NCBFAA Calls for Prompt Renewal of GSP
NCBFAA President Geoff Powell urged Congressional trade leaders to renew GSP before it expires on December 31, 2017. The letter to House Ways and Means and Senate Finance Committee leaders pointed out to lawmakers that, if the GSP program is allowed to lapse, "companies will face an estimated $75 million in duties on imports from GSP countries each and every month until the program is renewed!"
Moreover, NCBFAA's Powell explained, "Even if the duties are eventually refunded with a retroactive renewal, for small and medium-sized companies operating on slim profit margins, the cash flow burden of these duties can be particularly severe."
NCBFAA reminded legislators that even the uncertainty surrounding renewal is costly to businesses and the economy. "Right now, companies are placing orders for delivery in 2018. Finding alternative sources for products at a competitive price may not be feasible," Powell wrote, "Nor can they realistically delay the orders to wait and see if GSP is renewed on time. The ensuing chaos creates ripple effects as new hiring is delayed and new investment is put on hold."