Whether talking to reporters or on the Hill for meetings, we often get the same question: “How long of a GSP extension would you like to see?”

Our answer is always the same: “As long as possible.” 

Yet more important that what we want is why we want it.  Put simply, history shows that long-term renewals are the key to increasing GSP utilization.  Take a look at the chart above and a couple things jump out:

• There’s a whole lotta pink, meaning importers frequently (and for extended periods of time) had to pay tariffs after Congress allowed GSP to expire;
• GSP imports tend to fall during those pink-shaded periods, and
• GSP imports soared after Congress passed a 5-year renewal in 2002.

This series of short-term extensions and retroactive renewals wasn’t always the norm.  The Trade Act of 1974, which created the GSP program, included an initial 10-year authorization. The Tariff and Trade Act of 1984 included an 8.5-year extension.

After nearly 20 years of uninterrupted operation, things got dicey.  Between July 1993 and July 2002:

• GSP was allowed to expire 7 consecutive times it was up for renewal;
• Companies paid tariffs nearly 40 percent of the time on “duty-free” imports, and
• GSP imports fell because of the uncertainty.

By contrast, as a result of the new certainty provided by the long-term renewal in 2002, GSP imports nearly doubled by the end of 2006. 

History repeated itself in 2011.  GSP imports were recovering nicely from the 2008-2009. However, the first expiration in almost 10 years led to an immediate, steady decline in GSP imports – a trend that reversed itself as soon as Congress renewed GSP in October

As we talk about GSP renewal in 2013, we can’t forget the lessons of the past. Lesson #1? American companies don’t just want a long-term GSP renewal, they need one.

1. It’s FREE
2. It takes less than a minute
3. It’s a great way to show Members of Congress that GSP matters to their constituents

Please note – we started the list from scratch in 2013 since certain countries and products have lost GSP benefits since 2011. If you were on the 2011 list and want to be on the new version as well, please submit the above form again.

Once you’re done, make sure to email the link with colleagues via email, LinkedIn, and Twitter!

On a related note, we hoping to engage more with GSP importers on Twitter this year, so if you’re active on either company or personal accounts, follow us @RenewGSPToday – we promise to follow back!

Since the vote is expected to take place tonight, we asking companies to use our updated Email Your Representatives page to contact trade staff today expressing support for H.R. 2832. Phone calls asking where the office stands on H.R. 2832 would also be helpful.  Keep us posted if you hear back from your members.

Finally, several “big picture” stories recently about the trade agenda and the role of the House vote on GSP in that process, including this one from The Hill and this one from Reuters.  As you can see, this is just the first step for GSP renewal.

Poll Response Ranges

Number of US Employees:  3 – 40,000
Expected GSP Shipments: 1 – 200
Expected GSP Tariffs Paid:  $681 – $80,000
Est. GSP Tariffs/Shipment: $250 – $20,000
Est. GSP Tariffs/Employee: $1.25 – $14,583

As you can see, no shipment is too small (or too large), so please take a moment to complete the poll yourself if you haven’t already!

Top districts remain Iowa’s 1st (Bruce Braley), Tennessee’s 2nd (John Duncan), and California’s 30th (Henry Waxman), each with seven companies.  New Jersey’s 12th (Rush Holt) and New York’s 29th (Tom Reed) come in second, with six companies each, followed by 10 districts with at least five companies.  You can reach out to these and other offices with our Email Your Representatives page.

At the state level, the top five includes California (47), Illinois (37), New York (30), Texas (30), and Georgia (29).  Nearly 20 states have 10 or more GSP Supporter locations.  Use our Email Your Senators page to show relevant House staff contacts the support for GSP renewal – just make sure to attach the file!

If you’re contacting your Congressmen using our email you senators and email your representatives pages, make sure they know not only these national numbers, but the tariffs paid by your company as well.

Layoffs Imminent: “Not only does [GSP expiration] affect the imported product but it also has a negative effect on our overall business with the products we manufacture here. Our customers will and have moved to other products, in many cases imports from China, that can give them competitive pricing on all products. The failure to renew GSP to date has resulted in approximately 3 layoffs in our company with the possibility of several more, up to 50, to come over the next few months if GSP not renewed.“

Precise Costs: “[company] has paid $143,510.85 in tariffs on products that we expected to be duty free. This financial burden has slowed down sales and will result in downsizing if it does not get reinstated.”

New Burden for Small Start-Up: “GSP expiration has cost [company] more than $1,500 in new tariffs on imports of home décor items from the Philippines and Thailand. $1,500 in duty does certainly not sound like a lot but then I just started my business 8 months ago and need any help I can find to get it off the ground.”

Margins Already Reduced: “[company] has paid thousands of dollars in tariffs on products that we expected to be duty free. Unfortunately, the recent economy has had a drastic impact on our business, as well as our customer base. We are faced with pricing pressure every week, and have been forced to lower our margins to maintain market share…the [GSP] savings can go a long way toward our bottom line.“

And one of my personal favorites…

Employees = Voters:  “GSP expiration costs [company] more than $880,000/year in new tariffs…[company] employs over 400 voters in California and looks to our representatives to support this duty saving program.”

Since it’s late in the day in DC, we figured we’d start our search as far west as possible:  Alaska, Hawaii, and Montana.  If you’re based in any of those states and import under GSP, please add your name to the list by emailing here.  Forwarding this to GSP importers in those states is not only allowed, but encouraged.

The hits are concentrated on the Email Your Representatives and Email Your Senators pages and are generating lots of contacts to Congressional offices.  Emails we’ve received describe tariff costs ranging from just $1,000 to more than $1 million, so don’t be shy about telling your reps exactly how you’ve been affected, no matter how small the cost might seem.

On behalf of all the companies importing under GSP, thanks for showing you care about GSP renewal by sharing this site with your friends and associates.  Keep it up!

• Retroactive vs. Prospective Renewal – the overwhelming majority prefer a retroactive renewal of GSP (87 percent).
• Company Size – most GSP importers are small businesses of less than 100 employees (83 percent) with the single largest group being very small companies of less than 10 employees (44 percent).
• Tariffs Collected – these responses show the most varied range: the most popular responses were the maximum value of “more than $500,000” (24 percent) and the minimum value of “less than $5,000” (21 percent).
• Revenue Share from GSP Imports – not surprisingly, companies most dependent on GSP imports were the most likely to respond: the top choice was “more than 75 percent,” followed by “50 – 75 percent,” and then by “25 – 50 percent.”  Approximately two-thirds of respondents reported that GSP imports make up for more than 25 percent of their total revenues.

Our next post will include more of the “additional comments” that help show, beyond just the numbers, the personal impact of GSP expiration.