Jeson Clarke

What is the U.S. Generalized System of Preferences?

The United States of America has a unique program in place to promote economic growth for many developing countries. It's called the Generalized System of Preferences, and it first came to be as part of the Trade Act of 1974. It benefits several countries, one of which is Sri Lanka.

Sri Lanka and the GSP

The U.S. Generalized System of Preferences encourages growth by providing duty-free entry for beneficiary countries. Sri Lanka customs records show that approximately 3,451 unique products from Sri Lanka are eligible for duty-free imports. These products amount to several billions of dollars in value.

What Items are Eligible?

Most manufactured items are eligible for duty-free treatment under the GSP. The program also accepts imports used in manufacturing as well.

Other qualifying imports include specific chemicals, minerals, jewelry, and carpets. Certain types of agricultural and fishery products are accepted, too. However, that list is limited.

The GSP does not accept most textile, apparel, and accessory products. The Office of the United States Trade Representative provides an exhaustive list of eligible items for those looking to take advantage of the GSP program.

How Does the Generalized System of Preferences Program Work?

Importing duty-free products from Sri Lanka is relatively straightforward. The first step is to ensure that products are on the list of GSP-eligible articles. They must come directly from Sri Lanka with no stops before entry into the United States.

Products must meet specific value requirements as well. The Sri Lankan materials plus the processing costs have to be at least 35 percent of the sales price for the product.

Finally, importers must take care of documentation. Importers have to claim GSP duty-free treatment on Customs and Border Protection entry documents. Having Sri Lanka customs records on hand is paramount as well to prove eligibility.

The U.S. Generalized System of Preferences continues to help developing nations increase their trade presence and encourage economic growth. Like all matters involving imports, it's essential to follow all guidelines and keep accurate records.

Author Resource:-

Jeson Clarke writes about database technologies, import/export data and customs data tools. You can find his thoughts at import export data records blog.