President Trump today issued a proclamation extending duty-free treatment to all imported fashion accessories (including luggage, handbags, backpacks, tote bags, and most other items covered under HTS Heading 4202) from all eligible countries (including the Philippines, Thailand, Indonesia, India, and dozens of other developing countries, BUT not China or Vietnam) under the Generalized System of Preferences (GSP) program.
The new duty-free treatment will go into effect this Saturday, July 1, 2017. That means fashion accessories from GSP-eligible countries, that meet the GSP rules of origin, entering on or after July 1 will be duty-free.
This announcement expands the decision made June 30, 2016 by the Obama Administration to limit duty-free treatment for fashion accessories under GSP to only ‘least-developed beneficiary countries’ and African Growth and Opportunity Act (AGOA) countries.
Today, U.S. fashion accessories companies pay in excess of $90 million a year in import duties on fashion accessories from GSP countries.
With today’s announcement, FASA/Gemini will now focus its efforts on lobbying Congress to ensure the Congress renews and extends the overall GSP program before it expires at the end of this year.
FASA/Gemini was an active part of a coalition of more than two dozen organizations advocating Congress and the Obama and Trump administrations to provide duty-free treatment of all fashion accessories from all GSP-eligible countries.
Thanks to all our members who supported our efforts to make this five-year initiative a reality. We will continue our work to advocate for our members on these important trade policy initiatives.
For more information please contact Nate Herman, Director of Government Relations, Fashion Accessories Shippers Association (FASA) / Gemini Shippers Group.
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