USTR Says 11 Products Risk Losing GSP Eligibility Due to CNLs

A group of 11 products appear set to exceed competitive need limitations (CNLs) for calendar year 2017 and lose their eligibility for duty-free access under the Generalized System of Preferences, the Office of the U.S. Trade Representative said. Products that may exceed CNL waivers in 2017 include the following:

• 0410.00.00 -- Edible products of animal origin, not elsewhere specified (Indonesia)
• 0714.40.10 -- Fresh or chilled taro (Colocasia spp.), whether or not sliced or in the form of pellets (Ecuador)
• 2106.90.98 -- Other food preps not elsewhere specified, including preps for the manufacture of beverages, non-dairy coffee whiteners, herbal teas and flavored honey (Thailand)
• 2909.19.18 -- Ethers of acyclic monohydric alcohols and derivatives, not elsewhere specified (Brazil)
• 3808.91.30 -- Insecticides, not elsewhere specified, containing an inorganic substance, put up for retail sale (India)
• 3823.11.00 -- Stearic acid (Indonesia)
• 4011.20.10 -- New pneumatic radial tires, of rubber, of a kind used on buses or trucks (Indonesia)
• 6802.99.00 -- Monumental or building stone and arts. thereof, not elsewhere specified, further worked than simply cut/sawn (Brazil)
• 7403.19.00 -- Refined copper, unwrought articles, not elsewhere specified (Brazil)
• 8450.20.00 -- Household- or laundry-type washing machines, each of a dry linen capacity exceeding 10 kg (Thailand)
• 9001.50.00 -- Spectacle lenses of materials other than glass, unmounted (Thailand).

Unless a waiver is granted, these products may be rendered ineligible for GSP when imported from the associated countries. Products exceed CNLs when the quantity imported in one year exceeds a certain amount ($180 million in 2017), or the value imported from a single GSP country exceeds 50 percent of the value of the product imported from all countries.

The deadline for the submission of product petitions requesting CNL waivers is midnight on Dec. 5. Once either limit is reached, trade is considered "competitive" and imports of the article automatically become ineligible for GSP treatment by July 1 of the next calendar year, unless a waiver is granted. "Interested parties should submit CNL waiver petitions based on 2017 annual review procedures in the event that the Congress extends the GSP program beyond its current December 31, 2017 expiration date," USTR said. A House Ways and Means Committee spokeswoman shared few details on any legislative progress in her committee, noting only, "we are continuing with our work."

(Federal Register 11/14/17)