ISLAMABAD: The United States has reauthorised Generalised System of Preferences (GSP) status for Pakistan.

Commerce Minister Khurram Dastagir Khan on Saturday said that the revival of US GSP programme was a fresh opportunity for Pakistani exporters to explore the US market more deeply and to reverse the diversion of exports to Asia and Europe.

“The commerce ministry will continue its close liaison with US Trade Representative (USTR) to make this a mutually beneficial partnership between our two democracies,” he added.

The GSP status of 127 countries including Pakistan was suspended by US Congress after the expiry of the programme on July 31, 2013.

According to an official document of the USTR office, a copy of which is also available with Dawn, the GSP programme has been renewed through Dec 31, 2017 and will be effective retrospectively between Aug 1, 2013 and July 28, 2015.

The preferential trade package covers around $200 million exports from Pakistan as against the total exports of $3.603 billion to the US, which is quite insignificant in terms of value.

The GSP is a renewable preferential trade programme that allows the eligible products of designated beneficiary developing countries to directly enter the US free of duty. The US Customs and Border Protection (CBP) has issued instructions for obtaining retrospective GSP treatment.

According to the USTR document the Trade Preferences Extension Act of 2015, signed by the US president on June 29, 2015, provides that for entries made on or after August 1, 2013 through July 28, 2015, to which duty-free treatment would have applied if GSP had been in effect during that time period, any duty paid with respect to such entry will be refunded (without interest) provided that a request for liquidation or reliquidation of that entry, containing sufficient information to enable CBP to locate the entry or to reconstruct the entry if it cannot be located, is filed with CBP by December 28, 2015.

Notices have also been issued to importers and others that CBP will again accept claims for GSP duty-free treatment for merchandise entered, or withdrawn from warehouse, for consumption and that CBP will process refunds on duties paid, without interest, on GSP-eligible merchandise that was entered during the period that the GSP programme was lapsed.

Under the GSP, Pakistan can export more than 3,500 items to the US market without paying any duties on them.

The GSP programme is designed to promote economic growth in the developing world by providing duty free access to the US markets for goods imported from designated beneficiary developing countries.

But the commerce ministry official said one of the main problems is lack of awareness of exporters to avail the facility.

Many of Pakistan’s goods are eligible for GSP duty-free including most manufactured items, inputs used in manufacturing, jewellery, carpets, certain agricultural products, many types of chemicals, minerals and marble. However, the products not eligible for GSP include most of textiles and apparel, watches, footwear, handbags, luggage, and leather products.

Published in Dawn, August 23rd, 2015

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