Based on newly available July 2015 trade data, American companies paid about $1.3 billion in higher import taxes while GSP was expired between August 2013 to July 2015. With the retroactive GSP renewal, nearly all of that will be refunded automatically. The map below shows the breakdown of GSP tariffs paid during expiration that are eligible for refunds (i.e., excluding those paid on imports from Bangladesh and Russia).
Every state will benefit: more than $1 million in refunds are expected for companies in 43 states plus Puerto Rico. Not surprisingly, companies in large states like California ($122 million) and Texas ($100 million) will receive the most.
And these figures represent only the automatic refunds. Companies have until December 28 to request refunds for products that did not claim GSP when originally imported.
The refunds are already helping American companies and workers. The Cannon Group in Ohio says at least 3 net jobs are tied to GSP renewal and refunds. Thompson Traders in North Carolina is adding a new product line. Kona Bicycles in Washington hired two workers in July and planned to hire another in August. And Primetac Corporation in New Jersey started making hires and equipment purchases before the renewal even took effect.
If your company is benefiting from GSP renewal, we want to hear from you!
Whether you are hiring new workers, raising compensation for existing employees, making capital investments, or simply paying down debts that accrued during expiration – no detail is too small. It’s time to start making the case for GSP renewal in 2017.