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U.S. notice, results of 2019 annual GSP review

U.S. notice, results of 2019 annual GSP review

The Office of the United States Trade Representative (USTR) today released for publication in the Federal Register a notice announcing the results of the annual generalized system of preferences (GSP) review with respect to:

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  • Products considered for removal from the list of eligible products for certain beneficiary countries
  • Decisions related to competitive need limitations (CNLs), including petitions for waivers of CNLs
  • Requests to reinstate / redesignate products previously excluded from GSP eligibility for certain countries

The GSP program provides for the duty-free treatment of designated articles when imported from beneficiary developing countries (BDCs). Each year, USTR reviews the list of products eligible for GSP benefits, and ultimately provides recommendations to the president on appropriate actions including exclusions from duty-free treatment of products from certain countries when they have reached the statutory CNL thresholds.

An October 2019 presidential proclamation implements the president’s decisions regarding the 2019 annual GSP review, including CNL waivers and product redesignations. These changes were effective November 1, 2019.

Today’s USTR notice [PDF 274 KB] lists the following results of the 2019 annual GSP review.

  • List I, Polyethylene Terephthalate (PET) resin (HTSUS 3907.61.00 and HTSUS 3907.69.00) from Pakistan will continue to enter the United States duty-free.
  • List II, fresh-cut orchids (HTSUS 0603.13.00) from Thailand, and bamboo plywood (HTSUS 4412.10.05) and certain tropical hardwood plywood (HTSUS 4412.31.4155 (pre-November 1, 2019) and HTSUS 4412.31.45 (post November 1, 2019)) from Indonesia now enter the United States duty-free, having been redesignated to GSP.
  • List III, motor vehicles with diesel engine for 16 or more passengers (HTSUS 8702.10.31) from North Macedonia exceeded the CNLs, and now enters the United States at the NTR duty rate.
  • List IV, plastic spectacle lenses (HTSUS 9001.50.00) from Thailand will continue to enter the United States duty-free; a petition for a CNL waiver for stearic acid (HTSUS 3823.11.00) from Indonesia was denied and will be subject to the NTR duty rate.
  • List V, one-year de minimis waivers granted to 27 products that exceeded the 50% import-share CNL but for which the aggregate value of all U.S. imports of that article was below the 2018 de minimis level of $24 million. Qualifying products will continue to enter the United States duty-free.


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117
E: rwaldrop@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

 

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