Legislation that could add certain footwear to the US’s duty-free Generalized System of Preferences (GSP) programme has been introduced in the Senate – as calls mount for the overall scheme to be renewed before it expires at the end of the year.
The bill, which was introduced in the House of Representatives in May, would make footwear that is not produced domestically GSP-eligible the first time since the programme was enacted more than 40 years ago.
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The move is supported by the American Apparel & Footwear Association (AAFA), whose president and CEO Rick Helfenbein says: “Expanding the Generalized System of Preferences programme to cover shoes will support and grow well-paying American jobs, from design and marketing to logistics and retail.
“Duty reduction means US footwear companies can reduce costs that can instead be invested in American workers, product innovation, and savings that can be passed on to consumers.”
The group is not only urging the Senate to pass the ‘GSP Footwear Act of 2017’, but has also joined calls for Congress to renew the overall GSP programme before it expires at the end of this year.
GSP was established by the Trade Act of 1974 and is the largest and oldest US trade preference programme. While apparel, textiles and footwear are not part of the GSP scheme, the AAFA notes that it provides duty-free access to critical inputs and other products no longer made in the United States.
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By GlobalDataSeparately, 40 members of the House of Representatives have called for Congress to approve a long-term extension of the Generalized System of Preferences before it expires on 31 December. They hope to avoid a repeat of the last expiry, after which the programme remained unauthorised for two years, costing importers millions of dollars.
