“Despite our attention to design, color, and style, many retailers consider our products to fall under the commodity goods umbrella (very basic) and as such, will not pay increased costs. Margins are crucial to us, and lack of GSP really hurt.”

The company ended up paying about $90,000 in tariffs while GSP was expired. Like many others, Evco still waiting on some of those refunds a full year after GSP went back into effect. With GSP back in place, the company no longer has to absorb the tariff costs and can shift its focus back to where it belongs: design, color, and style.

EVCO provided the above information in response to our GSP renewal impacts survey. If you have not done so already, please take a minute to answer these questions today. As always, all data will be kept confidential and no company-specific answers will be attributed unless permission is explicitly granted.

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.

Every state will benefit: more than $1 million in refunds are expected for companies in 43 states plus Puerto Rico. Not surprisingly, companies in large states like California ($122 million) and Texas ($100 million) will receive the most.

And these figures represent only the automatic refunds. Companies have until December 28 to request refunds for products that did not claim GSP when originally imported.

The refunds are already helping American companies and workers. The Cannon Group in Ohio says at least 3 net jobs are tied to GSP renewal and refunds. Thompson Traders in North Carolina is adding a new product line. Kona Bicycles in Washington hired two workers in July and planned to hire another in August. And Primetac Corporation in New Jersey started making hires and equipment purchases before the renewal even took effect.

If your company is benefiting from GSP renewal, we want to hear from you!

Whether you are hiring new workers, raising compensation for existing employees, making capital investments, or simply paying down debts that accrued during expiration – no detail is too small. It’s time to start making the case for GSP renewal in 2017.

GSP refund checks received to date by Ohio small business

They say a picture is worth a thousand words. The pictures above (or at least the checks in them) are worth SO much more.

The checks are the first GSP refunds for The Cannon Group, a small business in Westerville, Ohio that imports plastic bags for newspapers from Sri Lanka. For nearly 2 years while GSP was expired, the company had to pay higher taxes on every shipment.

Now that money is coming back – one check for each shipment – and is being put to good use.

The Cannon Group plans to add one full-time employee in September and is looking to add at least one new salesperson in the next 6 months. The refunds also saved the job of another employee that would’ve gone away due to the loss of other business. For this Ohio small business, at least 3 net jobs are tied to GSP renewal and refunds.

These moves shouldn’t come as a surprise. President Frank Cannon said nearly a year ago:

“With a loss of $700,000 to our bottom line we cannot afford to hire any new staff. If Congress renews GSP retroactively, we would definitely hire more staff.”

Ways and Means Trade Subcommittee Chairman Pat Tiberi (R-OH) cited the company, based in the district, when introducing the legislation back in April. At the time, Mr. Tiberi said GSP renewal would help companies like The Cannon Group grow their businesses and “ultimately create jobs.”

And he was right. In addition to The Cannon Group, companies like Thompson Traders, Kona Bicycle, and Primetac all are benefiting immediately from GSP renewal.

What steps are you taking now that GSP has been renewed? We want to hear from you!