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GSP restored; exporters to benefit |
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PHILIPPINE EXPORTERS can again enjoy discounted tariff rates from the United States with the renewal of the Generalized System of Preferences (GSP), the Trade department yesterday said.
“The US is an important ally of the Philippines and we welcome the move of the US Congress to renew the GSP privileges. The renewal of the GSP secures close to $1 billion exports revenues,” Trade Secretary Gregory L. Domingo said in a statement.
The program, reauthorized by US President Barack Obama last Friday, will take effect on Nov. 5 up to July 31, 2013. It will also provide tax refunds for goods shipped to the US after the previous GSP lapsed in December last year.
“The renewed program provides retroactive claim for preferential duty free access starting January 1, 2011. Our exporters will be refunded for the difference in tariffs paid after the GSP expired last December 2010. US Customs is now preparing guidelines for the refund process,” Mr. Domingo said.
The GSP grants eligible developing and least developed economies affordable access to the US market. Over 4,800 products from 129 beneficiary countries can enter the US duty-free through the preferential system.
For the Philippines, the preferential treatment can apply to exports such as cane sugar, bananas, air-conditioning parts, wooden tableware and kitchenware, silver jewelry, certain types of feminine apparel, machine parts, and processed food.
The country was ranked the seventh top GSP beneficiary last year based on Bureau of International Trade relations data. The utilization rate was at 72%, indicating the importance of lower tariff rates to enhance competitiveness, the Trade department said. --- Businessworld online
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