In August, the GSP program saved American companies $75 million on about $1.8 billion in imports. Those figures are notable for several reasons:
- That is the highest reported monthly savings since October 2008.
- GSP imports were up by 17 percent – and tariffs savings were up by 21 percent – compared to August 2016.
- Year-to-date savings from GSP are up $72 million, or $9 million per month, over the first 8 months of 2016.
All that despite the fact that August savings are likely significantly understated: official U.S. government data show no claimed GSP benefits for imports of travel goods from countries such as Thailand and the Philippines in July or August despite a recent program expansion.
Put differently: GSP program usage is booming. Some states such as New Jersey and Texas saw much larger increases in GSP imports and savings compared to the previous year, as shown in the graphic below.
GSP saved New Jersey companies $7.4 million in August, up over $2.3 million (45 percent) compared to one year earlier. Travel goods from Burma and Cambodia, precious metal compounds from South Africa, and stone products from Brazil contributed most to New Jersey’s GSP increases.
GSP saved Texas companies $7.1 million in August, up over $1.7 million (32 percent) compared to one year earlier. Industrial machinery from Thailand, PET resin from Brazil, and stainless steel flanges from India contributed most to Texas’ GSP increases.
In addition to New Jersey and Texas, companies in 17 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Delaware, Florida, Indiana, Louisiana, Maine, Michigan, Mississippi, Missouri, Montana, Nevada, Virginia, West Virginia, and Wisconsin.
Savings on GSP imports from Cambodia increased by 307 percent compared to August of last year. New York companies’ purchases of travel goods from Cambodia alone resulted in $740,000 in GSP savings. As companies gear up for the holiday season, GSP eliminated about $1.4 million in import taxes on Christmas lights in August, with over $250,000 of those savings coming from imports into Washington.
*** REMINDER: GSP EXPIRES IN JUST A FEW MONTHS.***
Please use our Contact Congress page to write your Members today about the need to renew GSP today. That page makes it quick and easy to email both Senators and your Representative. All you need to do is: 1) enter your contact info, 2) enter a few sentences about your company/GSP imports, and 3) click send.