By Dorothy Crouch 

“For a lot of the brands and retailers, they are sourcing GSP products of all kinds,” said Julie Hughes, president of the Washington, D.C.–based U.S. Fashion Industry Association. “We have to be concerned on all fronts regarding our direction on trade policy. I am always concerned when there is unpredictability and disruption to the supply chains of what that impact will be.”

Click here to read the entire article on the California Apparel News website. 

PwC, USFIA's Premier Partner for 2015, has provided updates on recent news from China and Japan. 

China to Open Its Import Tariff & Importation Policies for Consumer Products

China has been gradually opening up its import tariff and importation policies for commodities in recent years. A number of pilot policies have achieved remarkable results, bringing uprecedented opportunities to the retail and consumer industry. PwC has summarized the new policies and measures to provide their observations on the impacts and recommendations to industry players.

Click here to download the summary.

Relaxation of the Rules of Origin on Japan GSP for Knitted Apparel Products

From 1 April 2015, the Ordinance of Customs Temporary Act in Japan has been revised to relax the Rules of Origin for applying the General Systems of Preferences (“GSP”) rate on knitted apparel products upon import into Japan.

The GSP system allow products qualifying as originating in certain Developing Countries/Least Developing Countries (“GSP countries”) to benefit from a preferential duty rate (lower than the original import duty rate) in Japan.  Prior to the amendment, apparel products classified under HS Chapter 61 had to be made from yarn in a qualifying country in order to qualify for GSP origin.  This required the processing of the yarn to make textile fabrics, as well as the processing of the final product from such textile fabrics to be performed in the same GSP country.

With the relaxed revision, products may be deemed as originating in a GSP country if the product is purely manufactured from textile fabrics.  As such, products that are manufactured in a specific GSP country by using imported textile fabrics may now be able to benefit from GSP rates upon import into Japan.

If you have questions about either update, contact Damon Paling at This email address is being protected from spambots. You need JavaScript enabled to view it. or Angela Chambliss at This email address is being protected from spambots. You need JavaScript enabled to view it.. 

P.S. Don't forget to register for our upcoming webinar with PwC on FTZs on June 18th! This webinar is free for USFIA members in good standing.

It isn’t often that governmental agencies make life easier for the industry to do business, but we can report that is the case this time. As of January 1, 2017, textile and apparel companies moving goods in and out of the European Union can now streamline the Generalized System of Preferences (GSP) filing process for applicable shipments.

USFIA’s Innovation Partner Amber Road presented this 30-minute webinar with their EU trade and compliance experts providing insights on:

• The new EU Registered Exporter (REX) program
• EU GSP filing process
• Other EU trade hot spots, including other bilateral free trade agreements

This webinar is part of USFIA's Coffee Break Series, bringing you 30-minute, high-level webinars covering critical topics, so every level of your organization can access USFIA's information and intelligence.

Chris Reynolds, Senior Manager for Trade Services at OHL, USFIA's Customs Broker Partner for 2015, presented an update on the Generalized System of Preferences (GSP) and how to obtain retroactive refunds. This webinar package includes the video, PowerPoint presentation, and other exclusive resources from OHL.

USFIA members should login to access the webinar. If you do not know your login, please contact us.

If you are not a member and would like to purchase the webinar, please click here.

On June 17, 2013, 234 American companies and associations, including USA-ITA, sent a letter to U.S. Senate Finance Committee and U.S. House Ways & Means Committee leadership urging Congress to renew the Generalized System of Preferences (GSP) before it expires on July 31^st. The letter was organized by the Coalition for the GSP. According to the letter, the GSP program fuels “development in poorer countries” and also “supports American manufacturing by reducing costs of imported inputs, machinery, and equipment, and helps American families make ends meet by lowering the costs of consumer goods imported duty free under GSP.” 

On February 7, 2013, the United States Association of Importers of Textiles & Apparel (USA-ITA), now United States Fashion Industry Association (USFIA), joined Renew GSP Today, a coalition of American companies and associations that urge Congress to renew the Generalized System of Preferences (GSP) program immediately. If your company utilizes GSP and would also like to join, we encourage you to join, as well.

On June 25, 2013, USA-ITA submitted comments to the Office of the U.S. Trade Representative (USTR) on Generalized System of Preferences (GSP) eligibility for Burma/Myanmar and Laos. In the comments, drafted by USA-ITA Washington Counsel David Spooner of Squire Sanders, we note that we “strongly support” the designation of Burma/Myanmar and Laos as GSP beneficiaries as well as least-developed beneficiaries. We also call for GSP benefits to be extended to include apparel, as doing so would “foster broad-based economic development” in the beneficiary countries and indirectly benefit both member companies as they consider sourcing from Burma/Myanmar and Laos as well as apparel workers in those countries. 

On November 1, 2016, the United States Fashion Industry Association (USFIA) filed comments to the Office of the U.S. Trade Representative (USTR) on the hearing on the Initiation of the 2016 and 2017 Annual Generalized System of Preferences Product and Country Practices Review. USFIA expressed support for “expanding the Generalized System of Preferences (GSP) benefits to grant eligibility for all beneficiary countries to supply travel goods–items like luggage, backpacks, purses, and wallets.” However, we urged “the Administration to also designate the remaining GSP beneficiary countries as eligible to export all statutorily eligible travel goods into the U.S. market under the GSP,” and consider the testimony of brands and retailers who “shared their perspective about how expanded GSP benefits would be a benefit for American consumers as well as for manufacturers in developing countries.” USFIA’s comments are available here.

On February 23, 2015, the Coalition for GSP, which includes the United States Fashion Industry Association (USFIA) among the 628 members, sent a letter to Senate Finance Committee and House Ways & Means Committee leadership urging immediate and retroactive renewal of the Generalized System of Preferences (GSP). The letter notes that companies have paid more than $1 billion in duties since the program expired on July 31, 2013. The letter is available on the Coalition for GSP website. If GSP is important to your company, we urge you to join the coalition.

The Generalized System of Preferences (GSP) expired on December 31, 2017. USFIA joined a multi-industry coalition letter to the House and Senate leadership urging retroactive renewal as quickly as possible. The letter and more information on the coalition is available here.

On November 17^th, the United States Fashion Industry Association (USFIA) joined more than 600 companies and associations in sending a letter to congressional leaders urging them to renew the Generalized System of Preferences (GSP) before the end of the year. The letter noted that the current expiration is the longest in the GSP program’s 40-year history and that, if the program is still not renewed by 2015, it will cost American companies more than $1 billion. The letter is available on the Coalition for the GSP website. 

On August 4, 2016, the United States Fashion Industry Association (USFIA) joined an industry letter to President Obama requesting approval of duty-free access for all 28 eligible travel goods categories under the Generalized System of Preferences (GSP) program for all GSP-eligible countries by October 1st. The letter is available here.

On March 20, 2017, the United States Fashion Industry Association (USFIA) joined a coalition letter to President Trump to designate all travel goods produced in qualified countries eligible for Generalized System of Preferences (GSP) benefits. “It was the articulated bipartisan will of Congress to designate all travel goods products duty-free when imported from all GSP countries. The situation and facts have been thoroughly vetted by Congress, the U.S. International Trade Commission, and the interagency Trade Policy Staff Committee (TPSC). The conclusion was unanimous: GSP benefits should apply to all eligible countries for all travel goods in question. This would spur real relocation of U.S. sourcing from China, which is not eligible for the GSP. It would also give the U.S. more enforcement leverage over the GSP countries’ trade policies and actions, which is a key aspect of the GSP program,” the letter states. The letter is available here.

On October 14, 2015, the United States Fashion Industry Association (USFIA) and 22 other associations sent a letter to U.S. Trade Representative Michael Froman to “express strong support for petitions to add travel goods—items like luggage, backpacks, purses, and wallets—to the list of products eligible to be imported duty free from all Generalized System of Preferences (GSP) beneficiary countries.” The letter notes that some of these products, such as computer and smartphone cases, are now considered “non-sensitive” under the Trade Promotion Authority (TPA) legislation passed earlier this year. This would also lower prices for everyday consumer goods like purses and children’s backpacks. 

The United States Fashion Industry Association (USFIA) joined other industry groups in sending a letter expressing strong support for adding all eligible travel goods, handbags, backpacks, and luggage to the eligibility list for the Generalized System of Preferences (GSP). “There is virtually no production of these items in the United States and, as such, there will be no domestic industry that will be negatively affected by the proposed designation. On the other hand, U.S. brands, private label designers, made-to-order producers, as well as the U.S. workers they employ and the consumers they serve, stand to benefit greatly from lower duty costs under the GSP,” the letter states. 

Yesterday USFIA joined with 307 American companies and associations in a letter to Congressional Trade leaders urging them to retroactively renew and update the Generalized System of Preferences (GSP). The letter is addressed to Senate Finance Committee Chairman Chairmen Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID), as well as House Ways and Means Committee Chairman Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX). The letter notes that the Senate included a retroactive 6-year renewal and update of GSP in the large China competition bill that passed in June, however “companies have paid an estimated $250 million in extra tariffs while awaiting next steps and will continue paying about $3 million a day until GSP is restored.” They argue that Congress needs to work together and avoid a “sticks only” approach to addressing eligibility criteria. Read the letter here.

On March 25, 2016, the United States Fashion Industry Association (USFIA) joined a letter to Aimee Larson, Director for GSP at the Office of the U.S. Trade Representative (USTR), urging Generalized System of Preferences (GSP) benefits for all eligible travel goods. The signatories, including many industry associations and member companies, explained that including backpacks, purses, luggage, wallets, key cases, and cosmetic bags in the GSP program “creates the maximum benefit for the United States and the developing world.” The letter is available here.

USA-ITA Textile Development Memo for December 30, 2011

In This TDM:

• USTR Announces Results of Annual Presidential Review of GSP; Certain Non-Down Sleeping Bags to Be Ineligible for Duty-Free Treatment
• USTR Announces Results of Annual Presidential Review of AGOA

Unpack your bags from your summer vacation--and learn how those bags can get new Generalized System of Preferences (GSP) benefits.

Over the summer, we saw the expansion of GSP benefits for certain travel goods from all GSP beneficiary countries. The from USFIA Customs Broker Partner GEODIS discuss the requirements to obtain GSP benefits for travel goods, and how importers can take advantage of this recent expansion of the program. Daniela Caliari and Erin Williamson, Senior Trade Compliance Analysts for GEODIS,  review the regulations and what importers need to know.