Further to the below, we are writing to make sure you are aware of an additional duty-savings opportunity that has been made available under the recently-renewed Generalized System of Preferences (“GSP”) program.
As you know, GSP is a U.S. trade preference program that affords certain articles produced in specified developing countries preferential tariff treatment upon importation into the United States. As part of its annual product review for 2015, the United States Trade Representative (“USTR”) announced that it will accept petitions seeking to add articles to the GSP program (see the attached Federal Register notice). This is a significant opportunity because the exclusion on certain articles from the GSP program was recently lifted by statute. Thus, this is the first time that certain articles are eligible under the program.
More specifically, importers of various travel goods classified under heading 4202, HTS (e.g., handbags, briefcases, backpacks, suitcases, sports bags, camera cases, etc.) now have the opportunity to petition the USTR to have such goods designated as eligible for GSP program benefits (i.e., duty-free treatment for such goods imported into the United States that are produced in specified developing countries). Because these travel goods often carry high duty rates (up to 20% ad valorem), the potential savings opportunities at issue here are significant. Any company importing articles classified in heading 4202 from a GSP-eligible country should country should consider submitting a petition.
Petitions for inclusion of the abovementioned products in the GSP program must be submitted by October 16, 2015.
If you have any questions about this opportunity, or would like any assistance identifying products that may be eligible, please let us know.