ITC Reports on Possible Removal of Non-Down Sleeping Bags from GSP
The International Trade Commission has released the public version its report on the likely impact on U.S. industry, imports, and consumers of the removal of HTS subheading 9404.30.80 (sleeping bags, not containing 20% or more by weight of feathers and/or down, referred to as non-down sleeping bags) from duty-free status with respect to all GSP beneficiary countries.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
(This report was requested by the Office of the U.S. Trade Representative. The USTR previously announced that it had accepted for review a petition to remove non-down sleeping bags from GSP. The petition was filed on behalf of Exxel Outdoors, Inc., a domestic manufacturer of outdoor and recreational products (including the subject sleeping bags).)
Public Version Contains Industry and Market Data, Not Economic Effect
As this ITC report is the public version, all confidential national security and business information, including the ITC’s findings regarding probable economic effect, has been removed. The report does, however, contain U.S. industry and market data for the non-down sleeping bags.
Highlights of U.S. Industry and Market Data for Non-Down Sleeping Bags
The following are highlights of the U.S. industry and market data for 2005 -- 2009 for the sleeping bags being considered for possible GSP removal:
Bangladesh is primary GSP supplier of non-down bags. Bangladesh was the primary GSP supplier of non-down sleeping bags in 2009, accounting for 97% of the value of U.S. imports of non-down sleeping bags from GSP countries. U.S. imports of the subject sleeping bags from Bangladesh increased in value from $17,287 in 2008 to $611,927 in 2009; nonetheless, they accounted for less than 1% of the total U.S. imports of such sleeping bags in 2009.
Such imports currently fall well below the GSP’s competitive need limits of a 50% share
of U.S. imports of the subject product or imports exceeding $140 million for 2009. In 2009, 27% of imports of non-down sleeping bags from Bangladesh ($162,817) entered duty free under the GSP, with the remainder (63%) dutiable at 9% ad valorem.
Two U.S. producers. The U.S. non-down sleeping bag industry consists of two producers, the petitioner Exxel Outdoors, Inc. and Wiggy’s. The percent of the U.S. market for non-down sleeping bags supplied by these producers rose in 2009 from 2005 levels. In addition, U.S. imports of the subject sleeping bags declined by 35% during 2005 -- 2009.
Sleeping bags from Bangladesh differ. According to an importer, the sleeping bags it imports from Bangladesh are different from those produced by Exxel in the U.S. in that they have different features and price points and serve different market segments.
China is major supplier of non-down bags. China, a non-GSP supplier, was the major source of U.S. imports of non-down sleeping bags in 2009, accounting for 98% of the value and quantity of such imports. U.S. imports of these products from China declined steadily during 2005 -- 2009, reportedly, in part, because of the state of the U.S. economy and shrinking demand for sleeping bags.
(See ITT’s Online Archives or 01/27/10 news, (Ref: 10012720), for BP summary announcing the ITC initiating this investigation.)
ITC press release (dated 04/19/10) available at http://www.usitc.gov/press_room/news_release/2010/er0419hh1.htm
ITC Investigation “Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2010 Special Review, Certain Sleeping Bags” (Inv. No. 332-513, dated April 2010) available at http://www.usitc.gov/publications/332/pub4141.pdf