In the state of Louisiana for the year 2016, Generalized System of Preferences (GSP) imports totaled $228 million, with GSP tariff savings of $5.9 million. The 2017 year-to-date savings amount to $12 million, a substantial increase over the previous year. The lapse in the GSP cost Louisiana $1.4 million dollars in taxes during the expiration, according to the Coalition for GSP, a group of American companies and trade associations organized to educate policy makers and others about the important benefits to American companies, workers, and consumers of the GSP. Con-Tech is a beneficiary of the GSP and is grateful for a speedy reimbursement of taxes paid and most importantly, that the program has been extended to 2020.
In order to benefit from GSP, goods must be either wholly obtained or sufficiently manufactured in a GSP country. Sufficiently manufactured means that all 3rd-country materials have undergone a substantial transformation plus at least 35% of the good’s value has been added in the beneficiary country. Additionally, the goods must be “imported directly”.
Con-Tech has been proud to partner for many years with leading manufacturers from India, one of three countries recently affected by the expiration and renewal of the GSP; a program designed to promote economic growth in the developing world, provides preferential duty‐free treatment for over 3,500 products from a wide range of designated beneficiary countries (BDCs), including many least‐developed beneficiaries developing countries (LDBDCs).
One of our leading suppliers is Technocraft Industries, based in Mumbai, India. We have been working with Technocraft for decades and are proud to say were one of the first U.S. companies to work with this respected leader in the drum closures industry. In a previous e-newsletter we have a photo of Technocraft co-founder Sudarshan Saraf with our Vice-President, Robert G. Evans III at an international packaging conference. Our business roots run deep.
Over time, we have built a friendship and a strong partnership with this company and any legislation that could jeopardize such a relationship, isn’t good for business. We are grateful for a speedy renewal of the GSP and look forward to increasing our business with India and other GSP countries in the coming years.