[Federal Register: August 8, 2006 (Volume 71, Number 152)]
[Notices]
[Page 45079-45080]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08au06-90]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Generalized System of Preferences (GSP): Initiation of Reviews
and Request for Public Comments
AGENCY: Office of the United States Trade Representative.
ACTION: Initiation of Reviews and Request for Comments on the
Eligibility of Certain GSP Beneficiaries and Existing Competitive Need
Limitation (CNL) Waivers.
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SUMMARY: Legislation authorizing the Generalized System of Preferences
(GSP) program expires on December 31, 2006. In connection with
Congress' consideration of reauthorization of the program, the Trade
Policy Staff Committee (TPSC) requested public comments on October 6,
2005, relating to whether the Administration's operation of the program
should be changed so that benefits are not focused on trade from a few
countries and that developing countries that traditionally have not
been major traders under the program receive benefits. Based on
information obtained thus far, the TPSC has decided to initiate a
further review and request additional comments to determine whether
major beneficiaries of the program have expanded exports or have
progressed in their economic development within the meaning of the
statute to the extent that their eligibility should be limited,
suspended, or withdrawn, pursuant to section 502(d) of the Trade Act of
1974 (19 U.S.C. 2462(d)). For the purpose of identifying beneficiary
countries that are subject to this review and on which we are seeking
comments, the TPSC looked at a country's total volume of trade under
the GSP program, the World Bank's classification of the country's level
of income, and the country's share of world goods exports. The TPSC is
also conducting a review of existing competitive need limitation (CNL)
waivers and requesting comments on whether any waivers should be
terminated, pursuant to section 503(d)(5) of the Act (19 U.S.C.
2463(d)(5)), because they are no longer warranted due to changed
circumstances. All public comments must be received by September 5,
2006.
ADDRESSES: Submit comments by electronic mail (e-mail) to:
FR0052@USTR.EOP.GOV. For assistance or if unable to submit comments by
e-mail, contact the GSP Subcommittee, Office of the United States Trade
Representative; USTR Annex, Room F-220; 1724 F Street, NW., Washington,
DC 20508 (Tel. 202-395-6971).
FOR FURTHER INFORMATION CONTACT: Contact the GSP Subcommittee, Office
of the United States Trade Representative; USTR Annex, Room F-220; 1724
F Street, NW., Washington, DC 20508 (Telephone: 202-395-6971,
Facsimile: 202-395-9481).
SUPPLEMENTARY INFORMATION: The GSP Subcommittee is seeking written
comments on whether to limit, suspend, or withdraw the eligibility of
those GSP beneficiary countries for which the total value of U.S.
imports under GSP exceeded $100 million in 2005, and (a) which the
World Bank classified as an upper-middle-income economy in 2005; or (b)
that accounted for more than 0.25 percent of world goods exports in
2005, as reported by the World Trade Organization. Thus, the TPSC is
seeking comments on the eligibility status of the following GSP
beneficiary developing countries: Argentina, Brazil, Croatia, India,
Indonesia, Kazakhstan, Philippines, Romania, Russia, South Africa,
Thailand, Turkey, and Venezuela. The TPSC is also seeking comments on
whether any of the 83 existing competitive need limitation (CNL)
waivers are no longer warranted due to changed circumstances.
Country Eligibility Review
The GSP statute authorizes the President to withdraw, suspend, or
limit the application of duty-free treatment with respect to any
country based on statutory eligibility criteria. See section 502(d) of
the Act (19 U.S.C. 2462(d)). These criteria include: (1) The effect
such action will have on furthering the economic development of
developing countries through the expansion of their exports; (2) the
extent of the beneficiary developing country's competitiveness with
respect to eligible articles; and (3) a country's level of economic
development, including its per capita gross national product, the
living standards of its inhabitants, and any other economic factors
which the President deems appropriate. The GSP Subcommittee is seeking
comments on whether the eligibility of any of these beneficiaries
should be limited, suspended, or withdrawn based on the statutory
eligibility criteria enumerated in sections 501(1) and (4) and section
502(c)(2) of the Act.
CNL Waiver Review
Section 503(c)(2)(A) of the Act sets out the two competitive need
limitations (CNLs) applicable to eligible articles from beneficiary
developing countries (other than sub-Saharan African and least-
developed beneficiaries). When the President determines that a
beneficiary developing country exported to the United States during a
calendar year either (1) A quantity of a GSP-eligible article having a
value in excess of the applicable amount for that year ($120 million
for 2005), or (2) a quantity of a GSP-eligible article having a value
equal to or greater than 50 percent of the value of total U.S. imports
of the article from all countries (the ``50 percent CNL''), the
President must terminate GSP duty-free treatment for that article from
that beneficiary developing country by no later than July 1 of the next
calendar year.
Under section 503(d) of the 1974 Act, the President may waive the
application of section 503(c)(2) if the President (1) Receives the
advice of the International Trade Commission (ITC) on whether any
industry in the United States is likely to be adversely affected by
such waiver; (2) determines, based on the considerations in section 501
and 502(c) of the Act and the advice of the ITC that such waiver is in
the national economic interest of the United States; and (3) publishes
the determination in the Federal Register. CNL waivers were first
authorized by Congress in 1984. Nineteen GSP beneficiaries currently
benefit from 83 CNL waivers. Under section 503(d)(5) of the Act, a
waiver may be terminated if the President determines that it is no
longer warranted due to changed circumstances. The GSP Subcommittee is
seeking comments on whether any of the 83 existing waivers should be
terminated pursuant to this provision of the statute. For a list of
existing CNL waivers, see ``CNL Waivers'', http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html
.
Requirements for Submission
In order to facilitate prompt processing of submissions, USTR
strongly urges and prefers electronic e-mail submissions only in
response to
[[Page 45080]]
this notice. Hand-delivered submissions will not be accepted. These
submissions should be single-copy transmissions in English with the
total submission, including attachments, not to exceed 30 single-spaced
standard letter-size pages using 12-point font. E-mail submissions
should use the following subject line: ``2006 GSP Eligibility and CNL
Waiver Review''. Comments on CNL waivers should include the 8-digit
tariff number of the Harmonized Tariff Schedule of the United States
(HTSUS). Documents must be submitted in English in one of the following
formats: MSWord (.DOC), WordPerfect (.WPD), or text (.TXT) files.
Documents may not be submitted as electronic image files or contain
imbedded images (for example, ``.JPG'', ``.TIF'', ``.PDF'', ``.BMP'',
or ``.GIF''). Supporting documentation submitted as spreadsheets are
acceptable as Excel files, formatted for printing on 8\1/2\ x 11 inch
paper. To the extent possible, any data attachments to the submission
should be included in the same file as the submission itself, and not
as separate files.
If the submission contains business confidential information, a
non-confidential version of the submission must also be submitted that
indicates where confidential information was redacted by inserting
asterisks where material was deleted. In addition, the confidential
submission must be clearly marked ``Business Confidential'' at the top
and bottom of each page of the document. The non-confidential version
must also be clearly marked at the top and bottom of each page (either
``Public Version'' or ``Non-Confidential''). Documents that are
submitted without any marking will be considered public documents. For
any document containing business confidential information submitted as
an electronic attached file to an e-mail transmission, the file name of
the business confidential version should begin with the characters
``BC-'', and the file name of the public version should begin with the
characters ``P-''. The `` P-'' or ``BC-'' should be followed by the
name of the party (government, company, union, association, etc.)
making the submission.
E-mail submissions should not include separate cover letters or
messages in the message area of the e-mail; information that might
appear in any cover letter should be included directly in the attached
file containing the submission itself, including the sender's e-mail
address and other identifying information.
The e-mail address for these submissions is FR0052@USTR.EOP.GOV.
Documents not submitted in accordance with these instructions might not
be considered in this review. If unable to provide submissions by e-
mail, please contact the GSP Subcommittee to arrange for an alternative
method of transmission.
Public versions of all documents relating to this review will be
available for review approximately two weeks after the due date by
appointment in the USTR public reading room, 1724 F Street, NW.,
Washington, DC. Appointments may be made from 9:30 a.m. to noon and 1
p.m. to 4 p.m., Monday through Friday, by calling (202) 395-6186.
Marideth J. Sandler,
Executive Director for the GSP Program, Chairman, GSP Subcommittee of
the Trade Policy Staff Committee.
[FR Doc. E6-12870 Filed 8-7-06; 8:45 am]
BILLING CODE 3190-W6-P