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Proc 10107ProclamationTrump 45 · R Quiet signal

Proclamation 10107

To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes

This proclamation suspends duty-free trade benefits for certain Thai products under the Generalized System of Preferences (GSP), effective December 30, 2020, citing Thailand's failure to provide equitable market access to the U.S. It also terminates GSP benefits for specific articles from other beneficiary countries that exceeded competitive need limitations in 2019, withdraws duty-free treatment for one article, designates a new eligible article, waives competitive need limitations for certain articles, and updates the Harmonized Tariff Schedule to reflect North Macedonia's name change.

Federal Register Open PDF 85 FR 70027

Impact dates

  1. Suspension of GSP duty-free treatment for certain Thai articles takes effect

  2. HTS modifications in Annex II and Annex III take effect for articles entered for consumption or withdrawn from warehouse for consumption

Key directives

  • Suspend GSP duty-free treatment for certain eligible articles from Thailand effective December 30, 2020
  • Modify HTS general note 4(d) and subheadings per Annex I
  • Modify HTS Rates of Duty 1-Special subcolumn and general note 4(d) per Annex II sections A-E
  • Disregard competitive need limitations for specified articles and countries per Annex III
  • Update HTS U.S. note 6 to Chapter 20 to replace 'Macedonia' with 'North Macedonia'
  • Apply Annex II and III modifications to articles entered or withdrawn for consumption on or after November 1, 2020 at 12:01 a.m. EDT

Timeline

Immediate

  • HTS modifications for Annex II and III take effect November 1, 2020 at 12:01 a.m. EDT for articles entered or withdrawn from warehouse for consumption

Near term (90d)

  • Suspension of GSP duty-free treatment for certain Thai articles takes effect December 30, 2020

Long term

  • Ongoing trade relationship reevaluation with Thailand
  • Potential permanent loss of GSP benefits for affected countries/articles

Risks & tensions

  • U.S.-Thailand trade tensions may escalate following GSP suspension
  • Specific articles and countries affected by competitive need limitation terminations are not enumerated in provided text (contained in unpublished annexes)
  • Economic impact on U.S. importers and consumers from tariff increases uncertain without annex details
  • Timing of November 1 effective date (2 days after signing) creates rapid compliance burden
Proclamation 10107: To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes · Executive Orders