US GSP active for Sri Lanka from April 22
April 18, 2018 10:07 am
The re-authorised US generalised scheme of preferences (GSP) will become active for Sri Lankan exporters from April 22, according to Minister of Industry and Commerce Rishad Bathiudeen.
US President Donald Trump re-authorised US GSP facility for 120 beneficiary countries (which was not renewed in December 2017) when he signed the US Omnibus Spending Bill on 23 March.
The re-authorisation opens opportunities for around 5000 products to be imported to US without tariff from 120 developing countries.
The US has been the leading buyer of Lankan exports over the years and it continued its lead even last year. Sri Lanka’s total exports to US last year was almost notching $3 Bn threshold at US$ 2.9 Billion. This is a growth of 3.65% from 2016’s $2.8 Billion.
Apparel products are Sri Lanka’s biggest export item to US, taking around 70-75% of annual exports. Total US-Sri Lanka trade (both exports and imports) in 2016 was US $3.3 Billion.
Sri Lanka will now benefit from the renewed US GSP Scheme until 31 December 2020. Since the effective date of the renewal is 22nd April 2018, Lankan exports to USA under the GSP Scheme will be eligible for tariff concession after 22nd April 2018.
However the US importers are eligible to claim customs duties they had to pay during the period of inactive GSP (from 1st January 2018 to 22nd April 2018) due to the retroactive effect of US President’s renewal.
