[Federal Register Volume 61, Number 194 (Friday, October 4, 1996)]
[Notices]
[Pages 52078-52079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25413]



[[Page 52078]]

=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Trade Policy Staff Committee (TPSC); Generalized System of 
Preferences (GSP); Notice of Review of Product and Country Practices 
Petitions, Public Hearings, and List of Articles Sent to the United 
States International Trade Commission (USITC) for Review; Notice 
Regarding 1996 Annual Review

AGENCY: Office of the United States Trade Representative.

ACTION: Announcement of the review timetable and opportunity for public 
comment on the product petitions accepted for consideration in the 1995 
Annual GSP Review in a Federal Register notice of July 28, 1995 (60 FR 
38856); announcement of country practices petitions accepted for 
consideration in the 1995 Annual GSP Review; announcement of timetable 
for public hearings to consider petitions accepted for review; 
announcement of amendments in the list of articles sent to the USITC 
for review, announcement regarding 1996 Annual GSP Review; announcement 
regarding termination of country practice petitions.

-----------------------------------------------------------------------

SUMMARY: The purpose of this notice on the 1995 Annual GSP Review is: 
(1) To set forth the review timetable and provide an opportunity for 
public comment on product petitions accepted in the 1995 Annual GSP 
review requesting a modification in the list of articles that are 
eligible for duty-free treatment under the GSP program; (2) announce 
the acceptance for review of and provide an opportunity for public 
comments on petitions to modify the status of GSP beneficiary countries 
in regard to their practices as specified in 15 CFR 2007.0(a) and (b); 
(3) to announce the timetable for public hearings to consider petitions 
accepted for review; (4) to announce amendments to the list of articles 
sent by USTR on August 23, 1996, to the USITC to seek advice with 
respect to eligibility for GSP benefits; and (5) to announce the 
satisfactory completion of two country practice reviews.
    For Further Information Contact: GSP Subcommittee, Office of the 
United States Trade Representative, 600 17th Street, NW, Room 517, 
Washington, DC 20508. The telephone number if (202) 395-6971. Public 
versions of all documents relating to this review will be available for 
review by appointment in the USTR public reading room. Appointments may 
be made from 10 a.m. to noon and 1 p.m. to 4 p.m. by calling (202) 395-
6186.

SUPPLEMENTARY INFORMATION: The GSP program grants duty-free treatment 
to designated eligible articles that are imported from designated 
beneficiary developing countries. The GSP program is authorized by 
Title V of the Trade Act of 1974, as amended (``Trade Act'') (19 U.S.C. 
2461 et seq.), and was implemented by Executive Order 11888 of November 
24, 1975, and modified by subsequent Executive Orders and Presidential 
Proclamations. The GSP regulations provide for an annual GSP review, 
unless otherwise specified by Federal Register notice (15 CFR 2007.3 et 
seq.). In a Federal Register notice dated July 28, 1995 (60 FR 38856), 
USTR announced the acceptance of product petitions for review and the 
ongoing consideration by USTR of petitions requesting that certain 
practices in certain beneficiary developing countries be reviewed to 
determined whether such countries are in compliance with the 
eligibility criteria that are set forth in sections 502(b) and 502(c) 
of the Trade Act (19 U.S.C. 2462 (b) and 2462 (c)). As a result of the 
expiration of the GSP program on July 31, 1995, USTR did not announce a 
review timetable for product petitions or which of the so-called 
``country practices'' petitions were under consideration. USTR stated 
in the notice that it would make such announcement and offer an 
opportunity for public comment upon reauthorization of the GSP program. 
Legislation reauthorizing the GSP program effective October 1, 1996 and 
making certain amendments to it was signed by the President on August 
20, 1996 (Public Law 104-188, 110 Stat. 1755) (Small Business Job 
Protection Act of 1996--for the GSP related provisions, see subtitle J 
of Title I of the foregoing Act).

I. Acceptance of Petitions for Review

    USTR accepted petitions requesting modification of the list of 
articles eligible to receive duty-free treatment under the GSP and to 
review the GSP status of beneficiary countries, as provided in title V 
of the Trade Act. USTR will review these petitions pursuant to 
regulations codified at 15 CFR part 2007. Acceptance for review of the 
petitions does not indicate any opinion with respect to disposition on 
the merits of the petitions. Acceptance indicates only that the listed 
petitions have been found eligible for review by the GSP Subcommittee 
and the Trade Policy Staff Committee, and that such review will take 
place.

A. Requests To Modify Product Eligibility

    USTR accepted petitions from interested parties and foreign 
governments: (1) To designate articles as eligible for the GSP; (2) to 
withdraw, suspend or limit GSP duty-free treatment accorded either to 
eligible articles under the GSP or to individual beneficiary developing 
countries with respect to specific GSP eligible articles; and (3) to 
waive competitive need limits.
    As in previous reviews, petitions to add or remove products from 
the list of articles eligible for GSP duty-free treatment will be 
evaluated in accordance with the ``graduation'' policy. Limitations on 
GSP eligibility will be considered for products of the more 
economically advanced beneficiary developing countries that have 
demonstrated sufficient competitiveness in those products. Four 
criteria will be taken into account in considering ``graduation:'' the 
development level of the individual beneficiary country; its 
competitive position in the product concerned; the country's practices 
relating to trade, investment and worker rights; and the overall 
economic interests of the United States.
    Product designations announced at the conclusion of the review 
process, therefore, may differ. Certain beneficiary developing 
countries may lose GSP benefits for certain products even though those 
products have not met competitive need limitations set forth in section 
503(c)(2)(A) of the Trade Act.
    As in previous reviews, articles which are determined to be import 
sensitive cannot be designated as eligible articles. USTR is required 
to seek the advice of the U.S. International Trade Commission (USITC) 
on the probable effects of the requested designation of a product for 
GSP on industries producing like or directly competitive articles and 
on consumers.
    On August 20, 1996, USTR requested the USITC to provide this 
advice. At the same time, USTR asked the USITC to furnish economic 
advice on the probable economic effect on U.S. industries producing 
like or directly competitive articles, and on consumers, of the 
granting of a waiver of the competitive need limits for certain 
products.
    A nonconfidential version of the USITC analysis will be available 
to the public approximately December 20, 1996. The deadline for public 
comments on this nonconfidential analysis in January 15, 1997. Comments 
should be

[[Page 52079]]

submitted in accordance with the procedures described below.
    Any modifications to the list of articles eligible for duty-free 
treatment under the GSP program resulting from the 1995 Annual GSP 
Review will be announced on or about April 1, 1997, and will take 
effect as soon as possible thereafter.

B. Cases Accepted for Review Regarding Country Practices

    Pursuant to 15 CFR 2007.0(b), the Trade Policy Staff Committee has 
accepted for review requests to review the GSP status of Panama and 
Paraguay concerning the alleged failure of each to provided adequate 
and effective protection for intellectual property rights.
    Any modifications to the list of beneficiary developing countries 
for purposes of the GSP program resulting from the 1995 Annual GSP 
Review will take effect on such date as appears in the Federal 
Register.

Opportunities for Public Comment and Inspection of Comments

    The GSP Subcommittee of the TPSC invites comments in support of or 
in opposition to any petition which is the subject of this notice. 
Submissions should conform to 15 CFR 2007, particularly 2007.0, 
2007.1(a)(10, 2007.1(a)(2), and 2007.1(a)(3). All submissions should 
identify the subject article(s) in terms of the current Harmonized 
Tariff Schedule of the United States (``HTS'') nomenclature.
    Comments should be submitted in fourteen (14) copies, in English, 
to the Chairman of the GSP Subcommittee of the Trade Policy Staff 
Committee, 600 17th Street, N.W., Room 517, Washington, DC 20506. 
Information submitted will be subject to public inspection by 
appointment with the staff of the USTR public reading room, except for 
information granted ``business confidential'' status pursuant to 15 CFR 
2203.6 and other qualifying information submitted in confidence 
pursuant to 15 CFR 2007.7. If the document contains business 
confidential information, and original and fourteen (14) copies of a 
nonconfidential version of the submission along with an original and 
fourteen (14) copies of the confidential version must be submitted. In 
addition, the document containing confidential information should be 
clearly marked ``confidential'' at the top and bottom of each page of 
the document. The version that does not contain business confidential 
information (the public version) should also be clearly marked at the 
top and bottom of every page (either ``public version'' or 
``nonconfidential'').
    Comments should be submitted no later than October 29, 1996.

III. Notice of Public Hearings

    Hearings will be held on November 13, and 14, 1996, beginning at 10 
a.m. at a location in Washington, DC to be announced. The hearing will 
be open to the public and a transcript of the hearings will be made 
available for public inspection or can be purchased from the reporting 
company. No electronic media coverage will be allowed.
    All interested parties wishing to make an oral presentation at the 
hearings must submit the name, address, and telephone number of the 
witness(es) representing their organization to the Chairman of the GSP 
Subcommittee by 5 p.m. October 29, 1996. Requests to present oral 
testimony in connection with the public hearings should be accompanied 
for fourteen (14) copies, in English, of all written briefs or 
statements, and should also be received by 5 p.m. on October 29, 1996. 
Oral testimony before the GSP Subcommittee will be limited to five 
minute presentations that summarize or supplement information contained 
in briefs or statements submitted for the record. Post-hearing briefs 
or statements will be accepted if they conform with the regulations 
cited above and are submitted in fourteen (14) copies, in English, no 
later that 5 p.m. December 11, 1996. Parties not wishing to appear at 
the public hearings may submit pre-hearing written briefs or statements 
by October 29, 1996, and may submit post-hearing written briefs or 
statements by December 11, 1996. Rebuttal briefs or statements should 
be submitted in fourteen (14) copies, in English, by 5 p.m. January 8, 
1997.
    All communications with regard to these hearings should be 
addressed to: GSP Subcommittee, Office of the United States Trade 
Representative, 600 17th Street, NW., Room 517, Washington, DC 20508. 
The telephone number is (202) 395-6971. Questions may be directed to 
any member of the staff of the GSP Information Center.

IV. Notice of Amendment to the List of Articles Subject to Review

    On July 28, 1995, USTR published the list of articles subject to 
review in the Federal Register (60 FR 38856). USTR has made certain 
amendments to that list. Case numbers 95-21, 95-29, 95-31, 95-33, 95-
35, 95-39 and 95-43 (the competitive need limit waivers petitions for 
Malaysia) have been deleted due to the proposed graduation of Malaysia 
from GSP effective January 1, 1997. Due to changes in the nomenclature 
of the HTS effective January 1, 1996, the list of articles in the 
notice are modified by changing the HTS subheading for case number 95-
28 to 8469.12.00, changing the HTS subheading for case number 95-30 
into two subheadings and subdividing the case into case number 95-30A 
for 8471.49.26 and case number 95-30B for 8471.60.35, changing the HTS 
subheading for case number 95-32 into two subheading and subdividing 
the case into case number 95-32A for 8517.19.40 and case number 95-32B 
for 8517.19.80, and changing the HTS subheading for case number 95-34 
to 8517.21.00.

V. Notice Regarding 1996 Annual Review of GSP and Least Developed 
Beneficiary Developing Country Review

    Ordinarily, the TPSC would have invited the submission of petitions 
for the 1996 Annual GSP Review on June 1, 1996. At that time, however, 
the program had not been reauthorized. The legislation reinstating the 
GSP program is effective October 1, 1996 with a provision permitting 
refunding by Customs after October 1, 1996, of duties that would not 
have been paid between July 31, 1995 and October 1, 1996 if the GSP 
program had been in effect. But because the legislation only provides 
for extension of the GSP program until May 31, 1997, the TPSC has 
decided that it will not solicit petitions for the 1996 Annual GSP 
Review.
    An announcement will appear at a later date in the Federal Register 
concerning the timetable of the review to add products to the GSP 
program only for the least developed beneficiary developing countries 
as provided for in the amended GSP statute.

VI. Terminated Country Practice Reviews

    Due to progress in protecting intellectual property rights, the 
reviews of El Salvador and Poland have been terminated.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 96-25413 Filed 10-3-96; 8:45 am]
BILLING CODE 3190-01-M