AMCHAM, FCCISL clarify GSP position
The American Chamber of Commerce (AMCHAM) and the Federation of
Chamber of Commerce and Industry (FCCISL) in consultation with the US
Embassy in Sri Lanka wishes to inform its members and all other
exporters to USA that the United States Congress did not reauthorize the
Generalized System of Preferences (GSP) trade benefit before the
authorizing law lapsed on December 31, 2010.
The GSP program provided trade preferences for 131 countries, and all
of these exporters will not receive GSP benefits until the program has
been reauthorized. This decision applies to the entire world, and is not
specific to Sri Lanka.
The GSP program has lapsed before, and each time the GSP program was
reauthorized, and it is expected that the GSP program will be
re-authorized again. Exporters are encouraged to continue to claim GSP
benefits, because in the past benefits were made retroactive to the
expiration of the program.
Exporters to USA are kindly requested to consider the following:-
* Sri Lankan eligible export products which were hitherto benefited
from US GSP scheme will also be excluded and liable to pay normal custom
duties when entering into the US market as stated above.
It should also be noted that the American importers who keep proper
records can claim duty free treatment for eligible products as and when
the US Congress extend the duration of the US GSP Scheme.
Since Form ‘A’ is no longer use by the US Customs, it is the
responsibility of the American importer to keep the proper documents and
submit them to claim benefits from the US Customs at the appropriate
We also urge Sri Lankan exporters to the USA under US GSP Scheme to
request their buyers upon importers to keep all import records as ‘If
and when GSP is renewed retroactively the US custom authorities will
automatically process refunds of duties deposited on program eligible
Sri Lanka has been a beneficiary of the US GSP Scheme since its
inception. Sri Lanka has been ranked as 14th Top Exporter under US GSP
Scheme in 2006. Rubber tires, plastic sacks and bags, rubber gloves,
activated carbon weighing machine weights, gold jewellery, porcelain and
China household ware and Rubber floor coverings were among the major
export products benefited from the US GSP Scheme.
To qualify the eligile and apparel articles, footwear, handbags and
luggage flat goods, kitchen and bed linens, leather products, electronic
products are not eligible to receive duty free treatment under this
In order to qualify the eligible products for duty free treatment,
the product must have 35 percent of domestic value addition and
‘substantially transformed’ the imported material and input.
We will closely monitor the future developments of the scheme and
keep Sri Lankan exporting community informed of any developments.
More analytical information on trade policy issues of this nature can
be accessed via the Trade Watch Series of the FCCISL on their blog.