May 29, 2020 – On April 25, 2020 Thailand’s Generalized System of Preferences (GSP) reduced duty benefits were suspended for Harmonized Tariff Schedule (HTS) numbers appearing in Annex 2 to the October 25, 2019 Presidential Proclamation, and includes over five hundred products. The suspension was due to Thailand’s failure to take adequate steps in dealing with internationally recognized worker’s rights.
On March 2, 2020, the U.S. Trade Representative (USTR) posted notice of the onset of their 2020 annual GSP Annual Review.
On May 5, 2020, the USTR announced the petitions which were accepted for review, along with a schedule for public hearings and the ability to provide comments.
The International Trade Commission (ITC), posted notice of Possible Modifications to GSP, which include for the following:
- Four HTS are being considered being added for all GSP beneficiary developing countries:
- 0603.11.00 Sweetheart, spray and other roses, fresh cut,
- 0603.11.0010 Sweetheart roses, fresh, suitable for bouquets or for ornamental purposes,
- 0603.11.0030 Spray roses, fresh, suitable for bouquets or for ornamental purposes,
- 0603.11.0060 Roses, fresh, suitable for bouquets or for ornamental purposes, nesoi.
- Six HTS are being considered for GSP removal:
- 1006.10.00 Rice in the husk (paddy or rough),
- 1006.20.20 Basmati rice, husked,
- 1006.20.40 Husked (brown) rice, other than Basmati,
- 1006.30.10 Rice semi-milled or wholly milled, whether or not polished or glazed, parboiled,
- 1006.30.90 Rice semi-milled or wholly milled, whether or not polished or glazed, other than parboiled,
- 1006.40.00 Broken rice.
The ITC is seeking input from all interested parties, with comments due by June 29, 2020. The ITC will submit its confidential report to the USTR by August 31, 2020.
Under GSP, the President is authorized to extend preferences, designate as beneficiary developing countries, designate articles as eligible, or remove countries or articles. Products are designated under the advice of the ITC, and must be approved by U.S. Congress. An Annual Review is completed by the U.S. Trade Representative (USTR), who then issue a report to Congress.
If you have any questions regarding possible modifications to GSP, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at usregaffairs@livingstonintl.com