Proclamation Details Changes to HTS From GSP Review, Other Tariff Changes
President Obama published Proclamation 8997 and its related annexes in the Federal Register July 2, making changes to the Generalized System of Preferences program, including suspension of eligibility for Bangladesh, as well as other minor changes to the Harmonized Tariff Schedule. Revocation for Bangladesh is effective Sept. 3. All other changes to the HTS, which include GSP changes from the U.S. Trade Representative’s 2012 annual review, as well as amendments to tariff provisions in Chapter 85 and a technical change to Chapter 99, are effective July 1.
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In its 2012 GSP review, the administration decided to suspend Bangladesh’s eligibility for GSP. The proclamation accordingly removes Bangladesh from GSP-related provisions of the Harmonized Tariff Schedule in general note 4. Suspension of eligibility for Bangladesh is effective 60 days after publication of the proclamation in the Federal Register, Sept. 3.
The proclamation also implements the decision from the GSP review to revoke Competitive Need Limitation (CNL) waivers for the following products, removing them from eligibility for GSP treatment:
| Subheading | Country | Description |
|---|---|---|
| 1005.90.40 | Brazil | Corn (maize), other than seed and yellow dent corn |
| 4011.10.10 | Indonesia | New pneumatic radial tires, of rubber, of a kind used on motor cars (including station wagons and racing cars) |
Other 'Technical Corrections' to HTS
The proclamation makes several changes to the HTS characterized as “technical corrections:
Duty free treatment for video game radio remote controls. Effective July 1, the proclamation inserts divides old subheading 8526.92.00 for radio remote control apparatuses to provide duty free treatment for radio remote control apparatuses for video game consoles. The new subheadings are 85265.92.10 (“Radio remote control apparatus: Radio remote control apparatus for video game consoles”), which is duty free, and 8526.92.50 (“Radio remote control apparatus: Other”), dutiable at the previous rate of 4.9%. The proclamation says the change was made to reflect U.S. tariff commitments made in the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994.
Technical corrections to chapter 85. The proclamation also makes technical corrections to Chapter 85. SPI “D” is inserted in special rate of duty column 1 to allow for eligibility of some flat panel monitors for African Growth and Opportunity Act benefits. Subheading 8529.90.53 is also amended to correct HTS numbers referenced in the article description.
Duty free ethyl alcohol from Colombia. Finally, effective July 1, the proclamation adds SPI “CO” to subheading 9901.00.50 and 9901.50.52, which include certain types of ethyl alcohol, to provide duty free treatment for goods originating from Colombia.
USTR's list of changes from the 2012 GSP review is (here).
(See Annexes II and III of the proclamation for a full list of HTS subheadings and countries eligible for GSP de minimis waivers of CNLs, as well as the decision to grant a waiver of the CNL on calcium silicon ferroalloys from Brazil.)