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Import / Export LAW

Proclamation 8157

Customs Updates at
July 1. 2007

President Bush's Proclamation 8157 Revokes India's gold jewelry eligibility under the GSP Program

On Thursday, June 28, 2007, the President of the United States issued Proclamation 8157 to modify duty free treatment under the generalized system of Preferences (GSP), Designate Mauritania as an African Growth and Opportunity Act (AGOA), beneficiary country, and make technical changes to the Harmonized Tariff Schedule.

GSP Changes are effective for subject articles entered or withdrawn from warehouse for consumption on or after July 1,2007. Gold Jewelry from India Classified under Harmonized Tariff schedule (HTS) 7113.19.50 has lost its eligibility under GSP and Will now be dutiable at 5.5%. Other items under HTS 7113 remain unaffected as far as GSP eligibility is concerned.

The U.S. Generalized System of Preferences (GSP), a program designed to promote economic growth in the developing world, provides preferential duty-free entry for more than 4,650 products from 143 designated beneficiary countries and territories. The GSP program was instituted on Jan. 1, 1976, and authorized under the Trade Act of 1974 for a 10-year period. It has been renewed periodically since then, most recently in 2006, when President George Bush signed legislation that reauthorized the GSP program through 2008.

Under the GSP program, eligible articles from eligible developing countries may qualify for duty free treatment, as long as they have been substantially transformed in the beneficiary country and incorporate 35% of their dutiable value in that country or in an approved group of beneficiary countries. If imports from a beneficiary country surpass designated levels in a single calendar year ($125 million in 2006), they are considered to have exceeded "competitive need" limits (CNL), and the industry in the beneficiary country is presumptively considered "developed", unless a case is made for waiver of the CNL. Import sensitive articles can be excluded from eligibility, and previously excluded articles can be re-designated for eligibility.