GSP with the United States of America
Prepared by the Georgian National Investment Agency
January 23, 2009
U.S. and Georgia Trade
- In January-November 2008 Georgia’s exports to the United States made nearly 102 million USD (7% of Georgia’s total exports);
- There is a big unrealized potential for Georgian exporters on the US market;
- Effective way to do so: increase Georgia’s use of GSP duty-free export opportunities.
GSP Program
- GSP provides enhanced access into the U.S. market for 3,400 types of products from 132 countries
- GSP gives eligible imports an advantage in U.S. market – they enter duty-free
- Georgia became a GSP beneficiary in 2001
U.S. Imports from Georgia under GSP and overall
- 2006: $116 million in total U.S. imports from Georgia
- 34.5 million under GSP (30% of all imports)
- $1.3 million in duties saved (average: 3.7%)
- 2007: $188 million in total U.S. imports from Georgia
- $68.3 million under GSP (36%) – GSP use nearly doubled!
- $2.6 million in duties saved (average: 3.8%)
- January through July 2008: $166 million (up 154% over same period last year)
- $99 million in U.S. imports from Georgia under GSP (up 410%)
- Imports under GSP from Georgia are 60% of all imports
- U.S. imports under GSP (January through July 2008) from Georgia have included just 17 of 3,400 eligible product types.
Composition of Exports under GSP (2007): Not Diverse
- Base metals: $66.4 million (97%)
- Agriculture: $1.9 million (3%)
- Chemicals, plastics and paper: $58,512
- Jewelry and glassware: $26,730
- Machinery, electronics and transportation: $16,412
Top U.S. Imports from Georgia to U.S. under GSP in 2008 (thru July)
- Ferrosilicon manganese: $79.5 million; saving $3.1 million in duties @ 3.9%
- Ferromanganese: $18.3m; saving $255,794 in duties @ 1.4%
- Juice of a single fruit: $624,279; saving $2,256 in duties @ 0.5 cents per liter
- Mineral waters: $498,224; saving $2,489 in duties @ .26 cts/liter
- Certain sauces & preparations: $98,698; $6,316 in duties saved @ 6.4%
- Cucumbers including gherkins: $31,104; $2,986 in duties saved @ 9.6%
- Certain prepared or preserved vegetables: $23,380; $2,244 in duties saved @ 9.6%
- Nonalcoholic beverages not containing fruit or vegetables: $22,419; $10.52 in duties saved @.2 cts/l
- Mixed condiments or seasonings: $17,908; $1,146 in duties saved @ 6.4%
- Wood doors other than French doors: $12,000; $576 in duties saved @ 4.8%
- Unfrozen vegetables and mixes of vegetables: $9,172; $1,027 in duties saved @11.2%
- Cherry jam: $6,600; $$237 saved @4.5%
New U.S. Imports from Georgia under GSP in 2008 YTD
Agricultural items:
- Cucumbers, incl. gherkins (9.6% duty)
- Mixed condiments & seasonings (6.4%)
- Certain food preparations (6.4% duty)
- Cherry jam (4.5% duty)
Manufactured and industrial items:
- Wood doors (4.8% duty)
- Electric heaters (2.7% duty)
- Certain ferromanganese (1.4% duty)
Which Products are Eligible for Duty-Free GSP Treatment?
- Eligible: manufactured items and inputs, jewelry, skins, many carpets, certain agricultural products, chemicals, marble, and minerals
- Not eligible: most textiles, apparel, leather goods, and footwear
Is my product eligible for duty-free treatment under GSP?
- The easiest way is to go to: http://dataweb.usitc.gov/scripts/tariff_current.asp
- Fill in the blank with:
- Any part of a product description. For example, “jam” OR
- The tariff number (four, six, or eight numbers). For example, 2007, 200799, or 20079925
- Then click on “List Items”
How can Georgia’s Exports Qualify for Duty-free Treatment under GSP?
Four requirements:
- Product included in list of GSP-eligible articles
- Exported directly to U.S. or - if pass through another country - under a “through bill of lading” to U.S.
- Product of Georgia, or if it uses imported input, local content & processing must equal 35% of product price
- Importer must request duty-free treatment for item by writing an “A” before tariff number on U.S. Customs Entry Form
Prospects for Free Trade Agreement:
Georgia is keen on signing a free trade agreement with the USA. During the visit of the US trade delegation to Georgia in September 2008 the sides held preliminary consultations about the prospects of the free trade agreement between USA and Georgia. The work on the issue continues.
Useful contacts:
- Georgian National Investment Agency:
(995 www.investingeorgia.org 32) 433-433; (995 32) 306-202
- Department of Foreign Trade and International Economic Relations, Ministry of Economic Development
http://www.economy.ge/geo/departments.php?key=6&sub=9
(995 32) 93-10-53;
- U.S. Embassy in Tbilisi:
http://georgia.usembassy.gov/index.html
(995 32) 27-70-00
- For exporting agricultural products, contact: craig.t.fedchock@aphis.usda.gov
- Office of the U.S. Trade Representative:
GSP guidebook, lists of GSP-eligible and ineligible products, handicraft information:
http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html
- United States International Trade Commission:
http://www.usitc.gov/tata/hts/bychapter/index.htm
|
|
