturated acyclic monocarboxylic acids, nesoi),
  • 3809.93.50 (Finishing agents, dye carriers and other preparations used in leather and like industries, < 5% by weight aromatic (mod.) substance(s)),
  • 3912.20.00 (Cellulose nitrates (including collodions), in primary forms).

The USTR also requested that the USITC provide advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of the removal from eligibility of one HTS subheading for all GSP countries. The removal in consideration is:

  • 2922.49.40.20 (Glycine–part of 2922.49.40, “Amino acids”)

In addition, the USITC will provide advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of competitive need limitation waivers for specified countries. “Competitive need limitations” represent the maximum import level of a product that is eligible for duty-free treatment under the GSP.  Once the limit is reached, trade is considered “competitive,” benefits are no longer needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted.  With respect to the competitive need limit in section 503(c)(2)(A)(i)(I) of the 1974 Act, the USITC, as requested, will use the dollar value limit of $175 million. The HTS subheadings in consideration are:

  • 0410.00.00 (Edible products of animal origin, nesi) from Indonesia,
  • 0714.90.10 (Fresh or chilled dasheens, whether or not sliced or in the form of pellets) from Ecuador,
  • 4011.20.10 (New pneumatic radial tires, of rubber, of a kind used on buses or trucks) from Indonesia,
  • 4409.10.05 (Coniferous wood continuously shaped along any of its ends, whether or not also continuously shaped along any {of} its edges or faces) from Brazil,
  • 6802.99.00 (Monumental or building stone & arts. thereof, nesoi, further worked than simply cut/sawn, nesoi) from Brazil,
  • 8525.80.30 (Television cameras, nesi) from Thailand,
  • 9001.50.00 (Spectacle lenses of materials other than glass, unmounted) from Thailand.

The USITC will submit its confidential report to USTR by May 4, 2017. As soon as possible thereafter, the USITC will, as requested by USTR, issue a public version of the report containing only the unclassified sections, with any business confidential information and classified information deleted.

The USITC is seeking input for this investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on February 21, 2017. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on February 3, 2017, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted at the earliest practical date but no later than 5:15 p.m. on March 3, 2017.  All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of this investigation and appropriate submissions appears in the USITC’s notice of investigation, dated January 17, 2017. The notice can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address or at 202-205-2000.

USITC general fact finding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission’s objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general fact finding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General fact finding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

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