Business
US-GSP for Philippines approved for 3 years
Trade Secretary Ramon M . Lopez
W ashington , D . C .— The United States Generalized System of Preferences ( GSP ) was reauthorized on 23 March 2018 , after President Donald J . Trump signed the Omnibus Spending Bill which included GSP renewal language .
The renewal authorizes the GSP through 31 December 2020 and includes a mechanism that refunds tariffs paid from 01 January 2018 through the reinstatement date of the program . In addition , USTR will be required to submit an annual report to the relevant congressional trade committees on Beneficiaries ’ compliance with country-eligibility criteria .
Trade Secretary Ramon M . Lopez welcomed the reauthorization of the US GSP . “ We wish to thank the US Government for the timely renewal of the GSP program , as Philippine exporters will continue to benefit from enhanced market access to the United States under GSP ”.
The GSP program covers a total 5,057 products or tariff lines or roughly 47.7 % of the 10,600 total US tariff lines : 3,500 of which are open for all Beneficiary Developing Countries ( BDC ) while an additional 1,500 products are given to the Least-Developed Beneficiary Developing Countries ( LDBDC ). Effective 1 July 2017 , a total of 23 travel goods articles were added to the program .
Lopez said that the Philippines has enjoyed preferential duty-free entry to the US through the GSP program for a number of products . GSP exports account for 18 % of Philippines exports to the US , valued at an estimated US $ 1.59 billion . Top GSP exports to the US include telescopic sights for rifles , spectacle lenses other than glass , new pneumatic radial tires of rubber , non-alcoholic beverages not including fruits and vegetables , and electrical machinery and equipment parts .
The recent approval of the GSP is a triple-win for developing countries , US companies , and American consumers , according to Sec . Lopez .
Meanwhile Trade policy Undersecretary Ceferino Rodolfo highlighted the importance of the US GSP in the face of a brewing trade clash among bigger countries . The Philippines utilizes all available tools to maintain — and even improve its preferential access to key markets . This is important not only in ensuring advantage for our exporters but equally critical , to heighten the Philippines ’ advantage as location for manufacturing of these products .”
DTI officials cited that in the case of the US , in addition to the DTI ’ s advocacy for GSP market access , the Philippines stands ready to engage with US authorities to assist our exporters in the face of additional tariffs which the US may impose on certain products . “ With respect to the US , the longer term goal is to negotiate and conclude a free trade agreement ,” concludes Lopez . It will be recalled that in a recent testimony to the House Ways & Means Committee , US Trade Representative Ambassador Robert Lighthizer confirmed that US is considering an FTA with the Philippines . dti . gov . ph
“ First , investors will no longer be limited to just the Income Tax Holiday ( ITH ) and the 5 % tax on Gross Income Earned ( GIE )— but will now be able to choose other incentives that may be more relevant , including long enough Net Operating Loss Carry-over , accelerated depreciation , and double-deduction of certain expenses critical to upgrading competitiveness such as R & D , training , and others ,” said Usec . Rodolfo .
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