NCBFAA SEEKS STABILITY IN GSP EXTENSION

NCBFAA SEEKS STABILITY IN GSP EXTENSION    The National Customs Brokers and Forwarders Association of America sent a letter to U.S. Trade Representative Robert Zoellick last week thanking him for his support of a one-year extension to the General System of Preferences in the President’s proposed fiscal 2002 budget.
   GSP provides duty-free treatment to imports of certain products from specified developing countries. Developing countries benefit from GSP by making their products more attractive to U.S. importers. Without the program, U.S. tariffs would remain high on a number of imported goods from these countries.
   The Bush Administration has asked for the industry to comment on GSP while Congress considers extending the program. GSP is due to expire Sept. 30.
   NCBFAA has requested that the Administration stick with its one-year extension proposal to minimize disruption to the GSP program with the upcoming expiration date.
   “For years, GSP has routinely been extended only for short periods — from one to two years at a time,” said Peter H. Powell, Sr., president of the NCBFAA in the letter to Zoellick. “With these brief periods of renewal, Congress is frequently unable to gain passage of GSP renewal legislation until some time after the program’s expiration date, causing GSP to lapse for months at a time. This has been very disruptive to the trading public, causing great uncertainty and costs.”
   NCBFAA has said that it would welcome a more thorough review to improve the GSP program at a later date.