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13 April 2004
USTR Considers Withdrawing Bangladesh's Trade Preferences
Bangladesh fails to apply workers' rights legislation
The U.S. Trade Representative (USTR) is considering whether to withdraw preferential trade privileges from Bangladesh following that country's failure to apply its national labor law in its Export Processing Zones (EPZs).
According to an April 9 statement from the USTR, "The Government of Bangladesh does not provide freedom of association or the right to collective bargaining to workers in its EPZs."
The statement says that Bangladesh "published a notice on January 1, 2001, stating that it would extend these rights to EPZs as of January 1, 2004. However, Bangladesh has failed to do so."
The USTR began reviewing Bangladesh's failure to apply legislation protecting workers' rights following a 1999 petition from the AFL-CIO requesting that the country's preferential trade status be withdrawn, suspended or limited.
The USTR committee studying the matter is now seeking public comment on appropriate measures before issuing a final policy recommendation.
Bangladesh receives duty-free access to the U.S. market on certain export items under the Generalized System of Preferences (GSP), which is designed to boost exports from developing countries. In 2003, Bangladesh had more than $15 million worth of exports to the United States that were eligible for duty-free treatment under the GSP.
The government of Bangladesh established EPZs to attract export-oriented foreign investment by offering expedited registration procedures, tax incentives, freedom from import and export regulations and access to low-cost labor. There are currently two EPZs in operation, one in Chittagong and the other near Dhaka.
Following is the text of the USTR statement inviting public comment:
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Generalized System of Preferences (GSP): Request for Public Comments on the Possible Withdrawal, Suspension, or Limitation of GSP Benefits with Respect to Bangladesh
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Request for public comments.
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SUMMARY: As part of an ongoing country practice review, the GSP Subcommittee of the Trade Policy Staff Committee (TPSC) is considering whether to recommend that duty-free treatment accorded to imports from Bangladesh under the U.S. GSP program be withdrawn, suspended, or limited on the grounds that Bangladesh has not implemented long-standing commitments to the United States to allow its national labor law to be applied in its Export Processing Zones (EPZs). The GSP Subcommittee is seeking public comments on which products of Bangladesh should no longer be eligible for GSP duty-free treatment if the Subcommittee decides to recommend limiting Bangladesh's GSP benefits. All Public comments must be received by May 12, 2004.
FOR FURTHER INFORMATION CONTACT: GSP Subcommittee, Office of the United States Trade Representative, USTR Annex, 1724 F Street, NW., Room F220, Washington, DC 20508 (Tel. 202-395-6971). Public versions of all documents relating to this review are available for public inspection by appointment in the USTR public reading room (Tel. 202-395-6186).
SUPPLEMENTARY INFORMATION: The GSP program is authorized pursuant to Title V of the Trade Act of 1974, as amended (``the Trade Act'') (19 U.S.C. 2461 et seq.). The GSP program grants duty-free treatment to designated eligible articles that are imported from designated beneficiary developing countries. Once granted, GSP benefits may be withdrawn, suspended, or limited by the President with respect to any country. (19 U.S.C. 2462(d)(1)). Bangladesh is a designated beneficiary developing country under the GSP program. The Annex to this Notice lists currently GSP-eligible tariff items from the U.S. Harmonized Tariff Schedule (HTS) in which there were imports under GSP from Bangladesh during 2003.
I. Possible Withdrawal, Suspension, or Limitation of GSP Benefits for Bangladesh
The Government of Bangladesh does not provide freedom of association or the right to collective bargaining to workers in its EPZs. Among other commitments, Bangladesh had published a notice on January 1, 2001, stating that it would extend these rights to EPZs as of January 1, 2004. However, Bangladesh has failed to do so. In 1999, the AFL-CIO filed a petition seeking withdrawal or suspension of GSP benefits for Bangladesh. The TPSC accepted the petition for review, sought public comment on the petition, including whether withdrawal or suspension of benefits is warranted, and conducted a public hearing. The review of the petition was continued until this year; and, as a result, the GSP Subcommittee is considering recommending to the TPSC that duty-free treatment under GSP be withdrawn, suspended, or limited for Bangladesh, pursuant to 19 U.S.C. 2462(d)(1).
II. Opportunity for Public Comment
The GSP Subcommittee has already received comments on whether to withdraw or suspend GSP benefits for Bangladesh. If the Subcommittee recommends to the TPSC that the President limit GSP benefits for Bangladesh products, rather than withdraw or suspend duty-free treatment entirely, the Subcommittee will recommend a list of products for which duty-free treatment under the GSP program should be withdrawn. This notice solicits comments on which products to include on that list. All Public comments must be received by May 12, 2004.
Requirements for Submissions
All submissions must conform to the GSP regulations set forth at 15 CFR Part 2007, except as modified below. In order to facilitate prompt processing of submissions to this notice, USTR strongly urges and prefers electronic e-mail submissions in response to this notice. Hand delivered submissions will not be accepted. These submissions should be single copy transmissions in English with the total submission not to exceed 50 single-spaced standard letter-size pages. E-mail submissions should use the following subject line: ``Bangladesh GSP Product Review.'' Documents, in English, must be submitted in either of the following formats: WordPerfect (``.WPD''), MSWord (``.DOC''), or text (``.TXT'') files. Documents may not be submitted as electronic image or graphic files or contain imbedded images (for example, ``.JPG'', ``.PDF'', ``.BMP'', or ``.GIF'') as these graphic files are generally excessively large and inhibit distribution to the GSP Subcommittee. E-mail submissions containing such files may not be accepted. Supporting documentation submitted as spreadsheets are acceptable as Quattro Pro or Excel files, formatted for printing only on 8\1/2\ x 11 inch paper. To the extent possible, any data attachments to the submission should be included in the same file as the submission itself, and not as separate files.
If the submission contains business confidential information, a non-confidential version of the submission must also be submitted that indicates where confidential information was redacted by inserting asterisks where material was deleted. In addition, the confidential submission must be clearly marked ``BUSINESS CONFIDENTIAL'' at the top and bottom of each and every page of the document. The public version, which does not contain business confidential information, must also be clearly marked at the top and bottom of each and every page (either ``PUBLIC VERSION'' or ``NON-CONFIDENTIAL''). Documents that are submitted without any marking might not be accepted or will be considered public documents.
For any document containing business confidential information submitted as an electronic attached file to an e-mail transmission, the file name of the business confidential version should begin with the characters ``BC-'', and the file name of the public version should begin with the characters ``P-''. The ``P-'' or ``BC-'' should be followed by the name of the party (government, company, union, association, etc.) which is making the submission.
E-mail submissions should not include separate cover letters or messages in the message area of the e-mail; information that might appear in any cover letter should be included directly in the attached file containing the submission itself, including identifying information on the sender, including sender's e-mail address. The e-mail address for these submissions is FR0052@USTR.GOV. Documents not submitted in accordance with these instructions might not be considered in this review. If unable to provide submissions by e-mail, please contact the GSP Subcommittee to arrange for an alternative method of transmission.
Information submitted will be subject to public inspection shortly after the relevant due dates by appointment with the staff of the USTR public reading room, except for information submitted and properly marked that is granted ``business confidential'' status pursuant to 15 CFR 2003.6 and other qualifying information submitted in confidence pursuant to 15 CFR 2007.7. Public versions of all documents relating to this review will be available for review after the relevant due date by appointment in the USTR public reading room, 1724 F Street NW., Washington, DC. Appointments may be made from 9:30 a.m. to noon and 1 p.m. to 4 p.m., Monday through Friday, by calling (202) 395-6186.
Steven Falken,
Executive Director for GSP, Chairman, GSP Subcommittee of the Trade Policy Staff Committee.
Annex I: U.S. Imports of GSP-Eligible Items From Bangladesh
[The tariff nomenclature in the U.S. Harmonized Tariff Schedule (HTS)for the subheadings listed below is definitive; the product descriptions in this list are for informational purposes only.]
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2003 dollar
HTS subheading Article description value
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95063900 Golf equipment (o/than golf 6,202,138
footwear) nesoi and parts &
accessories thereof.
39239000 Articles nesoi, for the conveyance 2,694,197
or packing of goods, of plastics.
69111037 Porcelain or china (o/than bone 1,186,144
china) household tabl. &
kitch.ware in sets in which
aggregate val. of arts./US note
6(b) o/$56 n/o $200.
69111010 Porcelain or china hotel, 755,777
restaurant & nonhousehold table
and kitchenware.
41044150 Crust full grain unsplit/grain 479,703
split bovine (except buffalo)
nesoi and equine hides and skins,
nesoi, w/o hair, tanned not
further prepared.
63079098 National flags and other made-up 449,253
articles of textile materials,
nesoi.
57029920 Carpets & other textile floor 354,411
coverings, not of pile
construction, woven, made up, of
other textile materials nesoi.
24012085 Tobacco, partly or wholly stemmed/ 353,724
stripped, threshed or similarly
processed, not from cigar leaf,
described in addl. U.S. note 5 to
chap 24.
94043080 Sleeping bags, not containing 20% 349,637
or more by weight of feathers and/
or down.
42010060 Saddlery and harnesses for animals 234,170
nesi, (incl. traces, leads, knee
pads, muzzles, saddle cloths and
bags and the like), of any
material.
96020010 Unhardened gelatin, worked and 220,421
articles thereof.
69111052 Porcelain or china (o/than bone 205,202
china) hsehld tabl/kit.ware n/in
specif.sets, cups o/$8 but n/o
$29/dz, saucers o/$5.25 but n/o
$18.75/dz, etc.
24012083 Tobacco, partly or wholly stemmed/ 155,877
stripped, threshed or similarly
processed, not from cigar leaf,
not oriental or turkish, not for
cigarette.
39269098 Other articles of plastic, nesoi. 122,967
39249055 Household articles and toilet 118,667
articles, nesoi, of plastics.
65069900 Headgear (other than safety 113,367
headgear), nesoi, of materials
other than rubber, plastics, or
furskins, whether or not lined or
trimmed.
69111080 Porcelain or china (o/than bone 106,552
china) household tableware &
kitchenware, not in specified
sets, nesoi.
46021018 Baskets and bags of vegetable 89,116
material, neosi.
94060080 Prefabricated buildings, not of 60,515
wood.
46021080 Basketwork and other articles, 59,749
neosi, of vegetables materials,
nesoi.
46021009 Baskets and bags of bamboo other 49,595
than wickerwork.
69111025 Bone china household table & 48,704
kitchenware valued o/$31.50/doz.
pcs.
73269085 Iron or steel, articles, nesoi. 45,255
03049090 Frozen fish meat (excluding 42,842
fillets), other than in bulk or
in immediate containers weighing
with their contents over 6.8 kg
each.
19059090 Bakers' wares communion wafers, 42,006
empty capsules suitable for
pharmaceutical use, sealing
wafers, rice paper and similar
products, nesi.
35030055 Gelatin sheets and derivatives, 42,000
nesoi; isinglass; other glues of
animal origin, nesoi.
94043040 Sleeping bags, containing 20% or 41,705
more by weight of feathers and/or
down.
69111045 Porcelain or china (o/than bone 37,392
china) household mugs and steins
w/o attached pewter lids.
19041000 Prepared foods obtained by the 32,836
swelling or roasting of cereals
or cereal products.
68029300 Monumental or building stone & 29,121
arts. thereof, of granite,
further worked than simply cut/
sawn, nesoi.
90141090 Direction finding compasses, other 28,812
than optical instruments,
gyroscopic compasses or
electrical.
69111035 Porcelain or china (o/than bone 27,276
china) househld tabl. &
kitch.ware in sets in which
aggregate val. of arts./US note
6(b) n/o $56.
61178085 Headbands, ponytail holders & 25,924
similar articles, of textile
materials other than containing
70% or more by weight of silk,
knitted/crocheted.
39261000 Office or school supplies, of 25,016
plastics.
39232100 Sacks and bags (including cones) 24,893
for the conveyance or packing of
goods, of polymers of ethylene.
44189045 Builders' joinery and carpentry of 24,749
wood, including cellular wood
panels, nesoi.
69149080 Ceramic (o/than porcelain or 23,288
china) arts. (o/than tableware/
kitchenware/household & ornament.
arts), nesoi.
19049001 Cereals, other than corn, in grain 21,795
form or form flakes or other
worked grain (not flour, groat &
meal), pre-cooked or otherwise
prepared, nesoi.
10063090 Rice semi-milled or wholly milled, 21,416
whether or not polished or
glazed, other than parboiled.
69111015 Bone china household table & 19,635
kitchenware valued n/o $31.50/
doz. pcs.
74181950 Copper (o/than brass), table 17,588
kitchen or other household
articles and parts thereof, not
coated or plated w/precious
metals.
07108070 Vegetables nesi, uncooked or 17,108
cooked by steaming or boiling in
water, frozen, not reduced in
size.
33074100 Agarbatti and other odoriferous 16,249
preparations which operate by
burning, to perfume or deodorize
rooms or used during religious
rites.
39262090 Articles of apparel & clothing 14,575
accessories, of plastic, nesoi.
69111058 Porcelain or china (o/than bone 12,983
china) hsehld tabl/kit ware n/in
specif. sets, cups o/$29/dz,
saucers o/$18.75/dz, bowls o/$33/
dz, etc.
94055040 Non-electrical lamps and lighting 11,528
fixtures nesoi, not of brass.
20089990 Fruit nesi, and other edible parts 11,013
of plants nesi, other than pulp
and excluding mixtures, otherwise
prepared or preserved, nesi.
20019045 Mangoes, prepared or preserved by 9,432
vinegar or acetic acid.
74181920 Copper-zinc alloy (brass), table, 9,138
kitchen or other household
articles and parts thereof, not
coated or plated w/precious
metals.
70199050 Glass fibers (including glass 8,458
wool), nesoi, and articles
thereof, nesoi.
92059040 Wind musical instruments, o/than w/ 8,168
elect. sound or ampl., woodwind
instruments (o/than bagpipes).
09109960 Spices, nesi. 7,911
56089023 Hammocks, of cotton. 7,845
64059020 Disposable footwear, nesoi, 7,700
designed for one-time use.
07102940 Leguminous vegetables nesi, 7,173
uncooked or cooked by steaming or
boiling in water, frozen.
20019038 Vegetables (including olives) 6,660
nesoi, prepared or preserved by
vinegar or acetic acid.
19019090 Flour-, meal-, starch-, malt 6,615
extract-or dairy-based food preps
not containing cocoa and not
containing specific amounts of
dairy, nesoi.
10063010 Rice semi-milled or wholly milled, 6,565
whether or not polished or
glazed, parboiled.
46021016 Baskets and bags of rattan or palm 6,520
leaf other than wickerwork.
10062040 Husked (brown) rice, other than 6,434
Basmati.
07133920 Dried beans nesi, shelled, if 5,663
entered for consumption from May
1 through August 31, inclusive,
in any year.
62171085 Headbands, ponytail holders and 5,432
similar articles, of textile
materials containing < 70% by
weight of silk, not knit/crochet.
41079180 Full grain unsplit bovine (not 5,245
buffalo) & equine leather, not
whole, w/o hair on, nesoi, fancy,
prepared after tanning or
crusting, not 4114.
17049035 Sugar confections or sweetmeats 4,723
ready for consumption, not
containing cocoa, other than
candied nuts or cough drops.
07112038 Olives, n/pitted, nesoi. 4,419
63049925 Wall hangings of jute, excluding 3,997
those of heading 9404.
40159000 Articles of apparel and clothing 3,411
accessories, excluding gloves, of
vulcanized rubber other than hard
rubber.
17039030 Molasses, other than cane, 3,340
imported for (a) the commercial
extraction of sugar or (b) human
consumption.
04069025 Gjetost cheese, made from goats' 3,084
milk, whey or whey obtained from
a mixture of goats' & n/o 20%
cows milk, not grated, powdered
or processed.
56089030 Knotted netting of twine, cordage 2,985
or rope or other made-up nets
(not fish netting and nets) of
textile materials (not cotton/
manmade mat.).
17023040 Glucose and glucose syrup, not 2,808
containing fructose or in the dry
state less than 20 percent by
weight of fructose, nesi.
07132020 Dried chickpeas (garbanzos), 2,795
shelled.
69139050 Ceramic (o/than porcelain, china 2,770
or eartherware) ornamental
articles, nesoi.
46021045 Basketwork and other articles, 2,762
neosi, of one or more of bamboo,
rattan, willow or wood.
41044120 Crust whole bovine hide and skin 2,600
leather (not upper or lining), w/
o hair on, surface n/o 2.6 sq m,
tanned but not further prepared.
10064000 Broken rice 2,424
03037500 Dogfish and other sharks, frozen, 2,396
excluding fillets, livers, roes
and fish meat of 0304.
20019060 Fruits, nuts, and other edible 2,198
parts of plants, nesi, prepared
or preserved by vinegar or acetic
acid.
19023000 Pasta nesi. 2,100
50079030 Woven silk fabrics, containing 85 1,732
percent or more by weight of silk
or silk waste, nesoi.
39241020 Plates, cups, saucers, soup bowls, 1,501
cereal bowls, sugar bowls,
creamers, gravy boats, serving
dishes and platters, of plastics.
39241040 Tableware and kitchenware 1,070
articles, nesoi, of plastics.
67010030 Articles of feathers or down 784
(other than articles & apparel
filled or stuffed with feathers/
down and worked quills & scapes).
62141010 Shawls, scarves, mufflers, 660
mantillas, veils and the like,
not knitted or crocheted,
containing 70% or more silk or
silk waste.
39264000 Statuettes and other ornamental 389
articles, of plastics.
62160046 Gloves, mittens & mitts, for 315
sports use, incl. ski &
snowmobile, of man-made fibers,
not impregnated/coated with
plastics or rubber.
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Source: Compiled from data provided by the U.S. International Trade Commission, Department of Commerce, and Department of Homeland Security.
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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
