Expanding Egypt’s Exports through the Generalized System of Preferences (GSP) Program
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Expanding Egypt’s Exports Expanding Egypt’s Exports through the Generalized System through the Generalized System of Preferences (GSP) Program of Preferences (GSP) Program William Jackson William Jackson Office of the U.S. Trade Office of the U.S. Trade Representative Representative Executive Office of the Executive Office of the President President January 2012 January 2012
description
Expanding Egypt’s Exports through the Generalized System of Preferences (GSP) Program. William Jackson Office of the U.S. Trade Representative Executive Office of the President January 2012. Presentation Summary. Overview of the U.S. GSP Program Egypt’s GSP exports to the U.S. - PowerPoint PPT Presentation
Transcript of Expanding Egypt’s Exports through the Generalized System of Preferences (GSP) Program
Expanding Egypt’s Exports through Expanding Egypt’s Exports through the Generalized System of the Generalized System of
Preferences (GSP) Program Preferences (GSP) Program
William JacksonWilliam JacksonOffice of the U.S. Trade RepresentativeOffice of the U.S. Trade Representative
Executive Office of the PresidentExecutive Office of the PresidentJanuary 2012January 2012
Presentation Summary Presentation Summary
Overview of the U.S. GSP Program Overview of the U.S. GSP Program
Egypt’s GSP exports to the U.S. Egypt’s GSP exports to the U.S.
How to increase Egypt’s use of How to increase Egypt’s use of duty-free opportunitiesduty-free opportunities
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GSP ProgramGSP Program
Enhanced access to U.S. marketEnhanced access to U.S. market Expanded choices for U.S. industries & Expanded choices for U.S. industries &
consumersconsumers Provides duty-free treatment for 3,400 types Provides duty-free treatment for 3,400 types
of products from 129 countriesof products from 129 countries $22.5 billion in total U.S. GSP imports (2010) $22.5 billion in total U.S. GSP imports (2010) GSP program authorized through July 2013 GSP program authorized through July 2013
GSP Program: GSP Program: Eligible ImportsEligible Imports
EligibleEligible: most manufactured items & inputs, : most manufactured items & inputs, jewelry, many agricultural products, jewelry, many agricultural products, chemicals, minerals, marble, many carpets chemicals, minerals, marble, many carpets
IneligibleIneligible: most textiles & apparel, watches, : most textiles & apparel, watches, footwear, handbags, luggage, gloves & footwear, handbags, luggage, gloves & leather goodsleather goods
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How many products are eligible How many products are eligible for GSP duty-free treatmentfor GSP duty-free treatment??
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Types of U.S. imports that received GSP duty-Types of U.S. imports that received GSP duty-free treatment in 2010free treatment in 2010
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U.S. and Egypt Overall TradeU.S. and Egypt Overall Trade Total U.S. imports from Egypt $2.2 billion Total U.S. imports from Egypt $2.2 billion
(2010) (2010)
GSP imports: $51 million (2% of total imports)GSP imports: $51 million (2% of total imports)
Top GSP imports in 2010: aluminum products, Top GSP imports in 2010: aluminum products, fruit juices, building stone, and mineral waterfruit juices, building stone, and mineral water
QIZ imports: $955 million (43% of total imports)QIZ imports: $955 million (43% of total imports)
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Egypt’s top GSP exports to the Egypt’s top GSP exports to the U.S. (2010)U.S. (2010)
Aluminum products (3% duty): $14.1m Aluminum products (3% duty): $14.1m entered under GSP; 99% utilizationentered under GSP; 99% utilization
Building Stone (4.9% duty): $5.8m entered Building Stone (4.9% duty): $5.8m entered under GSP; 95% utilizationunder GSP; 95% utilization
Vegetables (11.3% duty) $2.4m entered Vegetables (11.3% duty) $2.4m entered under GSP; 99% utilization under GSP; 99% utilization
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How to Qualify for Duty-Free How to Qualify for Duty-Free Treatment under GSPTreatment under GSP
1.1. Must be a GSP-eligible product Must be a GSP-eligible product 2.2. Must be a product or growth of Egypt Must be a product or growth of Egypt 3.3. If using non-Egyptian inputs, local content & If using non-Egyptian inputs, local content &
processing must be ≥ 35% of the valueprocessing must be ≥ 35% of the value4.4. Must import directly into the U.S. from Egypt Must import directly into the U.S. from Egypt
w/o entering commerce of another country w/o entering commerce of another country 5.5. Benefit must be claimed by importerBenefit must be claimed by importer6.6. Keep production/accounting records to assist Keep production/accounting records to assist
importer to verify GSP claimimporter to verify GSP claim
Is my product eligible for duty-free Is my product eligible for duty-free treatment under GSP?treatment under GSP?
The easiest way to find out is to go to: The easiest way to find out is to go to: http://dataweb.usitc.gov/scripts/tariff_current.asphttp://dataweb.usitc.gov/scripts/tariff_current.asp
List of GSP-eligible products at: List of GSP-eligible products at: http://www.ustr.gov/trade-topics/trade-development/prefhttp://www.ustr.gov/trade-topics/trade-development/preference-programs/generalized-system-preferences-gsp/erence-programs/generalized-system-preferences-gsp/gsp-program-i-0gsp-program-i-0
GSP eligibility is indicated by “A” in the special rate GSP eligibility is indicated by “A” in the special rate columncolumn
http://dataweb.usitc.gov/scripts/tariff_current.asphttp://dataweb.usitc.gov/scripts/tariff_current.aspType the name of your product& click the “List items” button
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Go tohttp://dataweb.usitc.gov/scripts/tariff_current.asp
Choose your product from the list and click the
“Detail” button
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Check if code “A” is listed for your product 1313
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How to Increase Duty-Free How to Increase Duty-Free Imports into the U.S.Imports into the U.S.
Use GSP as a marketing toolUse GSP as a marketing tool
Ensure that GSP treatment is claimed Ensure that GSP treatment is claimed
Identify GSP-eligible products that Egypt Identify GSP-eligible products that Egypt is exporting to other marketsis exporting to other markets
Consider products with a GSP advantage, Consider products with a GSP advantage, e.g., home décor and craft itemse.g., home décor and craft items
Identifying & Developing Identifying & Developing potential U.S. buyerspotential U.S. buyers
Depends on size, sector, experienceDepends on size, sector, experience Are you export-ready?Are you export-ready? Understanding the US marketUnderstanding the US market What kind of relationship: agent, What kind of relationship: agent,
distributor, partner, JVdistributor, partner, JV Best leads: your own network!Best leads: your own network! Trade showsTrade shows
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GSP-Eligible Imports: Unclaimed or GSP-Eligible Imports: Unclaimed or Underutilized in 2010Underutilized in 2010
Parts/accessories for vehicles (2.5%) $2.1 million Parts/accessories for vehicles (2.5%) $2.1 million zero utilizationzero utilization Plastic articles for carrying (3%) $1.6 million Plastic articles for carrying (3%) $1.6 million 12% utilization12% utilization Plastic apparel and accessories (5%): $400k Plastic apparel and accessories (5%): $400k zero utilizationzero utilization Soup preparations (3.2%) $1 million Soup preparations (3.2%) $1 million 52% utilization 52% utilization Dried berries (1.4¢/kg) $0.5 millionDried berries (1.4¢/kg) $0.5 million
zero utilizationzero utilization
Industries exporting products not claimed under GSP
Motor vehicle parts (including glass) Vegetables, juices, spices Electrical parts, light fixtures & lamps Carpets, national flags, cushions Machinery, tools, pipe, and parts Rubber tubes, gaskets, and other products
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Egypt’s GSP-Eligible Egypt’s GSP-Eligible World ExportsWorld Exports
Egypt exports these products to other Egypt exports these products to other trading partners: trading partners: • Ag: other fruit & veg. juices, sugar confections, Ag: other fruit & veg. juices, sugar confections,
coffee preparationscoffee preparations• Hand-woven cotton fabrics, cotton flaxHand-woven cotton fabrics, cotton flax• Iron/steel products: fittings, flanges, & elbows for Iron/steel products: fittings, flanges, & elbows for
tubes/pipes, chain, screws, washers, wire, grinders tubes/pipes, chain, screws, washers, wire, grinders • Copper alloys, copper wire/bars/rods/cathodes, etc.Copper alloys, copper wire/bars/rods/cathodes, etc.• Wooden furniture; mattresses and supportsWooden furniture; mattresses and supports• Pure oils & essences; ethyl alcoholPure oils & essences; ethyl alcohol
Export GSP-eligible products duty-Export GSP-eligible products duty-free that other countries cannotfree that other countries cannot
Gold necklaces, neck chains, earrings, Gold necklaces, neck chains, earrings, pendants, & rings pendants, & rings
Insulated ignition wiring harnesses Insulated ignition wiring harnesses for cars, planes and ships for cars, planes and ships
Olives, figsOlives, figs Essential oils of peppermintEssential oils of peppermint Copper cathodes and wireCopper cathodes and wire Hides and skins Hides and skins
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Export home décor and craft items Export home décor and craft items duty-free under GSPduty-free under GSP
Wood statues, bowls, boxes, furniture & tableware Wood statues, bowls, boxes, furniture & tableware (3.2-10.9% duty) (3.2-10.9% duty)
Ceramic bowls and ornamental articles (6-9.8% duty)Ceramic bowls and ornamental articles (6-9.8% duty) Woven baskets and bags (6.6% duty)Woven baskets and bags (6.6% duty) Drawn & blown glass (6.4% duty)Drawn & blown glass (6.4% duty) Carpets and rugs (6% duty)Carpets and rugs (6% duty) Brass, beaded, silver & other jewelry (5-11%)Brass, beaded, silver & other jewelry (5-11%) String & wind musical instruments (2.9-8.7%)String & wind musical instruments (2.9-8.7%) Wall-hangings & pillow/cushion covers (3.8%)Wall-hangings & pillow/cushion covers (3.8%) Handmade paper & paperboard (MFN free)Handmade paper & paperboard (MFN free)
Handicraft agreementHandicraft agreement Egypt is one of 16 countries with a Egypt is one of 16 countries with a
handicraft agreement with the U.S.handicraft agreement with the U.S.
Hand-loomed, folkloric wall hangings Hand-loomed, folkloric wall hangings and pillow covers of wool and fine and pillow covers of wool and fine animal hairanimal hair
Must be certified by Egyptian govtMust be certified by Egyptian govt
Petition process to add new Petition process to add new productsproducts
Product must not be excluded by Product must not be excluded by statute, e.g., apparelstatute, e.g., apparel
Submit petition during Annual Review; Submit petition during Annual Review; deadlines listed in deadlines listed in Federal RegisterFederal Register
Provide the information required by the Provide the information required by the regulations regulations
Products added by petitions Products added by petitions from Egypt from Egypt
(2007) Two aluminum products added (2007) Two aluminum products added to GSP (7601.10.30 and 7601.20.30)to GSP (7601.10.30 and 7601.20.30)
(2008-2009) Four agricultural (2008-2009) Four agricultural products added to GSP products added to GSP • Potatoes (0710.10.00) Potatoes (0710.10.00) • Spinach (0710.30.00) Spinach (0710.30.00) • Beans (0710.22.40) Beans (0710.22.40) • Mixtures of vegetables (0710.90.91) Mixtures of vegetables (0710.90.91)
For Further InformationFor Further InformationGSP guidebook: GSP guidebook: http://www.ustr.gov/webfm_send/2880 http://www.ustr.gov/webfm_send/2880
Lists of GSP-eligible and ineligible products:Lists of GSP-eligible and ineligible products:http://www.ustr.gov/trade-topics/trade-development/http://www.ustr.gov/trade-topics/trade-development/
preference-programs/generalized-system-preferences-preference-programs/generalized-system-preferences-gsp/gsp-program-i-0gsp/gsp-program-i-0
Department of Homeland Security: Customs & Department of Homeland Security: Customs & Border Protection (CBP):Border Protection (CBP): http://www.cbp.gov and http://www.cbp.gov and http://rulings.customs.gov/ http://rulings.customs.gov/
For any questions you may contact:For any questions you may contact:
US Embassy in CairoUS Embassy in Cairo8 Kamal Eldin Salah st.8 Kamal Eldin Salah st.Mr. Eric Rueter Mr. Eric Rueter Trade Policy OfficerTrade Policy OfficerTel: 02-27973837Tel: 02-27973837E-mail: [email protected] E-mail: [email protected]
AMERICAN Presence Post in AlexandriaAMERICAN Presence Post in AlexandriaUS Embassy US Embassy 3, Pharana st., Azarita3, Pharana st., AzaritaMrs. Mai AbdelhalimMrs. Mai AbdelhalimEconomic AnalystEconomic AnalystTel: 03-4866064Tel: 03-4866064e-mail: [email protected] e-mail: [email protected]
Shukran!Shukran!
