Connecticut – Renew GSP Today

October 2021 would’ve been the highest month ever for GSP savings – if GSP wasn’t expired

Dan Anthony — Wed, 08 Dec 2021 15:00:57 +0000

Based on an analysis of new U.S. Census Bureau data released yesterday, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $110 million in October 2021. Had congressional authorization for GSP not expired on December 31, 2020, it would’ve been the highest month of tariffs eliminated in the history of the GSP program. From January-October 2021, American companies paid at least $873 million in extra taxes due to GSP expiration.

The China/Section 301 diversion is real. So far in 2021, GSP imports are up 12% for products where Chinese imports face Section 301 tariffs but down 7% for products where Chinese imports don’t face any new Section 301 tariffs. It is impossible to know how much more GSP imports might be up (or Chinese imports down) if GSP expiration hadn’t forced American companies to pay tariffs for those products too. We wrote about how GSP renewal must be a part of any “China trade” conversation here.

Imports into 38 states (plus Puerto Rico) paid at least $1 million in tariffs due to GSP expiration. The map below shows estimated tariffs paid for products claiming GSP by state.

October was the most expensive month of GSP expiration yet for 14 states: Alabama, California, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Minnesota, New Jersey, South Carolina, Tennessee, Texas, Virginia, and Washington (plus DC and Puerto Rico). GSP expiration costs have a direct, negative impact on American companies ability to remain competitive, particularly small businesses.

Surprisingly, expiration costs account for less than half of costs related to *all* GSP policy decisions. In the first 10 months of 2021, companies paid up to $560 million in extra tariffs due to product-specific exclusions and up to $550 million due to suspensions following country practice reviews for India, Thailand, and Turkey. Without such decisions, GSP could eliminate approximately $200 million in tariffs on $4 billion in trade per month.

It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. We strongly encourage GSP importers hurt by expiration to answer our new survey here. As always, no company-specific details will be published without permission.

State-by-state breakdown of GSP expiration costs in January 2021

Dan Anthony — Thu, 18 Mar 2021 14:59:03 +0000

American companies paid at least $70 million in tariffs in January 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state.

The products facing the most new tariffs vary greatly by state:

In Florida, roses faced more than $1.8 million in new tariffs due to GSP expiration in the run-up to Valentine’s Day.
In New York, gold jewelry faced more than $1 million in new tariffs.
In Louisiana, over $600,000 in tariffs were paid on steel-making materials (likely by a company around the Port of New Orleans for distribution throughout the country).
In Massachusetts, over $200,000 in tariffs were paid on leather sports gloves.
In Pennsylvania over $160,000 were paid for rubber gloves. They were also the top products for tariffs faced in Connecticut, Mississippi, and Minnesota. Notably, while GSP countries face new tariffs, identical products from China continue to receive a Section 301 tariff waiver for public health reasons.

The $70 million in tariffs paid is a conservative estimate, and the real figure likely is millions of dollars more. Why? Estimates only capture products that continued to claim GSP despite expiration. Yet for numerous products GSP claims fell dramatically while imports continued or even grew. For example, more than $11 million of road wheels from Thailand (88%) were imported in January that didn’t claim GSP. Just 0.4% of those same imports didn’t claim GSP in January 2020. Camshafts and gelatin from Brazil, guitars from Indonesia, and bicycles from Cambodia similarly saw large values of unclaimed GSP imports in January 2021 when nearly all such imports claimed GSP in January 2020.

GSP expiration is already costing American jobs and raising prices for American companies that need inputs and consumers that purchase finished goods. It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. To help the Coalition for GSP educate policymakers on who is hurt by expiration (and how), companies are strongly encouraged to:

GSP Saved American Companies $79 Million in December 2017

Dan Anthony — Tue, 27 Feb 2018 16:35:48 +0000

In the last month before GSP expired on December 31, it saved American companies $79 million on about $1.8 billion in imports. GSP imports were up by 17 percent – and tariffs savings were up by 29 percent – compared to December 2016. Total 2017 savings from GSP increased at least $136 million over 2016. (That figure likely will be revised upward significantly once the U.S. government data start showing GSP claims for the travel goods expansion for July-October.)

Some states such as Georgia and North Carolina saw much larger increases in GSP imports and savings compared to the previous year, as shown in the graphic below.

GSP saved Georgia companies $3.9 million in December, up $1.3 million (49 percent) compared to one year earlier. Metal products from Brazil, luggage from Thailand, and chemicals from India contributed the most to Georgia’s GSP savings increases.

GSP saved North Carolina companies $2.0 million in December, up $577,000 (39 percent) compared to one year earlier. Chemicals from the Philippines, furniture fittings from Thailand, and wood products from Indonesia contributed most to North Carolina’s GSP increases.

In addition to Georgia and North Carolina, companies in 26 other states saw GSP savings increase by at least 20 percent, including: California, Connecticut, Florida, Idaho, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wyoming.

Savings on GSP imports from Indonesia increased by 31 percent compared to December of last year. California companies’ alone imported $4.6 million in silver jewelry under GSP in December. GSP eliminated about $1.5 million in import taxes on mangoes and guavas in December. About two-thirds of those savings were on imports into New Jersey.

*** REMINDER: GSP EXPIRED EFFECTIVE JANUARY 1.***

The House passed GSP renewal legislation in February, but the Senate must pass legislation for GSP benefits to resume. Please use our Contact Congress tool to write your Senators about GSP renewal; answer our brief survey on how GSP expiration impacts you, and/or sign up for the free GSP supporter list to show the broad support for renewal.

38 House Members Send Letter Urging GSP Renewal

Dan Anthony — Mon, 30 Oct 2017 15:40:33 +0000

Representatives Ralph Norman (SC-5), Jim Himes (CT-4), and 36 other Members sent a letter to leaders of the House Ways and Means Committee today in support of GSP renewal. The bipartisan letter, which included 17 Republicans and 21 Democrats from 20 states, urged the Committee “to advance a long-term GSP extension as quickly as possible.”

The letter comes at a critical time. GSP expires in just 2 months many companies are already placing orders for delivery in 2018 – at which point GSP could be expired. As noted by the letter, two-thirds of GSP imports are “raw materials, components, and machinery, where lower tariffs helped American manufacturers and workers compete in a tough global economy by ensuring U.S. companies have access to the inputs they need.”

Norman and Himes released the following statements accompanying the letter:

Congressman Ralph Norman: “It is my sincerest hope that Chairman Brady and Ranking Member Neal make the reauthorization of GSP a priority. As a member of the House Small Business Committee and a small businessman myself, I understand just how important GSP is for a level playing field for companies to compete and the creation of jobs here at home.”
Congressman Jim Himes: “Extending GSP before it expires at the end of the year is very important for our workers and companies. The program smooths the path so that Americans, who can outcompete anyone on a level playing field, have access to the materials they need to win in an increasingly crowded global marketplace. I sincerely hope that Chairman Brady will make GSP renewal a priority before the end of the year.”

Also signing the letter were Representatives Bonamici (OR-1), Brownley (CA-26), Bucshon (IN-1), Chabot (OH-1), Comstock (VA-10), Correa (CA-46), Courtney (CT-2), Ferguson (GA-3), Fitzpatrick (PA-8), Gottheimer (NJ-5), Handel (GA-6), Kennedy (MA-4), Lance (NJ-7), Lieu (CA-33), Maloney (NY-12), McGovern (MA-2), Moulton (MA-6), Pallone (NJ-6), Payne (NJ-10), Price (NC-4), Rokita (IN-1), Rothfus (PA-12), Ruppersberger (MD-2), Sanford (SC-1), Sensenbrenner (WI-5), Shea-Porter (NH-1), Speier (CA-14), Stivers (OH-15), Suozzi (NY-3), Swalwell (CA-15), Titus (NV-1), Walberg (MI-7), Walz (MN-1), Wilson (SC-2), Womack (AR-3), and Woodall (GA-7).

We’ve highlighted constituent GSP benefits for a number of House Members that signed the letter:

MS International is based in California’s 46th District, represented by Congressman Lou Correa. The last GSP renewal allowed MSI to hire hundreds of workers across the United States, with the single largest increase at its headquarters in Orange.
Summit Specialty International is a small business based in Georgia’s 7th District, represented by Congressman Rob Woodall. The last GSP renewal allowed Summit to hire 2 workers, give everyone raises, and start providing health insurance.
Royal Chain Group is based in New York’s 12 District, represented by Congresswoman Carolyn Maloney. The last GSP renewal allowed Royal Chain to hire 12 new workers. Royal Chain is one of nine companies in New York’s 12 District on the GSP supporter list.

A copy of the letter can be downloaded here.

GSP Saved American Companies $73 Million in July 2017

Dan Anthony — Mon, 11 Sep 2017 17:59:35 +0000

In July 2017, the GSP program saved American companies $73 million on about $1.8 billion in imports. GSP imports were up by 18 percent – and tariffs savings were up by 23 percent – compared to July 2016. (NOTE: that likely understates savings, as U.S. government data show no claimed GSP benefits for imports of travel goods from countries such as Thailand and the Philippines despite a recent program expansion.)

Some states such as Pennsylvania and Iowa saw much larger increases in GSP imports and savings compared to the previous year, as shown in the graphic below.

GSP saved Pennsylvania companies $2.8 million in July, up over $1.1 million (63 percent) compared to one year earlier. Chromium from Kazakhstan, candy from Thailand, and pesticides from India contributed most to Pennsylvania’s GSP increases.

GSP saved Iowa companies $715,000 in July, up over $283,000 (65 percent) compared to one year earlier. Pesticides from India, gelatin from Brazil, and rubber piping from Turkey contributed most to Iowa’s GSP increases.

In addition to Pennsylvania and Iowa, companies in 21 other states saw GSP savings increase by at least 20 percent, including: Alabama, California, Connecticut, Delaware, Florida, Georgia, Indiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Oklahoma, Texas, Virginia, and Wyoming.

Savings on GSP imports from Sri Lanka increased by 51 percent compared to July of last year. Ohio companies’ purchases of activated carbon accounted for nearly $1.4 million GSP imports from Sri Lanka. GSP eliminated about $548,000 in import taxes on packaging plastics in July, with approximately a quarter of those savings coming from imports into South Carolina.

*** REMINDER: GSP EXPIRES IN JUST A FEW MONTHS.***

Please use our Contact Congress page to write your Members today about the need to renew GSP today. That page makes it quick and easy to email both Senators and your Representative. All you need to do is: 1) enter your contact info, 2) enter a few sentences about your company/GSP imports, and 3) click send.

GSP Saved American Companies $62 Million in March 2017

Dan Anthony — Wed, 10 May 2017 12:00:27 +0000

In March 2017, the GSP program saved American companies $62 million on about $1.6 billion in imports. GSP imports were down by 2 percent – though tariffs savings were up by 1 percent – compared to March 2016.

In the first quarter of 2017, GSP imports were basically flat by value and up about 2 percent in terms of tariff savings compared to 2016. The graduation of Uruguay and Venezuela from GSP effective January 1, 2017 contributes to the slow year-over-year growth.

Despite the mixed growth of GSP import values and savings, some states such as Wisconsin and Michigan saw large increases in GSP imports and savings compared to March 2016, as shown in the graphic below.

GSP saved Wisconsin companies $1.3 million in March, up over $420,000 (49 percent) compared to one year earlier. Optical equipment from the Philippines, metalworking machinery from Brazil, and ceramic plumbing goods from India contributed most to Wisconsin’s GSP increases.

GSP saved Michigan companies $2.8 million in March, up over $620,000 (28 percent) compared to one year earlier. Engines from Thailand, wire harnesses from Indonesia, and machine tools from India contributed most to Michigan’s GSP increases.

In addition to Wisconsin and Michigan, companies in 12 other states saw GSP savings increase by at least 20 percent, including: Alabama, Arkansas, Connecticut, Delaware, Indiana, Louisiana, Nevada, New Hampshire, New Mexico, North Dakota, Utah, and Vermont.

Savings on GSP imports from Jordan increased by 157 percent compared to March last year. Illinois companies’ purchases of chickpeas accounted for more than 10 percent of GSP imports from Jordan. GSP eliminated about $770,000 in import taxes on wire harnesses in March, with about 20 percent of those savings on imports into Tennessee.

More monthly GSP import and savings highlights are on our Graphics page.

REMINDER: GSP expires at the end of 2017. Click here to learn about ways to take action and support GSP renewal this year.

State-by-State Breakdown of $111 Million in GSP Savings Through February 2017

Dan Anthony — Wed, 19 Apr 2017 16:10:39 +0000

In the first 2 months of 2017, GSP saved American companies $111 million in eliminated tariffs. Connecticut, Iowa, Massachusetts, Washington, and Wisconsin joined the list of states that have saved at least $1 million so far in 2017 because of GSP. In total, GSP savings through February exceeded $1 million for 22 states.

The map below shows the overall value of 2017 GSP imports (in blue) and tax savings (in red) by state through February.

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. This post highlights select states, products, and countries contributing to increases in February.

REMINDER: GSP EXPIRES AT THE END OF 2017. Click here to learn about ways to take action and support GSP renewal this year.

15 More Organizations Join GSP Supporter List

Dan Anthony — Fri, 14 Apr 2017 17:53:13 +0000

This week 15 more organizations (1 association, 14 companies) signed up for the 2017 GSP Supporter List. The new organizations, which follow the 10 new companies from last week, are all listed below.

*** Tariffs on GSP imports are scheduled to go up on January 1. By the time that feels “close,” it may be too late to make a difference in Congress. So if you import under GSP and don’t see your organization here, please add it here today. ***

The companies are based in 11 different states and most are small businesses (Panasonic North America certainly is not). Their imports are as varied as their locations: Engineered Components Company imports cap screws from Thailand; Galaxy Sports imports gloves from Indonesia; Global Chemcorp imports pigments and dyes from India, and Sugarpod Naturals imports dietary supplements from the Philippines.

Two companies – B&C Technologies and Fab-Line Machinery – are among those featured on our Company Profiles page.

The next potential GSP expiration is less than 9 months away. If you import under GSP, be sure to join our free GSP Supporter List so we can continue making the case for GSP renewal well in advance of the pending expiration date.

GSP Supporter List companies added the week of April 10, 2017:

Andre Prost, Inc. in Old Saybrook, Connecticut
B&C Technologies LLC in Panama City Beach, Florida
Bolcof Port Polyers / Calsak Plastics in Azusa, California
Engineered Components Company in Elgin, Illinois
Fab-Line Machinery, LLC in Nashville, Tennessee
Galaxy SPorts, Inc. in South Bend, Indiana
Global Chemcorp, LLC in Charlotte, North Carolina
Karran in Vincennes, Indiana
Organik Kimya US, Inc. in Burlington, Massachusetts
Panasonic Corporation of North American in Newark, New Jersey
Sugarpod Naturals in Hillsboro, Oregon
TRI-K Industries Inc. in Denville, New Jersey
YGI Group in New York, New York
Zhong Ya Chemical (USA) Ltd. in Edison, New Jersey

GSP Saved American Companies $53 million in February 2017

Dan Anthony — Wed, 12 Apr 2017 16:13:33 +0000

In February 2017, the GSP program saved American companies $53 million on about $1.4 billion in imports. GSP imports were down by 3 percent – and tariffs savings down by 2 percent – compared to February 2016. (Though it should be noted that 2016 had one extra day because of the leap year.).

Despite the slight overall decline, some states such as West Virginia and Nevada saw very large increases in GSP imports and savings compared to February 2016, as shown in the graphic below.

GSP saved West Virginia companies $91,000 in February, up $36,000 (65 percent) compared to one year earlier. Chemicals and mining tools from India and electrical conductors from Ecuador contributed most to West Virginia’s GSP increases.

GSP saved Nevada companies $330,000 in February, up $128,000 (63 percent) compared to one year earlier. Plastics accessories (e.g., wallets, glasses cases) from India, flourides (chemicals) from Thailand, and tungsten concentrates from Bolivia contributed most to Nevada’s GSP increases.

In addition to West Virginia and Nevada, companies in 10 other states saw GSP savings increase by at least 20 percent, including: Colorado, Connecticut, Delaware, Florida, Michigan, New Hampshire, New Mexico, Rhode Island, Virginia, and Wisconsin.

Savings on GSP imports from Kenya increased by 153 percent compared to February last year. New Jersey companies’ purchases of nuts were among the top GSP imports from Kenya. GSP eliminated about $265,000 in import taxes on gelatin in February, with about of those savings on imports from Iowa.

More monthly GSP import and savings highlights are on our Graphics page.

REMINDER: GSP expires at the end of 2017. Click here to learn about ways to take action and support GSP renewal this year.

GSP Saved American Companies $59 million in January 2017

Dan Anthony — Wed, 15 Mar 2017 13:43:46 +0000

In January 2017, the GSP program saved American companies $59 million on about $1.5 billion in imports. GSP imports were up by 5 percent – and tariffs savings up by 8 percent – compared to January 2016. In terms of GSP savings, it was the best start to a year since 2013.

Some states, such as Arizona and Minnesota, saw particularly large increases in GSP imports and savings compared to January 2016, as shown in the graphic below.

GSP saved Arizona companies $706,000 in January, up $215,000 (44 percent) compared to one year earlier. Semiprecious stones from Brazil and Madagascar, chemicals from India, and plastic statues and decorative items from the Philippines contributed most to Arizona’s GSP increases.

GSP saved Minnesota companies $413,000 in January, up $95,000 (30 percent) compared to one year earlier. Aluminum structures from Thailand, optical lenses from Indonesia and Thailand, and measuring instruments from the Philippines contributed most to Minnesota’s GSP increases.

The increase in GSP savings for American companies has been shared broadly. In addition to Arizona and Minnesota, companies in 16 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Arkansas, Colorado, Connecticut, Idaho, Louisiana, Maine, New Hampshire, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, and Wisconsin.

Savings on GSP imports from Turkey increased by 23 percent compared to January last year. Georgia companies’ purchases of tires were among the top GSP imports from Turkey. GSP eliminated about $100,000 in import taxes on air bags and parts in January, with nearly all of those savings on imports from Thailand into Utah.

REMINDER: GSP EXPIRES AT THE END OF 2017. Click here to learn about ways to take action and support GSP renewal this year.