The US Generalized System of Preferences (GSP ) program offers duty-free treatment for about 4,800 products from 131 designated beneficiary developing countries and territories throughout the world. All imports of GSP-eligible articles from these countries are duty-free under the GSP program. It is very popular with certain industries such as transportation, electronics, chemicals, plastics, fuel, metal, jewelry and glassware. If you are exporting products to the United States and pay duty, you should consider applying to add a new product to the GSP eligible product list.

Federal Register Notice dated July 15, 2010 announced that the Office of the United States Trade Representative (USTR) will receive petitions to modify the list of products that are eligible for duty-free treatment under the GSP program. The deadline to add new products to the list of GSP eligible articles to receive duty-free treatment is August 3, 2010.

Procedure for submitting petitions to the USTR
Petitions must conform to the applicable rules and regulations. Petitions accepted for review are subject to public hearings and a full review by the major executive branch departments having a role in US trade policy. Modifications made pursuant to the annual review are implemented by executive order, or presidential proclamation, and are published in the Federal Register. Modifications in the list normally take effect on July 1 of the following calendar year.

Factors taken into account in modifying the list
In modifying the GSP list of articles and countries, the following factors must be considered:

1. the effect such action will have on furthering the economic expansion of the country’s exports;
2. the extent to which other major developed countries are undertaking a comparable effort to assist a developing country by granting generalized preferences with respect to imports of products of the country;
3. the anticipated impact of such action on the US producers of like or directly competitive products; and
4. the extent of the country’s competitiveness with respect to eligible products.

In addition, the Trade Act of 1974 (19 USC 2463 (b)) provides a list of articles that may not be designated eligible for GSP.

Contact Information
Should you have any questions, please contact the Arent Fox attorney with whom you work or a member of its International Trade Practice Group. Arent Fox has extensive experience in helping companies, trade associations and foreign governments on all aspects of the GSP Program including making new product applications to the GSP eligible product list.

Sule Öktenay Akyuz
Akyuz.sule@arentfox.com
202.828-3421