Home / Knowledge / News / Apparel/Garments / AAFA hails Senate introduction of GSP update bill
AAFA hails Senate introduction of GSP update bill
18
Dec '13
The American Apparel & Footwear Association (AAFA) welcomed the introduction of the Generalized System of Preferences Update for Production Diversification and Trade Enhancement (UPDATE) Act, legislation that would make U.S. imports of travel goods like luggage, backpacks and handbags, among other items, eligible for duty-benefits under the Generalized System of Preferences (GSP) program.

The GSP UPDATE Act was introduced in the U.S. Senate by Senators Mark Begich (D-AK) and Roy Blunt (R-MO). The legislation joins a companion bill introduced in the U.S. House of Representatives on May 22, 2013.

"Every time American families pack their bags and travel to visit family, commute to work, or ride the bus to school, we are reminded that Congress has a valuable opportunity to provide real cost savings for U.S. consumers," said AAFA Vice Chairman Rick Helfenbein, President of TellaS Ltd. 

"Extending duty free benefits to travel goods makes essential products more affordable and creates development opportunities in the countries that need them most.  Under the GSP UPDATE Act, countries like the Philippines and Cambodia will have increased opportunity to compete in the global market while providing U.S. consumers with more product choices.  I applaud Senators Begich, Blunt and Wyden for their leadership on this important issue."

As introduced, the GSP UPDATE Act would recognize that travel goods are no longer an "import sensitive" industry by removing the current prohibition that prevents most travel goods from being eligible for duty-benefits under GSP. Under GSP, developing countries like Cambodia, Thailand, and the Philippines, will be able to export travel products to the United States duty-free. Under the GSP UPDATE Act, China and Vietnam are not eligible to participate in the GSP program.

While making U.S. imports of travel goods potentially eligible for duty-benefits under GSP, the bill continues to protect the remaining domestic manufacturers by 1) excluding from GSP eligibility certain specific types of travel goods still made in the United States and 2) requiring the U.S. government to do a review, and request public comment, before implementing any duty-benefits for travel goods under GSP.

Duties on the lowest-cost travel good can be as high as 17.6 percent. Today, 99 percent of travel goods sold in the United Sates are imported, meaning that these duties amount to an unavoidable, hidden, and regressive tax on American consumers.

Background

The Generalized System of Preferences (GSP) is a duty preference program.  It provides duty free access to the U.S. market for a variety of products from developing countries that meet certain criteria, such as labor rights and intellectual property rights protection.  Created by the Trade Act of 1974, the GSP program has historically been a very popular program and laid a foundation for the development of longer term U.S. import relationships with developing countries. 

The GSP program has experienced some uncertainty because it is subject to short term renewals and has even been allowed to lapse several times, most recently in July 2013. Unfortunately, the much-lauded GSP program has remained expired due to Congressional gridlock with unclear timing for renewal, though it is virtually certain to be re-instated as soon as possible.

American Apparel & Footwear Association (AAFA)

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search