NEW YORK The U.S. governments failure to renew the
Generalized System of Preferences (GSP) program, which expired
July 31, means that domestic companies will need to find
tens of millions of dollars to pay unnecessary import
taxes, the Coalition for GSP said.
Companies will start paying an estimated $2 million per day in
new import taxes after a bill that would have extended the GSP
program until October 2015 failed to pass the U.S. Senate
before Congress entered an August recess, according to the
coalition, whose members include Miami-based Georgian American
Alloys Inc. and Traxys North America LLC, New York.
The GSP program extended duty-free treatment to several
thousand products imported by the United States, including
ferroalloys, from developing nations such as India, Russia and
The GSP program facilitated more than $1 billion in imports of
steelmaking and ferroalloying materials in 2012,
according to the coalition.
For companies and workers that rely on GSP savings for
their livelihood, the idea that such an important program will
expire despite support from 99 senators to pass the legislation
is difficult to swallow. Yet it demonstrates the strong
bipartisan support for GSP, and we look forward to working with
Congress to renew this critical program when it returns in
September, coalition research director Daniel Anthony
said in a statement.