[Federal Register Volume 74, Number 42 (Thursday, March 5, 2009)]
[Notices]
[Pages 9642-9643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4646]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP): Import Statistics 
Relating to Competitive Need Limitations (CNLS); Invitation for Public 
Comment on CNL Waivers Subject to Potential Revocation Based on New 
Statutory Thresholds, Possible de minimis Waivers, and Product 
Redesignations for the 2008 Annual Review

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice and Request for Comments.

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SUMMARY: This notice announces the availability of full 2008 calendar 
year import statistics relating to competitive need limitations (CNLs) 
under the Generalized System of Preferences (GSP) program. The Office 
of the United States Trade Representative (USTR) will accept public 
comments submitted by 5 p.m., Monday, March 23, 2009, via http://www.regulations.gov regarding three issues: (1) Potential revocation of 
CNL waivers that meet the statutory thresholds set forth by section 
503(d)(4)(B)(ii) of the Trade Act of 1974 (19 U.S.C. 
2463(d)(4)(B)(ii)), as amended by Public Law 109-432; (2) possible de 
minimis CNL waivers; and (3) possible redesignations of articles 
currently not eligible for GSP benefits because they previously 
exceeded the CNL thresholds.

FOR FURTHER INFORMATION CONTACT: Tameka Cooper, GSP Program, Office of 
the United States Trade Representative, 1724 F Street, NW., Room F-601, 
Washington, DC 20508. The telephone number is (202) 395-6971, the fax 
number is (202) 395-2961, and the e-mail address is [email protected].

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 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 ($135 
million for 2008), 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.
    De minimis waivers. 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 ($19 million for 2008).
    Redesignations. 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, 
subject to the considerations in sections 501 and 502 of the 1974 Act, 
redesignate such an article for duty-free treatment if imports in the 
most recently completed calendar year did not exceed the CNLs.
    CNL waiver revocation. Under Section 503(d)(5) of the 1974 Act, a 
CNL waiver remains in effect until the President determines that it is 
no longer warranted due to changed circumstances. Section 
503(d)(4)(B)(ii) of the 1974 Act, as amended by Public Law 109-432, 
also provides that, ``[n]ot later than July 1 of each year, the 
President should revoke any waiver that has then been in effect with 
respect to an article for 5 years or more if the beneficiary developing 
country has exported to the United States (directly or indirectly) 
during the preceding calendar year a quantity of the article--(I) 
having an appraised value in excess of 1.5 times the applicable amount 
set forth in subsection (c)(2)(A)(ii) for that calendar year [$202.5 
million in 2008]; or (II) exceeding 75 percent of the appraised value 
of the total imports of that article into the United States during that 
calendar year.''

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, 2009, unless granted a waiver by the 
President. Any CNL-based exclusions, CNL waiver revocations, and 
decisions with respect to de minimis waivers and redesignations will be 
based on full 2008 calendar year import data.

III. 2008 Import Statistics

    In order to provide notice of articles that have exceeded the CNLs 
for 2008 and to afford an opportunity for comment regarding (1) The 
potential revocation of waivers subject to the CNL waiver thresholds 
for 2008, (2) potential de minimis waivers, and (3) redesignations, the 
lists of the articles are available as supporting material within 
Docket USTR-2009-0008, or at: http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/GSP_2008_Annual_Review/Section_Index.html, 
under ``2008 GSP Review, Full-Year 2008 Import Statistics Relating to 
Competitive Need Limitations (CNLs).'' Full 2008 calendar year data for 
individual tariff subheadings may also be viewed on the Web site of the 
U.S. International Trade Commission at http://dataweb.usitc.gov/.
    The lists available on the USTR Web site contain, for each article, 
the Harmonized Tariff Schedule of the United States (HTSUS) subheading 
and BDC country of origin, the value of imports of the article for the 
2008 calendar year, and the percentage of total imports of that article 
from all countries. The annotations on the lists indicate, among other 
things, the status of GSP eligibility.
    The computer-generated lists published on the USTR Web site are for 
informational purposes only. They may not include all articles to which 
the GSP CNLs may apply. All determinations and decisions regarding the 
CNLs of the GSP program will be based on full 2008 calendar year import 
data with respect to each GSP-eligible article. Each interested party 
is advised to conduct its own review of 2008 import data with respect 
to the possible application of the GSP CNL provisions.

[[Page 9643]]

    List I on the USTR Web site shows: (a) Articles from BDCs that 
became ineligible for GSP treatment on or before July 1, 2008; and (b) 
GSP-eligible articles from BDCs that exceeded a CNL by having been 
exported in excess of $135 million, or by an amount greater than 50 
percent of the total U.S. import value in 2008. Petitions to grant CNL 
waivers for those articles that received GSP benefits during 2008 but 
stand to lose GSP duty-free treatment on July 1, 2009, must have been 
previously submitted in the 2008 GSP Annual Review.
    List II identifies GSP-eligible articles from BDCs that are above 
the 50 percent CNL, but that are eligible for a de minimis waiver of 
the 50 percent CNL. Articles eligible for de minimis waivers are 
automatically considered in the GSP annual review process, without 
petitions, and public comments are invited.
    List III shows GSP-eligible articles from certain BDCs that are 
currently not receiving GSP duty-free treatment, but that may be 
considered for GSP redesignation based on 2008 trade data and 
consideration of certain statutory factors, as set forth above. 
Recommendations to the President on redesignations are normally made as 
part of the GSP annual review process, and public comments are invited.
    List IV shows articles subject to the new CNL waiver thresholds of 
section 503(d)(4)(B)(ii) of the 1974 Act, as amended by Public Law 109-
432. Recommendations to the President on revocation of these waivers 
will be made as part of the 2008 GSP annual review process, and public 
comments are invited.

IV. Public Comments

Requirements for Submissions

    To ensure the most timely and expeditious receipt and consideration 
of comments, comments provided in response to this notice, with the 
exception of business confidential submissions, must be submitted on 
http://www.regulations.gov to docket number USTR-2009-0008. Submissions 
provided in response to this notice must be submitted in English by 
Monday, March 23, 2009. Hand-delivered and faxed submissions will not 
be accepted.
    For additional information on using the http://www.regulations.gov 
Web site or for any technical assistance relating to a submission, 
please consult the resources provided on the Web site by clicking on 
``How to Use This Site'' on the left side of the home page. Each 
submitter will receive a submission tracking number upon completion of 
the submissions procedure at http://www.regulations.gov. The tracking 
number will be the submitter's confirmation that the submission was 
received into http://www.regulations.gov. The confirmation should be 
kept for the submitter's records. USTR is not responsible for any 
delays in a submission due to technical difficulties, nor is it able to 
provide any technical assistance for the Web site.
    To make a submission using http://www.regulations.gov, enter docket 
number USTR-2009-0008 on the home page and click ``go.'' The site will 
provide a search-results page listing all documents associated with 
this docket. Find a reference to this notice by selecting ``Notice'' 
under ``Document Type'' on the left side of the search-results page, 
and click on the link entitled ``Send a Comment or Submission.'' The 
http://www.regulations.gov Web site offers the option of providing 
comments by filling in a ``General Comments'' field or by attaching a 
document. Given the detailed nature of the information sought by the 
GSP Subcommittee, it is expected that most submissions will be provided 
in an attached document.
    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 in the General Comments box in the 
Public Comment or Submission section of the Web site: (1) The type of 
action in which the party is interested (i.e., de minimis waiver, 
redesignation, or CNL waiver revocation); (2) the relevant 8-digit 
HTSUS subheading(s) and name of product; (3) the country of interest; 
(4) the name of the party or parties providing comments; (5) whether 
the party supports or opposes the action; and (6) if the document is 
the public version of a business confidential version of the 
submission.
    Comments must not exceed 20 single-spaced standard letter-size 
pages, including attachments. Any data attachments to the submission 
should be included in the same file as the submission itself, and not 
as separate files.

V. Business Confidential Comments

    All business confidential documents must be submitted via email to 
[email protected]. Business confidential submissions will not be 
accepted at http://www.regulations.gov; however, public or non-
confidential submissions that accompany business confidential 
submissions should be submitted at http://www.regulations.gov. For any 
document containing business confidential information submitted as an 
electronic attached file to an email transmission, the file name of the 
business confidential version should begin with the characters ``BC-''. 
The ``BC-'' should be followed by the relevant 8-digit HTSUS 
subheading(s), the country of interest, and the name of the party 
(government, company, union, association, etc.) that is submitting the 
comments.
    Persons wishing to submit business confidential submissions must 
also follow each of these steps: (1) Provide a written explanation of 
why the information should be protected in accordance with 15 CFR 
2007.7(b), which must be submitted along with the business confidential 
version of the submission; (2) clearly mark the business confidential 
submission ``BUSINESS CONFIDENTIAL'' at the top and bottom of each page 
of the submission; (3) indicate using brackets what information in the 
document is confidential; and (4) submit a non-confidential version of 
the submission, marked ``Public'' at the top and bottom of each page, 
that also indicates, using asterisks, where business confidential 
information was redacted or deleted from the applicable sentences to 
http://www.regulations.gov. Business confidential submissions that are 
submitted without the required markings or are not accompanied by a 
properly marked non-confidential version, as set forth above, might not 
be accepted or may be considered public documents. The non-confidential 
summary will be placed in the docket and open to public inspection.
    Public versions of all documents relating to this review will be 
available for public viewing on http://www.regulations.gov, docket 
number USTR-2009-0008, upon completion of processing and no later than 
approximately two weeks after the due date.

Marideth J. Sandler,
Executive Director, Generalized System of Preferences (GSP) Program, 
and Chair, GSP Subcommittee, Office of the U.S. Trade Representative.
 [FR Doc. E9-4646 Filed 3-4-09; 8:45 am]
BILLING CODE 3190-W9-P