Exports body hails extension of import duty benefit scheme in US

Himanshu Vatsa | The Dollar Business

Indian exporters on Tuesday cheered the US government’s decision to extend its duty waiver scheme meant for certain category of imports from India and other developed countries. According to the US Customs and Border Protection (CBP), the Generalized System of Preference (GSP) programme has been reauthorised for another two and a half years beginning July 29, 2015. And US importers can claim refund against duties paid on products that are covered under the GSP. The scheme was launched in 1976 to promote growth in developing countries and encourage import of certain goods which are not produced in the US. As per the scheme, certain products are eligible for duty-free access to the US market if sourced from countries listed under the GSP beneficiaries. The GSP programme is implemented for a certain period and it needs periodical reauthorization in order to remain in effect. The GSP was last expired on July 31, 2013, and was reauthorized on June 29, 2015 (effective July 29, 2015) for a period of two and a half years. However, the legislation has allowed import duty benefits with retroactive effect. “The scheme lapsed in 2013 and it has been reintroduced after a very long time. Its retrospective implementation has come as a major relief. At least 3,000 Indian tariff lines are listed under the GSP. On an average, the duty benefits across products will range from 4-6%,” Ajay Sahai, Director General of the Federation of Indian Exports Organisation (FIEO), told The Dollar Business. He said textile, gems and jewellery and many other Indian products will get duty benefits in the US.

 August 04, 2015 | 4:26 pm IST.