On February 20, 2024, Rep. Adrian Smith Chairman of the Trade Subcommittee of the House Way and Means Committee, delivering a presentation at the University of Nebraska-Lincoln highlighting challenges and opportunities in international trade as the Clayton Yeutter Institute of International Trade and Finance.
See the video HERE. Remarks about GSP and MTB begin at 19:00 and pick up again at 42:12
The United States has a long history of commitment to combatting corruption and supporting the rule of law in Cambodia and globally. Recent developments in Cambodia, including systemic corruption, transnational organized crime, and human rights abuses, threaten both U.S. national security interests and the fundamental freedoms of people in Cambodia. U.S. officials have regularly raised these concerns with Cambodia’s leaders, but regrettably there have been no meaningful changes.
On November 10, 2021, the U.S. Department of State, the U.S. Department of the Treasury, and the U.S. Department of Commerce have jointly issued a business advisory to caution U.S. businesses currently operating in, or considering operating in, Cambodia to be mindful of interactions with entities involved in corrupt business practices, criminal activities, and human rights abuses. This advisory addresses two primary areas of exposure for U.S. companies in Cambodia:
Businesses should apply appropriate due diligence to mitigate the reputational, economic, and possible legal risks associated with potential exposure to entities in Cambodia that engage in corruption, criminal activities, illicit financial activities, or human rights abuses.
Additionally, the United States Trade Representative will conduct an assessment of Cambodia’s Generalized System of Preferences (GSP) eligibility as part of a broader GSP evaluation. This assessment will be conducted following reauthorization of the program benefits and will include any new or amended eligibility criteria established by Congress.
The United States will continue to promote accountability for criminal activities, corrupt business practices, and human rights abuses through a whole-of-government effort and in close coordination with the private sector and our allies and partners.
Read the full business advisory here: https://www.state.gov/cambodia-business-advisory-on-high-risk-investments-and-interactions/.
Washington, D.C. – Senate Finance Committee Chair Ron Wyden, D-Ore., today announced legislation to update and reauthorize three expired trade programs: the Generalized System of Preferences (GSP), the Miscellaneous Tariff Bill (MTB) and the American Manufacturing Competitiveness Act (AMCA).
The Trade Preferences and American Manufacturing Competitiveness Act of 2021 will extend duty-free access to the U.S. market for certain developing countries under GSP until 2027, with important updates to eligibility rules that ensure trade policy rewards advances in human rights, women’s economic empowerment, labor, environment, rule of law and digital trade, among others.
The bill would also reauthorize the MTB to provide limited duty relief on certain manufacturing inputs and other imports that do not have significant domestic production and that were recommended for tariff reductions by the U.S. International Trade Commission (USITC). Finally, the bill would reauthorize the AMCA, which gives the USITC authority to conduct the MTB petition and recommendation process, for two more cycles.
“This legislation is an economic win-win,” Wyden said. “It boosts developing countries that meet human rights, labor and environmental standards, and it’s a major benefit for American manufacturers, including hundreds in Oregon. In particular, I want to thank Senator Carper for his work to include environmental criteria, Senator Cardin for his work to include criteria on human rights and the rule of law, and Senators Casey and Cortez Masto for their work on women’s economic empowerment and labor. These updated criteria will help export American values to the developing world.”
Key elements of the Trade Preferences and American Manufacturing Competitiveness Act include:
The full text of the legislation is available here.
The American Apparel & Footwear Association has expressed disappointment and regret at inaction by Congress, leading to a lapse in two critical trade preference programs — the Generalized System of Preferences (GSP) and the Miscellaneous Tariff Bill (MTB) — imposing a tax increase on American workers, American consumers, and American businesses at a time when they can least afford it.
"Congress allowed the GSP and MTB programs, initiatives that have been supported for decades by overwhelming bipartisan majorities, to lapse. The cessation of these programs benefits no one but hurts many, at a time when they can least afford it," said AAFA president and CEO Steve Lamar.
This notice is to inform the Trade that the Generalized System of Preferences (GSP), special program indicator (SPI) “A,” “A+,” and “A*”, will expire on December 31, 2020 if no Congressional legislation is passed to renew the program.
Until further notice, GSP eligible goods entered or withdrawn from warehouse need to pay “General” (column 1) duty rates effective, January 1, 2021, 12:00 am.
On November 9, 2020, the Office of the U.S. Trade Representative published in the Federal Register (85 FR 71391) Results of the 2020 Annual Generalized System of Preferences (GSP) Review.
On October 30, 2020, the Office of the United States Trade Representative (USTR) announced that President Trump is suspending $817 million in trade preferences for Thailand under the Generalized System of Preferences (GSP) program based on its lack of sufficient progress providing the United States with equitable and reasonable market access for pork products.
USTR also announced the closure of GSP eligibility reviews with no loss of benefits for three countries: Georgia, based on improvements in the protection of worker rights; Uzbekistan, also based on improvements in the protection of worker rights; and Indonesia, based on improvements aimed at providing the United States with equitable and reasonable market access. USTR also announced the closure of the GSP designation review of Laos with no change in status and the opening of two new GSP eligibility reviews of Eritrea and Zimbabwe, based on worker rights concerns.
Read more HERE,
On September 28, 2020, the U.S. International Trade Commission released public version of its confidential report on possible modifications to the Generalized System of Preferences (GSP) [Publication Number: 5119 Investigation Number: 332-578].
The USITC, an independent, nonpartisan, factfinding federal agency, submitted a confidential version of the report to the USTR on August 31, 2020. The public version released today contains only the unclassified sections, with any business confidential information deleted.
As requested, the USITC provided advice as to the probable economic effect on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the addition to the list of eligible articles for the purposes of the GSP program of four HTS provisions for all beneficiary developing countries (BDCs).
The additions in consideration are:
As requested, the USITC provided advice as to the probable economic effect on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the removal from eligibility for duty-free treatment under the GSP program of six HTS provisions for certain GSP countries.
The removals in consideration are:
On May 27, 2020, the U.S. International Trade Commission published in the Federal Register (85 FR 31805) Generalized System of Preferences: Possible Modifications, 2020 Review. Specifically information is sought regarding --
(1) Advice as to the probable economic effect on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the elimination of U.S. import duties on the articles in Table A for all beneficiary developing countries under the GSP program. In accordance with sections 503(a)(1)(A), 503(e), and 131(a) of the Trade Act of 1974, as amended (``the 1974 Act'') and pursuant to the authority of the President delegated to the USTR by sections 4(c) and 8(c) and (d) of Executive Order 11846 of March 31, 1975, as amended, and pursuant to section 332(g) of the Tariff Act of 1930, the USTR notified the Commission that the articles identified in Table A of the Annex to the USTR request letter are being considered for designation as eligible articles for purposes of the GSP program. The USTR requested that the Commission provide its advice as to the probable economic effect on total U.S. imports, U.S. industries producing like or directly competitive articles, and on U.S. consumers of the elimination of U.S. import duties on the articles identified in Table A of the Annex to the USTR request letter for all beneficiary developing countries under the GSP program (see Table A below).
Table A--2020 GSP Annual Review--Petitions Submitted To Add Products to
the List of Eligible Articles for the Generalized System of Preferences
(GSP)
------------------------------------------------------------------------
HTS provision Brief description
------------------------------------------------------------------------
0603.11.00............................. Sweetheart, Spray and other
Roses, fresh cut.
0603.11.0010........................... Sweetheart roses, fresh,
suitable for bouquets or for
ornamental purposes.
0603.11.0030........................... Spray roses, fresh, suitable
for bouquets or for ornamental
purposes.
0603.11.0060........................... Roses, fresh, suitable for
bouquets for ornamental
purposes, nesoi.
------------------------------------------------------------------------
(2) Advice as to the probable economic effect of the removal from eligibility for duty-free treatment under the GSP program for these articles from all countries on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers. The USTR notified the Commission that six articles from all beneficiary developing countries are being considered for removal from eligibility for duty-free treatment under the GSP program. Under authority delegated by the President, pursuant to section 332(g) of the Tariff Act of 1930, with respect to the articles listed in Table B of the Annex to the USTR request letter, the USTR requested that the Commission provide its advice as to the probable economic effect of the removal from eligibility for duty-free treatment under the GSP program for these articles from all beneficiary developing countries on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers (see Table B below).
Table B--2020 GSP Annual Review--Petitions Submitted To Remove Duty-Free
Status for a Product on the List of Eligible Articles for the GSP
Program
------------------------------------------------------------------------
HTS provision Brief description
------------------------------------------------------------------------
1006.10.00............................. Rice in the husk (paddy or
rough).
1006.20.20............................. Basmati rice, husked.
1006.20.40............................. Husked (brown) rice, other than
Basmati.
1006.30.10............................. Rice semi-milled or wholly
milled, whether or not
polished or glazed, parboiled.
1006.30.90............................. Rice semi-milled or wholly
milled, whether or not
polished or glazed, other than
parboiled.
1006.40.00............................. Broken rice.
------------------------------------------------------------------------
On October 31, 2019, the Executive Office of the President published in the Federal Register (84 FR 58567) Proclamation 9955 of October 25, 2019 To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes.
UKRAINE. The proclamation restores the duty-free treatment accorded under GSP to certain products from Ukraine because the country has made progress towards providing adequate and effective protection of intellectual property rights. The list of products restored to GSP eligibility for Ukraine is available at http://ustr.gov/sites/default/files/files/gsp/Products_to_be_restored_to_GSP_eligibility_for_Ukraine.pdf
THE REPUBLIC OF MALI. The proclamation designates Mali a lesser developed beneficiary sub-Saharan African country (LDBC), thus qualifying it for LDBC preferential benefits. This action will take effect thirty days from the signing of the proclamation, November 24, 2019. Mali's AGOA benefits had been restored by Presidential Proclamation 9072 (December 23, 2013) which designated the Republic of Mali as a beneficiary sub-Saharan African country to the AGOA program; however, this Presidential Proclamation did not designate the Republic of Mali as a "lesser developed beneficiary sub-Saharan African country." As a consequence, Mali was unable to take advantage of special rules for certain apparel articles imported from "lesser developed beneficiary sub-Saharan African countries," in particular the third country fabric provision that enables Mali to produce apparel competitively.
THAILAND. The proclamation withdraws the duty-free treatment accorded under GSP to certain products from Thailand because the country is not taking steps to afford workers in Thailand internationally recognized worker rights. This action will take effect six months from the issuance of this proclamation. Additional guidance will be issued close to the date of implementation. The list of products excluded from GSP eligibility for Thailand is available at: http://ustr.gov\sites\default\files\files\gsp\Products_to_be_removed_from_GSP_eligibility_for_Thailand.pdf
If questions contact the Trade Agreements Branch at FTA@CBP.DHS.gov.
On June 14, 2019, the Office of the U.S. Trade Representative published in the Federal Register (84 FR 27830) Generalized System of Preferences (GSP): Notice Regarding the 2019 GSP Annual Product Review.
The Office of the United States Trade Representative (USTR) will consider petitions to modify the GSP status of GSP beneficiary developing countries (BDCs) because of country practices; add products to GSP eligibility; remove products from GSP eligibility for one or more countries; waive competitive need limitations (CNLs); deny de minimis waivers for products eligible for de minimis waivers; and redesignate currently excluded products.
On March 4, 2091, At the direction of President Donald J. Trump, U.S. Trade Representative Robert Lighthizer announced that the United States intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria.
India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors. Turkey’s termination from GSP follows a finding that it is sufficiently economically developed and should no longer benefit from preferential market access to the United States market.
By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey, and will be enacted by a Presidential Proclamation.
Background
Under the United States GSP program, certain products can enter the United States duty-free if beneficiary developing countries meet the eligibility criteria established by Congress. GSP criteria include, among others, respecting arbitral awards in favor of United States citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access. Countries can also be graduated from the GSP program depending on factors related to economic development.
India
The United States launched an eligibility review of India’s compliance with the GSP market access criterion in April 2018. India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion.
Turkey
The United States designated Turkey as a GSP beneficiary developing country in 1975. An increase in Gross National Income (GNI) per capita, declining poverty rates, and export diversification, by trading partner and by sector, are evidence of Turkey’s higher level of economic development.
DATES:
June 19, 2018: The GSP Subcommittee of the Trade Policy Staff Committee (TPSC) will convene a public hearing on the GSP country practice reviews of India, Indonesia, and Kazakhstan in Rooms 1 and 2, 1724 F Street NW, Washington DC 20508, beginning at 10:00 am.
June 5, 2018 at midnight EDT: Deadline for submission of comments, pre-hearing briefs, and requests to appear at the June 19, 2018, public hearing.
July 17, 2018 at midnight EDT: Deadline for submission of post-hearing briefs.
The GSP program provides for the duty-free treatment of designated articles when imported from beneficiary developing countries. The GSP program is authorized by Title V of the Trade Act of 1974 (19 U.S.C. 2461 - 2467), as amended, and is implemented in accordance with Executive Order 11888 of November 24, 1975, as modified by subsequent Executive Orders and Presidential Proclamations. USTR will lead a review of the eligibility of India, Indonesia, and Kazakhstan for benefits under the GSP program. These country practice reviews are undertaken on the recommendation of the TPSC pursuant to 15 CFR 2007.0(f) to determine whether the current laws and practices of India, Indonesia, and Kazakhstan meet the GSP eligibility criteria. These reviews are the result of country eligibility petitions submitted by interested stakeholders and an assessment of the 25 Asian and Pacific Island GSP beneficiary countries conducted by the GSP Subcommittee.
1. India Country Eligibility Review
The country practice review of India will focus on whether it is meeting the GSP eligibility criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market (19 U.S.C. 2462(c)(4)). USTR is accepting two petitions asserting that India is not meeting this criterion: one from the National Milk Producers Federation and the U.S. Dairy Export Council, and the other from the Advanced Medical Technology Association. In addition, through the new GSP Country Assessment process, the GSP Subcommittee identified potential concerns with India’s compliance with the GSP criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market (19 U.S.C. 2462(c)(4)). As described in the India Chapter of the 2018 National Trade Estimate Report on Foreign Trade Barriers, India has implemented a wide array of trade barriers that create serious negative effects on U.S. commerce. Due to the similar nature of the issues raised in these petitions with concerns identified in the assessment process, the petitions and the self-initiated review will be combined into one overall review of India’s GSP eligibility based on the GSP market access criterion.
2. Indonesia Country Eligibility Review
The country practice review of Indonesia will focus on whether it is meeting two GSP criteria: (1) the GSP criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market (19 U.S.C. 2462(c)(4)), and (2) the GSP criterion that requires a GSP beneficiary country to reduce trade-distorting investment practices and reduce or eliminate barriers to trade in services (19 U.S.C. 2462(c)(6)). As described in the Indonesia Chapter of the 2018 National Trade Estimate Report on Foreign Trade Barriers, Indonesia has implemented a wide array of trade barriers that create serious negative effects on U.S. commerce. The existing review of Indonesia’s compliance with the GSP criterion related to intellectual property rights (19 U.S.C. 2462(c)(5)) is separate, and will continue.
3. Kazakhstan Country Eligibility Review
The country practice review of Kazakhstan will focus on whether it is meeting the GSP criterion requiring a GSP beneficiary country to take steps to afford internationally recognized worker rights to workers in the country (19 U.S.C. 2462(b)(2)(G)). USTR is accepting a petition filed by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). The petition alleges that the Government of Kazakhstan actively restricts the right to form trade unions and employer associations without prior permission, prevents workers and employers from joining organizations of their own choosing, interferes in the structure and activities of worker and employer organizations, and targets labor leaders with arrests and prosecutions for exercising their rights.
On April 12, 2018, the Office of the United States Trade Representative announced that it is reviewing the eligibility of India, Indonesia, and Kazakhstan in the Generalized System of Preferences (GSP) based on concerns about the countries’ compliance with the program. The reviews are based on the Trump Administration’s new GSP country eligibility assessment process as well as GSP country eligibility petitions.
“GSP provides an important tool to help enforce the Trump Administration’s key principles of free and fair trade across the globe. The President is committed to ensuring that those countries who receive GSP benefits uphold their end of the bargain by continuing to meet the eligibility criteria outlined by Congress,” said Deputy U.S. Trade Representative Jeffrey Gerrish. “We hope that India, Indonesia, and Kazakhstan will work with us to address the concerns that led to these new reviews.”
For India, the GSP country eligibility review is based on concerns related to its compliance with the GSP market access criterion. For Indonesia, the review is based on concerns related to its compliance with the GSP market access criterion and the GSP services and investment criterion. Kazakhstan’s eligibility review is based on concerns related to its compliance with the GSP worker rights criterion.
A public hearing and comment period for the new GSP reviews of India, Indonesia, and Kazakhstan will be announced in an upcoming Federal Register notice.
Background
In October 2017, USTR announced a new triennial process to assess GSP beneficiary country eligibility. The first assessment period covered 25 Asian and Pacific island GSP beneficiary countries. For each such country, USTR and other U.S. Government agencies examined the country’s policies and practices related to each of the 15 eligibility criteria established by Congress, including respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, reducing barriers to services trade and investment, and providing the United States with equitable and reasonable market access.
USTR also received petitions from stakeholders requesting new eligibility reviews. Based on the information analyzed in its assessment process and on the petitions submitted by stakeholders, USTR has determined that the three new country eligibility reviews are warranted. The lack of a self-initiated review with respect to a GSP country should not be interpreted as an affirmation that the country is meeting all of the GSP criteria.
India: USTR is launching a self-initiated GSP eligibility review of India based on concerns related to its compliance with the GSP market access criterion and is also accepting two petitions related to the same criterion. The petitions filed by the U.S. dairy industry and the U.S. medical device industry requested a review of India’s GSP benefits, given Indian trade barriers affecting U.S. exports in those sectors. India has implemented a wide array of trade barriers that create serious negative effects on U.S. commerce. The acceptance of these petitions and the GSP self-initiated review will result in one overall review of India’s compliance with the GSP market access criterion.
Indonesia: USTR is launching a self-initiated GSP eligibility review of Indonesia based on concerns related to its compliance with the GSP market access criterion and related to its compliance with the GSP services and investment criterion. Indonesia has implemented a wide array of trade and investment barriers that create serious negative effects on U.S. commerce.
Kazakhstan: USTR is accepting a petition from the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) which alleges that Kazakhstan has not taken steps to afford internationally recognized worker rights, including the right to freedom of association and the right to bargain collectively. The petition further alleges that Kazakhstan actively restricts the right to form trade unions and employer associations. Serious concerns about restrictive legislation and the harassment of independent labor leaders have been raised repeatedly at the International Labor Organization (ILO).
The next GSP assessment process will start in the fall of 2018 and will cover beneficiary countries in Eastern Europe, the Middle East and North Africa, and the Western Hemisphere.
The GSP is the largest and oldest U.S. trade preference program and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. Congress voted last month to renew the GSP through 2020.
For more information on the GSP program, visit the GSP page on the USTR website here.
On April 4, 2018, the Office of the U.S. Trade Representative published in the Federal Register (83 FR 14540) Generalized System of Preferences (GSP): Notice of Revisions to the 2017/2018 Annual GSP Product and Country Practices Review; Deadline for Filing Petitions; GSP Renewal and Technical Modifications.
SUMMARY: The Office of the United States Trade Representative (USTR) will consider petitions to modify the GSP status of GSP beneficiary countries because of country practices; add products to GSP eligibility; remove products from GSP eligibility for one or more countries; waive competitive need limitations (CNLs); deny de minimis waivers for products eligible for de minimis waivers; and redesignate currently excluded products. This review will include separate hearings on product petitions and country eligibility reviews, which will be announced in the Federal Register at a later date.
DATES: To be considered in the 2017/2018 Annual GSP Review, USTR must receive your petition by Monday, April 16, 2018 at midnight EST. This is the deadline for petitions to modify the GSP status of GSP beneficiary developing countries because of country practices; petitions requesting waivers of CNLs; petitions on GSP product eligibility additions and removals; petitions to deny de minimis waivers; or petitions to redesignate an excluded product.
USTR will not consider petitions submitted after the April 16, 2018 deadline. USTR will announce decisions on which petitions are accepted for review, along with a schedule for any related public hearings and the opportunity for the public to provide comments, at a later date.
"President Trump has sent a clear message that the United States will vigorously enforce eligibility criteria for preferential access to the U.S. market,” said Ambassador Lighthizer. “Beneficiary countries choose to either work with USTR to meet trade preference eligibility criteria or face enforcement actions. The Administration is committed to ensuring that other countries keep their end of the bargain in our trade relationships.”
Ukraine’s partial suspension from GSP stems from its failure to provide adequate and effective protection of intellectual property rights (IPR) despite years of encouragement and assistance from the U.S. Government. The President has decided to provide 120 days’ notice in this case because the Government of Ukraine has a viable path to remedy the situation, including improving the current legal regime governing royalty reimbursement to right holders’ organizations.
Argentina is being reinstated to the GSP program effective January 1, 2018 following resolution of certain arbitral disputes with U.S. companies, new commitments by the Argentine government to improve market access for U.S. agricultural products, and improved protection and enforcement of IPR. Due to certain remaining IPR issues, the restoration of GSP benefits for Argentina will not apply to all eligible products.
The Gambia lost its AGOA eligibility in 2015 due to human rights abuses and the deterioration of the rule of law. Following democratic elections in December 2016, The Gambia has made progress in strengthening the rule of law, improving human rights, and supporting political pluralism.
Swaziland lost AGOA eligibility in 2015 due to concerns over restrictions on the freedoms of peaceful assembly, association, and expression. The United States set a series of benchmarks related to lifting restrictions on freedoms of assembly, association, and expression Swaziland would need to meet to regain AGOA eligibility. Swaziland met the last of these benchmarks in November 2017.
USTR is conducting a separate AGOA out-of-cycle review for Rwanda, Tanzania, and Uganda in response to a petition asserting that their phased ban on imports of used clothing is negatively impacting U.S. jobs. This review is ongoing.
Background
Under U.S. trade preferences programs, including GSP and AGOA, certain products can enter the United States duty-free if beneficiary countries meet the eligibility criteria established by Congress. GSP criteria include, among others, respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access. AGOA eligibility criteria include making progress toward establishing political pluralism, the rule of law, and a market-based economy; elimination of barriers to U.S. trade and investment; protection of internationally recognized worker rights; a system to combat corruption and bribery; and economic policies to reduce poverty.
On August 11 23, 2017, the Office of the U.S. Trade Representative published in the Federal Register (82 FR 37652) Generalized System of Preferences ("GSP"): Initiation of the 2017 Annual GSP Product and Country Practices Review; Deadlines for Filing Petitions; Notice of Change in Country Practices Hearing.
The Office of the United States Trade Representative will consider petitions to modify the list of articles that are eligible for duty-free treatment under the Generalized System of Preferences program, and to modify the GSP status of certain GSP beneficiary developing countries because of country practices.
On June 30, 2017, the Executive Office of the President published in the Federal Register (82 FR 30711) Proclamation 9625 (of June 29, 2017) -- To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes.
Agathon Associates note: Of interest to our readers is Annex 1, section A, which modifies the Rates of Duty 1-Special Subcolumn for certain travel goods of Heading 4202 (Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper).
The symbol "A+" which indicates that these travel goods are eligible for Generalized System of Preferences ("GSP") duty-free entry when they are the product of a Least Developed Beneficiary Developiong Country ("LDBDC") only has been deleted and replaced by the symbol "A" which indicates that these travel goods are eligible for GSP duty-free entry when they are the product of any GSP-eligible country. This is a significant change because, with few exceptions, the LDDBCs are not major producers and shippers of such articles, while the larger list of all GSP-elgible countries includes major producers and exporters such as India and Pakistan.