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GSP Eligibility Changes, New CNL Waivers Took Effect Nov. 1

CBP issued a CSMS message Nov. 2 detailing changes to eligibility for Generalized System of Preferences duty benefits as a result of the Office of the U.S. Trade Representative’s 2020 GSP review. Effective Nov. 1, fresh-cut roses are newly eligible for GSP, while par-boiled rice is no longer eligible for duty-free treatment under the program. USTR also declared six county-product pairs ineligible for exceeding competitive needs limitations (CNLs), and will allow 24 country-product pairs that exceeded CNLs to remain eligible under de minimis waivers.

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The International Trade Commission on Oct. 30 issued Revision 26 to the Harmonized Tariff Schedule to implement the changes, as mandated in a presidential proclamation issued that day. The proclamation also announced the removal of more products from Thailand from GSP eligibility, effective Dec. 30 (see 2011020005).

Fresh Cut Roses Now Eligible for GSP

Fresh-cut roses under subheading 0603.11.00 are now eligible for GSP. The ITC added special program indicator (SPI) “A” to the subheading to reflect its eligibility from all GSP beneficiaries.

Parboiled Rice Removed From Program

On the other hand, parboiled rice under subheading 1006.30.10 is being removed from GSP eligibility for all countries. The ITC removed SPI “A” from the subheading because it is no longer eligible. USTR denied petitions to remove other types of rice, including basmati rice, from program eligibility.

Six Country-Product Pairs Removed From GSP Eligibility

USTR determined that six country-product pairs will be removed from GSP eligibility for exceeding CNLs. The following subheadings are now ineligible for GSP when imported from the listed country:

HTS SubheadingCountry
0714.40.10Ecuador
2909.19.14Argentina
3805.10.00Brazil
4412.34.32Ecuador
7113.19.29Indonesia
8502.12.00Brazil

The ITC added these six country-product pairs to General Note 4(d), which lists country product-pairs that are ineligible for GSP. The ITC also changed the SPIs for subheadings 0714.40.10, 3805.10.00 and 8502.12.00 from “A” to “A*” to reflect that they are now not eligible from GSP for every country (the other three subheadings were already marked “A*”).

De Minimis Waivers Granted to 24 Country-Product Pairs

Finally, the USTR granted de minimis waivers to 24 country-product pairs that would otherwise have been ineligible for GSP because they exceeded CNLs. These country-product pairs, which are still eligible for GSP benefits, are as follows:

HTS SubheadingCountryHTS SubheadingCountry
0406.10.04Ecuador2849.10.00Brazil
0603.13.00Thailand2912.19.40Brazil
0802.61.00Brazil4104.41.40Argentina
0908.22.20Indonesia4106.22.00Pakistan
1601.00.40Brazil4107.19.80Argentina
1604.13.90Ecuador4206.00.13Brazil
1701.91.42Brazil4302.19.45Thailand
1703.10.30Brazil4302.19.60Brazil
2008.91.00Ecuador4412.94.80Brazil
2106.90.03Pakistan4601.22.40Indonesia
2305.00.00Brazil4601.94.05Indonesia
2819.10.00Kazakhstan9603.10.90Sri Lanka