Generalized System of Preferences: Possible Modifications, 2016 Review

Publication Type: 
Industry & Econ Analysis (332)
Publication Topic: 
Trade Preference Programs
Publication Number: 
4692
Investigation No.: 
332-560

The U.S. International Trade Commission announces the release of

Generalized System of Preferences: Possible Modifications, 2016 Review
USITC Publication 4692
Investigation No. 332-560

Summary: 

The U.S. International Trade Commission (USITC) has released a public version of its confidential report on possible modifications to the Generalized System of Preferences (GSP).

Requested by the U.S. Trade Representative, the report provides 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 for all beneficiary developing countries under GSP:

  • 1104.19.90 (Rolled or flaked grains of cereals, other than of barley or oats),
  • 2008.20.00 (Pineapples, otherwise prepared or preserved, nesi),
  • 2915.9018 (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)),
  • 3192.20.00 (Cellulose nitrates (including collodions, in primary forms)).

* nesoi and nesi – not elsewhere specified or indicated

The USITC also provided 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 statistical reporting number for all countries:

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

The USITC also provided advice on the likely impact on U.S. imports, U.S. consumers, and competing U.S. industries of competitive need limitation waivers specified in section 503(c)(2)(A) of the Trade Act of 1974 for 4 Harmonized Tariff Schedule (HTS) subheadings. "Competitive need limits" represent the maximum import level of a product that is eligible for duty-free treatment under the GSP. The USITC was requested to use the dollar figure of $175 million for the competitive need limitation. 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. The HTS subheading and specified country for which the USITC provided advice is:

  • 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.