The US Generalized System of Preference scheme has been renewed and will last till December 31, 2017
Indian exports to the US, including items such as textiles and gems and jewellery, will benefit from the US government’s move to extend duty waivers to products from developing countries, according to exporters’ body Federation of Indian Export Organisations (FIEO).
Citing the US Customs and Border Protection (CBP) and a Federal Register communication which provides notice to importers, the FIEO said the US Generalized System of Preference (GSP) programme, which expired on July 31, 2013, has been renewed and will last till December 31, 2017. Besides, the duty waiver benefits will take effect from July 29, 2015 with retroactive effect between August 1, 2013 to July 28, 2015, the FIEO said, adding that the US importers will be able to claim refund against duties paid on items covered under the GSP.
According to the US Trade Representative’s office, the GSP is a renewable preferential trade programme that allows the eligible products of designated beneficiary developing countries to directly enter the US free of duty. “The US CBP will again accept claims for GSP-eligible merchandise that was entered during the period that the GSP programme was lapsed,” FIEO president S C Ralhan said. He added that it will benefit Indian exports and increase competitiveness of Indian goods covered under GSP in the US Market. India will get duty advantage in respect of 3500 tariff lines, the FIEO said, adding that the duty benefits across these items range from 4-6%.
“Effective July 29, 2015, the filing of GSP-eligible entry may be resumed without the payment of estimated duties, and US authorities will initiate the automatic liquidation or reliquidation of formal and informal entries of GSP-eligible merchandise that was entered on or after August 1, 2013 through July 28, 2015,” FIEO said.