A. Generalised System of Preferences (GSP)
GSP is a programme designed to promote economic growth in the developing world by providing preferential duty-free treatment for products from some 143 designated beneficiary developing countries (BDCs) and territories. The GSP programme was instituted on 1 January 1976 and authorised under the Trade Act of 1974 for a ten-year period. It was most recently renewed in 2006, when President Bush signed legislation reauthorising the programme through 2008.
a) Eligible Items
A good is eligible for GSP duty free treatment only if it (a) is the growth, product or manufacture of a beneficiary country or has been substantially transformed into a new or different article of commerce in a beneficiary country; (b) is imported directly from a beneficiary country into the customs territory of the US; and (c) meets a value-added requirement.
b) Designation in the "Special" Column of the HTSUS
"A" for articles that are GSP-eligible for all BDCs
"A+" for articles that are GSP-eligible only for LDBDCs
"A*" for articles that are GSP-eligible except for imports from one or more specific BDCs that have lost GSP eligibility for that article
c) Eligible Countries
See HTSUS General Note 4(a) and (b) for the official list of GSP-eligible BDCs and LDBDCs (www.usitc.gov/tata/hts/bychapter/index.htm).
d) Additional Information
B. African Growth and Opportunity Act (AGOA)
AGOA provides duty-free treatment under the GSP to certain articles that would normally be excluded from GSP provisions. It also provides for duty-free entry of specific textile and apparel articles. Preferential treatment for certain eligible textiles and apparel is subject to specific limitations.
AGOA became effective on 1 October 2000. The AGOA Acceleration Act of 2004 extended AGOA benefits to 2015 and a special textile rule for lesser-developed countries to September 2007. The lesser-developed country rule was subsequently extended through September 2012.
a) Beneficiary Countries
A current list of designated countries is available at www.agoa.gov.
b) Eligible Items
The Trade Act of 1974 authorises the president to provide duty-free treatment under the GSP to certain articles that would otherwise be excluded from such treatment. A variety of products have been designated as eligible for duty-free treatment for beneficiary sub-Saharan African countries, including: (a) some watches and clocks, (b) certain electronics; (c) certain steel and metals; (d) certain textiles and apparel; and (e) certain semi-manufactured and manufactured glass products.
Duty-free treatment is extended to essentially all imports except textiles and apparel as long as the products (a) are the growth, product or manufacture of a beneficiary sub-Saharan African country; (b) are imported directly from a beneficiary sub-Saharan African country into the customs territory of the US; (c) meet a value-added requirement; and (d) are not determined by the president to be import-sensitive in the context of imports from beneficiary sub-Saharan African countries. A list of products eligible for duty-free treatment under the AGOA is available on-line at www.agoa.gov.
AGOA also provides duty-free and quota-free benefits to imports of certain textile and apparel articles produced in eligible sub-Saharan African countries. In most instances, these benefits are available regardless of the total volume of apparel exported from eligible countries to the US.
c) Designation in the "Special" Column of the HTSUS
"D"
d) Additional Information
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African Growth and Opportunity Act Implementation Guide:
www.agoa.gov.
C. Caribbean Basin Initiative (CBI/CBERA/CBTPA)
The US trade programmes known collectively as the Caribbean Basin Initiative (CBI) are intended to facilitate the economic development and export diversification of the Caribbean Basin economies. Initially launched in 1984 through the CBERA and expanded in 2000 through the CBTPA, the CBI provides 19 beneficiary countries with duty-free access to the US market for most goods. The CBTPA is scheduled to expire on 30 September 2008.
The CBI was amended in 2006 to incorporate the provisions of the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE). HOPE provides duty-free treatment to certain products from Haiti, including certain wiring sets and apparel made with certain foreign inputs.
a) Eligible Items
A good is eligible for CBI duty free treatment only if it (a) is the growth, product or manufacture of a beneficiary country or has been substantially transformed into a new or different article of commerce in a beneficiary country; (b) is imported directly from a beneficiary country into the customs territory of the US; and (c) meets a value-added requirement.
b) Beneficiary Countries
See HTSUS General Note 7 for a list of beneficiary countries: www.usitc.gov/tata/hts/bychapter/index.htm.
c) Designation in the "Special" Column of the HTSUS
"E" or "E*" for CBERA eligible articles
"R" for CBTPA eligible articles
d) Additional Information
D. Andean Trade Promotion and Drug Eradication Act (ATPDEA)
The Andean Trade Preference Act (ATPA) was enacted in 1991 to combat drug production and trafficking in Bolivia, Colombia, Ecuador and Peru. The programme offers trade benefits to help these countries develop and strengthen legitimate industries. The ATPA was expanded under the Trade Act of 2002 and is now called the Andean Trade Promotion and Drug Eradication Act (ATPDEA). The program is scheduled to expire at the end of 2008.
a) Eligible Items
In general, the ATPDEA expanded the ATPA's trade benefits to include additional products such as apparel made of US fabric, Andean apparel made of regional fabric subject to a cap, and certain tuna.
HTSUS General Note 11 contains a list of beneficiary countries and eligibility provisions pertaining to ATPDEA (see www.usitc.gov/tata/hts/bychapter/index.htm).
b) Designation in the "Special" Column of the HTSUS
"J", "J*" or "J+"
c) Additional Information
