Generalized System of Preferences; Imports Statistics Relating to Competitive Need Limitations; Invitation for Public Comment

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Generalized System of Preferences; Imports Statistics Relating to

Competitive Need Limitations; Invitation for Public Comment

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; invitation for public comment.

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SUMMARY: The Trade Policy Staff Committee (TPSC) is informing the

public of interim 1997 import statistics relating to Competitive Need

Limitations (CNL) under the Generalized System of Preferences (GSP)

program. The TPSC also invites public comments by 5:00 p.m. March 20,

regarding possible de minimis CNL waivers with respect to particular

articles, and possible redesignations under the GSP program of articles

currently subject to CNLs.

FOR FURTHER INFORMATION CONTACT:

GSP Subcommittee, Office of the United States Trade Representative, 600

17th Street, N.W., Room 518, Washington, DC 20508. The telephone number

is (202) 395-6971.

SUPPLEMENTARY INFORMATION:

I. Competitive Need Limitations

Section 503(c)(2)(A) of the Trade Act of 1974, as amended (the

``1974 Act'') (19 U.S.C. 2463(c)(2)(A)), provides for Competitive Need

Limitations on duty-free treatment under the GSP program. When the

President determines that a beneficiary developing country exported to

the United States during a calendar year either (1) a quantity of a

GSP-eligible article having a value in excess of the applicable amount

for that year ($80 million for 1997), or (2) a quantity of a GSP-

eligible article having a value equal to or greater than 50 percent of

the value of total U.S. imports of the article from all countries (the

``50 percent'' CNL), the President shall terminate GSP duty-free

treatment for that article from that beneficiary developing country by

no 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 provides the President with

discretion to waive the 50 percent CNL with respect to an eligible

article imported from a beneficiary developing country if the value of

total imports of that article from all countries during the calendar

year did not exceed the applicable amount for that year ($13.5 million

for 1997).

B. Redesignation of Eligible Articles

Where an eligible article from a beneficiary developing country

ceased to receive duty-free treatment due to exceeding the CNL in a

prior year, Section 503(c)(2)(C) of the 1974 Act provides the President

with discretion to redesignate such an article for duty-free treatment

if imports in the most recently completed calendar year did not exceed

the CNLs.

III. Implementation of Competitive Need Limitations, Waivers, and

Redesignations

Exclusions from GSP duty-free treatment where CNLs have been

exceeded, as well as the return of GSP duty-free treatment to products

for which the President has used his discretionary authority to grant

redesignations will be effective July 1, 1998. Decisions on these

matters, as well as decisions with respect to de minimis waivers, will

be based on full 1997 calendar year import statistics.

IV. Interim 1997 Import Statistics

In order to provide advance indication of possible changes in the

list of eligible articles pursuant to exceeding CNLs, and to afford an

earlier opportunity for comment regarding possible de minimis waivers

and redesignations, interim import statistics covering the first 10

months of 1997 are included with this notice.

The following lists contain the HTSUS numbers and beneficiary

country of origin for GSP-eligible articles, the value of imports of

such articles for the first ten months of 1997, and their percentage of

total imports of that product from all countries. The flags indicate

the status of GSP eligibility.

Articles marked with an ``*'' are those that have been excluded

from GSP eligibility for the entire past calendar year. Flags ``1'' or

``2'' indicate products that were not eligible for duty-free treatment

under GSP for the first six months or last six months, respectively, of

1997.

The flag ``D'' identifies articles with total U.S. imports from all

countries, based on interim 1997 data, less than the applicable amount

($13.5 million in 1997) for eligibility for a de minimis waiver of the

50 percent CNL.

List I shows GSP-eligible articles from beneficiary developing

countries that have exceeded the CNL of $80 million in 1997. Those

articles without a flag identify articles that were GSP eligible during

1997 but stand to lose GSP duty-free treatment on July 1, 1998. In

addition, List I shows articles (denoted with a flag ``*'' or ``2'')

which did not have GSP duty-free treatment in all or the last half of

1997.

List II shows GSP-eligible articles from beneficiary developing

countries that (1) Have not yet exceeded, but are approaching, the $80

million CNL during the period from January through October 1997, or (2)

are close to or above the 50 percent CNL.

Depending on final calendar year 1997 import data, these products

also

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stand to lose GSP duty-free treatment on July 1, 1998.

List III is a subset of List II. List III identifies GSP-eligible

articles from beneficiary developing countries that are near or above

the 50 percent CNL, but that may be eligible for a de minimis waiver of

the 50 percent CNL. Actual eligibility for de minimis waivers will

depend on final calendar year 1997 import data.

List IV shows GSP articles from beneficiary developing countries

which are currently not receiving GSP duty-free treatment, but which

have import levels (based on interim 1997 data) below the CNLs and

which thus may be eligible for redesignation pursuant to the

President's discretionary authority. Articles with a ``D'' exceed the

50 percent CNL and would require both de minimis waivers and

redesignation to receive GSP duty-free treatment. The list may contain

articles that may not be redesignated until certain conditions are

fulfilled, as for example, where GSP eligibility for articles was

suspended because of deficiencies in beneficiary countries' protection

of the rights of workers or owners of intellectual property. This list

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

as a result of Presidential Proclamation 6425 of April 29, 1992 (57 FR

19067).

Each list is followed by a summary table that indicates the number

of products cited from each beneficiary developing country and the

total value of imports of those products from the beneficiary

developing country.

The lists appended to this notice are provided for informational

purposes only. The attached lists are computer-generated and, based on

interim 1997 data, may not include all articles that may be affected by

the GSP CNLs. Regardless of whether or not an article is included on

the lists, all determinations and decisions regarding the CNLs of the

GSP program will depend on full calendar year 1997 import data with

respect to each GSP eligible article. Each interested party is advised

to conduct its own review of 1997 import data with regard to the

possible application of GSP CNLs.

IV. Public Comments

All written comments with regard to the matters discussed should be

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

Representative, 600 17th Street, N.W., Room 518, Washington, DC 20508.

All submissions must be in English and should conform to the

information requirements of 15 CFR 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, etc.) 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 20. 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. 98-4633 Filed 2-23-98; 8:45 am]

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