GSP eliminates tens of thousands of dollars in tariffs annually for dZi, “enough to pay for staff health care or a new employee.” dZi’s 10-person staff in western Massachusetts handle all aspects of design, marketing, warehousing, fulfillment, and customer service – “soup to nuts” as founder and CEO Mac McCoy says.

Watch Mac explain why he urges “all of Congress to move on this cornerstone of good American policy that helps both businesses in our country and struggling communities in developing countries.”

If you’re a GSP importer, submit your own video testimonial here.

GSP expiration in 2013 had a snowball effect familiar to many small business users of the program: raising prices to cover the new tariffs led to lower sales. Lower sales resulted in less money available to purchase new inventory, which in turn led to even lower sales. Eventually, Aid Through Trade was forced to freeze hiring and delay necessary equipment updates.

All for what many might consider to be modest tariffs of $30,000 extra over two years. Yet seemingly modest amounts can make a huge difference for small businesses like Aid Through Trade.

With GSP back in place, Aid Through Trade was able to hire a new worker in Maryland and give thousands of dollars in bonuses to its staff. It also invested in new technologies as sales have returned to pre-2013 levels.

Like many GSP program users, Aid Through Trade is both importer and exporter. (About 45% of GSP Supporter List companies export.) Aid Through Trade exports products that enter duty-free under GSP to Europe.

Overall, GSP saved U.S. companies $531 million in the first nine months of 2016. GSP savings in 2016 are up about $40 million, or 8 percent, compared to the first nine months of 2015.

Pacific Paper Export in Seattle, Washington is a small business that imports sauces and chutneys from Pakistan. Sales of products that needed to be priced higher fell and the company was unable to expand warehouse operations as planned due to lower import volumes. The company believes lower prices associated with a reinstated GSP would lead to a 30 percent increase in imports and allow it to bring on new employees. (Represented by Congressman Jim McDermott (WA-7), an original cosponsor of the GSP renewal legislation. Pacific Paper Export is currently one of nine GSP supporter list companies in the district.)

Scrimco, Inc. in Fresno, California is a small business with 15 employees that imports polyester film. Ultimately these products end up in flexible air ducts manufactured in the United States. The company has paid more than $100,000 in import duties. The need to take a ‘wait and see’ attitude has prevented Scrimco from investing in new production equipment to improve efficiencies. The company believes GSP renewal will allow it to hire new workers and make the investments necessary to improve its domestic manufacturing capabilities. (Represented by Congressman Devin Nunes (CA-22). Scrimco is currently one of two GSP supporter list companies in the district.)

Pegasus Imports in Santa Rosa, California is a small business that imports jewelry beads and handicrafts from India and Turkey. The three-person company has paid $60,000 in import duties since GSP expired. The proposed legislation would allow Pegasus to hire two part-time workers and give raises to its current employees. The company also plans to invest in new equipment, such as a 3D printer and software, that will allow it to model new items and hopefully increase future sales. (Represented by Congressman Mike Thompson (CA-5). Pegasus is currently the only GSP supporter list company in the district.)

Engineered Components Co. in Elgin, Illinois is a small business that imports bolts and screws from Thailand. The company has paid $30,000 in tariffs on these products, which are used by American trailer manufacturers. Because Engineered Components has locked-in prices with its customers, it has no choice but to take a hit to its profits. The company believes GSP renewal will allow it to increase import volumes and grow the business. (Represented by Congressman Peter Roskam (IL-6). Engineered Components Co. is currently one of five GSP supporter list companies in the district.)

dZi Inc. in Easthampton, Massachusetts is a small business with 10 employees that imports artisan jewelry and handicrafts from Nepal and India. The company has paid $30,000 in import duties since GSP expired, which as had a number of effects: the company increased the deductible limit in the health program from $500 to $2,000; it postponed spending $15,000 on outside consulting firms for upgrading the e-commerce program, and saw a “notable reduction in orders” after raising prices. If GSP is renewed retroactively, the company could afford to hire a new marketing person, lower the health care deductible, and move ahead with its spending plans. (Represented by Congressman Richard Neal (MA-1). dZi is currently one of two GSP supporter list companies in the district.)

• They are headquartered in 42 states (plus DC) and 221 congressional districts and you can download the list by supporter list by congressional district here.
• They range from sole proprietors to some of the largest corporations in the world, but about 78% are small businesses with 100 or less employees, and the median number of employees is just 15.
• GSP savings range from as little as $1,000 to millions of dollars per year.
• They import from more than a quarter of GSP-eligible countries, including: Bangladesh, Bhutan, Bolivia, Brazil, Burkina Faso, Cambodia, Ecuador, Egypt, Georgia, Ghana, Haiti, India, Indonesia, Kazakhstan, Kenya, Lebanon, Macedonia, Madagascar, Malawi, Mali, Nepal, Pakistan, Paraguay, Philippines, Russia, Senegal, South Africa, Sri Lanka, Tanzania, Thailand, Tunisia, Turkey, Ukraine, and Uruguay.

For those comparing to our last update, we’ve added 2 states (New Hampshire and Vermont), a number of new CDs, enough very small businesses to drop the median employees from 17 to 15,  and one new GSP-eligible country (Ukraine).

If you’re not yet on the list, be sure to add your name here.

We are a company located in a small town where the economy is fragile and the rate of unemployment is very high. If we have to pay duties for merchandise under GSP we don’t know if we will be able to stay competitive in our market and keep our current staff.

With a total population of just 2,300 (including surrounding villages), the 35 jobs at the company make it a significant employer in the town. At a time when policymakers are focused on helping small businesses and creating (or at least not losing) jobs, what else is there to say about the need to renew GSP?

The countries represent some of the largest GSP exporters, including Thailand, Indonesia, and the Philippines, as well as smaller countries like Kosovo, Mongolia, and Uruguay.  The letter highlights the loss in market share for GSP-eligible products, the increased costs for US producers, and job loss in their respective countries.