[Federal Register Volume 70, Number 249 (Thursday, December 29, 2005)]
[Notices]
[Pages 77239-77240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-8075]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP): Import Statistics 
Relating to Competitive Need Limitations; Invitation for Public Comment 
on Possible De Minimis Waivers and Redesignations

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: This notice is to inform the public of the availability of 
interim 2005 import statistics relating to competitive need limitations 
(CNLs) under the Generalized System of Preferences (GSP) program. 
Public comments are invited by 5 p.m., January 27, 2006, regarding 
possible de minimis CNL waivers with respect to particular articles, 
and possible redesignations under the GSP program of articles currently 
not eligible for GSP benefits because they previously exceeded the 
CNLs.

FOR FURTHER INFORMATION CONTACT: The GSP Subcommittee of the Trade 
Policy Staff Committee, Office of the United States Trade 
Representative, 1724 F Street, NW., Room F-220, Washington, DC 20508. 
The telephone number is (202) 395-6971.

SUPPLEMENTARY INFORMATION:

I. Competitive Need Limitations

    The GSP program provides for the duty-free importation of 
designated articles when imported from designated beneficiary 
developing countries (BDCs). The GSP program is authorized by title V 
of the Trade Act of 1974 (19 U.S.C. 2461, et seq.), as amended (the 
``1974 Act''), and is implemented in accordance with Executive Order 
11888 of November 24, 1975, as modified by subsequent Executive Orders 
and Presidential Proclamations.
    Section 503(c)(2)(A) of the 1974 Act sets out the two competitive 
need limitations (CNLs). When the President determines that a BDC 
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 BDC by no later than 
July 1 of the next calendar year.
    Under section 503(c)(2)(F) of the 1974 Act, the President may waive 
the 50 percent CNL with respect to an eligible article imported from a 
BDC if the value of total imports of that article from all countries 
during the calendar year did not exceed the applicable de minimis 
amount for that year ($17.5 million for 2005).
    Under section 503(c)(2)(C) of the 1974 Act, if imports of an 
eligible article from a BDC ceased to receive duty-free treatment due 
to exceeding a CNL in a prior year, the President may redesignate such 
an article for duty-free treatment if imports in the most recently 
completed calendar year did not exceed the CNLs.

II. Implementation of Competitive Need Limitations, Waivers, and 
Redesignations

    Exclusions from GSP duty-free treatment where CNLs have been 
exceeded will be effective July 1, 2006, unless previously granted a 
waiver by the President. CNL exclusions, as well as decisions with 
respect to de minimis waivers and redesignations, will be based on full 
2005 calendar year import statistics.

III. Interim 2005 Import Statistics

    In order to provide advance notice of articles that may exceed the 
CNLs for 2005, and to afford an opportunity for comment regarding 
potential de minimis waivers and redesignations, ``Interim 2005 Import 
Statistics Relating to Competitive Need Limitations'' that cover the 
first 10 months of 2005 can be viewed at: http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Interim_2005_Import_Statistics_Relating_to_Competitive_Need_Limitations.html.
    If unable to access these statistics on the USTR Web site, contact 
the GSP Subcommittee of the Trade Policy Staff Committee, which will 
make alternate arrangements to provide the lists.
    Full calendar year 2005 data for individual tariff subheadings will 
be available in mid-February on the Web site of the U.S. International 
Trade Commission at http://dataweb.usitc.
gov/.
    The four lists comprising the ``Interim 2005 Import Statistics 
Relating to

[[Page 77240]]

Competitive Need Limitations'' contain, for each article, the 
Harmonized Tariff Schedule of the United States (HTSUS) subheading and 
BDC of origin, the value of imports of the article for the first 10 
months of 2005, and the percentage of total imports of that article 
from all countries. The flags indicate the status of GSP eligibility. 
Articles marked with an ``*'' are those that have been excluded from 
GSP eligibility for the entire past calendar year. Articles marked with 
a ``D'' are those that, based on interim 2005 data, may be eligible for 
a de minimis waiver of the 50 percent CNL.
    List I shows GSP-eligible articles from BDCs that have already 
exceeded the CNL by having been exported in excess of $120 million, or 
by an amount greater than 50% of the total U.S. import value in 2005. 
Those articles without a flag were GSP-eligible during 2005 but stand 
to lose GSP duty-free treatment on July 1, 2006, unless a waiver is 
granted. Such waivers are required to have been previously requested in 
the 2005 GSP Annual Review.
    List II identifies GSP-eligible articles from BDCs that (1) have 
not yet exceeded, but are approaching, the $120 million CNL for the 
period January-October, 2005, or (2) are close to or above the 50 
percent CNL. Depending on final calendar year 2005 import data, these 
articles stand to lose GSP duty-free treatment on July 1, 2006, unless 
a waiver is granted. Such waivers are required to have been previously 
requested in the 2005 GSP Annual Review.
    List III is a subset of List II. List III identifies GSP-eligible 
articles from BDCs that are close to 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 2005 import data. Each year, de minimis waivers are considered 
automatically without a petition, and public comments are invited.
    List IV shows GSP-eligible articles from certain BDCs that are 
currently not receiving GSP duty-free treatment, but that have import 
levels (based on interim 2005 data) below the CNLs and thus may be 
eligible to be considered for redesignation, depending on final 
calendar year 2005 import data. Recommendations to the President on 
redesignations are normally made in with any recommendations resulting 
from the annual review, and public comments are invited.
    The four lists comprising the ``Interim 2005 Import Statistics 
Relating to Competitive Need Limitations'' are computer-generated and 
based on interim 2005 data, and may not include all articles to which 
the GSP CNLs may apply. All determinations and decisions regarding the 
CNLs of the GSP program are based on full calendar year 2005 import 
data with respect to each GSP-eligible article. Each interested party 
is advised to conduct its own review of 2005 import data with regard to 
the possible application of GSP CNLs.

IV. Public Comments

Requirements for Submissions

    All submissions must conform to the GSP regulations set forth at 15 
CFR Part 2007, except as modified below. Furthermore, each party 
providing comments should indicate on the first page of the submission 
its name, the relevant HTSUS subheading(s), the BDC of interest, and 
the type of action (e.g., de minimis waiver or redesignation) in which 
the party is interested.
    Comments must be submitted, in English, to the Chairman of the GSP 
Subcommittee of the Trade Policy Staff Committee (TPSC) as soon as 
possible, but not later than 5 p.m., January 27, 2006.
    In order to facilitate prompt consideration of submissions, USTR 
requires electronic e-mail submissions in response to this notice. 
Hand-delivered submissions will not be accepted. Submissions should be 
single-copy transmissions in English with the total submission not to 
exceed 30 single-spaced standard letter-size pages, including 
attachments, in 12-point type as a digital file attached to an e-mail 
transmission. The e-mail transmission should use the following subject 
line: ``Comments on 2005 Possible De Minimus Waivers and 
Redesignations'' followed by the HTSUS subheading number and BDC of 
origin as set out in the appropriate list. Documents must be submitted 
as MSWord (``.doc''), WordPerfect (``.wpd''), or text (``.txt'') files. 
Documents will not be accepted if submitted as electronic image files 
or containing imbedded images (for example, ``.jpg'', ``.tif'', 
``.pdf'', ``.bmp'', or ``.gif''). Spreadsheets submitted as supporting 
documentation are acceptable as Quattro Pro or Excel files, pre-
formatted for printing only 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.
    Submissions in response to this notice 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 2003.6.
    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 
version must be clearly marked ``BUSINESS CONFIDENTIAL'' at the top and 
bottom of each page of the document. The non-confidential version must 
be clearly marked ``PUBLIC'' or ``NON-CONFIDENTIAL'' at the top and 
bottom of each page. Documents that are submitted without any marking 
might not be accepted or 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 character ``P-''. The BC-'' or ``P-'' should be followed 
by the name of the party (government, company, union, association, 
etc.) which is submitting the comments.
    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 
identifying information with telephone number, fax number, and e-mail 
address. The e-mail address for these submissions is [email protected]. 
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 public review approximately three weeks after the due 
date by appointment in the USTR Public Reading Room, 1724 F Street NW., 
Washington, DC. Availability of documents may be ascertained, and 
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. E5-8075 Filed 12-28-05; 8:45 am]
BILLING CODE 3190-W6-P