Generalized Systems of Preferences (GSP) Changes Effective June 28th, 2007

Issue 020, July 06, 2007

Please be informed of the following changes related to Import Duty Rates.

Importers are advised of the termination of eligibility for duty free treatment of various Generalized Systems of Preferences (GSP) products which became effective on June 28, 2007 as a result of a proclamation issued by the President. Some of the items were removed from GSP eligibility due to the products exceeding the Competitive Need Limitations (CNL) in 2006.

For example, the U.S. imports of the product from a specific country exceeded either $125 million or 50 percent of total U.S. imports of that product. Other items lost their GSP eligibility because they are subject to the new “super–competitiveness” thresholds established in a law enacted last year. And lastly, products were removed from GSP eligibility because the United States Trade Representative (USTR) has denied petitions to waive the CNL’s with respect to them.

The tariff #’s and countries whose previous duty free privileges have been eliminated are as follows:

• HTSUS 1602.50.09 Beef – Argentina
• HTSUS 2008.99.80 Fruit Pulp – Brazil
• HTSUS 2810.00.00 Boric Acids – Turkey
• HTSUS 2841.90.20 Ammonium perrhenate – Kazakhstan
• HTSUS 2926.90.30 Other aromatic nitrile – function compounds – India
• HTSUS 3907.60.00 Polyethylene terephthalate – Thailand
• HTSUS 4012.12.80 Retreated tires – Jordan
• HTSUS 4104.41.50 Bovine and equine hides – Brazil
• HTSUS 4418.60.00, 4418.72.20, 4418.79.00 and 4418.90.46 Builder’s joinery and carpentry of wood – Brazil
• HTSUS 7403.11.00 Refined copper cathodes – Kazakhstan
• HTSUS 7408.19.00 Refined copper wire – Turkey
• HTSUS 8502.31.00 Wind–powered electric generating sets – India
• HTSUS 8528.72.64 Large flat–panel color TVs with VCRs – Thailand
• HTSUS 0802.90.94 Kola nuts – Cote d’Ivoire
• HTSUS 2905.11.20 Methanol – Venezuela
• HTSUS 7113.19.50 Gold jewelry – India and Thailand
• HTSUS 7202.99.10 Ferrozirconium – Brazil
• HTSUS 8544.30.00 Wiring harnesses – Philippines
• HTSUS 8708.30.50 Brakes and brake parts – Brazil
• HTSUS 9405.50.30 Brass lamps – India
• HTSUS 7408.11.60 Refined copper wire – Brazil
• HTSUS 8528.71.10 and 8528.72.80 Large color TVs with VCRs – India

The following products have been re–designated as eligible for GSP benefits, presumably because they no longer exceed the applicable CNLs.

• HTSUS 0603.19.00 Other fresh cut flowers – Colombia
• HTSUS 0708.20.10 Lima beans – Peru
• HTSUS 0712.90.30 Dried potatoes – Peru
• HTSUS 0714.20.10 Frozen sweet potatoes – Colombia
• HTSUS 2004.10.40 Yellow potatoes – Peru
• HTSUS 2008.19.25 Pecans – Peru
• HTSUS 2611.00.60 Tungsten concentrates – Bolivia
• HTSUS 2805.40.00 Mercury – Peru
• HTSUS 2928.00.10 Methyl ethyl ketoxime – Colombia
• HTSUS 3201.90.50 Tanning extracts of vegetable origin – Peru
• HTSUS 4107.99.60 Upper and sole leather – Colombia
• HTSUS 6501.00.60 Hat forms, hat bodies and hoods – Colombia and Ecuador
• HTSUS 7113.19.21 Gold rope necklaces and neck chains – Peru
• HTSUS 7801.99.30 Lead bullion – Colombia
• HTSUS 7905.00.00 Zinc – Peru

These actions were taken due to the USTR’s 2006 annual review of GSP. There is currently underway a separate USTR review in which the withdrawal of GSP eligibility for more than a dozen countries and nearly 100 products is being considered. The following countries could face removal from GSP as a result of this review: Argentina, Brazil, Croatia, India, Indonesia, Kazakhstan, Philippines, Romania, Russia, South Africa, Thailand, Turkey and Venezuela. It is not clear at this time when the results of this review may be available.

For additional information please visit http://www.cbp.gov/.

Daniel See
Director, Regulatory & Compliance Consulting Services
Licensed Customs Broker
NCBFAA Certified Customs Specialist