On March 4, 2019, the Office of the United States Trade Representative (USTR) announced that the U.S. intends to terminate the Generalized System of Preferences (GSP) program for India and Turkey. India and Turkey, the largest and fifth-largest beneficiaries of the agreement, will be terminated from the program after the mandatory 60-day waiting period. As per the USTR, the termination of India from GSP stems from market access and other trade barriers. The USTR found that Turkey has developed sufficiently economically. The USTR cites increased Gross National Income per capita, declining poverty rates, and export diversification as evidence of economic development.
These changes will be enacted by a Presidential Proclamation and will not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey.
What does it mean for US Jewellery Importers?
Jewellery importers that continue to benefit from GSP for goods imported from India and Turkey should consider reviewing their landed costs of these products, as duties will be reassessed once the country is removed from the GSP program.
For more specific impact inquiries, please contact our specialists at Malca-Amit Customhouse Brokers. Tel: (718) 525-6100