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 or public comment.

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

public of interim 1998 import statistics relating to Competitive Need

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

program. The TPSC also invites public comments by 5:00 p.m. March 19,

1999, 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, NW, 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 ($85 million for 1998), 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 ($14 million

for 1998).

B. Redesignation of Eligible Articles

Where an eligible article from a beneficiary developing country

ceased to receive duty-free treatment due to exceeding the CNLs 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 this discretionary authority to grant

redesignations, will be effective July 1, 1999. Decisions on these

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

be based on full 1998 calendar year import statistics.

IV. Interim 1998 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 1998 are included with this notice.

The following lists contains the HTS subheadings and beneficiary

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

such articles for the first ten months of 1998, and their percentage of

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

that 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

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treatment under GSP for the first six months or last six months,

respectively, of 1998.

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

countries, based on interim 1998 data, less than the applicable amount

($14 million in 1998) for eligibility for a de minimis waiver of the 50

percent CNL.

List I shows GSP-eligible articles from beneficiary developing

countries that already have exceeded the CNL of $85 million based on

interim 1998 data. None of these articles were receiving duty-free

treatment as of December 31, 1998. The listed articles did not receive

GSP-duty free treatment either during all of 1998 or during the second

half of 1998 (denoted with flags ``*'' or ``2'', respectively).

List II shows GSP-eligible articles from beneficiary developing

countries that (1) have not yet exceeded, but are approaching, the $85

million CNL during the period from January through October 1998, or (2)

are close to or above the 50 percent CNL. Depending on final calendar

year 1998 import data, these products stand to lose GSP duty-free

treatment on July 1, 1999.

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 1998 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 1998 data) below the $85 million

CNL. Depending on whether such articles meet both the $85 million CNL

and the 50 percent CNL based on full 1998 data, such articles might be

eligible for redesignation pursuant to the President's discretionary

authority. Articles with a ``D'' flag exceed the 50 percent CNL (based

on interim 1998 data) but might be eligible for a de minimis waiver.

The list may contain articles that may not be redesignation 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, based on

interim 1998 data, and may not include all articles that might be

affected by the GSP CNLs. Regardless of whether or not an article is

included on the list, all determinations and decisions regarding the

CNLs of the GSP program will depend on full calendar year 1998 import

data with respect to each GSP eligible article. Each interested party

is advised to conduct its own review of 1998 import data with regard to

the possible application of GSP CNLs.

V. Public Comments

All written comments with regard to the matters discussed above

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

Representative, 600 17th Street, NW., 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 19, 1999. Comments received after the deadline will not

be accepted. If the comments contain business confidential information,

fourteen copies of 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 verion'' 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) 395-6972.

Frederick L.Montgomery,

Chairman, Trade Policy Staff Committee.

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Appendix--GSP Import Statistics

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[FR Doc. 99-2071 Filed 1-28-99; 8:45 am]

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