U.S. may end GSP facility

JAKARTA (JP): The Ministry of Trade is warning that Indonesia might lose preferential treatment from the United States under its Generalized System of Preferences (GSP) trade facility if Congress fails to extend it after its expiration date of July 31.

The ministry said in a statement over the weekend that the Congress trade sub-committee had discussed the possibility of extending the facility for developing countries, including Indonesia, on May 18 but that so far no decision had been reached.

"The U.S. Department of Treasury has announced that, in case the Congress has not reached agreement on the GSP extension by mid-night of July 31, all goods entering the United States or taken out of U.S. warehouses on Aug. 1 and afterwards will not get any import duty exemption generally offered under the GSP facility," ministry spokeswoman Lily Rosyana said, as quoted in the statement.

She said such a suspension of the GSP facility would affect, not only products from Indonesia, but also those from other developing countries which are now eligible for the facility.

Quoting the U.S. department's Federal Register Vol. 60 No. 128, Lily said that if the U.S. Congress initially failed to extend the GSP facility past July 31 but later extended it retroactively, U.S. importers who had paid duties on GSP products during the period of the suspension of privileges would be able to seek reimbursement for the money paid. (kod)