[Federal Register Volume 75, Number 43 (Friday, March 5, 2010)]
[Notices]
[Pages 10339-10340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4706]



[[Page 10339]]

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP): Announcing the 
Availability of Import Statistics Relating to Competitive Need 
Limitations (CNLs) and Inviting Public Comment on CNL Waivers Subject 
to Potential Revocation Based on New Statutory Thresholds, Possible De 
Minimis Waivers, and Product Redesignations for the 2009 Annual Review

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

ACTION: Notice and solicitation of comments.

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SUMMARY: This notice announces the availability of full 2009 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., Thursday, March 25, 2010, 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., 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 ($140 
million for 2009), 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 ($19.5 million for 2009).
    Re-designations: 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 [$210 
million in 2009]; 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, 2010, 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 2009 calendar year import data.

III. 2009 Import Statistics

    In order to provide notice of articles that have exceeded the CNLs 
for 2009 and to afford an opportunity for comment regarding (1) the 
potential revocation of waivers subject to the CNL waiver thresholds 
for 2009, (2) potential de minimis waivers, and (3) redesignations, the 
lists of the articles are available as supporting material within 
Docket USTR-2010-0009 or at: http://www.ustr.gov/trade-topics/trade-development/preference-programs/generalized-system-preference-gsp/current-review-1, under ``2009 GSP Review, Full-Year 2009 Import 
Statistics Relating to Competitive Need Limitations (CNLs).'' Full 2009 
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 
2009 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 2009 calendar year import 
data with respect to each GSP-eligible article. Each interested party 
is advised to conduct its own review of 2009 import data with respect 
to the possible application of the GSP CNL provisions.
    List I on the USTR Web site shows: (a) Articles from BDCs that 
became ineligible for GSP treatment on or before July 1, 2009; and (b) 
GSP-eligible articles from BDCs that exceeded a CNL by having been 
exported in excess of $140 million, or in a quantity equal to or 
greater than 50 percent of the total U.S. import value, in 2009. 
Petitions to grant CNL waivers for those articles that received GSP 
benefits during 2009 but stand to lose GSP duty-free treatment on July 
1, 2010, must have been previously submitted in the 2009 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

[[Page 10340]]

petitions, and public comments (including comments in support of or in 
opposition to de minimis waivers) are invited in accordance with the 
Requirements for Submissions below.
    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 2009 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 (including 
comments in support of or in opposition to redesignations) are invited 
in accordance with the Requirements for Submissions below.
    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 2009 GSP annual review process, and public 
comments (including comments in support of or in opposition to 
revocations of CNL waivers) are invited in accordance with the 
Requirements for Submissions below.

IV. Public Comments

Requirements for Submissions

    Submissions in response to this notice must be submitted 
electronically by the March 25, 2010 deadline listed above using http://www.regulations.gov, docket number USTR-2010-0009. Instructions for 
submitting business confidential versions are provided below. Hand-
delivered and faxed submissions will not be accepted. Submissions must 
be submitted in English to the Chairman of the GSP Subcommittee, Trade 
Policy Staff Committee, by the applicable deadlines set forth in this 
notice.
    To make a submission using http://www.regulations.gov, enter docket 
number USTR-2010-0009 on the homepage and click ``Search''. The site 
will provide a search-results page listing all documents associated 
with this docket. Locate the reference to this notice by selecting 
``Notices'' under ``Document Type''. Locate the reference to this 
notice by selecting ``Notices'' under ``Document Type'' on the left 
side of the search-results page, and click on the link entitled 
``Submit a Comment''. (For further information on using the http://www.regulations.gov Web site, please consult the resources provided on 
the Web site by clicking ``How to Use This Site'' on the left side of 
the home page.)
    The http://www.regulations.gov Web site offers the option of 
providing comments by filling in a ``Type Comment and Upload File'' 
field or by attaching a document. Given the detailed nature of the 
information sought by the GSP subcommittee, USTR prefers comments to be 
provided in an attached document. If a document is attached, it is 
sufficient to type ``See attached'' in the ``Type Comment and Upload 
File'' field.
    Comments must be in English, with the total submission not to 
exceed 30 single-spaced standard letter-size pages in 12-point type, 
including attachments. Any data attachments to the submission should be 
included in the same file as the submission itself, and not as separate 
files. Any person or party making a submission is strongly advised to 
review the GSP regulations and GSP Guidebook (available at: http://www.ustr.gov/trade-topics/trade-development/preference-programs/generalized-system-preference-gsp/gsp-program-inf).

V. Business Confidential Comments

    A person requesting that information contained in a comment 
submitted by that person be treated as confidential business 
information must certify that such information is business confidential 
and would not customarily be released to the public by the submitter. 
Confidential business information must be clearly designated as such, 
the submission must be marked ``BUSINESS CONFIDENTIAL'' at the top and 
bottom of the cover page and each succeeding page, and the submission 
should indicate, via brackets, the specific information that is 
confidential. Additionally, ``Business Confidential'' should be 
included in the ``Type Comment & Upload File'' field. Anyone submitting 
a comment containing business confidential information must also submit 
as a separate submission a non-confidential version of the confidential 
submission, indicating where confidential information has been 
redacted. 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 at http://www.regulations.gov, docket 
number USTR-2010-0009, upon completion of processing and no later than 
approximately two weeks after the due date.

Mary Estelle Ryckman,
Assistant U.S. Trade Representative for Trade and Development, Office 
of the U.S. Trade Representative.
[FR Doc. 2010-4706 Filed 3-4-10; 8:45 am]
BILLING CODE 3190-W0-P