USTR Initiates 2011 GSP Review, Dismisses 2010 Product Review

November 1, 2011

On November 1, 2011, the Office of the United States Trade Representative (USTR) announced the initiation of the 2011 annual product and country practices review for the Generalized System of Preferences (GSP) (76 FR 67531). The USTR is accepting petitions to modify the list of products that are eligible for duty free treatment under the GSP program and to modify the GSP status of certain GSP beneficiary developing countries because of country practices. The deadline for submission of country practice petitions for the 2011 Annual Review, as well as the deadline for submitting product petitions, except for those requesting competitive need limitation (CNL) waivers, is December 5, 2011. The deadline for submission of petitions requesting CNL waivers is December 16, 2011.

Interested parties may submit GSP product review petitions to (1) designate additional articles as eligible for GSP benefits, including to designate articles as eligible for GSP benefits only for countries designated as least-developed beneficiary developing countries, or only for countries designated as beneficiary sub-Saharan African countries under the African Growth and Opportunity Act (AGOA); (2) withdraw, suspend or limit the application of duty-free treatment accorded under the GSP with respect to any article, either for all beneficiary developing countries, least-developed beneficiary developing countries or beneficiary sub-Saharan African countries, or for any of these countries individually; (3) waive the CNL for individual beneficiary developing countries with respect to specific GSP-eligible articles; or (4) otherwise modify GSP coverage. Additionally, interested parties may submit a petition to review the GSP eligibility criteria listed in sections 502(b) or 502(c) of the Trade Act (19 U.S.C. 2462(b) and (c)).

The Office of the USTR also published a Federal Register notice (76 FR 67530) regarding the 2010 Annual GSP Review. As a result of the lapse in authorization of the GSP program through much of 2011, there will be no actions taken in 2011 with respect to CNLs, including non CNL-related removals of products from GSP eligibility. There will also be no redesignations of products currently subject to CNLs. The USTR has, however, accepted for review a country practices petition submitted as a part of the 2010 GSP Annual Review. The accepted petition alleges that the Republic of Georgia is violating workers rights criteria. The GSP Subcommittee of the Trade Policy Staff Committee is scheduled to hold a public hearing on this country practices petition on January 24, 2012. Pre-hearing comments and requests to participate in the hearing are due January 10, 2012.

For questions regarding the 2010 and 2011 GSP Annual Reviews or assistance preparing petitions, please contact a Barnes/Richardson attorney.