[Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
[Notices]
[Pages 8293-8304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4476]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences; Information on Imports During 
First 10 Months of 1996; Opportunity for Public Comment

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: By this notice, the Trade Policy Staff Committee informs the 
public of certain U.S. import statistics for the period from January 
through October 1996 and affords the public an opportunity to comment 
on decisions, (including certain discretionary decisions) the President 
will make with respect to the Generalized System of Preferences (GSP) 
program. Before July 1, 1997, the President must announce the GSP 
``competitive need'' limits set forth in section 503(c)(2)(A) of the 
Trade Act of 1974, as amended (the ``1974 Act'') (19 U.S.C. 
2463(c)(2)(A)). The discretionary decisions concern (1) the ``de 
minimis waiver'' authority set forth in section 503(c)(2)(F) of their 
1974 Act; and (2) the redesignation authority set forth in section 
503(c)(2)(C) of the 1974 Act. Presidential decisions concerning the 
application of competitive need limits and other product-related 
decisions stemming from the 1995 Annual Review are expected to be 
announced in April, and implemented no later than July 1, 1997. (Note 
because the program's authorization previously expired on July 31, 
1995, the Annual Review for that year was delayed until the program's 
reauthorization was signed into law on August 20, 1996. At that time 
the 1995 Annual Review resumed and no review for 1996 was conducted.

FOR FURTHER INFORMATION CONTACT:
GSP Subcommittee, Office of the U.S. Trade Representative, 600 17th 
Street, NW., Room 517, Washington, DC 20508. The telephone number is 
(202) 395-6971.
SUPPLEMENTARY INFORMATION: 

I. Competitive Need Limits

    Pursuant to section 503(c)(2)(A), any GSP-eligible beneficiary 
country that exported to the United States in 1996 a quantity of any 
one GSP eligible article in excess of (1) $75 million, or (2) 50 
percent of the value of total U.S. imports of the article, is to be 
removed from GSP eligibility with respect to that article not later 
than July 1 of the next calendar year.

II. Discretionary Decisions

A. De Minimis Waivers

    Section 503(c)(2)(F) of the 1974 Act permits the President to 
disregard the 50 percent ``competitive need'' limit with respect to any 
eligible article if the value of total imports of the article during 
calendar year 1996 did not exceed $13 million.

B. Redesignation of Eligible Articles

    If a country is no longer a beneficiary developing country with 
respect to an eligible article because imports exceeded the competitive 
need limits in a prior year, then, pursuant to section 503(c)(2)(C) of 
the 1974 Act, the President may redesignate the beneficiary developing 
country with respect to the eligible article if imports do not exceed 
the competitive need limits in a subsequent year.

III. Implementation of Competitive Need Limits, Waivers, and 
Redesignations

    A proclamation will be issued to be effective no later than July 1, 
1997, making the adjustments to the list of eligible articles that are 
required by section 503(c)(2)(A) of the 1974 Act and announcing the 
discretionary decisions referred to in this notice, on the basis of 
official data covering all of calendar year 1996.
    It should be emphasized that the information set forth below covers 
only the first 10 months of 1996. Partial year data is being published 
now to provide the maximum possible advance indication of adjustments 
that may be made to meet the requirements of section 503(c)(2)(A) of 
the 1974 Act and to afford the earliest opportunity for comment on the 
possible discretionary decisions.
    List I below shows specific GSP-eligible articles for beneficiaries 
which have already exceeded estimated competitive need limitations 
(i.e., a beneficiary supplied over $75 million of an article and/or 
over 50 percent of imports of an article during the period from January 
through October, 1996) or have been graduated from the GSP in earlier 
years pursuant to the President's discretionary authority.
    List II below shows beneficiaries which are approaching the 
competitive need limitations (i.e., a beneficiary accounted for over 48 
percent of the value of total U.S. imports and/or over $63 million 
during the period from January through October 1996).
    List III below shows beneficiaries which, despite accounting for 
more than 50 percent of the value of total U.S. imports of an article, 
may be eligible to

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receive GSP benefits through the de minimis waiver (i.e., where a 
beneficiary accounted for more than the applicable percentage limit but 
the value of total U.S. imports of the item was less than $13 million 
during the period from January through October 1996).
    List IV below shows articles from beneficiaries which are currently 
ineligible for GSP duty-free treatment but which may be eligible for 
redesignation to GSP status pursuant to the President's discretionary 
authority (i.e., a beneficiary accounted for less than 50 percent of 
the value of U.S. imports and the value of U.S. imports of the article 
from the beneficiary developing country was less than the applicable 
dollar limit during the period from January through October 1996). This 
list does not include articles from India which do not receive GSP 
treatment as a result of Presidential Proclamations 6425 of April 29, 
1992 (57 FR 19067).

IV. Public Comments

    All written comments with regard to the decisions summarized above 
should be addressed to: GSP Subcommittee, Office of the U.S. Trade 
Representative, 600 17th Street, NW., Room 517, Washington, DC 20508. 
All submissions must be in English and should conform to the 
information requirements of 15 CFR part 2007. Furthermore, each party 
providing comments should indicate on the first page of the submission 
its name, the relevant Harmonized Tariff Schedule subheading(s), the 
beneficiary country or territory of interest, and the type of action 
(e.g., the use of the President's de minimis waiver authority) in which 
the party is interested.
    A party must provide fourteen copies of its statement which must be 
received by the Chairman of the GSP Subcommittee no later than 5 p.m., 
Friday, March 19. Comments received after the deadline will not be 
accepted. If the comments contain business confidential information, 
fourteen copies of a non-confidential version must also be submitted. A 
justification as to why the information contained in the submission 
should be treated confidentially must be included in the submission. In 
addition, the submissions containing confidential information should be 
clearly marked ``confidential'' at the top and bottom of each page of 
the submission. The version that does not contain confidential 
information should also be clearly marked, at the top and bottom of 
each page, ``public version'' or ``non-confidential''.
    Written comments submitted in connection with these decisions, 
except for information granted ``business confidential'' status 
pursuant to 15 CFR 2007.7, will be available for public inspection 
shortly after the filing deadline by appointment only with the staff of 
the USTR Public Reading Room (202) 395-6186. Other requests and 
questions should be directed to the GSP Information Center at USTR by 
calling (202) 395-6971.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.

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[FR Doc. 97-4476 Filed 2-21-97; 8:45 am]
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