Generalized System of Preferences; Information on Imports During First 10 Months of 1996; Opportunity for Public Comment

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Generalized System of Preferences; Information on Imports During

First 10 Months of 1996; Opportunity for Public Comment

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: By this notice, the Trade Policy Staff Committee informs the

public of certain U.S. import statistics for the period from January

through October 1996 and affords the public an opportunity to comment

on decisions, (including certain discretionary decisions) the President

will make with respect to the Generalized System of Preferences (GSP)

program. Before July 1, 1997, the President must announce the GSP

``competitive need'' limits set forth in section 503(c)(2)(A) of the

Trade Act of 1974, as amended (the ``1974 Act'') (19 U.S.C.

2463(c)(2)(A)). The discretionary decisions concern (1) the ``de

minimis waiver'' authority set forth in section 503(c)(2)(F) of their

1974 Act; and (2) the redesignation authority set forth in section

503(c)(2)(C) of the 1974 Act. Presidential decisions concerning the

application of competitive need limits and other product-related

decisions stemming from the 1995 Annual Review are expected to be

announced in April, and implemented no later than July 1, 1997. (Note

because the program's authorization previously expired on July 31,

1995, the Annual Review for that year was delayed until the program's

reauthorization was signed into law on August 20, 1996. At that time

the 1995 Annual Review resumed and no review for 1996 was conducted.

FOR FURTHER INFORMATION CONTACT:

GSP Subcommittee, Office of the U.S. Trade Representative, 600 17th

Street, NW., Room 517, Washington, DC 20508. The telephone number is

(202) 395-6971.

SUPPLEMENTARY INFORMATION:

I. Competitive Need Limits

Pursuant to section 503(c)(2)(A), any GSP-eligible beneficiary

country that exported to the United States in 1996 a quantity of any

one GSP eligible article in excess of (1) $75 million, or (2) 50

percent of the value of total U.S. imports of the article, is to be

removed from GSP eligibility with respect to that article not later

than July 1 of the next calendar year.

II. Discretionary Decisions

A. De Minimis Waivers

Section 503(c)(2)(F) of the 1974 Act permits the President to

disregard the 50 percent ``competitive need'' limit with respect to any

eligible article if the value of total imports of the article during

calendar year 1996 did not exceed $13 million.

B. Redesignation of Eligible Articles

If a country is no longer a beneficiary developing country with

respect to an eligible article because imports exceeded the competitive

need limits in a prior year, then, pursuant to section 503(c)(2)(C) of

the 1974 Act, the President may redesignate the beneficiary developing

country with respect to the eligible article if imports do not exceed

the competitive need limits in a subsequent year.

III. Implementation of Competitive Need Limits, Waivers, and

Redesignations

A proclamation will be issued to be effective no later than July 1,

1997, making the adjustments to the list of eligible articles that are

required by section 503(c)(2)(A) of the 1974 Act and announcing the

discretionary decisions referred to in this notice, on the basis of

official data covering all of calendar year 1996.

It should be emphasized that the information set forth below covers

only the first 10 months of 1996. Partial year data is being published

now to provide the maximum possible advance indication of adjustments

that may be made to meet the requirements of section 503(c)(2)(A) of

the 1974 Act and to afford the earliest opportunity for comment on the

possible discretionary decisions.

List I below shows specific GSP-eligible articles for beneficiaries

which have already exceeded estimated competitive need limitations

(i.e., a beneficiary supplied over $75 million of an article and/or

over 50 percent of imports of an article during the period from January

through October, 1996) or have been graduated from the GSP in earlier

years pursuant to the President's discretionary authority.

List II below shows beneficiaries which are approaching the

competitive need limitations (i.e., a beneficiary accounted for over 48

percent of the value of total U.S. imports and/or over $63 million

during the period from January through October 1996).

List III below shows beneficiaries which, despite accounting for

more than 50 percent of the value of total U.S. imports of an article,

may be eligible to

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receive GSP benefits through the de minimis waiver (i.e., where a

beneficiary accounted for more than the applicable percentage limit but

the value of total U.S. imports of the item was less than $13 million

during the period from January through October 1996).

List IV below shows articles from beneficiaries which are currently

ineligible for GSP duty-free treatment but which may be eligible for

redesignation to GSP status pursuant to the President's discretionary

authority (i.e., a beneficiary accounted for less than 50 percent of

the value of U.S. imports and the value of U.S. imports of the article

from the beneficiary developing country was less than the applicable

dollar limit during the period from January through October 1996). This

list does not include articles from India which do not receive GSP

treatment as a result of Presidential Proclamations 6425 of April 29,

1992 (57 FR 19067).

IV. Public Comments

All written comments with regard to the decisions summarized above

should be addressed to: GSP Subcommittee, Office of the U.S. Trade

Representative, 600 17th Street, NW., Room 517, Washington, DC 20508.

All submissions must be in English and should conform to the

information requirements of 15 CFR part 2007. Furthermore, each party

providing comments should indicate on the first page of the submission

its name, the relevant Harmonized Tariff Schedule subheading(s), the

beneficiary country or territory of interest, and the type of action

(e.g., the use of the President's de minimis waiver authority) in which

the party is interested.

A party must provide fourteen copies of its statement which must be

received by the Chairman of the GSP Subcommittee no later than 5 p.m.,

Friday, March 19. Comments received after the deadline will not be

accepted. If the comments contain business confidential information,

fourteen copies of a non-confidential version must also be submitted. A

justification as to why the information contained in the submission

should be treated confidentially must be included in the submission. In

addition, the submissions containing confidential information should be

clearly marked ``confidential'' at the top and bottom of each page of

the submission. The version that does not contain confidential

information should also be clearly marked, at the top and bottom of

each page, ``public version'' or ``non-confidential''.

Written comments submitted in connection with these decisions,

except for information granted ``business confidential'' status

pursuant to 15 CFR 2007.7, will be available for public inspection

shortly after the filing deadline by appointment only with the staff of

the USTR Public Reading Room (202) 395-6186. Other requests and

questions should be directed to the GSP Information Center at USTR by

calling (202) 395-6971.

Frederick L. Montgomery,

Chairman, Trade Policy Staff Committee.

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[FR Doc. 97-4476 Filed 2-21-97; 8:45 am]

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