[Federal Register Volume 64, Number 19 (Friday, January 29, 1999)]
[Notices]
[Pages 4732-4742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2071]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Generalized System of Preferences; Imports Statistics Relating to
Competitive Need Limitations; Invitation for Public Comment
AGENCY: Office of the United States Trade Representative.
ACTION: Notice; invitation or public comment.
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SUMMARY: The Trade Policy Staff Committee (TPSC) is informing the
public of interim 1998 import statistics relating to Competitive Need
Limitations (CNLs) under the Generalized System of Preferences (GSP)
program. The TPSC also invites public comments by 5:00 p.m. March 19,
1999, regarding possible de minimis CNL waivers with respect to
particular articles, and possible redesignations under the GSP program
of articles currently subject to CNLs.
FOR FURTHER INFORMATION CONTACT:
GSP Subcommittee, Office of the United States Trade Representative, 600
17th Street, NW, Room 518, Washington, DC 20508. The telephone number
is (202) 395-6971.
SUPPLEMENTARY INFORMATION:
I. Competitive Need Limitations
Section 503(c)(2)(A) of the Trade Act of 1974, as amended (the
``1974 Act'') (19 U.S.C. 2463(c)(2)(A)), provides for Competitive Need
Limitations on duty-free treatment under the GSP program. 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 ($85 million for 1998), 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 shall terminate GSP duty-free
treatment for that article from that beneficiary developing country by
no later than July 1 of the next calendar year.
II. Discretionary Decisions
A. De Minimis Waivers
Section 503(c)(2)(F) of the 1974 Act provides the President with
discretion to waive the 50 percent CNL with respect to an eligible
article imported from a beneficiary developing country if the value of
total imports of that article from all countries during the calendar
year did not exceed the applicable amount for that year ($14 million
for 1998).
B. Redesignation of Eligible Articles
Where an eligible article from a beneficiary developing country
ceased to receive duty-free treatment due to exceeding the CNLs in a
prior year, Section 503(c)(2)(C) of the 1974 Act provides the President
with discretion to redesignate such an article for duty-free treatment
if imports in the most recently completed calendar year did not exceed
the CNLs.
III. Implementation of Competitive Need Limitations, Waivers, and
Redesignations
Exclusions from GSP duty-free treatment where CNLs have been
exceeded, as well as the return of GSP duty-free treatment to products
for which the President has used this discretionary authority to grant
redesignations, will be effective July 1, 1999. Decisions on these
matters, as well as decisions with respect to de minimis waivers, will
be based on full 1998 calendar year import statistics.
IV. Interim 1998 Import Statistics
In order to provide advance indication of possible changes in the
list of eligible articles pursuant to exceeding CNLs, and to afford an
earlier opportunity for comment regarding possible de minimis waivers
and redesignations, interim import statistics covering the first 10
months of 1998 are included with this notice.
The following lists contains the HTS subheadings and beneficiary
country of origin for GSP-eligible articles, the value of imports of
such articles for the first ten months of 1998, and their percentage of
total imports of that product from all countries. The flags indicate
that status of GSP eligibility.
Articles marked with an ``*'' are those that have been excluded
from GSP eligibility for the entire past calendar year. Flags ``1'' or
``2'' indicate products that were not eligible for duty-free
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treatment under GSP for the first six months or last six months,
respectively, of 1998.
The flag ``D'' identifies articles with total U.S. imports from all
countries, based on interim 1998 data, less than the applicable amount
($14 million in 1998) for eligibility for a de minimis waiver of the 50
percent CNL.
List I shows GSP-eligible articles from beneficiary developing
countries that already have exceeded the CNL of $85 million based on
interim 1998 data. None of these articles were receiving duty-free
treatment as of December 31, 1998. The listed articles did not receive
GSP-duty free treatment either during all of 1998 or during the second
half of 1998 (denoted with flags ``*'' or ``2'', respectively).
List II shows GSP-eligible articles from beneficiary developing
countries that (1) have not yet exceeded, but are approaching, the $85
million CNL during the period from January through October 1998, or (2)
are close to or above the 50 percent CNL. Depending on final calendar
year 1998 import data, these products stand to lose GSP duty-free
treatment on July 1, 1999.
List III is a subset of List II. List III identifies GSP-eligible
articles from beneficiary developing countries that are near or above
the 50 percent CNL, but that may be eligible for a de minimis waiver of
the 50 percent CNL. Actual eligibility for de minimis waivers will
depend on final calendar year 1998 import data.
List IV shows GSP articles from beneficiary developing countries
which are currently not receiving GSP duty-free treatment, but which
have import levels (based on interim 1998 data) below the $85 million
CNL. Depending on whether such articles meet both the $85 million CNL
and the 50 percent CNL based on full 1998 data, such articles might be
eligible for redesignation pursuant to the President's discretionary
authority. Articles with a ``D'' flag exceed the 50 percent CNL (based
on interim 1998 data) but might be eligible for a de minimis waiver.
The list may contain articles that may not be redesignation until
certain conditions are fulfilled, as for example, where GSP eligibility
for articles was suspended because of deficiencies in beneficiary
countries' protection of the rights of workers or owners of
intellectual property. This list does not include articles from India
which do not receive GSP treatment as a result of Presidential
Proclamation 6425 of April 29, 1992 (57 FR 19067).
Each list is followed by a summary table that indicates the number
of products cited from each beneficiary developing country and the
total value of imports of those products from the beneficiary
developing country.
The lists appended to this notice are provided for informational
purposes only. The attached lists are computer-generated, based on
interim 1998 data, and may not include all articles that might be
affected by the GSP CNLs. Regardless of whether or not an article is
included on the list, all determinations and decisions regarding the
CNLs of the GSP program will depend on full calendar year 1998 import
data with respect to each GSP eligible article. Each interested party
is advised to conduct its own review of 1998 import data with regard to
the possible application of GSP CNLs.
V. Public Comments
All written comments with regard to the matters discussed above
should be addressed to: GSP Subcommittee, Office of the U.S. Trade
Representative, 600 17th Street, NW., Room 518, Washington, DC 20508.
All submissions must be in English and should conform to the
information requirements of 15 CFR 2007. Furthermore, each party
providing comments should indicate on the first page of the submission
its name, the relevant Harmonized Tariff Schedule subheading(s), the
beneficiary country or territory of interest, and the type of action
(e.g., the use of the President's de minimis waiver authority, etc.) in
which the party is interested.
A party must provide fourteen copies of its statement which must be
received by the Chairman of the GSP Subcommittee no later than 5 p.m.,
Friday, March 19, 1999. Comments received after the deadline will not
be accepted. If the comments contain business confidential information,
fourteen copies of non-confidential version must also be submitted. A
justification as to why the information contained in the submission
should be treated confidentially must be included in the submission. In
addition, the submissions containing confidential information should be
clearly marked ``confidential'' at the top and bottom of each page of
the submission. The version that does not contain confidential
information should also be clearly marked, at the top and bottom of
each page, ``public verion'' or ``non-confidential''.
Written comments submitted in connection with these decisions,
except for information granted ``business confidential'' status
pursuant to 15 CFR 2007.7, will be available for public inspection
shortly after the filing deadline by appointment only with the staff of
the USTR Public Reading Room ((202) 395-6186). Other requests and
questions should be directed to the GSP Information Center at USTR by
calling (202) 395-6972.
Frederick L.Montgomery,
Chairman, Trade Policy Staff Committee.
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Appendix--GSP Import Statistics
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[FR Doc. 99-2071 Filed 1-28-99; 8:45 am]
BILLING CODE 3190-01-C
