Chemicals are not among the top imports under the Generalized System of Preferences benefits program -- travel goods, jewelry, car parts, and lamps are -- but chemical distributors are still anxious that the program be renewed before it expires. Eric Byer, CEO of the National Association of Chemical Distributors, said in a phone interview that about 50% of his 250 members benefit from GSP tariff breaks. He said last time GSP expired, it took a couple of months to get reimbursed even after GSP was restored. He gave an example of a small company near Philadelphia that had to pay $250,000 in additional tariffs during the expiration, for a company that only had about 25 employees. Byer said citric acid is imported by many of his members, and if GSP expires, a 6% tariff will be applied to that citric acid coming from Thailand. Erin Getz, coordinator of governmental affairs for NACD, said 110 million pounds annually is imported from Thailand.
Sen. Josh Hawley, a populist Republican from Missouri, has introduced a Generalized System of Preferences bill that would only allow the tariff benefits to be granted when unemployment is below 4% in the U.S. The unemployment rate has been below 4% less than two years of the last 20. This version of GSP would also bar any country that the Department of Labor identifies as a country where there's a problem with forced labor or the worst forms of child labor.
CBP created Harmonized System Update (HSU) 2008 Dec. 7, containing 37,804 Automated Broker Interface records and 6,935 Harmonized Tariff Schedule records, it said in a CSMS message. The update covers recent restrictions to Thailand's benefits under the Generalized System of Preferences benefits program and cotton fee changes (see 2010020009). Further information: Jennifer Keeling, Jennifer.L.Keeling@cbp.dhs.gov
Rep. Kevin Brady, R-Texas, criticized the Democratic approach to the Generalized System of Preferences benefits program renewal after Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a six-month extension that would change eligibility requirements (see 2012080049). “This is a surprise, and not a welcome one, at this point in the negotiations,” Brady said the evening of Dec. 8. “While I respect the view of Democrats that changes are needed to the program, I support a clean extension that allows us to consider changes under regular order.” Senate Finance Committee Chairman Chuck Grassley, R-Iowa, introduced an 16-month clean GSP renewal, but Democrats in the Senate do not support it, as they prefer an approach that requires higher standards from beneficiary countries.
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House Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a bill that would add eligibility requirements to the Generalized System of Preferences benefits program, including whether the country either has established, or is making continual progress toward establishing, “the rule of law, political pluralism, the right to due process, a fair trial and equal protection under the law,” and whether those countries are working to “reduce poverty, increase the availability of health care and educational opportunities,” among other goals, including combating corruption. It also would predicate eligibility on whether a country effectively enforces its environmental laws and regulations, and is fulfilling its international environmental obligations, including those related to public health.
More than 200 businesses and trade groups, led by the National Association of Manufacturers, are asking House and Senate leadership to include a renewal of the Miscellaneous Tariff Bill in the spending bill Congress is working to pass this month. The omnibus appropriations bill, which covers the fiscal year that began Oct. 1, is attracting lobbying on many trade priorities, including the alcohol excise tax reduction for small producers, the Generalized System of Preferences benefits program, and more.
CBP issued the following releases on commercial trade and related matters:
CBP issued the following releases on commercial trade and related matters:
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said stakeholders are telling him they appreciate his 16-month Generalized System of Preferences benefits program renewal, and that those same groups are pushing back on Democrats' desires to make revisions to eligibility requirements. Grassley said that he hasn't spoken directly to House Ways and Means Chairman Richard Neal, D-Mass., but that the trade staffs are telling him that Neal and Finance ranking member Sen. Ron Wyden's trade staff are frustrated by the GSP advocates' criticisms. He said stakeholders are telling Democrats that they are “using the GSP expiration as a hostage to achieve Democratic trade priorities,” and said he agreed with that argument.