AAFA Suggests Adding All Eligible Travel Items to GSP List
The addition of several industry-suggested travel items to the U.S. Generalized System of Preferences Program would help U.S. companies diversify sourcing and reduce about $75 million in duty costs, without hurting domestic production, American Apparel & Footwear Association Executive Vice…
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President Stephen Lamar wrote in a Feb. 29 letter to the International Trade Commission (here). AAFA representation testified on Feb. 24 before the ITC, urging the body to consider according GSP benefits to all eligible travel goods from all GSP beneficiary countries. A U.S. government decision is expected in June, and if approved the products "should" be able to enter duty-free treatment on July 1, AAFA said in an email. Items suggested for GSP beneficiary treatment include luggage, backpacks, purses, and wallets, according to AAFA's letter. AAFA argued that goods from China, Vietnam, Italy, and France compose 86 percent of all U.S.-imported travel items by value, and added that travel goods "are not considered import-sensitive," as the U.S. has a 98-percent import penetration of these goods, meaning "very few" of them are made in the U.S. Another letter (here) written to ITC from a coalition of 23 industry organizations, including AAFA, reiterated this point. "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," the coalition letter states. "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."