Welcome to Renew GSP Today

Thanks for visiting our website about the GSP trade program. Congress passed a retroactive GSP renewal on June 26, 2015 that extends the program through December 31, 2017 and refunds approximately $1.3 billion in taxes paid during the previous expiration.

Yet 2017 will be here soon, so we must continue to build support for the GSP program. If your company uses GSP, please get engaged by:

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Breakdown by State of the $531 Million in 2016 Tax Savings from GSP Through September

In the first nine months of 2016, GSP saved American companies about $531 million in eliminated tariffs. GSP waived at least $1 million in tariffs on imports into 38 states, plus Puerto Rico.

The map below shows the overall GSP imports and savings by state from January to September.

gsp_savings_map_jan-sep2016

Companies in California continued to lead the way with $85 million in tax savings. Imports into New Jersey, Texas, and New York all faced $40-$45 million less in taxes because of GSP, while imports into Florida, Illinois, Georgia and Ohio all faced at least $20 million less in taxes because of GSP.

This map will be updated monthly as new trade data become available and the most up-to-date version will be available at all times on our Graphics page. These posts highlight some of the individual states, products, and countries with the biggest increases in January, February, March, April, May, June, July, August, and September.

And if you’re one of the companies benefiting from GSP renewal, be sure to answer our renewal impact survey here. You can see examples from companies that already answered the survey here, here, here, and here.

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GSP Saved American Companies $59 Million in September 2016

In September, the GSP program saved American companies $59 million on about $1.5 billion in imports. While the value of GSP imports decreased by about 5 percent, the tariff savings only decreased by 0.3 percent compared to September 2015.

Overall, GSP saved U.S. companies $531 million in the first nine months of 2016. GSP savings in 2016 are up about $40 million, or 8 percent, compared to the first nine months of 2015.

Some states, such as Hawaii and Delaware, saw particularly large increases in GSP imports and savings compared to September 2015, as shown in the graphic below.

gsp_sept2016_snapshot

In Hawaii, GSP imports increased by about 58 percent and savings by about 51 percent compared to one year earlier. Food products and fresh orchids from Thailand, costume jewelry from the Philippines, and plastic preforms from Turkey contributed the most to Hawaii’s GSP increases.

In Delaware, GSP imports increased by 80 percent and savings from GSP by 144 percent compared to one year earlier. Chemicals from India and Brazil along with plastic kitchenware from Turkey contributed most to Delaware’s GSP increases.

Savings on GSP imports from Nepal more than doubled to $83,000, led by increased imports of handicrafts into Texas. GSP eliminated about $200,000 in import taxes on musical keyboards in September, with about  $175,000 saved on imports into California alone.

Reminder for GSP importers: if your company is not on our free GSP supporter list, please add your name here. Also, we are still looking for responses to our GSP renewal impacts survey, which you can complete here.

Posted in Brazil, California, Delaware, GSP, Hawaii, India, Nepal, Philippines, Texas, Thailand, Turkey | Leave a comment

A State-By-State Breakdown of the $472 Million in GSP Tariffs Savings Through August 2016

In the first eight months of 2016, GSP saved American companies about $472 million in eliminated tariffs. Hawaii joined the list of states for which GSP eliminated at least $1 million in tariffs on imports, bringing the total to 38 states (plus Puerto Rico).

The map below shows the overall GSP imports and savings by state from January to August.

gsp_savings_map_jan-aug2016

Companies in California continued to lead the way with $76 million in tax savings. Imports into New Jersey, Texas, and New York all faced $35-$40 million less in taxes because of GSP, while imports into Florida, Illinois, and Georgia all faced $25-$30 million less in taxes because of GSP. This map will be updated monthly as new trade data become available and the most up-to-date version will be available at all times on our Graphics page.

These posts highlight some of the individual states, products, and countries with the biggest increases in January, February, March, April, May, June, July, and August.

And if you’re one of the companies benefiting from GSP renewal, be sure to answer our renewal impact survey here. You can see examples from companies that already answered the survey here, here, here, and here.

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GSP Saved American Companies $62 Million in August 2016

In August, the GSP program saved American companies $62 million on about $1.6 billion in imports. The value of GSP imports increased by about 5 percent, while tariff savings increased by about 11 percent compared to August 2015.

Overall, GSP saved U.S. companies $472 million in the first eight months of 2016. GSP savings in 2016 are up about $40 million, or 9 percent, compared to the first eight months of 2015.

Some states, such as Colorado and North Carolina, saw particularly large increases in GSP imports and savings compared to August 2015, as shown in the graphic below.

gsp_aug2016_snapshot

In Colorado, GSP imports increased by about 19 percent and savings by about 46 percent compared to one year earlier. Optical goods from the Philippines, electric motor parts from India, and monumental building stone from Brazil all contributed to Colorado’s GSP increases.

In North Carolina, GSP imports increased by 14 percent and savings from GSP by 21 percent compared to one year earlier. Chemicals from the Philippines, batteries from Indonesia, and furniture fittings from Thailand contributed most to North Carolina’s GSP increases.

Savings on GSP imports from Brazil jumped 30 percent, led by increased imports of machining centers in Ohio. GSP eliminated about $184,000 in import taxes on microphones in August, with more than $100,000 saved on imports into California alone.

If your company imports under GSP, be sure to answer our GSP renewal impacts survey here.

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Year-to-Date GSP Savings By State through July 2016

In the first seven months of 2016, GSP saved American companies about $410 million in eliminated tariffs. New Hampshire joined the list of states for which GSP eliminated at least $1 million in tariffs on imports, bringing the total to 37 states (plus Puerto Rico), and Hawaii is knocking on the door with an estimated $996,000 in waived tariffs.

The map below shows the overall GSP imports and savings by state from January to July.

gsp_savings_map_jan-jul2016

Companies in California continued to lead the way with $65 million in tax savings. Imports into New Jersey, Texas, and New York all faced $30-$35 million less in taxes because of GSP, while imports into Florida, Illinois, and Georgia all faced $20-$25 million less in taxes because of GSP. This map will be updated monthly as new trade data become available and the most up-to-date version will be available at all times on our Graphics page.

These posts highlight some of the individual states, products, and countries with the biggest increases in January, February, March, April, May, June, and July.

And if you’re one of the companies benefiting from GSP renewal, be sure to answer our renewal impact survey here. You can see examples from companies that already answered the survey here, here, here, and here.

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GSP Saved American Companies $58 Million in July 2016

In July, the GSP program saved American companies $58 million on about $1.5 billion in imports. GSP saved U.S. companies $410 million in the first seven months of 2016. In the one year since renewal, GSP saved American companies about $700 million.

Some states, such as Connecticut and New York, saw particularly large increases in GSP imports and savings compared to July 2015, as shown in the graphic below.

gsp_jul2016_snapshot

In Connecticut, GSP imports increased by about 70 percent and savings by about 50 percent compared to one year earlier. Ferroalloys from South Africa, aluminum building materials and rubber gloves from Thailand, and parts for steering wheels from India all contributed to Connecticut’s GSP increases.

In New York, GSP imports increased by 22 percent and savings from GSP by 44 percent compared to one year earlier. Jewelry from Turkey and Bolivia, stainless steel flanges from India, and PET resin from Pakistan contributed most to New York’s GSP increases.

Savings on GSP imports from Pakistan nearly doubled, led by increased imports of lamps in New Jersey. GSP eliminated about $250,000 in import taxes on fresh flowers from Ecuador in July, with more than $230,000 saved on imports into Florida alone.

If your company imports under GSP, be sure to answer our GSP renewal impacts survey here.

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Small Business Paid $250,000 in INTEREST on Bank Loans to Stay Afloat During GSP Expiration

Last week, we profiled two companies (Summit Specialty International in Georgia and Sophia Foods in New York) that have bounced bounced strongly since Congress renewed GSP. Despite difficulties faced during the GSP lapse, both have more workers – and provide expanded benefits for those workers – than when GSP expired in 2013.

(If you have not done so already, please answer the GSP renewal impacts survey here.)

Yet other companies, such as Novita in Monrovia, California, are still working to overcome the deep losses caused by GSP expiration. Novita imports jewelry from Indonesia that it sells to manufacturers, wholesalers, and retailers in the United States, Canada, Mexico, and South Africa.

While GSP was expired, Novita was forced to lay off 3 of its 17 workers. For the remaining 14, overtime was cut and salaries were reduced (or promised raises not given). Officers used personal loans and credit lines to loan the company funds so that it could continue paying bills. According to Vice President George Nazarian, Novita contemplated shutting down completely on account of GSP expiration.

Saying that GSP is crucial for Novita is a major understatement, but even a year after the retroactive renewal the company is not “whole” again:

  • the $2 million in tariffs paid during expiration were refunded, but the $250,000 in interest payments to banks to keep the lights on are gone forever;
  • the 14 remaining employees have received raised, but the 3 positions lost have not been refilled, and
  • sales of GSP-eligible goods have increased over the past year, but they cannot “undo” the lost sales over a 2-year period.

And that is the reality of GSP expiration: at best it is a speed bump that slows the growth of small businesses like Summit and Sophia Foods. The other end of the spectrum is much worse. Novita was able to avoid the worst of potential outcomes, but the lingering negative effects of GSP expiration show why it is so important for Congress to renew GSP well before its scheduled expiration at the end of 2017.

Novita provided the above information in response to our GSP renewal impacts survey. If you have not done so already, please take a minute to answer these questions today. As always, all data will be kept confidential and no company-specific answers will be attributed unless permission is explicitly granted. You can find another company responses here, here, and here and some preliminary survey response data here and here.

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