IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 23 Aug 2017 | Removal date: open ended
Still in force

Import tariff

In an opinion and order issued on August 23, 2017, the Court of International Trade (CIT) rendered a decision that may affect the eligibility of numerous items for duty-free treatment under the Generalized System of Preferences (GSP). At issue is the question of whether all of the items in a set of numerous goods need to meet GSP eligibility requirements in order to benefit from this preferential program. In Meyer Corp. v. United States the court reviewed the GSP-eligibility of cookware sets imported from Thailand (which is designated for GSP benefits) that include glass lids made in China (which is not) as well as components made in other GSP beneficiary countries. U.S. Customs and Border Protection (CBP) had argued that an entire set should be considered ineligible for GSP if it contains an item or component that cannot be regarded as a product of a beneficiary country.

The CIT found that under CBP’s argument, preferential treatment would be denied to an article otherwise eligible for GSP simply because it has been put up in sets for retail sale together with articles that are not GSP-eligible. The court also observed that GSP treatment should not be extended to a non-de minimis component from a non-GSP country simply by virtue of its being part of an otherwise GSP-eligible set. The court remanded to CBP for further consideration the question of whether the Thai-produced components in the sets at issue do in fact meet the GSP eligibility criteria.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

429 Other fabricated metal products
7323 Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel.
732393 Of stainless steel

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