Xpres LLC imports ceramic drink ware products (e.g., coffee mugs) from Thailand under GSP and then provides custom imprinting at its factory in Winston Salem, North Carolina. As a result of GSP expiration, this small manufacturer has paid more than $280,000 in higher taxes – or nearly $10,000 per employee!
The high import taxes, combined with lower sales from attempting to raise prices, have forced Xpres to postpone two key investments: a $100,000 oven purchase to increase output and a $40,000 investment in racking storage needs. Retroactive GSP renewal would allow Xpres to make these immediate capital investments in equipment necessary to grow the company.
Xpres’ story comes from a response to our new survey launched last week on the impacts of GSP expiration after one year. We hope to collect many more examples (here is another) so that we can publish the results when Congress returns to DC on September 8.
If you have not done so already, please take a minute to answer these questions by Friday, August 29. As always, all data will be kept confidential and no company-specific answers will be attributed unless you explicitly grant permission (which Xpres did).
