May 27, 2016
News Release 16-060
Inv. No(s). 332-556
Contact: Peg O'Laughlin, 202-205-1819
USITC Releases Report Concerning Possible Modifications to the U.S. Generalized System of Preferences for Additions, Removals, and Competitive Need Limitation Waivers

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

The investigation, Generalized System of Preferences: Possible Modifications, 2015 Review (Investigation No. 332-556), was requested by the U.S. Trade Representative (USTR).

The USITC, an independent, nonpartisan, factfinding federal agency, submitted a confidential version of the report to the USTR on April 26, 2016. The USTR requested that the USITC issue a public version of the report containing only the unclassified sections, with any business confidential information deleted.

As requested, the USITC provided 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 GSP-eligible countries:

  • 2204.21.20 (effervescent wine),
  • 3301.13.00 (essential oil of lemon), and
  • 7202.11.50 (ferromanganese containing by weight more than 4 percent of carbon).

For least-developed beneficiary developing countries (LDBDC), African Growth and Opportunity Act (AGOA) beneficiary developing countries, and both these country groupings combined:

  • 29 HTS subheadings for certain handbags and travel goods products (4202.11.00, 4202.11.00.30, 4202.11.0090, 4202.12.2020, 4202.12.2050, 4202.12.40, 4202.12.8030, 4202.12.8070, 4202.21.60, 4202.21.90, 4202.22.15, 4202.22.45, 4202.22.8050, 4202.31.60, 4202.32.40, 4202.32.80, 4202.32.9550, 4202.32.9560,  4202.91.0030, 4202.91.0090, 4202.92.15, 4202.92.20, 4202.92.3020, 4202.92.3031, 4202.92.3091, 4202.92.45, 4202.92.9026, 4202.92.9060, and 4202.99.90).

The USITC also provided advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of the removal of 5 HTS subheadings for specified countries:

  • 3204.20.10 (fluorescent brightening agent 32) from India and Indonesia,
  • 3204.20.80 (other fluorescent brightening agents) from India and Indonesia,
  • 3907.60.00 (PET resin also known as polyethylene terephthalate in primary forms) from India,
  • 3920.62.00 (nonadhesive plates, sheets, film, foil and strip, noncellular, of polyethylene terephthalate) from Brazil, and
  • 3921.90.40 (nonadhesive plates, sheets, film, foil and strip, flexible, nesoi*, of noncellular plastics) from Brazil.

The USITC also provided advice on the likely impact on 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 $170 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 four HTS subheadings and specified countries that the USITC provided advice are:

  • 0804.10.60 (dates, fresh or dried, whole, without pits, packed in units weighing over 4.6 kg) from Tunisia,
  • 2102.20.60 (single-cell micro-organisms, dead, excluding yeasts, but not including vaccines of heading 3002) from Brazil,
  • 2202.90.90 (nonalcoholic beverages, nesi*, not including fruit or vegetable juices of heading 2009) from Thailand, and
  • 8708.50.95 (parts and accessories of motor vehicle of 8701, nesoi, 8702 and 8704-8705, half-shafts) from India.

* nesoi and nesi – not elsewhere specified or indicated

The Generalized System of Preferences: Possible Modifications, 2015 Review (Investigation No. 332-556, USITC publication 4609, May 2016) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4609.pdf.

USITC general factfinding 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 factfinding reports.  Upon completion of each investigation, the USITC submits its findings and analyses to the requester.  General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

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