Presidential Proclamations Impact Turkey

Two Presidential Proclamations were issued on May 16, 2019, which significantly impact imports of Turkish origin goods imported into the U.S. when entered or withdrawn from warehouse as of May 17, 2019, or May 21, 2109.

Presidential Proclamation 9887, effective May 17, 2019, removes Generalized System of Preferences (GSP) eligibility for Turkey, and thus removing Turkey from an exemption for Section 201 duties.
GSP:

  • Turkey is no longer designated as a beneficiary developing countries under the Generalized System of Preferences (GSP) program, as they no longer comply with statutory eligibility criteria.
  • Turkey was found to be sufficiently economically developed and no longer requires preferential market access to U.S. markets.
  • Under GSP eligible imports entered free of duty, but now Turkey origin products will enter using general duty rate.

Section 201:

  • Turkey is no longer exempt from Section 201 Tariff Rate Quota (TRQ) on large residential washing machines/and parts, and crystalline silicon photovoltaic (CSPVs) solar cells and modules, which first began on February 7, 2018.
  • Current 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.
  • Section 201 duties combat the injury of increased imports to U.S. industry.

Presidential Proclamation 9886, effective May 21, 2019, reduces the Section 232 additional duty rate for Turkish origin imports of steel product from 50% to 25%.

Section 232:

  • Subject imports of steel products will be assessed only a 25% additional duty rate, down from a 50% rate, which had been in effect since May 18, 2018.
  • Previously a primary ‘9903.80.02’ Harmonized Tariff Schedule (HTS) number was used for the 50% rate, but now the 25% rate will be calculated using a ‘9903.80.01’ primary HTS.
  • Section 232 duties combat threats that impair U.S. national security.

If you have any questions regarding these changes for Turkey origin products, under GSP, Section 201, or Section 232, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at usregaffairs@livingstonintl.com.