[Federal Register Volume 71, Number 210 (Tuesday, October 31, 2006)]
[Notices]
[Pages 63806-63807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-18304]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP): Import Statistics 
Relating to Competitive Need Limitations; 2006 Annual GSP Review; 
Petitions Requesting CNL Waivers

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 
eight-month 2006 import statistics relating to competitive need 
limitations (CNLs) under the Generalized System of Preferences (GSP) 
program. The eight-month 2006 import statistics identify those articles 
for which the 2006 trade levels may exceed statutory CNLs. The interim 
trade data is available at: http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html.
    As previously announced in the Federal Register (71 FR 37129 (June 
29, 2006)), the deadline for submission of product petitions to waive 
the CNLs for individual beneficiary developing countries with respect 
to GSP-eligible articles is 5 p.m., November 17, 2006. Petitions must 
conform to the requirements as set forth in the June 29, 2006 Federal 
Register notice. Public comments regarding possible de minimis waivers 
and possible GSP redesignations will be requested in a subsequent 
Federal Register notice.

FOR FURTHER INFORMATION CONTACT: 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 ($125 million for 2006), 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 also 
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 ($18 million for 2006). Further, 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 year did not 
exceed the CNLs. Comments on de minimis waivers and redesignations will 
be requested after publication of a separate Federal Register notice.
    Section 505 of the 1974 Act states that duty-free treatment 
provided under the GSP shall not remain in effect after December 31, 
2006. If the program expires without reauthorization on that date, the 
2006 Annual GSP review will be conducted according to a schedule to be 
issued in the Federal Register, if and when the program is 
reauthorized.

II. Implementation of Competitive Need Limitations

    Exclusions from GSP duty-free treatment where CNLs have been 
exceeded will be effective July 1, 2007, unless previously granted a 
waiver by the President. CNL exclusions will be based on full 2006 
calendar year import statistics.

III. Interim 2006 Import Statistics

    In order to provide advance notice of articles that may exceed the 
CNLs for 2006, ``Interim 2006 Import Statistics Relating to Competitive 
Need Limitations'' that cover the first eight months of 2006 can be 
viewed at: http://www.ustr.gov/Trade_Development/Preference_Program/GSP/Section_Index.html. If unable to access these statistics, contact 
the GSP Subcommittee of the Trade Policy Staff Committee, which will 
make alternate arrangements to provide the lists. Full calendar-year 
2006 data for individual tariff subheadings will be available in 
February 2007 on the Web site of the U.S. International Trade 
Commission at http://dataweb.usitc.gov/.
    The Interim 2006 Statistics are organized to show, 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 eight months of 2006, and the percentage of total imports of 
that article from all countries. The list includes the GSP-eligible 
articles from BDCs that have already exceeded the CNLs by their import 
levels amounting to more than $125 million, or by an amount greater 
than 50% of the total value of U.S. imports of that product in 2006. 
The list also includes GSP-eligible articles that, based upon interim 
eight-month 2006 data, exceed $95 million dollars, or an amount greater 
than 42 percent of the

[[Page 63807]]

total value of U.S. imports of that product. The ``D'' flag next to 
articles on the list indicates articles that, based on eight-month 2006 
trade data, may be eligible for a de minimis waiver because the total 
value of imports of that article from all countries is below $12 
million.
    The list published on the USTR Web site is provided for 
informational purposes only. The list is computer-generated and based 
on interim 2006 data, and may not include all articles that may 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 2006 import 
data with respect to each GSP-eligible article. Each interested party 
is advised to conduct its own review of 2006 import data with regard to 
the possible application of GSP CNLs. Please see the notice announcing 
the 2006 GSP Review which was published in the Federal Register on June 
29, 2006 for further details on submitting a petition for a CNL waiver.

Marideth J. Sandler,
Executive Director for the GSP Program, Chairman, GSP Subcommittee of 
the Trade Policy Staff Committee.
[FR Doc. E6-18304 Filed 10-30-06; 8:45 am]
BILLING CODE 3190-W7-P