[Federal Register Volume 72, Number 205 (Wednesday, October 24, 2007)]
[Notices]
[Pages 60395-60396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20964]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP): Import Statistics 
Relating to Competitive Need Limitations; 2007 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 2007 import statistics relating to competitive need 
limitations (CNLs) under the Generalized System of Preferences (GSP) 
program. The eight-month 2007 import statistics identify those articles 
for which the full-year 2007 trade levels may exceed statutory CNLs. 
The eight-month 2007 trade data is available at: [GSP: January-August 
2007 Trade Data Relating to CNLs]: http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/Section_Index.html.
    As previously announced in the Federal Register (72 FR 28527 (May 
21, 2007)), the deadline for submission of petitions to waive the CNLs 
for individual beneficiary developing countries with respect to GSP-
eligible articles is 5 p.m., November 16, 2007. Petitions must conform 
to the requirements as set forth in the May 21, 2007, 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 ($130 million for 2007), 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. However, Section 503(d) of the 1974 
Act, sets forth the criteria under which the President may grant a 
waiver of the CNL for articles imported from specific BDCs. Product 
petitions requesting CNL waivers for GSP-eligible articles from 
beneficiary developing countries that exceed the CNLs in 2007 must be 
filed in the 2007 Annual Review.
    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 ($18.5 million for 2007). Comments on de 
minimis waivers will be requested after publication of a separate 
Federal Register notice in February 2008.

II. Implementation of Competitive Need Limitations

    Exclusions from GSP duty-free treatment where CNLs have been 
exceeded will be effective July 1, 2008, unless granted a waiver before 
that date by the President. CNL exclusions will be based on full 
calendar-year 2007 import statistics. Full calendar-year 2007 data for 
individual tariff subheadings will be available in February 2008 on the 
Web site of the U.S. International Trade Commission at http://dataweb.usitc.gov/.

III. January-August 2007 Import Statistics

    In order to provide advance notice of articles that may exceed the 
CNLs for 2007, ``January--August 2007 Trade Data Relating to CNLs'' 
that cover the first eight months of 2007 can be viewed at: http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/GSP_2007_Annual_Review/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.
    The January-August 2007 statistics are organized to show, for each 
article, the

[[Page 60396]]

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 2007, and the percentage of imports of that article from that 
BDC of total imports of that article from all countries. The list 
includes: (1) GSP-eligible articles from BDCs that have already 
exceeded the CNLs because their import levels in 2007 already amount to 
more than $130 million, or by an amount greater than 50 percent of the 
total value of U.S. imports of that product in 2007; and (2) GSP-
eligible articles that, based upon the eight-month 2007 data, exceed 
$100 million or an amount greater than 42 percent of the total value of 
U.S. imports of that product.
    The ``D'' flag next to articles on the list indicates articles 
that, based on the eight-month 2007 trade data, may be eligible for a 
de minimis waiver because the total value of imports of that article 
from all countries is equal to or less than $12.5 million. Comments on 
de minimis waivers will be requested after publication of a separate 
Federal Register notice in February 2008.
    The list published on the USTR Web site is provided for 
informational purposes only. The list is computer-generated and based 
on January--August 2007 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 2007 import 
data with respect to each GSP-eligible article. Each interested party 
is advised to conduct its own review of 2007 import data with regard to 
the possible application of GSP CNLs and submission of a petition to 
waive the CNLs. Please see the notice announcing the 2007 GSP Review 
that was published in the Federal Register on May 21, 2007 for further 
details on submitting a petition for a CNL waiver.

Marideth J. Sandler,
Executive Director for the GSP Program, Chair, GSP Subcommittee of the 
Trade Policy Staff Committee.
[FR Doc. E7-20964 Filed 10-23-07; 8:45 am]
BILLING CODE 3190-W8-P