Due to GSP expiration, Ciranda has paid over $209,000 in extra tariffs on imports of tapioca powders and syrups, coconut products, rice syrup and powders from Brazil, Pakistan, Philippines, and Thailand. The need to pass these costs onto customers led sales to fall. Even if tariffs paid (eventually) are refunded, those lost sales can’t be regained. As an employee-owned company, everyone at Ciranda is impacted by those lost sales and profits.

Ciranda is a great example of the kind of trade GSP is meant to promote. Its qualification process includes an in-person visit to every supplier. While on-site, it observes each ingredient’s journey from the field to the processing plant. In addition to evaluating product quality, it surveys working conditions, fair labor practices, and the overall environmental health of the project. In 2020, Ciranda published a book highlighting the farmers around the world growing their product.

By eliminating U.S. tariffs on sustainable food ingredients, GSP helps companies like Ciranda do “more good” for workers and the environment in developing countries and the United States. Their example also highlights the risk of imposing too many eligible criteria on GSP countries for which higher tariffs are the only possible punishment. No matter how well-intentioned a new GSP criterion (e.g., on environment) may be, terminating GSP often hurts those meeting or exceeding even the highest standards. That’s why the Coalition believes Congress should consider changes to mitigate any punitive actions as part of GSP renewal, such as supporting partial (instead of full) terminations and/or creating a mechanism for good actors to retain benefits.

Note: Ciranda’s story came from a new Coalition survey on expiration impacts. GSP importers can take the survey here.

The large increases come despite the fact that July, August, and September savings appear significantly understated: official U.S. government data show no claimed GSP benefits for imports of travel goods from countries such as Thailand and the Philippines in July or August despite a recent program expansion. So not only is GSP program usage is booming, it’s likely that data on savings will be revised up considerably in the near future.

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

GSP saved Oklahoma companies $316,000 in September, up $126,000 (67 percent) compared to one year earlier. Taps and cocks and artificial plants from India, rubber hoses from Turkey, and ceramic wares from Indonesia contributed most to Oklahoma’s GSP savings increases.

GSP saved Florida companies $4.8 million in September, up $1.3 million (36 percent) compared to one year earlier. Tropical plywood from Ecuador, travel goods from Burma and Cambodia, and motor boats from South Africa contributed most to Florida’s GSP increases.

In addition to Oklahoma and Florida, companies in 21 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Arkansas, Delaware, Iowa, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, South Dakota, Texas, Virginia, West Virginia, and Wyoming.

Savings on GSP imports from Pakistan increased by 52 percent compared to September of last year. New York companies’ purchases of jewelry alone resulted in $179,000 in GSP savings. GSP eliminated about $500,000 in import taxes on valves in September, with about half of those savings coming from imports into Texas.

*** 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.

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.)

Special thanks to those companies that not only responded, but have allowed us to publish their survey responses. Here are just a few of the 50 or so responses received to date. Again, if you haven’t done so already, please answer our survey here.

Summit Specialty International in Georgia imports interior pine doors from Brazil. With total sales of about $4,000,000, the $150,000 in GSP payments was an extreme burden. According to owner Alex Livingston: “I have not been able to provide medical insurance (or even consider it) for my five employees. I pay them well above minimum wage and would like to provide them more benefits. I could also use additional office help. The return of the tariff money from the previous year and the additional margin will allow me to hire another worker, give raises, and invest in additional inventory, thus increasing sales.”

Associated Textile Mills in New York is a small business that imports tarps and drop clothes from India. GSP expiration has cost the company $70,000 in additional tariffs and results in a drop in sales. As a result, the company froze salaries and employees were forced to contribute to their health benefits. The proposed GSP renewal legislation would allow the company to eliminate the employee contributions to health benefits and hire two new employees, as it expects import volumes (and therefore sales) to increase significantly without the tariffs in place.

Pacific Paper Export in 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.

So we decided to conduct an experiment: we downloaded all of the Panjiva import records from GSP beneficiary countries for the most recent day available (Thursday, July 17) and examined each shipment to see if the company (likely) paid unnecessary taxes because Congress has failed to renew the program.

We found nearly 100 companies that likely paid taxes on that one day (full list after the jump) based in 24 states. The vast majority of them are not on the GSP supporter list – including some pretty BIG companies – meaning the constituent impacts are much greater than we have been able to highlight. At least they’re not on the list yet…we hope anyone that sees their company below will add it here.

Even this list significantly understates the actual number of companies that likely paid higher taxes last Thursday. That’s because we were conservative in identifying “likely GSP shipments.” For example, we skipped over all records that named a shipping company as the importer of record as well as records with vague product descriptions such as “granite” or “foodstuffs.” These are both major GSP imports, but GSP-eligibility depends on the type of granite and foodstuffs. Finally, there were about 4 times as many shipment records for July 16 as for July 17…would we have found 4 times as many companies had we chosen one day earlier? (We’d still be reviewing them, but may undertake that effort at a later date!)

So while far from perfect, here is the partial list of companies that likely got stuck paying higher taxes on July 17:

GSP supporter list companies importing GSP-eligible products (22):

• Acme Food Sales (Seattle, WA) – coconut water from Thailand
• Bridgestone Americas (Nashville, TN) – tires from Indonesia
• Camerican International (Paramus, NJ) – food products from Thailand
• Cummins Inc. (Columbus, IN) – engine parts from India
• Eastland Food Corporation (Jessup, MD) – food products from Thailand
• Eucatex of North America (Alpharetta, GA) – fiberboard from Brazil
• Felt Racing LLC (Irvine, CA) – bicycles from Cambodia
• Fusion Gourmet (Gardena, CA) – candy from Indonesia
• Handy International (Salisbury, MD) – seafood products from Thailand
• Henry W. Peabody & Co. (Lynnfield, MA) – polypropylene products from Indonesia
• International Packaging Films (Norwood, NJ) – polyester films from India
• Jaunty Co. (Los Angeles, CA) – hand-tufted carpets from India
• Kas Oriental Rugs (Somerset, NJ) – hand-tufted carpets from India
• Loloi Inc. (Dallas, TX) – hand-tufted carpets from India
• LR Resources (Dalton, GA) – hand-tufted carpets from India
• M.S. International (Batavia, CA) – stone products from Brazil and Turkey
• Primetac (Little Ferry, NJ) – adhesive tape from Indonesia
• Sumitomo Electric Wiring Systems (Edmonton, KY) – copper wire from Indonesia
• Universal Arquati (Santa Clarita, CA) – wooden picture-frame moulding from Indonesia
• Via Motif (Miami, FL) – handicrafts from Indonesia
• Yaraghi LLC (Port Washington, NY) – hand-tufted carpets from India
• Zebra Pen Corp. (Edison, NJ) – ballpoint pens from India

Other GSP supporter list companies (product descriptions too vague to determine GSP eligibility (9):

• General Electric (Fairfield, CT)
• Michelin North America (Greenville, SC)
• Napa Rayloc (Atlanta, GA)
• Omicron Supply (Pompano Beach, FL)
• Pantai USA (Doral, FL)
• S&V Industries (Fairlawn, OH)
• Tumac Lumber (Portland, OR)
• Universal Forest Products (Union City, GA)
• Venture Lighting (Solon, OH)

Non-supporter companies importing GSP-eligible products (60):

• Abaline Supply Co. (Port Reading, NJ) – plastic cups from India
• ABB Power (Jefferson City, MO) – parts for electrical transformers from India
• Acme Mfg. Co. (Denver, CO) – aluminum alloy extruded products from India
• AKG Thermal Systems (Mebane, NC) – oil coolers from India
• Amber International (West Orange, NJ) – plastic tubes with caps from Thailand
• American Honda Motor Company Parts Center (Chino, CA) – auto parts from Thailand
• Arrowpak Inc. (Richmond Hill, NY) – glass bottles from India
• Atlapac Trading Company (Commerce, CA) – sweet corn in brine from Thailand
• Atlas Global Supply (Arlington, TX) – metal clothes hangers from Cambodia
• Aurolife Pharma LLC (Dayton, NJ) – high-density polyethylene (plastic) bottles from India
• Bacova Guild Ltd. (Covington, VA) – rubber mats from India
• Barbara Cosgrove Lamps (North Kansas City, MO) – handicrafts from India
• Carbon Activated Corp. (Compton, CA) – activated carbon from Sri Lanka
• Castings Inc. (Grand Junction, CO) – sanitary castings from India
• Chem One Ltd. (Houston, TX) – sodium formate from Turkey
• CLP Chemicals (Houston, TX) – glycerine from Indonesia
• Collaborative Advantage Marketing (Birmingham, MI) – coconut water from Thailand
• Del Valle, Kahman & Company (Buena Park, CA) – plywood from Indonesia
• Design by Deekay (Montclair, CA) – incense from India
• Donau Carbon Corporation (Springfield, NJ) – activated carbon from India
• Eagle Ottawa (Auburn Hills, MI) – buffalo leather from India
• G.L. Food Wholesale (City of Industry, CA) – soy sauce from the Philippines
• Gemini Food Corporation (Walnut, CA) – chili sauce from Thailand
• Global Agri-Trade Corporation (Long Beach, CA) – palmitic acid from Indonesia
• Goodman Manufacturing Company (Houston, TX) – air conditioning parts from Thailand
• Hankook Tire America Corp. (Wayne, NJ) – tires from Indonesia
• Home Design Store (Coral Gables, FL) – wooden products from India
• Homegoods (Framingham, MA) – brooms from Sri Lanka
• IKEA Supply (Perryville, MD) – ceramic sanitarywares from Turkey
• Innoleo LLC (Boca Raton, FL) – ricinoleic acid from India
• Kimberly-Clark Global Sales (Romeoville, IL) – latex gloves from Thailand
• Ludlow Composites (Fremont, OH) – rubber mats from India
• Main Street Décor (Rancho Cucamonga, CA) – wooden picture frames from Indonesia
• Mizuno USA (Norcross, GA) – batting gloves from Indonesia
• MM Composite Inc. (Fort Madison, IA) – epoxide resin from Thailand
• Montebello Packaging (Lebanon, KY) – aluminum discs from Thailand
• Nissan North America (Canton, MS) – steering components from Brazil
• Nitta Gelatin (Morrisville, NC) – gelatin from India
• Pacific Coral Seafood (Miami, FL) – frozen fried plantains from Ecuador
• Panamerican Food LLC (Miami, FL) – frozen bakery products from Uruguay
• Perfette Van Melle (Hebron, KY) – sugar-free gum from Turkey
• Pharmexcipient Inc. (Boca Raton, FL) – microchrystaline cellulose from Brazil
• Platinum Goods Corp. (Miami, FL) – coconut water from Brazil
• Pro Comp USA (Chula Vista, CA) – leaf springs from India
• Ramcar Batteries (Commerce, CA) – lead-acid storage batteries from the Philippines
• Rice Import USA (Hicksville, NY) – parboiled rice from Pakistan
• Rubbermaid Commercial Products (Winchester, VA) – brooms from Sri Lanka
• Spazio Marble and Granite (Lake Worth, FL) – travertine from Brazil
• Spicy Sense (Los Angeles, CA) – coconut milk from Thailand
• Stash Tea Company (Tigard, OR) – lemongrass from Thailand
• Stauber California (Fullerton, CA) – papaya fruit powder from India
• Sullair Corporation (Michigan City, IN) – air intake filters from Turkey
• Summit Flexible Products (Dayton, OH) – rubber floor mats from India
• Sun Lee Inc. (Los Angeles, CA) – corn and other food products from Thailand
• Superior Mfg. Group (Bedford Park, IL) – rubber floor mats from India
• Tecumseh Compressor Co. (Ann Arbor, MI) – electrical relays from Brazil
• TG Medical USA (Azusa, CA) – latex gloves from Thailand
• The Incense Works Inc. (Pleasant Lake, IN) – incense from India
• Vipac Inc. (Edison, NJ) – plastic bags from India
• Viraj USA (Garden City, NY) – threaded metal products from India

Again, if your company is in that last group and you want to add your name to the free GSP supporter list, you can do it here.

• 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.

The GSP’s importance to its beneficiary countries cannot be underestimated. The import program benefits more than 3.8 billion people living in two-thirds of the world’s economies. They rely on GSP duty-free exports to the United States to create tangible economic development.

The letter also noted that when GSP was allowed to expire for 10 months back in 2011:

U.S. imports of GSP-eligible items during that period decreased by over 17 percent, while overall U.S. imports increased by 15 percent.

We’re in the process of collecting company/association signatures for a similar U.S. business letter.  If you’d like your organization to be on that letter, just add your name (if you haven’t already) to our GSP Supporter List.  But act quick, as our letter will be going out VERY soon!

This included 9,000 upright or grand pianos, 240,000 guitars, and nearly 800,000 percussion instruments.  Most of these instruments are imported from Indonesia or Thailand, although GSP imports also came in from India, Pakistan, Ukraine, and even Cote d’Ivoire.

The companies importing these instruments are some of the best known in the music world: Scottsdale, Arizona-based Fender, maker of the legendary Stratocaster, imports instruments from Indonesia, as does Chesbro Music Company in Idaho Falls, Idaho.  Pearl Drums, based in Nashville, Tennessee, imports percussion instruments from Thailand.  So does Bloomfield, Connecticut-based KMC Music, the maker of Sabian cymbals.  Kawai in Rancho Dominguez, California imports pianos and keyboards from Indonesia.

If you can play it, GSP can save you money on it.  Actually, GSP could save you money if Congress acts to renew the program.

What does this have to do with GSP renewal?  Nothing at all, except for – and this is a bit of a stretch – the part about needing congressional action to change the status quo.  That said, we decided to honor our first president by highlighting companies in Washington-themed locales that import GSP-eligible products:

• Club Car, which manufactures golf carts and other compact electrical vehicles at its facility on Washington Road in Evans, Georgia, imports parts for suspension systems from India.  GSP saved American companies buying those suspension systems $2 million in 2010.
• Rawling Sporting Goods, located in Washington, Missouri, imports leather gloves from Pakistan.  Approximately $64 million worth of batting gloves and baseball mitts entered the U.S. duty free under GSP in 2010, eliminating tariffs of 3.0% to 4.9%.
• Tweezerman International, in Port Washington, New York, imports metal tweezers from India.  GSP saved American companies nearly $300,000 on tweezer imports last year.
• TRInterational, Inc., in Seattle, Washington, has imported citric acids from Thailand.  By waiving the 6.0% tariff, GSP reduced the cost of citric acid by more than $2.2 million.

Since our 16th President is frequently included in Presidents Day celebrations, we couldn’t leave these companies out either:

• Midwest Tile, Marble and Granite, Inc., headquartered in Lincoln, Nebraska, imports monumental and building stone from India and Brazil.  GSP eliminated about $9.5 million worth of tariffs in 2010.
• Ungerer & Company, in Lincoln Park, New Jersey, imports “odoriferous or flavoring compounds” from Indonesia, where the company has a facility in Medan.  GSP eliminated the 4.8% tariff on nearly $6 million worth of imports of those compounds in 2010.
• AGCO, whose Hesston agricultural machinery division is located on West Lincoln Blvd in Hesston, Kansas, has imported transmission shafts and other metal articles from Brazil.  GSP saved importers of these products from Brazil $2.3 million last year.