US GSP Guide

U.S. GENERALIZED SYSTEM OF PREFERENCES
(GSP)

GUIDEBOOK

Office of the United States Trade Representative
Executive Office of the President
Washington, D.C.

April 2012

TABLE OF CONTENTS

Introduction 3

Abbreviations and Acronyms 4

GSP Program Inquiries 5

Frequently Asked Questions about GSP 6

Information on Countries Eligible for GSP 17

GSP-Eligible Beneficiaries 17

Criteria for Country Eligibility under GSP 20

Information on Products Eligible for GSP 22

List of Articles Not Produced in the United States on January 1, 1995 22

List of Articles and Countries Granted Waivers of the Competitive
Need Limitations 23

Procedures for Modifying the GSP Program 28

Information on Submitting a GSP Petition 28

Other Information Sources 33

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INTRODUCTION

The U.S. Generalized System of Preferences (GSP), a program designed to promote economic
growth in the developing world, provides preferential duty-free treatment for over 3,400 products
from 129 designated beneficiary countries (BDCs) and territories, including 43 least-developed
beneficiary developing countries (LDBDCs). An additional 1,400 products are GSP-eligible only
when imported from LDBDCs. The GSP program was instituted on January 1, 1976, and
authorized under the Trade Act of 1974 (19 USC 2461 et seq.). Current Congressional
authorization of the GSP program will expire July 1, 2013.

The purpose of this Guidebook is to facilitate public understanding of the GSP program and the
information contained in the basic implementing documents. The statute and implementing
documents remain the controlling authorities. The legislation authorizing the GSP program can
be found at 19 USC 2461-2467, and USTR’s GSP regulations may be found at 15 CFR Part
2007. Both are also available on the USTR website:
(http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html).

The GSP regulations of the Department of Homeland Security’s U.S. Customs and Border
Protection (CBP) may be found at 19 CFR Part 10.171 through 10.178. In addition, CBP has
posted a variety of information of assistance to importers and exporters using the GSP program at
http://www.cbp.gov/xp/cgov/trade/trade_programs/audits/archive/gsp.xml.

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ABBREVIATIONS AND ACRONYMS

ASEAN Association of Southeast Asian Nations
BDC Beneficiary Developing Country
CARICOM Caribbean Common Market
CBP Department of Homeland Security’s U.S. Customs and Border Protection
CFR Code of Federal Regulations
CNL Competitive Need Limitations
GNP Gross National Product
GSP U.S. Generalized System of Preferences
HTSUS Harmonized Tariff Schedule of the United States
IMF International Monetary Fund
LDBDC Least Developed Beneficiary Developing Country
NTR Normal Trade Relations
SAARC South Asian Association for Regional Cooperation
SADC Southern African Development Community
SPI Special Program Indicator
TPSC Trade Policy Staff Committee
USC U.S. Code
USITC U.S. International Trade Commission
USTR U.S. Trade Representative
WAEMU West African Economic and Monetary Union
WTO World Trade Organization

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GSP PROGRAM INQUIRIES

The GSP program is administered by the Office of the U.S. Trade Representative
(USTR). Public inquiries about the program may be directed to the GSP Program
Office at USTR, using the following contact information:

GSP Program
Office of the U.S. Trade Representative
600 17th Street, N.W.
Washington, D.C. 20508
Telephone: (202) 395-6971
Fax: (202) 395-9674

Public Documents concerning the current GSP Annual Reviews are
available online at:

www.regulations.gov

GSP Program Information is available at:

http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html

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FREQUENTLY ASKED QUESTIONS ABOUT GSP

1. GSP-Eligible Articles
2. How to Claim GSP Benefits for Eligible Articles upon Entry into the United States
3. GSP Beneficiary Developing Countries
4. Competitive Need Limitations and Requests for Waivers
5. Graduation of a Beneficiary Country from GSP
6. Rules-of-Origin Requirements
7. “Imported Directly” Requirement
8. Handicraft Textiles
9. Other Topics

1. GSP-Eligible Articles

Which imports into the United States qualify for duty-free treatment under the
GSP?
To be eligible for duty-free treatment pursuant to GSP, an import must meet the following
requirements (described in more detail below):
(1) It must be included in the list of GSP-eligible articles;
(2) It must be imported directly from a BDC;
(3) The BDC must be eligible for GSP treatment for that article;
(4) The article must be the growth, product, or manufacture of a BDC and must meet the
value-added requirements;
(5) The exporter/importer must request duty-free treatment under GSP by placing the
appropriate GSP Special Program Indicator (SPI) before the HTSUS number that
identified the imported article on the appropriate shipping documents (CBP Form 7501).

Which articles are eligible for duty-free treatment?
Articles classified by CBP under approximately 3400 eight-digit tariff rate lines are generally
eligible for duty-free treatment from all GSP beneficiaries. In 1996, an additional 1,400 articles
were made eligible for duty-free treatment when imported from LDBDCs. The combined lists
include most dutiable manufactured and semi-manufactured products and also certain
agricultural, fishery, and primary industrial products that are not otherwise duty-free. LDBDCs
are designated as such pursuant to section 502(a)(2) of the Trade Act of 1974, as amended, and,
in practice, are typically GSP beneficiaries that are on the United Nations’ list of least developed
countries.

How do I determine if a particular item is GSP-eligible?
Articles eligible for GSP treatment are identified in the current edition of the Harmonized Tariff
Schedule of the United States (HTSUS), which is published by the U.S. International Trade
Commission (USITC). The complete HTSUS can be downloaded from the USITC web site
(http://www.usitc.gov/tata/hts) or obtained from the field offices of the U.S. Department of
Commerce or at U.S. Embassies and Consulates. There is also a searchable version of the

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HTSUS available at the USITC website. The USITC also maintains “DataWeb,” a searchable
database of import statistics and other information, including product eligibility information for
GSP and other U.S. preference programs, which can be found at:
http://dataweb.usitc.gov/scripts/gsp/gsp_tariff.asp.

Can any article be designated as eligible for GSP?
No. Certain articles are prohibited by law (19 U.S.C. 2463) from receiving GSP treatment.
These include most textiles and apparel articles, watches, footwear, handbags, luggage, flat
goods, work gloves, and leather apparel. In addition, the GSP statute precludes eligibility for
import-sensitive steel, glass, and electronic articles. A list of non-GSP-eligible products can be
found at http://www.ustr.gov/sites/default/files/Non-GSP-products-in-2009.pdf

How is an article identified as GSP-eligible in the HTSUS?
The letter A in the “Special” tariff column of the HTSUS identifies GSP-eligible articles at an
eight-digit level. The following table presents three HTSUS tariff lines to illustrate variations in
the treatment given to different GSP articles. Under each entry for a GSP-eligible article in the
HTSUS, the letter A, A+, or A* in the “Special” column identifies the article as GSP-eligible
under certain conditions. The letter A designates articles that are GSP-eligible from any BDC.
The letter A+ indicates articles that are GSP-eligible only from LDBDCs. The letter A* indicates
that one or more specific BDCs, listed in General Note 4(d) to the HTSUS, have lost GSP
eligibility for that article.

Rate of Duty (%)
HTSUS Column 1 Column 2
Subheading Article description
General Special
8406.10.10 Steam turbines for marine
propulsion 6.7% Free (A,…) 20%
8413.30.10 Fuel-injection pumps for
compression-ignition engines 2.5% Free (A*, ..) 35%
8708.92.50 Mufflers and exhaust pipes
2.5% Free (A+,…) 25%

Can the President limit products’ GSP eligibility?
Yes. The President may:
(1) remove products from GSP eligibility in response to petitions submitted by interested
parties in an annual review;
(2) preclude certain BDCs from GSP eligibility for certain newly designated products
when those products are designated; and
(3) limit the redesignation of GSP eligibility to certain BDCs when specific articles are
redesignated as GSP-eligible.
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How is the correct HTSUS classification determined?
CBP classifies imports under the HTSUS. A ruling may be requested under Part 177 of the CBP
Regulations (19 C.F.R. Part 177) by any person who, as an importer or exporter of merchandise,
or otherwise, has a direct and demonstrable interest in the question or questions presented in the
ruling request, or by the authorized agent of such person. A "person" in this context includes an
individual, corporation, partnership, association, or other entity or group. The rulings are
provided without cost, provide certainty to make an informed business decision, and, if submitted
to the New York office as an eRuling request, are provided within 30 days of receipt.

Questions concerning the appropriate classification of a particular product should be directed to
CBP officers at the port of entry or to:

Director, National Commodity Specialist Division
U.S. Customs and Border Protection
Attn: CIE/Ruling Request
One Penn Plaza-10th Floor
New York, NY 10119

Rulings may be obtained by email or postal mail. Requirements for ruling requests may be found
at: http://www.cbp.gov/xp/cgov/trade/legal/rulings/eRulingRequirements.xml. The eRuling
template is available at: https://apps.cbp.gov/erulings/index.asp. The eRuling template may be
used if you do not need to provide a physical sample of the goods for which you need a ruling.

Requests for valuation and preference program qualification rulings should be addressed to:

The Commissioner of Customs and Border Protection
Attention: Office of Regulations and Rulings
Washington, DC 20229.*

CBP rulings are published and available on-line in a searchable database called “CROSS” at
http://rulings.cbp.gov.

CBP also provides a compliance document to inform importers of the basic requirements of the
GSP program, including guidance about establishing internal controls to document the regulatory
requirements for substantiating GSP claims. This document is available at:
http://www.cbp.gov/xp/cgov/trade/trade_programs/audits/archive/gsp.xml

* CBP has a unique zip code and no street address is needed.
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2. How to Claim GSP Benefits for Eligible Articles upon Entry into the
United States

How does an importer request GSP treatment?
The importer is responsible for claiming the preference benefit by using the GSP’s SPI code “A”
or “A+”, as a prefix, before the HTSUS tariff-line number when completing the shipment entry
documentation. (See 19 CFR 10.172.) If GSP is not claimed on the entry summary, there are
other ways to claim it. One is to file a Post Entry Amendment with Customs at least 20 working
days prior to liquidation of the entry. Another method is to file a protest, as set out in 19 USC
1514. A sample of CBP Entry Form 7501, used for entry of merchandise, can be found on the
CBP web site at http://forms.cbp.gov/pdf/CBP_Form_7501.pdf

What documents are needed to ensure GSP duty-free treatment?
The documents that CBP may request vary on a case-by-case basis. Examples of the types of
documents that should be available to establish and document a GSP claim are:

GSP Declaration (see 19 CFR 10.173)
Bill of Materials
Invoices
Purchase Orders
Production records kept in the ordinary course of business
Payroll information to document labor costs
Factory profile
Affidavit with supporting documentation

The documentation necessary to substantiate a GSP claim must be kept readily accessible, should
CBP request it. Records may be requested from the importer of the products for which GSP
claimed, from the foreign exporter, or both. The substantiating documentation must be kept for a
period of five years.

3. GSP Beneficiary Developing Countries

Where are the official lists of GSP-eligible beneficiaries (countries, territories,
associations and LDBDCs) and country-specific restrictions on eligibility found?
General Note 4, found at the beginning of the HTSUS, contains information about GSP. General
Note 4(a) contains the official list of GSP-eligible beneficiaries. General Note 4(b) contains the
list of LDBDCs. General Note 4(d) contains the list of the imported articles that are not eligible
for GSP treatment from certain GSP countries. When a BDC is first designated, or undergoes a
change in GSP eligibility, a notice is published in the Federal Register indicating the change and
the effective date of the change. The lists contained in General Note 4 are periodically modified
to reflect these changes. Although the HTSUS General Note 4 is the official source for the list of
GSP-eligible beneficiaries, this list can also be found on the USTR web site at:
http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html.
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Are the lists of eligible articles and countries ever modified?
Yes. The GSP Subcommittee of the Trade Policy Staff Committee (TPSC), chaired by USTR
and comprised of representatives of other executive branch agencies, conducts an annual review
during which changes are considered to the lists of articles and countries eligible for duty-free
treatment under GSP. Modifications made pursuant to the annual review are implemented by
executive order, or Presidential Proclamation, and are published in the Federal Register.
Modifications to the list typically take effect on July 1 of the calendar year after the next annual
review is launched. The modifications are reflected in the electronic and hard copy versions of
the HTSUS published by the USITC.

How does someone request modification of the list of GSP-eligible articles or
countries?
Any person may petition the GSP Subcommittee to request modifications to the list of countries
eligible for GSP treatment. However, only an “interested party” may petition for modifications
to the list of articles eligible for GSP treatment. For purposes of this provision, an interested
party is any party who has significant economic interest in the subject matter of the request, or
any other party representing a significant economic interest that would be materially affected by
the action requested, such as a domestic producer of a like or directly competitive article, a
commercial importer or retailer of an article which is eligible for GSP or for which GSP
eligibility is requested, or a foreign government. In order to be considered in a particular annual
review, petitions must be submitted to the GSP Subcommittee by the deadline for submissions
for that review, which is typically announced in the Federal Register in July or August. (See
suggested outlines of GSP petitions below.) Petitions must conform to the applicable rules and
regulations. Petitions accepted for review are subject to public hearings and a full review by the
GSP Subcommittee.

What factors are taken into account in modifying the list of eligible articles or
countries?
In modifying the GSP list of articles and countries, the following factors must be considered
under the statute:

(1) the effect such action will have on furthering the economic development of
developing countries through the expansion of their exports;

(2) the extent to which other major developed countries are undertaking a comparable
effort to assist developing countries by granting generalized preferences with respect to
imports of products of such countries;

(3) the anticipated impact of such action on U.S. producers of like or directly competitive
products; and

(4) the extent of the country’s competitiveness with respect to eligible products.

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In addition, the statute provides mandatory and discretionary factors the President must take into
account in designating a country as eligible for GSP. These factors include whether a country
has taken or is taking steps to afford to workers in that country internationally recognized worker
rights and the extent to which a country is providing adequate and effective protection of
intellectual property rights. The full list of factors may be found at 19 USC 2462(b) and (c).
Finally, the statute also provides a list of articles that may not be designated as eligible for GSP
(19 USC 2463(b)).

Who makes the determinations regarding GSP product and country eligibility?
The President determines which countries and which products are eligible for GSP benefits,
based on the recommendations of the U.S. Trade Representative (USTR). The GSP
Subcommittee conducts the annual reviews of GSP product and country eligibility. These
reviews typically involve both public hearings and a public comment period. The GSP
Subcommittee reports the findings of these reviews to the TPSC and the U.S. Trade
Representative. The Deputy Assistant USTR for GSP oversees the day-to-day operation of the
GSP program and chairs the GSP Subcommittee.

Do all beneficiary countries receive duty-free treatment on the entire list of
articles?
No. Some otherwise GSP-eligible products from particular BDCs may be ineligible because: (1)
they exceed the competitive need limitations (see below); (2) the products’ GSP eligibility has
been removed from one or more particular countries in response to petitions submitted as part of
an annual review; (3) a particular BDC has been found to be sufficiently competitive with respect
to that product or products ; (4) the imported articles fail to meet the statutory requirements of
GSP; or (5) the imported articles fail to meet other CBP or other agency requirements.

4. Competitive Need Limitations and Requests for Waivers

What are competitive need limitations?
Competitive need limitations (CNLs) are quantitative ceilings on GSP benefits for each product
and BDC. The GSP statute provides that a BDC is to lose its GSP eligibility with respect to a
product if the CNLs are exceeded and if no waiver is granted (see below). There are two
different measures for CNLs: when U.S. imports of a particular product from a BDC during any
calendar year (1) account for 50 percent or more of the value of total U.S. imports of that
product; or (2) exceed a certain dollar value. In accordance with the GSP statute, the dollar-value
limit is increased by $5 million annually; the limit was $150 million in 2011 and will be $155
million in 2012. Products from a specified beneficiary are considered “sufficiently competitive”
when imports exceed one of these limits. By statute, GSP treatment for an article exceeding
either CNL terminates on July 1 of the next calendar year.

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Are the competitive need limitations ever waived?
Yes. CNLs can be waived under four circumstances:

Petitioned waivers: The President may grant a CNL waiver for a product imported from
a BDC. Interested parties may petition for a waiver during the annual review process. In
deciding whether to grant a waiver, the President is required to place “great weight” on the extent
to which the country is providing equitable and reasonable access to its market and basic
commodity resources and the extent to which the country is providing reasonable and effective
protection to U.S. intellectual property rights. If a waiver is granted, both the percentage limit
and the dollar limit are waived. A waiver remains in effect until the President determines that it
is no longer warranted due to changed circumstances. The statute also provides that the
President should revoke any waiver that has been in effect for at least five years, if a GSP-
eligible product from a specific country has an annual trade level in the previous calendar year
that exceeds 150 percent of the annual dollar-value limit or exceeds 75 percent of all U.S.
imports.

“504(d)” waiver: The percentage provision is waived for certain GSP eligible articles
which were not produced in the United States on January 1, 1995, as provided for in what used to
be Section 504(d) of the GSP statute, now 19 USC 2463(c)(2)(E). Interested parties may petition
for a waiver during the annual review process. For those products on this list, a “504(d)” waiver
will automatically be granted when required each year.

De minimis waiver: A waiver may also be provided when total U.S. imports from all
countries of a product are “de minimis”. Like the dollar-value CNLs, the de minimis level is
adjusted each year, in increments of $500,000. The de minimis level in 2011 is $20.5 million,
and will be $21 million in 2012. Each year, the GSP Subcommittee automatically considers de
minimis waivers for all products from BDCs that exceeded the percentage-based CNL. Such
waivers cannot be requested by petition, but public comments are accepted following publication
of a Federal Register notice, usually in March, announcing the products that fall in this category.
Granting such waivers is a discretionary decision of the President.

Least developed country waiver: All CNLs are automatically waived for GSP
beneficiaries designated as LDBDCs.

What happens if GSP imports from a beneficiary country reach or exceed
competitive need limitations in a given year?
GSP eligibility for articles from such countries will terminate no later than July 1 of the next
calendar year unless those products and beneficiaries are granted a CNL waiver before that date.

When should an interested party petition for a CNL waiver?
Waivers may only be sought before a product has exceeded the calendar-year competitive need
limitations for a country. This typically means that petitions for CNL waivers must be submitted

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in the last quarter of a calendar year, i.e., before full-year trade data is available, in anticipation
of a product exceeding the CNLs for that year. This early deadline is necessary given the
statutory requirement that CNL-related product exclusions take effect on July 1 of the following
year and the related requirement to seek advice from the USITC on the probable economic effect
of granting a waiver. Therefore, interested parties should examine the relevant trade data no later
than September of a given year to determine if a product of interest is likely to exceed the
limitations and should file a petition seeking a waiver before the deadline for that year’s annual
GSP review.

Can an interested party monitor the level of imports of an article?
Yes. Annual and monthly trade data can be downloaded from the USITC’s DataWeb
(http://dataweb.usitc.gov/). Registration is required to use the site, but it is free. Other sources
include: trade data available from the U.S. Department of Commerce
(http://www.export.gov/tradedata/eg_main_018547.asp) and foreign trade statistics from the
Census Bureau (http://www.census.gov/foreign-trade/statistics/index.html)

Once an article is removed from GSP eligibility because it exceeded the CNL, can
that article from the country ever be returned to GSP eligibility?
Yes. During the annual GSP product review, interested parties will have the opportunity to
comment on the possible redesignation of a product exported by a particular BDC if U.S. imports
of that article from that country fall below the competitive need limitations in a subsequent year.
Under the GSP statute, redesignation determinations – which are at the discretion of the
President – are to be made by taking into account the factors laid out in Sections 501 and 502.,
i.e., related to the subject country’s competitiveness and its performance in meeting mandatory
and discretionary country eligibility criteria. Redesignation determinations are not subject to a
petition process, but the GSP subcommittee will review any possible redesignations whether or
not comments are received.

5. Graduation of a Beneficiary Country from GSP

What is graduation and how is it implemented?
Graduation is the removal of a country’s GSP eligibility on the basis of factors related to national
income or competitiveness. The President may remove a BDC from the GSP program because
the country is sufficiently developed or competitive, or may suspend or limit the BDC’s access to
duty-free treatment with respect to one or more products.

Country graduation occurs:

1. when the President determines that a beneficiary country is a “high-income country,” as
defined by the GSP statute (based on World Bank statistics) (“mandatory graduation”); or

 Full-year trade data for a given year is usually available in mid-February of the following calendar year.
13

2. as the result of a review of a BDC’s advances in economic development and trade
competitiveness.

The per capita GNP limit for mandatory graduation is set at the lower bound of the World Bank’s
definition of a “high income” country (which was $12,276 in 2011). Mandatory graduation takes
effect January 1 of the second year after the year in which the President makes the graduation
determination, which is announced in the Federal Register.

What factors are considered in graduation actions?
For circumstances other than mandatory graduation, the GSP Subcommittee normally reviews:
(1) the country’s general level of development; (2) its competitiveness in regard to the particular
product; (3) the country’s practices relating to trade, investment, and worker rights; (4) the
overall economic interests of the United States, including the effect continued GSP treatment
would have on the relevant U.S. producers, workers and consumers; and (5) any other relevant
information.

6. Rules-of-Origin Requirements

What are the rules-of-origin requirements?
For an imported article to be GSP-eligible, it must be the growth, product, or manufacture of a
BDC, and the sum of the cost or value of materials produced in the BDC plus the direct costs of
processing must equal at least 35 percent of the appraised value of the article at the time of entry
into the United States. CBP is charged with determining whether an article meets the GSP rules
of origin.

An importer, exporter or producer who is uncertain about whether a particular imported article
satisfies the rules of origin requirements, may check CROSS, CBP’s searchable database,
http://rulings.cbp.gov/, to see if CBP has issued a ruling on the same or a similar product, or may
contact CBP for a binding ruling. See page eight of this booklet for information on how to
obtain a ruling.

Can imported materials be counted toward the 35 percent value-added
requirement?
Yes, if the imported material undergoes a double substantial transformation. This means that the
imported material must undergo a substantial transformation in the BDC, which means that the
imported material is transformed into a new and different constituent material with a new name,
character and use. Then the constituent material must be transformed in the BDC into a new and
different finished article with a new name, character and use. Inputs from member countries of
GSP-eligible regional associations will be treated as single-country inputs for purposes of
determining origin.

The calculation of the cost or value of materials produced in the BDC is described in 19 CFR
10.177. A list of the items included in the “direct costs of processing” is provided in 19 CFR
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10.178. CBP’s customs value handbook may be found on CBP’s web site at:
http://www.cbp.gov/xp/cgov/trade/legal/informed_compliance_pubs/.

An importer, exporter or producer who is uncertain if an imported material undergoes a double
substantial transformation or if a particular cost may be included in the calculation, may check
CROSS, CBP’s searchable database, http://rulings.cbp.gov/, to see if CBP has issued a ruling on
the same or a similar product or cost or may contact CBP for a binding ruling. See page eight of
this booklet for information on how to obtain a ruling.

7. “Imported Directly” Requirement

What is meant by the requirement that the article be “imported directly”?
Generally, the imported article must either be shipped directly from the BDC to the United States
without passing through the territory of any other country or, if a shipment from a BDC passes
through the territory of any other country en route to the United States, the imported articles must
not enter the commerce of the other country. See 19 CFR 10.175 for more information.
Questions about the “imported directly” requirement may be researched in CROSS or directed to
CBP for a binding ruling.

Does the GSP program make any special provisions for BDCs that are members
of a regional association?
Yes. If members of regional associations request and are granted recognition as regional
associations under the GSP program, the association’s member countries will be considered as
one country for purposes of the GSP rules of origin. Articles produced in two or more eligible
member countries of an association will be accorded duty-free treatment if the countries
collectively meet the rules of origin. BDCs and LDBDCs in a regional association may jointly
produce an article otherwise eligible for duty-free treatment only from LDBDCs, as long as the
article is imported directly to the United States from the LDBDC. CNL criteria are applied only
to the country of origin and not the entire association.

General Note 4 of the HTSUS has the most recent list of GSP-eligible countries, territories, and
associations. There are currently six associations whose GSP-eligible beneficiary members can
benefit from this provision: the South Asian Association for Regional Cooperation (SAARC) the
Andean Group (or Cartagena Agreement); the Association of Southeast Asian Nations (ASEAN);
the Caribbean Common Market (CARICOM); the Southern African Development Community
(SADC); and the West African Economic and Monetary Union (WAEMU).

8. Handicraft Textiles

What is the certified handicraft textile agreement?
Certain textile products are eligible for GSP treatment when the GSP beneficiary country has
signed an agreement with the United States to provide certification that the items are hand-
loomed folkloric products of the exporting BDC. The agreement authorizes duty-free treatment
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to hand-loomed and folklore wall hangings (HTSUS 6304.99.10) and hand-loomed and folklore
pillow covers (HTSUS 6304.99.40) which have been certified by the BDC.

The certification process requires an official exchange of letters between the U.S. Government
and the BDC government. The image of the triangular seal certifying the products’ authenticity
must be stamped on the commercial invoice and signed by one of the individuals identified by
the BDC during the exchange of letters comprising the agreement. As with other GSP-eligible
imports, the benefit is claimed by the importer of record’s use of the SPI “A” before the HTSUS
tariff number on the entry documents. For more information, contact CBP.

To date, such agreements have been signed with 16 beneficiaries: Afghanistan, Argentina,
Botswana, Cambodia, Colombia, Egypt, Jordan, Mongolia, Nepal, Pakistan, Paraguay, Thailand,
East Timor (Timor Leste), Tunisia, Turkey, and Uruguay.

9. Other Topics

If the GSP program authorization expires and is later renewed retroactively by
Congress, how does an importer arrange to be reimbursed for tariffs paid during
the period after the expiration and before the reauthorization of GSP?

In the past, CBP has instructed importers who file their entries electronically to continue to use
the appropriate SPI (e.g., “A”) as a prefix to the tariff numbers of articles that would qualify for
GSP if GSP were in effect at the time of the entry. When GSP has been reauthorized
retroactively, CBP has automatically processed refunds of duties deposited on these GSP-eligible
entries without requiring further action by the importer. Use of the SPI, in effect, constituted the
importer’s request for a refund of duties. For entries made without using the SPI, refunds of
duties deposited had to be requested in writing. For further information on CBP procedures
during a lapse of GSP coverage, contact CBP (www.cbp.gov).

Do other countries maintain GSP programs?
Yes. More than 25 other industrialized nations maintain their own GSP programs. The
beneficiaries, products, and types of preferences granted vary for each program country.

Where may I find Federal Register notices pertinent to the GSP program?
Relevant Federal Register notices may be accessed via the USTR website
(http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html) and
are also available at http://www.regulations.gov

16

INFORMATION ON COUNTRIES ELIGIBLE FOR GSP
Please see General Note 4 of the HTS http://www.usitc.gov/tata/hts/bychapter/index.htm
for the most current lists of countries, territories and associations.
Independent countries
The following independent countries are GSP-eligible beneficiary developing countries (BDCs):

Afghanistan Egypt Oman
Albania Eritrea Pakistan
Algeria Ethiopia Panama
Angola Fiji Papua New Guinea
*Argentina Gabon Paraguay
Azerbaijan Gambia, The Philippines
Armenia Georgia Russia
Bangladesh Ghana Rwanda
Belize Grenada St. Kitts and Nevis
Benin Guinea Saint Lucia
Bhutan Guinea-Bissau Saint Vincent and
Bolivia Guyana the Grenadines
Bosnia and Hercegovina Haiti Samoa
Botswana India Sao Tomé and Principe
Brazil Indonesia Senegal
Burkina Faso Iraq Serbia
Burundi Jamaica Seychelles
Cambodia Jordan Sierra Leone
Cameroon Kazakhstan Solomon Islands
Cape Verde Kenya Somalia
Central African Republic Kiribati South Africa
Chad Kosovo *South Sudan
Colombia Kyrgyzstan Sri Lanka
Comoros Lebanon Suriname
Congo (Brazzaville) Lesotho Swaziland
Congo (Kinshasa) Liberia Tanzania
Costa Rica Macedonia, Former Thailand
Côte d'Ivoire Yugoslav Republic of Togo
Djibouti Madagascar Tonga
Dominica Malawi Tunisia
Dominican Republic Maldives Turkey
East Timor (Timor Leste) Mali Tuvalu
Ecuador Mauritania Uganda
Mauritius
Ukraine
* Presidential Proclamation Moldova
8788, March 26, 2012, Mongolia Uruguay
suspended GSP benefits for Montenegro Uzbekistan
Argentina, 60 days after Mozambique Vanuatu
publication, and added South Namibia Venezuela
Sudan as a GSP BDC 20 days Nepal Republic of Yemen
after publication and as a GSP Niger Zambia
LDBDC 60days after Zimbabwe
Nigeria
publication.
17

Non-independent countries and territories

The following non-independent countries and territories are GSP-eligible beneficiaries:

Anguilla Falkland Islands Pitcairn Islands
British Indian Ocean (Islas Malvinas) Saint Helena
Territory Gibraltar Tokelau
Christmas Island Heard Island and Turks and Caicos Islands
(Australia) McDonald Islands Virgin Islands, British
Cocos (Keeling) Montserrat Wallis and Futuna
Islands Niue West Bank and Gaza
Cook Islands Norfolk Island Strip
Western Sahara

Least-developed beneficiary developing countries

The least developed beneficiary developing countries (LDBDCs) are as follows:

Afghanistan Mauritania
Angola Mozambique
Bangladesh Nepal
Benin Niger
Bhutan Rwanda
Burkina Faso Samoa
Burundi Sao Tomé and
Cambodia Principe
Central African Sierra Leone
Republic Solomon Islands
Chad Somalia
Comoros *South Sudan
Congo (Kinshasa) Tanzania
Djibouti Togo
East Timor (Timor Leste) Tuvalu
Ethiopia Uganda
Gambia, The Vanuatu
Guinea Republic of Yemen
Guinea-Bissau Zambia
Haiti
Kiribati
Lesotho * Presidential Proclamation
Liberia 8788, March 26, 2012, added
Madagascar South Sudan as a GSP BDC 20
Malawi days after publication and as a
Mali GSP LDBDC 60days after
publication.
18

Associations of countries (treated as one country for GSP rule-of-origin
requirements)

Member Countries Qualifying Member
of the Cartagena Countries of the
Agreement South Asian Association
(Andean Group) for Regional Cooperation
Bolivia (SAARC)
Colombia Afghanistan
Ecuador Bangladesh
Venezuela Bhutan
India
Member Countries Nepal
of the West African Pakistan
Economic and Monetary Sri Lanka
Union (WAEMU)
Benin Qualifying Member
Burkina Faso Countries
Côte d'Ivoire of the Southern Africa
Guinea-Bissau Development Community
Mali (SADC)
Niger Botswana
Senegal Mauritius
Togo Tanzania

Qualifying Member Qualifying Member
Countries of Countries
the Association of of the Caribbean Common
South East Asian Market (CARICOM),
Nations (ASEAN) Belize
Cambodia Dominica
Indonesia Grenada
Philippines Guyana
Thailand Jamaica
Montserrat
St. Kitts and Nevis
Saint Lucia
Saint Vincent and
the Grenadines
Trinidad and Tobago

19

Criteria for Country Eligibility under GSP

Mandatory criteria
19 USC 2462(b)(2) of the GSP statute sets forth the criteria that each country
must satisfy before being designated a GSP beneficiary. These criteria are
summarized below for informational purposes only. Please see the GSP statute
for the complete text.

1) A GSP beneficiary may not be a Communist country, unless such country
receives Normal Trade Relations (NTR) treatment, is a WTO member and
a member of the International Monetary Fund (IMF), and is not dominated
or controlled by international communism;

2) A GSP beneficiary may not be a party to an arrangement of countries nor
participate in actions the effect of which are (a) to withhold supplies of
vital commodity resources from international trade or to raise the price of
such commodities to an unreasonable level and (b) to cause serious
disruption of the world economy;

3) A GSP beneficiary may not afford preferential treatment to products of a
developed country that has, or is likely to have, a significant adverse effect
on U. S. commerce;

4) A beneficiary may not have nationalized, expropriated or otherwise seized
property of U.S. citizens or corporations without providing, or taking steps
to provide, prompt, adequate, and effective compensation, or submitting
such issues to a mutually agreed forum for arbitration;

5) A GSP beneficiary may not have failed to recognize or enforce arbitral
awards in favor of U.S. citizens or corporations;

6) A GSP beneficiary may not aid or abet, by granting sanctuary from
prosecution, any individual or group that has committed an act of
international terrorism;

7) A GSP beneficiary must have taken or is taking steps to afford
internationally recognized worker rights, including 1) the right of
association, 2) the right to organize and bargain collectively, 3) freedom
from compulsory labor, 4) a minimum age for the employment of children,
and 5) acceptable conditions of work with respect to minimum wages,
hours of work and occupational safety and health; and

8) A GSP beneficiary must implement any commitments it makes to
eliminate the worst forms of child labor.
20

Discretionary criteria
19 USC 2462(c) of the GSP statute sets forth the following criteria that the
President must take into account in determining whether to designate a country as
a beneficiary country for purposes of the GSP program. These criteria are
summarized below for informational purposes only; please see the GSP statute for
the complete text.

1) An expression by a country of its desire to be designated as a GSP
beneficiary country;

2) The level of economic development, including per capita GNP, the living
standards of the inhabitants and any other economic factors that the
President deems appropriate;

3) Whether other major developed countries are extending generalized
preferential tariff treatment to such country;

4) The extent to which such country has assured the United States that it will
provide equitable and reasonable access to its markets and basic
commodity resources and the extent to which it has assured the United
States it will refrain from engaging in unreasonable export practices;

5) The extent to which such country provides adequate and effective
protection of intellectual property rights, including patents, trademarks,
and copyrights;

6) The extent to which such country has taken action to reduce trade
distorting investment practices and policies, including export performance
requirements, and to reduce or eliminate barriers to trade in services; and

7) Whether such country has taken or is taking steps to afford internationally
recognized worker rights, including 1) the right of association, 2) the right
to organize and bargain collectively, 3) freedom from compulsory labor, 4)
a minimum age for the employment of children, and 5) acceptable
conditions of work with respect to minimum wages, hours of work and
occupational safety and health.

21

INFORMATION ON PRODUCTS ELIGIBLE FOR GSP

Articles Not Produced in the United States on January 1, 1995

19 USC 2463(c)(2)(e) exempts from CNLs certain articles if like or directly
competitive articles were not produced in the United States on January 1, 1995. The
CNL provisions set forth in section 19 USC 2463(c)(2)(A)(i) mandate the
termination of duty-free treatment of an article by July 1 of the calendar year
following the one in which imports of that article by a beneficiary exceeded 50
percent of all U.S. imports of the article or a dollar value set by a formula described
in 19 USC 2463(c)(2)(A)(ii) ($150 million in 2011, increasing by $5 million each
year), unless a waiver is granted. If an article is included in the list below, it is
exempt from the 50 percent import share CNL.

In implementing the GSP program, the TPSC (per Presidential determinations)
considers the articles in the following HTSUS subheadings as not being produced in
the United States on January 1, 1995. (* indicates 2012 HTS nomenclature changes.)

0406.10.02 1904.30.00 2922.50.11 7013.10.10
0406.10.04 1904.90.01 2924.29.65 7016.10.00
0501.00.00 2001.90.10 2926.90.17 7103.10.40
0502.10.00 2001.90.33 3205.00.15 7103.99.50
0505.90.20 2001.90.42 3301.29.10 7104.10.00
0510.00.20 2001.90.50 3301.29.20 7116.20.30
0709.90.10 2008.30.48 3806.20.00 7116.20.35
0710.90.11 2008.91.00 3808.91.10 7116.20.40
0712.90.15 2008.99.15 3817.00.15 7202.50.00
0714.90.41 2008.99.63 3926.90.70 7615.20.00
*0803.10.20 2008.99.65 4206.00.13 8446.21.50
0807.19.50 2306.60.00 4602.11.09 8447.20.30
0811.90.25 2402.20.10 4602.12.16 9101.99.40
*0908.22.20 2402.20.90 4602.19.16 9102.91.20
1207.91.00 2805.19.10 5301.21.00 9102.99.20
1211.90.60 2904.10.04 6304.99.10 9102.99.40
1302.12.00 2908.99.09 6304.99.40 9102.99.60
1401.20.40 *2912.49.60 6802.91.30 9102.99.80
1504.30.00 2912.50.50 7004.20.50 9105.99.10
1515.50.00 2918.23.10 7004.90.50 9202.90.20
1604.19.25 2922.39.14 7006.00.20 9405.91.10
9617.00.40

22

Articles and Countries Granted Waivers of
Competitive Need Limitations
(Current as of April 1, 2012)

(* indicates 2012 HTS nomenclature changes;
prior HTS number listed with year of action)

HTSUS
Year of
8-Digit Product Description Country
Action

Miniature (spray)
06031230 Colombia 1989
carnations, fresh cut

Fresh or chilled yams,
07149020 whether or not sliced or in Colombia 1989
the form of pellets

1998
*16043100 Caviar Russia
(16043020)

Cane sugar, raw, specified
in subheading 2 to chapter
*17011305 17, in solid form, w/o 1989
Colombia
added flavoring or coloring, (17011105)
subject to gen. note 15 of
the HTS
in subheading 2 to chapter
*17011305 17, in solid form, w/o 1989
Philippines
added flavoring or coloring, (17011105)
the HTS
in subheading 2 and
subject to add'l note 5 to 1989
*17011310 Colombia
this chapter, in solid form, (17011110)
w/o added flavoring or
coloring
in subheading 2 and
subject to add'l note 5 to 1989
*17011310 Philippines
this chapter, in solid form, (17011110)
w/o added flavoring or
coloring
in subheading 2 to chapter 1989
*17011320 Colombia
17, to be used for certain (17011120)
polyhydric alcohols
*17011320 in subheading 2 to chapter 1989
Philippines
17, to be used for certain (17011120)
polyhydric alcohols
Other cane sugar, raw, in
solid form, w/o added
1989
*17011405 flavoring or coloring, Colombia
(17011105)
the HTS

23

Other cane
sugar, raw, in solid form,
1989
*17011405 w/o added flavoring or Philippines
(17011105)
coloring, subject to gen.
note 15 of the HTS
1989
*17011410 flavoring or coloring, Colombia
(17011110)
subject to add. US 5 to
Ch.17
1989
*17011410 flavoring or coloring, Philippines
(17011110)
subject to add. US 5 to
Ch.17
*17011420 1989
solid form, to be used for Colombia
(17011120)
certain polyhydric alcohols

*17011420 1989
solid form, to be used for Philippines
(17011120)
certain polyhydric alcohols
Cucumbers including
gherkins, prepared or
20011000 India 2008
preserved by vinegar or
acetic acid
Blanched peanuts, subject
20081125 to add. US note 2 to Ch 12, Argentina** 2003
not GN 15

Bananas, other than pulp,
20089915 otherwise prepared or Philippines 1989
preserved

Figs, otherwise prepared or
20089928 Colombia 1989
preserved

28369100 Lithium carbonates Argentina** 2007

28499050 Carbides, nesoi South Africa 1999

Methyl tertiary-butyl ether.
29091914 Venezuela 1997
(MTBE)

Palmitic acid, stearic acid,
29157001 Philippines 1989
their salts and esters

Fatty acids of animal or
vegetable origin, nesoi

Herbicides nesoi, of
heterocyclic compounds
29333925 with nitrogen hetero- Brazil 1997
atom(s) only, containing an
unfused pyridine ring

** Presidential Proclamation 8788, March 26, 2012, suspended GSP benefits for Argentina, 60
days after publication.
24

Pesticides of heterocyclic
compounds with nitrogen
29334930 hetero-atom(s) & a Brazil 1997
quinoline or isoquinoline
ring-system

6-Hexanelactam (epsilon-
29337100 Russia 1998
Caprolactam)

Acetylsulfisoxazole;
29350032 sulfacetamide, sodium; and Croatia 1991
sulfamethazine, sodium

Bosnia-
29350032 sulfacetamide, sodium; and 1991
Hercegovina

29350032 sulfacetamide, sodium; and Macedonia 1991
Gelatin sheets and
derivatives, nesoi;
35030055 Colombia 1989
isinglass; other glues of
animal origin, nesoi
Industrial monocarboxylic
fatty acids or acid oils from
38231920 refining derived from Philippines 2005
coconut, palm-kernel, or
palm oil
Non-adhesive plates,
sheets, film, foil, strip, of
non-cellular plastics
39219011 Colombia 1989
combined with man-made
fibers, n/o 1.492 kg/sq m,
over 70% plastics
Rubber pneumatic radial
tires, of a kind used on
40111010 Indonesia 2008
motor cars (include. station
wagons & racing cars)
New pneumatic radial tires,
40112010 of rubber, of a kind used on Thailand 2007
buses or trucks
Buffalo leather, wi/o hair
on, parchment-dressed or
41071940 prepared after tanning, Thailand 1997
o/than full grains & grain
splits
Whole upholstery leather,
bovines & equines, w/o
41071950 hair on, prepared after Argentina** 2005
tanning or crusting, not
4114
Full grain upnsplit bovine &
equine leather, not whole,
41079180 w/o hair on, nesoi, fancy, Argentina** 2009
prepared after tanning or
crusting, not 4114
Grain split bovine and
equine leather, not whole,
without hair on nesoi,
41079280 Argentina** 2005
fancy, prepared after
tanning or crusting, not
4114

** Presidential Proclamation 8788, March 26, 2012, suspended GSP benefits for Argentina, 60
days after publication.
25

Buffalo leather, w/o hair on,
parchment-dressed or
41079940 prepared after tanning, Thailand 1997
o/than full grains & grain
splits
Leather of animals, nesi,
without hair on, not
41139060 including chamois, patent, South Africa 1997
patent laminated or
metalized, fancy

Batting gloves, of leather or
42032120 Indonesia 1997
of composition leather

Plywood sheets n/o 6 mm
thick, with specified tropical
wood outer ply, with face
44123140 Indonesia 2005
ply nesoi, not surface-
covered beyond
clear/transparent
Baskets and bags of rattan
46021216 or palm leaf other than Philippines 1989
wickerwork

Baskets and bags of
vegetable material, nesoi

Basketwork and other
46021980 articles, nesoi, of Philippines 1989
vegetables materials, nesoi
Hand-hooked carpets and
other textile floor
57031020 coverings, tufted, whether India 2007
or not made up, of wool or
fine animal hair
Artificial flowers/foliage/fruit
& pts thereof; articles of
67029065 artif. flowers, etc.; all the Thailand 1995
foregoing of materials
o/than plast./feath./mmf

69051000 Ceramic roofing tiles Venezuela 1997

Silver articles of jewelry
and parts thereof, nesoi,
71131120 Thailand 1995
valued not over $18 per
dozen pieces or parts
Silver articles of jewelry
and parts thereof, nesoi,
71131150 Thailand 2005
valued over $18 per dozen
pieces or parts
Gold necklaces and neck
71131929 chains (o/than of rope or Turkey 2003
mixed links)

72025000 Ferrosilicon chromium Russia 2000

72025000 Ferrosilicon chromium Zimbabwe 1993

74130010 Stranded copper wire Turkey 2009

26

Copper, cables, plaited
bands and the like, not
74130050 Turkey 2008
fitted with fittings and not
made up into articles
1999
Copper & copper alloy (74181910)
table, kitchen, household 2001
*74181000 India
articles & parts; scouring & (74181921)
polishing pads, gloves 2003
(74181951)

84022000 Super-heated water boilers Philippines 1994

Spark-ignition reciprocating
piston engines for vehicles
84073418 of 8701.20 or 8702-8704, Brazil 1994
cylinder cap. over 1000 cc
to 2000 cc, new
Spark-ignition reciprocating
piston engines for vehicles
84073448 of 8701.20 or 8702-8704, Brazil 1994
cylinder capacity over 2000
cc, new
Aluminum cylinder heads
for spark-ignition internal
84099130 combustion piston engines Brazil 1994
for vehicles of 8701.20 or
8702-8704
Ceiling fans for permanent
installation, with a self-
84145130 contained electric motor of Thailand 2003
an output not exceeding
125 W
Electrostatic photocopying
apparatus, operating by
reproducing the original
84433920 Thailand 2005
image via an intermediate
onto the copy (indirect
process)

Camshafts and crankshafts
84831030 Brazil 1999
nesi

Still image video cameras
(other than digital) and
85258050 Indonesia 2004
other video camera
recorders
Radio-tape player
combinations not operable
85272110 Brazil 1997
without external power
source, for motor vehicles
Radiobroadcast receiver
85279140 combinations incorporating Indonesia 1997
tape players, nesi
Radiobroadcast receivers
not combined with sound
85279915 Indonesia 1999
recording apparatus or
clock
Reception apparatus for
radiotelegraphy,
radiotelephony, radio
broadcasting, nesoi

27

Non-high definition color
television reception app.,
non-projection, w/CRT,
85287228 Thailand 2003
video display diag. over
35.56 cm, incorporating a
VCR or player

Printed circuit assemblies
85299001 Indonesia 1994
for television tuners

Tuners for television
85299029 apparatus, other than Indonesia 1994
printed circuit assemblies
Insulated ignition wiring
sets and other wiring sets
85443000 Thailand 2003
of a kind used in vehicles,
aircraft or ships

90013000 Contact lenses Indonesia 2005

Automatic regulating or
90328960 controlling instruments and Philippines 1997
apparatus, nesi
Non-electrical
incandescent lamps
designed to be operated by
94055020 India 2003
propane or other gas, or by
compressed air and
kerosene or gasoline
Non-electrical lamps and
94055040 lighting fixtures nesoi, not India 2003
of brass

Cigarette lighters and
96131000 similar lighters, gas fueled, Philippines 1989
not refillable, for the pocket

28

PROCEDURES FOR SEEKING MODIFICATIONS TO THE
GSP PROGRAM

Information on Submitting a GSP Petition

General instructions*
The most important source for instructions on submitting a GSP petition is the
Federal Register. Each year, announcements are published in the Federal Register
for annual Product and Country Practice Reviews. These announcements include
specific instructions -- which must be followed -- regarding a petition’s format,
timing, and method of submission to the GSP Subcommittee. The following
descriptions are general guidelines to the petition submission process.

Format

The following provides an indicative list of information that should be included in
a GSP petition. It is intended (1) to help ensure that interested parties meet the
information requirements of the GSP regulations for requesting modifications in
GSP eligibility for products and countries; and (2) to serve as a guide for
interested parties requesting modifications. Such parties should review the
official U.S. GSP statute and regulations (which can be found at:
http://www.ustr.gov/trade-topics/trade-development/preference-
programs/generalized-system-preference-gsp/gsp-program-inf) before submitting
the information requested below.

All information requested in the list below is required by the regulations
governing the GSP program. Petitions failing to include any of the required
information will be rejected, unless the petitioner demonstrates that a good-faith
effort was made to obtain the information required. Information that is submitted
in confidence should be marked as such (following the guidelines on submitting
business confidential information provided below), with a written explanation on
a separate sheet stating the reason(s) the material should be treated as confidential
and should not be available for public inspection.

General information required of all petitioners

 Provide the name of the petitioner, and the person, firm, or association
represented by the petitioner. Describe briefly how the GSP program affects
the petitioner’s interests.

*
Except where indicated, the following instructions apply not only to petitions but to responses,
pre- and post-hearing briefs, and any other written submissions or testimony presented to the GSP
Subcommittee.
29

Identify the product or products of interest, including a detailed description of the
product and the eight-digit tariff number (i.e., subheading) for the item in the
HTSUS. (This is the level of product description at which the rate of duty is
indicated.) If the product or products of interest are included with other products
in a basket category of the HTSUS, provide a detailed description of the specific
product or products of interest.
 Describe the action requested, together with a statement of the reasons for the
action, and any supporting information.
 Indicate whether, to the best of the petitioner’s knowledge, the reasons for the
action and information in the request have been previously presented to the
TPSC by the petitioner or any other party. If the petitioner knows that the
request has been made previously and rejected, the petitioner must include
information that indicates that changed circumstances exist such that the
petition should be granted. (Requests for a product addition will not be
considered if a previous request as to that product was formally accepted for a
full review within the preceding three calendar years.)
 Provide a statement of the benefits the petitioner anticipates if the request is
granted.

Supporting information

The following sections outline the information that must accompany requests:

a. Request to withdraw, limit, or suspend eligibility for designated articles

In order to request that eligibility for designated articles be withdrawn, limited, or
suspended, petitioners must provide the following information on the relevant
U.S. industry for the most recent three calendar years. The information should be
submitted for each article that is the subject of a request, both for the party making
the request and, to the extent possible, for the industry to which the petition
pertains.

 The eight-digit HTSUS tariff numbers that describe the product and, if
appropriate, the beneficiary country or countries for which it is proposed the
product be removed from GSP eligibility;
 Number and location of firms producing a like or directly competitive
product;
 Actual production data;
 Production capacity and capacity utilization;
 Employment data, including number of employees, type, wage rate, location,
and changes in any of these data;
 Sales data (quantity, value, and price);
 Quantity and value of exports, and principal export markets;

30

 Profitability of firms producing a like product, including profit data by product
line, if possible;
 Analysis of costs, including materials, labor, and overhead;
 Discussion of the competitive situation of the U.S. domestic industry;
 Identification of competitors, analysis of the effect that the imports receiving
GSP duty-free treatment have on competition, and the type of business on
whose behalf this request is being made;
 Information relating to the factors listed in sections 501 and 502(c) of Title V
of the Trade Act of 1974, as amended, such as identifying tariff and nontariff
barriers to sales in foreign markets; and
 Other relevant information, including that which may be requested by the GSP
Subcommittee.

b. Request to designate new articles or for waiver of competitive need limitations

Provide the following information on the relevant U.S. industry for the most
recent three calendar years for the beneficiary developing country on whose behalf
the request is being made and, to the extent possible, other principal beneficiary
developing country suppliers:

 The eight-digit HTSUS tariff numbers that describe the product and, for CNL
waivers, the beneficiary country or countries for which the waiver is being
sought;
 Identification of the principal beneficiary developing country suppliers that are
expected to benefit from the proposed GSP modifications;
 Name and location of firms that produce the product;
 Actual production data and estimated increase if GSP eligibility is granted;
 Actual production and capacity utilization and estimated increase if GSP
eligibility is granted;
 Employment data, including number of employees, type, wage rate, location,
and changes in any of these data, and estimated increases if GSP eligibility is
granted;
 Information on total sales, including quantity, value, and price data;
 Information on total exports, including principal markets, the distribution of
products, existing tariff preferences in such markets, total quantity and value,
and trends in exports;
 Information on exports to the United States, including quantity, value, and
price, as well as factors affecting the competitiveness of these exports
compared with like or directly competitive products from other beneficiary
developing countries. Include, where possible, information on the
development of the industry in beneficiary developing countries and trends in
production and promotion;
 Analysis of costs, including materials, labor, and overhead;

31

 Profitability of firms producing the product;
 Information on considerations such as variations in quality or use that affect
price competition;
 A statement on how the requested change would further the economic
development of the petitioning country, if the petitioner is a foreign
government or a government-controlled entity;
 An assessment of how the article would qualify under the GSP’s 35 percent
value-added requirements; and
 Other relevant information, including that which may be requested by the GSP
Subcommittee.

c. Suggested outline of a country practice petition

Provide the following information, at a minimum, on the pertinent beneficiary
country:
 The name, address, phone and fax numbers, and e-mail address of the person
or interested party submitting the request:
 The request: that the duty-free treatment accorded to eligible articles under
the GSP be [withdrawn, suspended, or the application of the duty-free
treatment be limited] with respect to [types of, including referencing HTSUS
codes], imports to the United States from [country];
 The specific factors upon which the request for the country practice review is
being made. These factors are listed in 19 USC 2461 and 2462;
 Statement of reasons why the beneficiary country’s status should be reviewed
and possibly changed, if the petition is accepted, along with available
supporting information; and
 If the subject matter of the request has been reviewed pursuant to a previous
request, the request must include substantial new information warranting
further consideration of the issue.

Public versus Business Confidential versions

If a petition or other submission contains business confidential information, a
non-confidential version of the submission must also be submitted that indicates
where confidential information was redacted by inserting asterisks where material
was deleted.

For example, suppose a petitioner wants to report that “In 2001, International
Widgets suffered losses of $20 million due to low-priced widgets imported from
GSP sources, and had to reduce capacity utilization by 30 percent.” If the data in
the sentence were business confidential, this would be reported in the business
confidential version of the petition with brackets around the business confidential
information: “In 2001, International Widgets suffered losses of [$20 million] due
to low-priced widgets imported from GSP sources, and had to [reduce capacity
32

utilization by 30 percent.]” In the public version, however, it would read “In
2001, International Widgets suffered losses of [***] due to low-priced widgets
imported from GSP sources, and had to [***].” It is the petitioner’s responsibility
to distinguish accurately between business confidential and public information.

The confidential submission must be clearly marked “BUSINESS
CONFIDENTIAL” at the top and bottom of every page, and the non-confidential
submission must be clearly marked either “PUBLIC VERSION” or “NON-
CONFIDENTIAL” at the top and bottom of every page. Both versions must be
submitted, but only the public version of the submission will be made available
for public inspection in the USTR public reading room.

How to submit a petition

In order to facilitate prompt processing of submissions, the GSP Subcommittee
accepts public and confidential versions of the submissions only via
www.regulations.gov. Submissions that are hand-delivered or sent via regular
mail will not be accepted. The relevant Federal Register will provide detailed
instructions for each submission.

33

OTHER INFORMATION SOURCES

Harmonized Tariff Schedule of the United States (HTSUS)
The U.S. tariff schedule is divided into almost 100 chapters, grouped by product
type. If you do not know the tariff number for your product, you can find the
HTSUS on the USITC web site, www.usitc.gov or search the CBP rulings module
found at http://rulings.cbp.gov.

GSP eligibility for an HTSUS subheading is shown by the code AA@ (for
Beneficiary Developing Countries) or AA+@ (for Least Developed Beneficiary
Developing Countries) in the ASpecial@ column of rates of duty. (For example,
caviar is GSP-eligible, as shown by the AA@ in the Special@ column of rates of
duty for HTSUS 1604.30.20.) If no such code is shown, the product is GSP-
ineligible. If the code AA*@ is shown, that means that at least one GSP country is
ineligible for that particular product. As described above, instances of country-
specific GSP ineligibility are listed in General Notes 4(d) at the beginning of the
HTSUS.

Department of Homeland Security: Customs & Border Protection
(CBP) (http://www.cbp.gov).
The CBP website provides customs forms via
http://www.cbp.gov/xp/cgov/toolbox/forms/. The CBP website also offers
extensive information on the importing process and import requirements. This
includes entry of goods, informed compliance, invoices, assessment of duty,
classification and value, marking, and special requirements. CBP publications are
available at: http://cbp.gov/xp/cgov/newsroom/publications/trade/. Rulings are
available at: http://rulings.cbp.gov.

Sources of Trade Data

USITC DataWeb (http://dataweb.usitc.gov/).
Registration is required, but is free. This comprehensive database provides
statistics on U.S. imports and exports, by HTSUS, Standard Industrial
Classification (SIC), Standard International Trade Classification (SITC), and other
groupings, by product, and country (or country group, such as European Union-25
or special program, such as GSP). Data are available on an annual, quarterly, or
monthly basis, from 1989 to the most recent available month (usually two months
prior to the present). In addition, there are links to lists of many foreign
countries= tariffs.

Bureau of the Census (http://www.census.gov/foreign-
trade/statistics/index.html)
34

The Census Foreign Trade Division issues the important and well-known monthly
trade report, AU.S. International Trade in Goods and Services.@ On this site you
can also find up-to-date statistics on imports and exports, by trading partner, and
by state.

USDA Foreign Agricultural Service
(http://www.fas.usda.gov/markettradedata.asp)
Between five and ten percent of U.S. GSP imports are in the agriculture sector.
The Foreign Agricultural Service, with representatives in most U.S. embassies
around the world, provides a wealth of statistics, research reports, and other
information on agricultural production and trade in GSP countries.

35

US GSP Guide

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