[Federal Register Volume 85, Number 217 (Monday, November 9, 2020)]
[Notices]
[Pages 71391-71392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24824]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2020-0019]


Results of the 2020 Annual Generalized System of Preferences 
(GSP) Review

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: The Office of the United States Trade Representative (USTR) is 
announcing the results of the 2020 Annual GSP Review with respect to: 
Products considered for the addition to, and removal from, the list of 
eligible products for certain beneficiary countries; and decisions 
related to competitive need limitations (CNLs), including petitions for 
waivers of CNLs.

FOR FURTHER INFORMATION CONTACT: Claudia Chlebek, Director for GSP at 
(202) 395-2974 or [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    The GSP program provides for the duty-free treatment of designated 
articles when imported from beneficiary developing countries. The GSP 
program is authorized by Title V of the Trade Act of 1974 (19 U.S.C. 
2461 et seq.), as amended, and is implemented in accordance with 
Executive Order 11888 of November 24, 1975, as modified by subsequent 
Executive Orders and Presidential Proclamations.
    Each year, USTR leads the interagency Trade Policy Staff Committee 
(TPSC) GSP Subcommittee in reviewing the list of products eligible for 
GSP benefits and, after the completion of this process, which includes 
public hearings, provides recommendations to the President on 
appropriate actions based on statutory criteria, including exclusions 
from duty-free treatment of products from certain countries when they 
have reached the statutory CNL thresholds.
    The GSP statute (19 U.S.C. 2463(c)(2)) establishes CNLs as a basis 
for withdrawing duty-free treatment. The statute provides that, when 
the President determines that a GSP beneficiary has exported to the 
United States during any calendar year a quantity of an eligible 
article that is either (1) greater than a specified amount ($190 
million for 2019), or (2) exceeds 50 percent of the appraised value of 
the total U.S. imports of that article, the President ``shall, not 
later than November 1 of the next calendar year, terminate the duty-
free treatment for that article'' from that beneficiary, unless a 
waiver is granted.
    Under 19 U.S.C. 2463(d), the President may waive either CNL if, 
before November 1 of the calendar year following the year in which 
imports exceeded CNLs, the President (1) receives advice from the U.S. 
International Trade Commission on whether any industry in the United 
States is ``likely to be adversely affected by such waiver,'' (2) 
determines, based on certain statutory considerations, that such a 
waiver is in the national economic interest, and (3) publishes that 
determination in the Federal Register. The statute further provides in 
19 U.S.C. 2363(c)(2)(F) that the President may disregard the 50 percent 
CNL if total imports of an article did not exceed a de minimis amount 
($24.5 million in 2019), or if the product was not produced in the 
United States in any of the three preceding calendar years.

B. Results of the 2020 Annual GSP Review

    In the 2020 Annual GSP Review, the TPSC reviewed (1) petitions to 
add fresh-cut roses to the list of products eligible for GSP, (2) a 
petition to remove

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the GSP eligibility of 6 rice products, and (3) 24 products eligible 
for one-year de minimis waivers of CNLs.
    Presidential Proclamation 10107 of October 30, 2020, implements the 
President's decisions regarding the 2020 Annual GSP Review, including 
product addition, product removal, and de minimis CNL waivers. These 
modifications to the GSP program became effective on November 1, 2020. 
This notice provides a summary of the results of the 2020 Annual GSP 
Review. You also can view the results, comprising four lists, at 
https://www.regulations.gov using docket number USTR-2020-0019, under 
``Supporting and Related Materials'' and on the USTR website at https://ustr.gov/sites/default/files/files/Press/Releases/GSP%20Annual%20Product%20Review%20-%20Final%20Decisions.pdf.
    As described in List I, the President granted the petitions to add 
fresh-cut roses (HTS 0603.11.00) to the list of GSP eligible products 
for all Beneficiary Developing Countries (BDCs). Therefore, qualifying 
products now enter the United States duty-free.
    As described in List II, the President granted the petition to 
remove rice, semi-milled or wholly milled, whether or not polished or 
glazed, parboiled (HTS 1006.30.10) from GSP eligibility for all BDCs. 
Therefore, this product now is subject to the U.S. normal trade 
relations (NTR) duty rate.
    As described in List III, the President granted one-year de minimis 
waivers to 24 products that exceeded the 50 percent import-share CNL 
but for which the aggregate value of all U.S. imports of that article 
was below the 2019 de minimis level of $24.5 million. Qualifying 
products will continue to enter the United States duty-free.
    As described in List IV, six products exceeded the CNLs. For more 
information regarding petitions concerning CNLs, see 85 FR 27261 at 
https://www.govinfo.gov/content/pkg/FR-2020-05-07/pdf/2020-09781.pdf. 
These products now enter the United States at the NTR duty rate.

Laura Buffo,
Deputy Assistant U.S. Trade Representative for the Generalized System 
of Preferences, Office of the United States Trade Representative.
[FR Doc. 2020-24824 Filed 11-6-20; 8:45 am]
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