On the second anniversary of the enactment of the Trade Preferences Extension Act of 2015, the United States Trade Representative (USTR) will expand the Generalized System of Preferences (GSP) Program to include travel goods made in all GSP eligible countries.
The GSP encourages investment in developing countries as a way of assisting those countries in transitioning to a manufacturing-based economy. The new duty structure will go into effect on July 1, 2017.
The new agreement will eliminate duties of up to 17 percent on backpacks, sports bags and certain golf bags made in GSP countries. This follows the initial Obama administration ruling in 2016 to limit GSP expansion for travel goods to least developed and AGOA (African) countries.
The Sports & Fitness Industry Association (SFIA) has been actively involved in the effort to fully expand the travel goods tariff benefit to all GSP countries. SFIA members Under Armour and Ogio testified at U.S. Trade Representative and International Trade Commission hearings on GSP expansion and SFIA submitted comments supporting full expansion.
“The USTR decision to fully expand GSP benefits to travel goods produced in all GSP eligible countries is a huge win for the industry,” said Bill Sells, SFIA senior vice president, government relations and public affairs. “The tariff savings manufacturers will realize from sourcing in GSP countries is significant.”
Photo courtesy SFIA
