GSP renewal appears to be having a very positive impact on American companies – and their sourcing from GSP countries.
Based on data released last week, American importers saved $57 million in November 2015 as a result of the program’s reinstatement in late July 2015. In total, GSP saved American companies $230 million between August and November 2015.
With the program back in place, GSP usage appears to be climbing. GSP savings in each of the last 4 months exceeded the average monthly tariffs paid during the 2-year expiration. That is true despite the fact that several major GSP imports (e.g., plywood from Indonesia) have lost GSP benefits since the program was reinstated.
Increased GSP usage plays out at the state level as well:
- GSP savings in November 2015 exceeded the tariffs paid during any of the 24 months of GSP expiration for 7 states: Colorado, Kansas, Michigan, Mississippi, South Carolina, Wisconsin, and Wyoming
- GSP savings in August, September, or October exceeded tariffs paid during any expiration month for 8 others states: Alabama, Arkansas, Missouri, New Hampshire, New York, Ohio, Utah, and Washington
- In Mississippi, GSP savings in 3 of the 4 months since reinstatement exceeded the tariffs paid during any expiration month: August, October, November
- GSP savings in two different months since reinstatement exceeded the tariffs paid during any expiration month for 7 other states: Michigan, New Hampshire, Ohio, South Carolina, Wisconsin, Wyoming
Of course, those savings are on top of the $1.3+ billion in refunds due to companies for tariffs paid during expiration. Customs announced that 98 percent of the automatic refunds had been processed by late September. The total refund value will grow as companies had until December 28 to request refunds for products that did not claim GSP during the expiration.
All of which has had a positive impact on companies, as detailed here, here, here, here, or here. If you have a good story about how GSP renewal is benefiting your business, we want to hear it. You can either email directly so or answer the questions here.