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Proc 9902ProclamationTrump 45 · R Quiet signal

Proclamation 9902

To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974

This proclamation terminates India's designation as a beneficiary developing country under the Generalized System of Preferences (GSP), effective June 5, 2019, citing India's failure to provide equitable and reasonable access to its markets. It also removes India's exemption from safeguard measures on crystalline silicon photovoltaic products and large residential washers, and modifies the Harmonized Tariff Schedule accordingly.

Federal Register Open PDF 84 FR 26323

Impact dates

  1. Termination of India's GSP designation and removal of safeguard exemptions takes effect

  2. Foreign trade zone admissions of affected Indian/Turkish merchandise must receive privileged foreign status

Key directives

  • Terminate India's GSP beneficiary designation effective June 5, 2019
  • Modify HTS general notes 4(a) and 4(d) and pertinent subheadings per Annex A
  • Remove India from safeguard measure exemptions on CSPV products and large residential washers effective June 5, 2019
  • Modify HTS U.S. notes 17(b)(2) and 18(b) per Annex B
  • Require privileged foreign status for Indian/Turkish merchandise in foreign trade zones admitted on or after June 5, 2019

Timeline

Immediate

  • Termination of India's GSP beneficiary status effective June 5, 2019
  • Removal of India from safeguard measure exemptions effective June 5, 2019
  • HTS modifications take effect

Near term (90d)

  • Adjustment period for U.S. importers to new tariff rates on previously GSP-eligible Indian goods
  • Foreign trade zone admissions of affected Indian merchandise subject to new status requirements

Long term

  • Potential restructuring of U.S.-India trade relationship
  • Possible shifts in supply chains for CSPV products and large residential washers

Risks & tensions

  • May escalate U.S.-India trade tensions
  • Congressional notification requirement (60 days) was satisfied on March 4, 2019, suggesting deliberate sequencing
  • Supersession clause in section (3) creates potential legal uncertainty for inconsistent prior provisions
Proclamation 9902: To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974 · Executive Orders