Turkey No Longer GSP, Turkish Steel Duty Reduced to 25% Effective May 21

2024-02-26T17:07:49+00:00May 17th, 2019|Customs, Import, Industry Spotlight|

Effective May 17, 2019, the designation of Turkey as a beneficiary developing country was terminated in a White House proclamation posted the evening of May 16th.  No longer protected by the Generalized System of Preferences (GSP), Turkey products are now subject to safeguard tariffs for goods such as solar cells and residential washers.

The U.S. announced the impending change back in March, advising Turkey and India both no longer complied with the eligibility criteria as beneficiary developing countries under the Generalized System of Preferences (GSP).

GSP ELIGIBILITY CRITERIA

  • respecting arbitral awards in favor of United States citizens or corporations;
  • combating child labor;
  • respecting internationally recognized worker rights;
  • providing adequate and effective intellectual property protection; and
  • providing the United States with equitable and reasonable market access.

Consistent with my determination that it is appropriate to terminate the designation of Turkey as a beneficiary developing country under the GSP, effective May 17, 2019, I have determined to remove it from the list of developing country WTO Members exempt from application of the safeguard measures on CSPV products and large residential washers.

The designation of Turkey as a beneficiary developing country is terminated, effective May 17, 2019.

Turkey is also now subject to the Section 201 safeguard tariffs on solar cells and residential washers effective May 17, CBP said. 

Consistent with the Presidential Proclamation 9887 to Modify the List of Beneficiary Developing

Countries Under the Trade Act of 1974, issued on May 16, 2019, the designation of Turkey as a beneficiary developing country under the Generalized System of Preferences (GSP) is removed from the list of developing country WTO Members exempt from application of the safeguard measures on Crystalline Silicon Photovoltaic Cell (CSPV) products and large residential washers.

The exemption for Turkey from application of the safeguard measures on CSPV products and large residential washers is removed, effective May 17, 2019.

TURKISH STEEL

Turkey also received a reduction in the elevated Section 232 tariffs on steel it has been paying since August 13, 2018.

Citing a 48% decline in steel imports, the Turkish steel industry seems to have met the United States’ target level of capacity utilization and will enjoy a reduction from 50% to 25%, effective May 21, 2019.

Given these improvements, I have determined that it is necessary and appropriate to remove the higher tariff on steel imports from Turkey imposed by Proclamation 9772, and to instead impose a 25 percent ad valorem tariff on steel imports from Turkey, commensurate with the tariff imposed on such articles imported from most countries.

For more information about the Generalized System of Preferences, visit The Office of the United States Trade Representative.

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