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US GSP - Review of US GSP benefit on exports from India
 

 

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle 4th Fl., 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684 *

E-mail : info@chemexcil.v.in Web : https://chemexcil.in


 

 

EPC/LIC/US-GSP 07/05/2018

 

ALL MEMBERS OF THE COUNCIL

US GSP
Ø Review of US GSP benefit on exports from India

URGENT AND IMPORTANT
Dear Member-exporters,

Kindly refer our earlier email dated 2nd May 2018 on the above subject. As stated therein, a stakeholders meeting was held under the chairmanship of Shri Shyamal Misra, IAS, Joint Secretary, Ministry of Commerce and Industry on 4th May, 2018 at New Delhi,  on "Review of US GSP benefit on exports from India" and future course of action to be taken in this matter.

As you are aware, the United States (U.S.) Congress authorised extension of GSP benefit and currently India is one of the largest beneficiary under this programme.    However, the extension of Generalised System of Preferences (US-GSP) program is a general extension.

As you may be aware, the United States Trade Representative (USTR) would be reviewing the eligibility of India and some other countries in the GSP. USTR notified that the review process for India is going to start as per details given below:

The Federal Register (FR) provides for interested parties to submit comments and hearing as per following timelines:

Ø 5 June 2018 - Deadline for interested parties to submit comments, pre-hearing briefs and request to appear in the public hearing.

Ø 19 June 2018:-   The Trade Policy Staff Committee (TPSC)  will hold a public hearing for interested parties.

Ø A transcript of the public hearing will be available on www.regulations.gov within approximately two weeks after the date of the hearing.

Ø 17 July 2018 - Deadline for interested parties to submit post-hearing briefs.

For India,  GSP country eligibility review is based on concerns   related to its compliance with  GSP  market access criteria which includes schedule for submission of public comments and a public hearing.  It is understood that the US formally notified in Federal Register (FR) on 27.4.2018 initiating Country Practice Review of India regarding compliance with the GSP eligibility criteria.

We are enclosing herewith a  list of the items which are coming under the  purview of  CHEMEXCIL with the MFN duties applicable against each product/HS code.   If the US Office withdraws the GSP benefit of India, our exports will be adversely affected by the MFN duties mentioned against such products.  We have also attached herewith FR notice announcing initiation of country practice reviews of India etc. which provides detailed information of submission.

Since you are  one of the manufacturer-exporters to USA, you are requested to kindly go through the list of the items mentioned in the enclosure and send a representation directly through online submission to the USTR Federal eRulemaking Portal : https://www.regulations.gov with the docket Number,  (The docket No. for India review is USTR-2018-0006) latest by 15/05/2018 with a copy to CHEMEXCIL (ed@chemexcil.gov.in;adreach@chemexcil.gov.in;deepak.gupta@chemexcil.gov.in )as well as the Ministry of Commerce & Industry  (email : moc_epcap@nic.in highlighting justifications on 
a)  items being exported by your company, 
b)  why  GSP benefit should continue and
c) how the GSP importers into USA are  benefiting US industry  as most the items are intermediates and raw materials.  If you have  any other  justification which can strengthen the case for continuation of US GSP benefits you can highlight the same in your representation.

 In your representation being submitted to the USTR, you may also mention about not involvement of child labour in your industry, well defined labour law, India still a developing country, how it is helping employment generation and  how it is helping the US importers as your products are  raw materials and intermediates for the US industry who are doing value addition and manufacturing the value added / end products for the benefit to US consumers. Further, you can also impress upon your US importers to take up the same at their end also with USTR and send us a copy of such communication for our perusal.

Your immediate response / reply on or before 15th May, 2018 will enable us to update the Ministry of Commerce & Industry for taking up the matter with concerned authorities appropriately.

Thanking you,
Yours faithfully,

S G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL
BASIC CHEMICALS, COSMETICS & DYES EXPORT PROMOTION COUNCIL 
(Set-up by Ministry of Commerce & Industry, Government of India)
Jhansi Castle, 4th Floor, 7 Cooperage Road,
Mumbai – 400 001. India.
CIN : U91110MH1963NPL012677
Tel       :+91-22-2202 1288/ 1330
Fax      :+91-22-2202 6684
URL     : www.chemexcil.in
Twitter : @chemexcil

Enclosure:- Copy of USA IMPORT FROM INDIA UNDER GSP PROGRAM (4)
FR notice announcing initiation of country practice reviews India Indonesia Kazakhstan (2)

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