The President issued a proclamation that terminates India being designated as a beneficiary developing country under the General System of Preferences (GSP), effective June 5, 2019. India is being terminated because of their failure to provide the U.S. with assurance they will provide equitable and reasonable access to their markets in numerous sectors.
India had been the top GSP beneficiary country in 2018, with imports of $6.3 billion.
Imported goods will be subject to Column 1, General, duty rates.
The President also removed the exemption for India from Section 201 safeguard measures, also effective June 5, 2019. Section 201 applies on imports of large residential washing machines/and parts; and crystalline silicon photovoltaic (CSPVs) solar cells and modules. Previously, India’s being a World Trade Organization (WTO) developing country had exempted India from Section 201 duties.
Section 201 is used for relief for injury caused by import competition, and is applied because goods are imported in such increased quantities that they cause serious injury to U.S. manufacturers. Tariff Rate Quota (TRQ) and possible additional duties may apply. Current Section 201 in quota addition duty rates range from 18% for washers, with no additional duty for washer parts, or for CSPVs. Current over quota rates are 45% for washers and parts, and 25% for CSPVs.
GSP will no longer be allowed on imports from India, and Section 201 will be applicable, for goods imported into the U.S. when entered or withdrawn from warehouse as of June 5, 2019. India origin products entering a foreign trade zone (FTZ) which are subject to Section 201 must enter as ‘privileged foreign status’, effective at 12:01 a.m. Eastern Standard Time on June 5, 2019.
Other recent GSP changes include GSP being terminated for Turkey as of May 17, 2019, see our Trade News articles:
Posted: May 21, 2019
Posted: Mar 5, 2019
If you have any questions regarding these changes for India origin products, under GSP, or Section 201, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at email@example.com