Last week we wrote (here and here) about what companies were telling congressional offices about the need to renew GSP. We’ve been copied on many more emails since, so below are some more examples of what companies are saying. After Friday, Congress will adjourn for 5 full weeks, so if you haven’t done so already be sure to use our Senate and House contact pages to let Congress know why GSP renewal matters to you!
Chinese competition trying to take advantage of GSP expiration: “We import from Thailand and have paid $625,000 in higher taxes because GSP expired. Our competition comes from China and Indonesia and we have no choice but to reduce margin $625,000 which will hit the bottom line. This is a substantial hit for us and has made us less competitive in the market. The Chinese suppliers know the situation and have reduced prices additionally to make it most difficult for us to compete in the US. We have had no option but to compete by lowering prices while also paying the additional tax. This has been and will continue to present a unique hardship for our company unless the GSP renewal bill is presented and passed. Through our operations we support many other businesses such as the custom’s brokers, storage warehouses, and truckers that we utilize for every sale we make. These companies are also suffering due to this program expiration.”
Forced to choose layoffs instead of expansion: “We have paid over $400,000 in GSP tariffs. This has really stunted our company’s growth. We are unable to expand our business and have reduced the number of employees we have.”
Non-retroactive renewal risks the entire business: “Our company is relying on the retroactive renewal of this bill. We import all our finished goods from Indonesia and Thailand. If this bill is not passed, the future of our business is at risk. I fear we will all lose our jobs.”
Expiration hurts US hiring and fair trade mission: “We have paid $30,000 in duties over the last year for our handmade, artisan made items that used to be duty-free. These fees have become paralyzing for our business. If this issue lies dormant until November, we will likely pay another $15-$20k in duties – which is huge for our small company, and it has effected cash flow, purchasing volumes, hiring for our US business, and the loss of margin has effected our overall viability. We already operate on very tight margins and these fees have made our situation so much worse. It has been very hard to continue our mission to create opportunity and do good through ethical purchasing with the non-renewal of GSP.”
Every penny counts for small start ups: “I import home décor, jewelry and apparel items from Bali and India and have paid $900 in higher taxes because GSP expired. My company is a start-up LLC and every penny impacts my company’s success.”
These are the types of things Congress needs to hear about the impacts of GSP expiration, so again: if you haven’t done so already please use our Senate and House contact pages to let Congress know why GSP renewal matters to you!