U.S. may end GSP facility

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)