Circular No.ES/15 /2015-16 August 5, 2015
To : Members of the Council
Sub: US renews GSP benefits for Indian exporters from 1st August, 2013 to 31st Dec, 2017
Dear Members,
We are glad to inform you that after a prolonged 18-month wait, the US government has finally extended the Generalised System of Preferences (GSP) for Indian Exporters retrospectively from August 2013, enabling duty-free entry of 3,500 product lines.
The move is expected to benefit exporters of textiles, engineering, gems and jewellery, and chemical products, among others, as their biggest market is the US. The US GSP, which expired in July 2013, has been extended with retrospective effect from August 2013 till December 2017.
In this connection, we would further like to inform you the following –
The Generalized System of Preferences (GSP) is a renewable preferential trade program that allows the eligible products of designated beneficiary developing countries to directly enter the United States free of duty.
The GSP program expired on July 31, 2013, but has been renewed through December 31, 2017, effective July 29, 2015, with retroactive effect between August 1, 2013 to July 28, 2015, by a provision in the Trade Preferences Extension Act of 2015.
Effective July 29,2015, filers are entitled to file GSP-eligible entry summaries, utilizing the Special Program Indicator (SPI) “A,” “A+,” or “A*,” without the payment of duty for shipments entered or withdrawn from warehouse for consumption.
In the GSP a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to American market. This is given in the form of reduced or zero rates of customs duties.
It was introduced by the US in 1976. During the United Progressive Alliance regime, the then Commerce Minister Anand Sharma had taken up the matter strongly. This was the longest delay by the US in renewing the GSP.
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DUTY-FREE ENTRY |
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The move would help in boosting shipments to the US, which accounts for about 13 per cent of India's exports. Indian products will become competitive in the US market.
The complete details of export products eligible for GSP benefit when exported from India to US are available at http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences
Members are requested to take note of the above change and reap the benefits of US GSP, on their product if available.
Thanking you,
Yours faithfully,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
