Exporters Look To Us To Renew Duty Sop

Calcutta, July 28: Domestic exporters are betting big on an early renewal of the Generalised System of Preferences (GSP) by the US to strengthen bilateral trade.



The GSP programme, which was renewed by the US in October 2011, will expire on July 31.



Under GSP, which is a preferential trade programme, the US allows duty-free entry to around 3,000 products, which include engineering goods, industrial machinery, chemicals, agricultural foods and electrical equipment, from about 130 developing countries, including India.



Besides giving a fillip to the exporters of developing countries, the scheme helps American business to lower the cost of imported goods that are primarily used as inputs in value-added production.



“The GSP implemented by the US is a very important programme for Indian exporters as it offers tariff saving on various commodities from India to the American market. Its timely implementation is significant for our exporters,” Rafique Ahmed, president of the Federation of Indian Export Organisations (Fieo), told The Telegraph.



According to the US government data, total GSP imports into the country stood at $19.9 billion in 2012, registering a growth of 7.5 per cent over 2011. India was the top exporter under the GSP programme, contributing $4.5 billion in 2012.



Market observers suggest that the average duty advantage to Indian exporters is about 6.5 per cent.



“Engineering exports from India to the US were a major part of the total exports from the country. We hope that the programme is renewed early so that it benefits our exporters,” said Arun Garodia, eastern region chairman of the Engineering Export Promotion Council (EEPC).



Sanjay Budhia, chairman of industry body CII’s national committee on exports and imports, said a timely renewal of GSP was crucial to maintain stability in bilateral trade.



“The timely renewal of GSP is very important for maintaining stable bilateral trade and to avoid uncertainty in quoting/bidding for new business, which will adversely affect the trade of both countries,” he said.



Budhia pointed out that the renewal of GSP by the US was delayed by about three months.



“Though the time gap was covered by ‘retrospective effect’, it had put both overseas exporters and US importers at a disadvantage for some time,” he said.

Source:-www.telegraphindia.com