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Three countries to be removed from GSP in 2017; other GSP changes now in effect

Oct 09, 2015

President Obama has issued a proclamation removing eligibility as a designated beneficiary developing country under the General System of Preferences (GSP) for three countries, effective January 1, 2017. Uruguay, Venezuela, and Seychelles will be removed because they have become “high income” countries.

Also effective January 1, 2017, Seychelles will no longer be a beneficiary sub-Saharan African country under the African Growth and Opportunity Act (AGOA). This is due to being found as a ‘high income’ country under AGOA.

The President also announced “Macedonia, the Former Yugoslav Republic of” will become “Macedonia.” This name change will occur under the GSP Independent Countries identified in General Note 4(a) to the Harmonized System Tariff (HTS).

GSP changes which went into effect October 1, 2015 include:

  • Designation of certain articles added as eligible products for GSP only when imported from a least-developed beneficiary developing (LDBD) country. This includes five upland cotton products in HTS Subheadings 5201.00.18, 5201.00.28, 5201.00.38, 5202.99.30 and 5203.00.30.
  • Grants of Competitive Needs Limitation (CNL) waivers for certain eligible articles from certain beneficiary developing countries. This includes HTS Subheadings 2008.19.15 and 7408.29.10 from Thailand.
  • Revocation of CNL waivers, where the previous five years of exports exceeded quantities applicable limits. This includes HTS Subheadings 4412.31.40 from Indonesia, as well as 7413.00.10 and 7413.00.50 from Turkey.
  • Redesignation as eligible under GSP for certain articles. This includes HTS Subheadings 2306.30.00, 2804.29.00, and 8607.19.03 from the Ukraine, as well as 8544.30.00 from Indonesia.
  • Grants of de minimis waivers to certain countries as beneficiary developing countries to articles that previously had been imports exceeding CNL quantities. There are over one hundred HTS Subheadings, with each granted to a particular country. Countries include Brazil, Ecuador, Egypt, India, India, Indonesia, Jordan, Kazakhstan, Pakistan, Papua New Guinea, Philippines, Sri Lanka, Thailand, Turkey, and the Ukraine.

Questions about this regulatory update may be directed to Livingston’s U.S. Regulatory Affairs group.