US GSP benefits – expiry on Dec. 31, 2017

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No. CLE-HO/POL/GSP/17-18
Jan. 12, 2018

Members of the Council

Sub : US GSP benefits – expiry on Dec. 31, 2017

Dear Member

As you are kindly aware, the USA Is extending GSP benefits to under-developed and developing countries by virtue of which import duty exemptions are provided for products imported into USA. Footwear is excluded from GSP benefits

As far as exports from India is concerned, the USA had extended 0% duty benefits for travel goods, handbags, wallets etc., w.e.f. 1st July 2017. Besides, finished leather was also extended duty free facility for import into USA from India.

We have now received a communication received from Dept. of Commerce, informing the following.

1)   Current U.S. Congressional Authorization of the GSP program had expired on December 31, 2017. Due to its expiry on 31 December 2017, normal tariff duties will apply for import of the GSP-eligible goods. The renewal of GSP programme is a law-making process that requires Congressional approval. No bill has yet been introduced in the Congress to renew the GSP programme.

2)   Nevertheless, as per U.S. Customs and Border Protection (CBP) notice, importers are strongly encouraged to continue to flag GSP-eligible importations with the SPI “A,” even as they pay normal trade relations (column 1) duty rates on otherwise GSP-eligible importations. Importers may not file SPI “A” without duties. The CBP stated to be working out a programme to have an automated duty refund process in place, in the event GSP programme is renewed with retroactive refund clause.

(SPA “A” is the index used for availing GST facility )

3)   In view of above, it is recommended that all the exporters exporting commodities under GSP to U.S., may be advised to clearly mention and tag appropriately GSP-eligible importations with the SPI “A,” so that U.S. if decides to extend retrospectively, it would facilitate ease of tracking and passing on the benefit by U.S. authorities concerned. Therefore, all the EPCs/Commodity Boards are requested to advice their exporters, accordingly.

Thanks and regards

R Ramesh Kumar
Executive Director