[Federal Register: February 28, 2008 (Volume 73, Number 40)]
[Notices]               
[Page 10826-10828]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28fe08-105]                         

=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

 
Generalized System of Preferences (GSP): Import Statistics 
Relating to Competitive Need Limitations (CNLs); Invitation for Public 
Comment on CNL Waivers Subject to Potential Revocation Based on New 
Statutory Thresholds, Possible De Minimis Waivers, and Product 
Redesignations

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice is to inform the public of the availability of 
full 2007 calendar year import statistics relating to competitive need 
limitations (CNLs) under the Generalized System of Preferences (GSP) 
program. Public comments are invited and must be submitted by 5 p.m., 
Friday, March 21, 2008, to FR0441@USTR.EOP.GOV regarding the potential 
revocation of CNL waivers that meet the new statutory thresholds set 
forth by section 503(d)(4)(B)(ii) of the Trade Act of 1974 (19 U.S.C. 
2463(d)(4)(B)(ii)), as amended by Public Law 109-432. Additionally, 
public comments are invited and must be submitted by 5 p.m., Friday, 
March 28, 2008, to FR0618@USTR.EOP.GOV regarding possible de minimis 
CNL waivers with respect to particular articles and possible 
redesignations under the GSP program of articles currently not eligible 
for GSP benefits because they previously exceeded the CNLs.

FOR FURTHER INFORMATION CONTACT: Contact the GSP Subcommittee of the 
Trade Policy Staff Committee, Office of the United States Trade 
Representative, 1724 F Street, NW., Room F-220, Washington, DC 20508. 
The telephone number is (202) 395-6971.

SUPPLEMENTARY INFORMATION:

I. Competitive Need Limitations

    The GSP program provides for the duty-free importation of 
designated articles when imported from designated beneficiary 
developing countries (BDCs). The GSP program is authorized by title V 
of the Trade Act of 1974 (19 U.S.C. 2461, et seq.), as amended (the 
``1974 Act''), and is implemented in accordance with Executive Order 
11888 of November 24, 1975, as modified by subsequent Executive Orders 
and Presidential Proclamations.
    Section 503(c)(2)(A) of the 1974 Act sets out the two CNLs. When 
the President determines that a BDC exported to the United States 
during a calendar year either (1) a quantity of a GSP-eligible article 
having a value in

[[Page 10827]]

excess of the applicable amount for that year ($130 million for 2007), 
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 must 
terminate GSP duty-free treatment for that article from that BDC by no 
later than July 1 of the next calendar year.
    De minimis waivers. Under section 503(c)(2)(F) of the 1974 Act, the 
President may waive the 50 percent CNL with respect to an eligible 
article imported from a BDC if the value of total imports of that 
article from all countries during the calendar year did not exceed the 
applicable de minimis amount for that year ($18.5 million for 2007).
    Redesignations. Under section 503(c)(2)(C) of the 1974 Act, if 
imports of an eligible article from a BDC ceased to receive duty-free 
treatment due to exceeding a CNL in a prior year, the President may, 
subject to the considerations in sections 501 and 502 of the 1974 Act, 
redesignate such an article for duty-free treatment if imports in the 
most recently completed calendar year did not exceed the CNLs.
    CNL waiver revocation. Under Section 503(d)(5) of the 1974 Act, a 
CNL waiver remains in effect until the President determines that it is 
no longer warranted due to changed circumstances. Section 
503(d)(4)(B)(ii) of the 1974 Act, as amended by Public Law 109-432, 
also provides that, ``[n]ot later than July 1 of each year, the 
President should revoke any waiver that has then been in effect with 
respect to an article for 5 years or more if the beneficiary developing 
country has exported to the United States (directly or indirectly) 
during the preceding calendar year a quantity of the article-- (I) 
having an appraised value in excess of 1.5 times the applicable amount 
set forth in subsection (c)(2)(A)(ii) for that calendar year [$195 
million in 2007]; or (II) exceeding 75 percent of the appraised value 
of the total imports of that article into the United States during that 
calendar year.''

II. Implementation of Competitive Need Limitations, Waivers, and 
Redesignations

    Exclusions from GSP duty-free treatment where CNLs have been 
exceeded will be effective July 1, 2008, unless granted a waiver by the 
President. Any CNL-based exclusions, CNL waiver revocations, and 
decisions with respect to de minimis waivers and redesignations will be 
based on full 2007 calendar year import data.

III. 2007 Import Statistics

    In order to provide notice of articles that have exceeded the CNLs 
for 2007, and to afford an opportunity for comment regarding potential 
de minimis waivers, redesignations, and the potential revocation of 
waivers that are subject to the new CNL waiver thresholds provided by 
section 503(d)(4)(B)(ii) of the 1974 Act, as amended by Public Law 109-
432, import data for 2007 are available at: http://www.ustr.gov/Trade_
Development/Preference_Programs/GSP/GSP_2007_Annual_Review/
Section_Index.html), titled ``2007 GSP Review, Full-Year 2007 Import 
Statistics Relating to Competitive Need Limitations (CNLs).'' Full 2007 
calendar year data for individual tariff subheadings may be viewed on 
the Web site of the U.S. International Trade Commission at http:// 
dataweb.usitc.gov/.
    The lists available on the USTR Web site contain, for each article, 
the Harmonized Tariff Schedule of the United States (HTSUS) subheading 
and BDC country of origin, the value of imports of the article for the 
2007 calendar year, and the percentage of total imports of that article 
from all countries. The annotations on the lists indicate, among other 
things, the status of GSP eligibility.
    The computer-generated lists published on the USTR Web site are for 
informational purposes only. They may not include all articles to which 
the GSP CNLs may apply. All determinations and decisions regarding the 
CNLs of the GSP program will be based on full 2007 calendar year import 
data with respect to each GSP-eligible article. Each interested party 
is advised to conduct its own review of 2007 import data with respect 
to the possible application of the GSP CNL provisions.
    List I on the USTR Web site shows: (a) Articles from BDCs that 
became ineligible for GSP treatment on or before July 1, 2007; and (b) 
GSP-eligible articles from BDCs that exceeded a CNL by having been 
exported in excess of $130 million, or by an amount greater than 50 
percent of the total U.S. import value in 2007. Petitions to grant CNL 
waivers for those articles that received GSP benefits during 2007 but 
stand to lose GSP duty-free treatment on July 1, 2008, must have been 
previously submitted in the 2007 GSP Annual Review.
    List II identifies GSP-eligible articles from BDCs that are above 
the 50 percent CNL, but that are eligible for a de minimis waiver of 
the 50 percent CNL. Articles eligible for de minimis waivers are 
automatically considered in the GSP annual review process, without 
petitions, and public comments are invited.
    List III shows GSP-eligible articles from certain BDCs that are 
currently not receiving GSP duty-free treatment, but that may be 
considered for GSP redesignation based on 2007 trade data and 
consideration of certain statutory factors, as set forth above. 
Recommendations to the President on redesignations are normally made as 
part of the GSP annual review process, and public comments are invited.
    List IV shows articles subject to the new CNL waiver thresholds of 
section 503(d)(4)(B)(ii) of the 1974 Act, as amended by Public Law 109-
432. Recommendations to the President on revocation of these waivers 
will be made as part of the 2007 GSP annual review process, and public 
comments are invited.

IV. Public Comments

Requirements for Submissions

    All submissions must conform to the GSP regulations set forth at 15 
CFR part 2007, except as modified below. Furthermore, each party 
providing comments should indicate on the first page of the submission 
its name, the relevant 8-digit HTSUS subheading(s), the BDC of 
interest, and the type of action (e.g., new statutory criteria, de 
minimis waiver or redesignation) in which the party is interested.
    Comments must be submitted, in English, to the Chairman of the GSP 
Subcommittee of the Trade Policy Staff Committee (TPSC) as soon as 
possible, but no later than 5 p.m., Friday, March 21, 2008, for 
comments on the potential revocation of CNL waivers that meet the new 
statutory thresholds and no later than 5 p.m., March 28, 2008, for 
comments regarding de minimis waivers or redesignations.
    To facilitate prompt consideration of submissions, USTR will only 
accept electronic e-mail submissions in response to this notice. Hand-
delivered submissions either by mail or other delivery options will not 
be accepted. Submissions should be single-copy transmissions in English 
with the total submission not to exceed 20 single-spaced standard 
letter-size pages, including attachments, and three megabytes as a 
digital file attached to an e-mail transmission. The e-mail 
transmission must use either one of the two following subject lines, 
based on the subject of the comment being submitted: ``Comments on 2007 
GSP Redesignation and De minimis Waiver

[[Page 10828]]

Review,'' or ``Comments on 2007 CNL Waiver Threshold Review,'' followed 
by the BDC country of origin and HTSUS subheading number as set out in 
the appropriate list. Documents must be submitted as either MSWord 
(``.doc''), Word Perfect (``.wpd''), Adobe (``.pdf'') or text 
(``.txt'') files. Documents submitted as electronic image files or 
containing imbedded images (for example, ``.jpg'', ``.tif'', ``.bmp'', 
or ``.gif'' files) will not be accepted. Spreadsheets submitted as 
supporting documentation are acceptable as Excel, pre-formatted for 
printing on 8\1/2\ x 11 inch paper. To the extent possible, any data 
attachments to the submission should be included in the same file as 
the submission itself, and not as separate files.
    If the submission contains business confidential information, 
pursuant to 15 CFR 2003.6, a non-confidential version of the submission 
must also be submitted that indicates where confidential information 
was redacted by inserting asterisks where material was deleted. In 
addition, the confidential version must be clearly marked ``BUSINESS 
CONFIDENTIAL'' at the top and bottom of each page of the document. The 
non-confidential version must be clearly marked ``PUBLIC'' or ``NON-
CONFIDENTIAL'' at the top and bottom of each page. Documents that are 
submitted without any marking may not be accepted or will be considered 
public documents.
    For any document containing business confidential information 
submitted as an electronic attached file to an e-mail transmission, the 
file name of the business confidential version should begin with the 
characters ``BC-'', and the file name of the public version should 
begin with the character ``P-''. The ``BC-'' or ``P-'' should be 
followed by the name of the party (government, company, union, 
association, etc.) which is submitting the comments.
    E-mail submissions should not include separate cover letters or 
messages in the message area of the e-mail; information that might 
appear in any cover letter should be included directly in the attached 
file containing the submission itself, including the sender's name, 
organization name, address, telephone number and e-mail address. The e-
mail address for the 2007 CNL Waiver Threshold Review is 
FR0441@USTR.EOP.GOV. The e-mail address for submissions to the 2007 GSP 
Redesignation and De minimis Waiver Review is FR0618@USTR.EOP.GOV. 
(Note: the digit before the numbers 4 and 6 in the above e-mail 
addresses is the number zero, not a letter.) Documents not submitted in 
accordance with these instructions may not be considered in this 
review. If unable to provide submissions by e-mail, please contact the 
GSP Subcommittee to arrange for an alternative method of transmission.
    Public versions of all documents relating to this review will be 
available for public review approximately two weeks after the due date 
by appointment in the USTR Public Reading Room, 1724 F Street, NW., 
Washington, DC. Availability of documents may be ascertained, and 
appointments may be made from 9:30 a.m. to noon and 1 p.m. to 4 p.m., 
Monday through Friday, by calling 202-395-6186.

Marideth J. Sandler,
Executive Director, Generalized System of Preferences (GSP) Program, 
and Chair, GSP Subcommittee, Office of the U.S. Trade Representative.
[FR Doc. E8-3805 Filed 2-27-08; 8:45 am]

BILLING CODE 3190-W8-P