[Federal Register Volume 80, Number 128 (Monday, July 6, 2015)]
[Notices]
[Pages 38501-38504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16498]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP): Notice of a GSP Product 
Review, Including Possible Actions Related to Competitive Need 
Limitations

AGENCY: Office of the United States Trade Representative.

[[Page 38502]]


ACTION: Notice of hearing and solicitation of petitions and comments.

-----------------------------------------------------------------------

SUMMARY: This notice announces a review of products under the 
Generalized System of Preferences (GSP) program that based on full-year 
2014 import data, are subject to certain actions related to competitive 
need limitations (CNLs). The review will also consider the proposed 
designation for GSP eligibility of five cotton products from least 
developed beneficiary developing countries (LDBDCs).
    The Office of the United States Trade Representative (USTR) will 
accept petitions by interested parties seeking waivers of CNLs for 
certain products submitted by July 31, 2015. USTR will also accept 
comments from the public submitted by July 31, 2015, regarding: (1) 
Possible de minimis CNL waivers, (2) possible redesignations of 
articles not currently eligible for GSP benefits, (3) possible 
revocation of CNL waivers, and (4) the proposed designation for GSP 
eligibility for LDBDCs of the five cotton products. This notice also 
sets forth the schedule for submitting comments and for a public 
hearing on prospective CNL waiver petitions and the proposed 
designation of the cotton products.

DATES: 
    July 31, 2015: Deadline for petitions requesting waivers of CNLs 
and for all other written comments in response to this notice.
    July 31, 2015: Deadline for pre-hearing briefs and requests to 
appear at the August 11 public hearing regarding CNL waiver petitions 
and the proposed designation of the cotton products.
    August 11, 2015: The GSP Subcommittee of the Trade Policy Staff 
Committee (TPSC) will convene a public hearing on CNL waiver petitions 
and the proposed designation of the cotton products.
    August 18, 2015: Deadline for submission of post-hearing briefs and 
comments.

FOR FURTHER INFORMATION CONTACT: Marin Weaver, GSP Program, Office of 
the United States Trade Representative. The telephone number is (202) 
395-2974, the fax number is (202) 395-9674, and the email address is 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Competitive Need Limitations

    The GSP program provides for the duty-free importation of 
designated articles 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''). 
The GSP program expired on July 31, 2013. GSP was reauthorized on June 
29, 2015, by the Trade Preferences Extension Act of 2015. The GSP 
program is now effective through December 31, 2017, with retroactive 
effect through July 31, 2013.
    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 ($165 
million for 2014), 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, unless a 
waiver is granted. The Trade Preferences Extension Act of 2015 provides 
that the applicable deadline for all CNL-related actions based on 
import data from 2014, will be October 1, 2015.
    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 ($22 million for 2014).
    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 five 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 ($247.5 million in 2012); or (II) exceeding 75 percent of 
the appraised value of the total imports of that article into the 
United States during that calendar year.''
    Pursuant to the Trade Preferences Extension Act of 2015, exclusions 
from GSP duty-free treatment where CNLs have been exceeded for calendar 
year 2014 will be effective October 1, 2015, 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 2014 calendar year import data.

II. 2014 Import Statistics

    In order to provide notice of articles that have exceeded the CNLs 
for 2014 and to afford an opportunity for comment regarding (1) 
potential de minimis waivers, (2) potential redesignations, and (3) the 
potential revocation of waivers for articles exceeding the CNL waiver 
thresholds for 2014, USTR has posted product lists on the USTR Web site 
at https://ustr.gov/issue-areas/trade-development/preference-programs/generalized-system-preference-gsp/current-review-0 under the title 
``GSP: 2014/2015 Limited Product Review.'' These lists can also be 
found at www.regulations.gov in Docket Number USTR-2015-0007. Full 2014 
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 System (HTS) of the United States subheading and 
BDC country of origin, the value of imports of the article from the 
subject BDC for the 2014 calendar year, and that country's share of 
total U.S. imports of that article.
    List I on the USTR Web site shows the following two GSP-eligible 
articles--both from Thailand--that exceeded a CNL in 2014 by having 
been exported in a quantity equal to or greater than 50 percent of the 
total U.S. import value, in 2014:

 HTS 2008.19.15--Coconuts otherwise prepared or preserved; and
 HTS 7408.29.10--Copper alloys (other than brass, cupro-nickel 
or nickel-silver), wire, coated or plated with metal

These products will be removed from eligibility for GSP for the subject 
countries on October 1, 2015, unless the President grants a waiver for 
the product for Thailand in response to a petition filed by an 
interested party.
    List II identifies GSP-eligible articles from BDCs that are above 
the 50 percent

[[Page 38503]]

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 the filing of a 
petition.
    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 2014 trade data and 
consideration of certain statutory factors.
    List IV shows the following three articles from specified BDCs that 
are subject to CNL waiver revocation based on the provisions of Section 
503(d)(4)(B)(ii) of the 1974 Act, as amended by Public Law 109-432:

 HTS 4412.31.40--(for Indonesia) Certain plywood sheets not 
over 6 mm thick;
 HTS 7413.00.10--(for Turkey) Certain copper, stranded wire;
 HTS 7413.00.50--(for Turkey) Certain copper cables and plaited 
bands.

    Petitions from interested parties seeking a waiver of the 
application of CNLs for the two products on List I, and comments from 
the public in support of or in opposition to CNL waivers, revocations 
of CNL waivers, and redesignation of products are invited in accordance 
with the Requirements for Submissions below.

III. Possible Designation of New Products

    Pursuant to authority granted to the President in Section 202 of 
the Trade Preferences Extension Act of 2015 and consistent with USTR's 
December 2011 announcement of trade initiatives intended to enable 
least-developed countries to benefit more fully from global trade, five 
cotton products are being considered for GSP eligibility for LDBDCs at 
the initiative of USTR. These include:

 HTS 5201.00.18, 5201.00.28, and 5201.00.38--Certain cotton, 
not carded or combed, of various specified staple lengths
 HTS 5202.99.30--Certain cotton card strips made from cotton 
waste; and
 HTS 5203.00.30--Certain cotton fibers, carded or combed.

    Comments from the public in support of or in opposition to 
designation of the proposed product additions are invited in accordance 
with the Requirements for Submissions below.

IV. Petitions and Public Comments

    The GSP regulations (15 CFR part 2007) provide the schedule of 
dates for conducting an annual review unless otherwise specified in a 
notice published in the Federal Register. The schedule for the 2015 GSP 
Annual Review will be notified at a later date in the Federal Register.
    In the interim, and pursuant to Section 203 of the Trade 
Preferences Extension Act of 2015, the GSP Subcommittee of the TPSC 
will conduct a limited GSP review encompassing products that, based on 
full-year 2014 import data, are subject to CNL-related actions, 
including exclusions, waivers, and revocation of waivers, as well as 
redesignations. These products appear on Lists I--IV described above. 
In addition, the review will also consider the designation of the five 
cotton products mentioned above as eligible for GSP benefits for LDBDCs 
of the GSP program.
    As part of this limited GSP product review, the GSP Subcommittee 
will accept petitions from interested parties seeking a waiver of the 
application of CNLs for the two products on List I, described above. 
The GSP Subcommittee also invites comments in support of or in 
opposition to: (1) The CNL waiver petitions which it is anticipated 
will be submitted for the two products on List I; (2) de minimis 
waivers of CNLs (see List II); (3) redesignations of products that were 
previously excluded from certain countries based on CNLs (see List 
III); (4) revocation of CNL waivers (see List IV); and (5) the proposed 
addition to GSP eligibility for LDBDCs only of the five cotton products 
listed above.
    Procedures for submission of both petitions and written comments 
are described in Section VI below.

V. Notice of Public Hearing

    In addition to comments from the public on the matters listed 
above, the GSP Subcommittee of the TPSC will convene a public hearing 
at 9:30 a.m. on Tuesday, August 11, 2015, to receive testimony related 
to (1) the CNL waiver petitions for products on List I, and (2) the 
proposed designation of the five cotton products. The hearing will not 
address de minimis waivers, product redesignations, or CNL waiver 
revocations.
    The hearing will be held at 1724 F Street NW., Washington, DC 20508 
and will be open to the public and to the press. A transcript of the 
hearing will be made available on http://www.regulations.gov within 
approximately two weeks of the hearing.
    All interested parties wishing to make an oral presentation at the 
hearing must submit, following the ``Requirements for Submissions'' set 
out below, the name, address, telephone number, and email address, if 
available, of the witness(es) representing their organization by 5 
p.m., Friday, July 31, 2015. Requests to present oral testimony must be 
accompanied by a written brief or summary statement, in English, and 
also must be received by 5 p.m., Friday, July 31, 2015. Oral testimony 
before the GSP Subcommittee will be limited to five-minute 
presentations that summarize or supplement information contained in 
briefs or statements submitted for the record. Post-hearing briefs or 
statements will be accepted if they conform with the requirements set 
out below and are submitted, in English, by 5 p.m., Tuesday, August 18, 
2015. Parties not wishing to appear at the public hearing may submit 
pre-hearing and post-hearing briefs or comments by the aforementioned 
deadlines.

VI. Requirements for Submissions

    Written comments submitted in response to this notice, including 
petitions for CNL waivers, must be submitted electronically by 5:00 
p.m., July 31, 2015, using www.regulations.gov, docket number USTR-
2015-0007. Instructions for submitting business confidential versions 
are provided below. Hand-delivered submissions will not be accepted. 
Comments must be submitted in English to the Chairman of the GSP 
Subcommittee of the TPSC.
    For CNL waiver petitions only: CNL waiver petitions must conform to 
the GSP regulations set forth at 15 CFR part 2007, except as modified 
below. These regulations are available on the USTR Web site at http://www.ustr.gov/trade-topics/trade-development/preference-programs/generalized-system-preference-gsp/gsp-program-inf. Any person or party 
submitting a CNL waiver petition is strongly advised to review the GSP 
regulations as well as the GSP Guidebook, which is available at the 
same link. The requirements for CNL waiver petitions do not apply to 
other written submissions in response to this notice.
    To make a written comment or to submit a CNL waiver petition using 
http://www.regulations.gov, enter the docket number for this review--
USTR-2015-0007--in the ``Search for'' field on the home page and click 
``Search.'' 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'' in the ``Filter Results 
by'' section on the left side of the screen and click on the link 
entitled ``Comment Now.'' The http://www.regulations.gov Web site 
offers the option of providing comments by filling in a ``Type 
Comment'' field or by attaching a

[[Page 38504]]

document using the ``Upload file(s)'' field. The GSP Subcommittee 
prefers that submissions be provided in an attached document. At the 
beginning of the submission, or on the first page (if an attachment), 
please note that the submission is in response to this Federal Register 
notice and indicate the specific product(s) that is the subject of the 
comment and on which of the relevant lists described above, (e.g., List 
I) it appears. Submissions should not 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.
    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 
able to provide technical assistance for the Web site. Documents not 
submitted in accordance with these instructions may not be considered 
in this review. If an interested party is unable to provide submissions 
as requested, please contact the GSP program at USTR to arrange for an 
alternative method of transmission.

Business Confidential Submissions

    An interested party requesting that information contained in a 
submission be treated as business confidential 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'' must be included in the ``Type 
Comment'' field. For any submission containing business confidential 
information, a non-confidential version must be submitted separately 
(i.e., not as part of the same submission with the confidential 
version), indicating where confidential information has been redacted. 
The non-confidential version will be placed in the docket and open to 
public inspection.

Public Viewing of Review Submissions

    Submissions in response to this notice, except for information 
granted ``business confidential'' status under 15 CFR 2003.6, will be 
available for public viewing pursuant to 15 CFR 2007.6 at http://www.regulations.gov upon completion of processing. Such submissions may 
be viewed by entering the country-specific docket number in the search 
field at http://www.regulations.gov.

William D. Jackson,
Deputy Assistant U.S. Trade Representative for the Generalized System 
of Preferences, Office of the U.S. Trade Representative.
[FR Doc. 2015-16498 Filed 7-2-15; 8:45 am]
 BILLING CODE 3290-F5-P