On May 31, 2019, US President Donald Trump signed a Proclamation to Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974 which terminates the designation of India as a beneficiary developing country, effective June 5, 2019. General notes 4(a) and 4(d) of the Harmonized Tariff Schedule of the United States (HTSUS) and pertinent subheadings of the HTSUS are modified, as set forth in Annex A to the proclamation.

Tranche 3 Tariffs

India is terminated from GSP benefits. Generalized System of Preferences (GSP) is a U.S. trade preference programs provides opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty. GSP is the largest and oldest U.S. trade preference program. Established by the Trade Act of 1974, GSP promotes economic development by eliminating duties on thousands of products when imported from one of 120 designated beneficiary countries and territories.

Pursuant to this Presidential Proclamation:

  • India’s designation as a beneficiary developing country is terminated, effective June 5, 2019;
  • General notes 4(a) and 4(d) of the Harmonized Tariff Schedule of the United States (HTSUS) and pertinent subheadings of the HTSUS are modified, as set forth in Annex A to the proclamation.
  • Any provisions of previous Presidential Proclamations and Executive Orders that are inconsistent with the actions taken in this Proclamation are superseded to the extent of such inconsistency.
  • India is no longer exempted from the application of the Section 201 safeguard measures on certain Crystalline Silicon Photovoltaic (CSPV) cells (CSPV products) and large residential washers and parts, effective June 5, 2019. Imports of CSPV products, and washers and parts, from India, are now subject to the duties and tariff rate quotas on these products. See https://www.cbp.gov/trade/remedies/201-solar-cells-panels-washing-machines and https://www.cbp.gov/trade/quota/bulletins for more information.
  • Subdivision (b)(2) of U.S. note 17 and subdivision (b) of U.S. note 18 to subchapter III of chapter 99 of the HTSUS are modified, as set forth in Annex B to the proclamation.
  • Any merchandise from India or Turkey subject to the safeguard measures implemented by Proclamation 9693 and Proclamation 9694 that is admitted into a United States foreign trade zone on or after 12:01 a.m. eastern standard time on June 5, 2019, must be admitted as “privileged foreign status,” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to the safeguard measures implemented by Proclamation 9693 and Proclamation 9694.
    Please, see Annex A and B for detailed HTSUS information.

The complete Presidential Proclamation and its Annexes are available at https://www.whitehouse.gov/presidential-actions/proclamation-modify-list-beneficiary-developing-countries-trade-act-1974-2/

ACE programming will be completed by June 5, 2019.
Questions should be addressed to the Trade Agreements Branch at FTA@cbp.dhs.gov