Nepal sends list of products for GSP facility to US

PRABHAKAR GHIMIRE KATHMANDU, Sept 29: The government has sent a list of Nepali products to the US, seeking Generalized System of Preferences (GSP) -- a duty free facility -- in the world´s largest economy. A team led by Ishwari Ghimire, executive director of Trade and Export Promotion Center (TEPC), had finalized the list. The Ministry of Commerce and Supplies (MoCS) on Sunday forwarded the list of goods to the US. Abha Shrestha, under secretary at the MoCS, told Republica that Nepal has sought continuation of GSP to all products that have been enjoying the facility so far and added seven new products in the list. Similarly, Nepal has also requested the US officials to include 70 new products such as ready-made garments (RMGs), which fall under US legal system for GSP for only African and Caribbean countries only, for the facility. The US had requested different countries, including Nepal, to revisit the list of products for existing GSP and sought the list of products for the facility. The US had given the countries until October 4 to send the list of products for GSP. Few years ago, Nepal had requested to the US government to provide GSP facility for 11 Readymade Garments (RMGs) and pashmina products. Nepal´s RMG exports have been falling ever since the US government ended the Duty Free-Quota-Free facility in 2005. Nepali hand-knitted carpet is getting limited access to the US market, thanks to comparatively liberal customs duty compared to the duty imposed on RMG and pashmina products. “We finalized the list of products for GSP after holding extensive discussions with the private sector,” said Shrestha. Rajendra Singh, an official at TEPC, told Republica that certain varieties of carpets, cigar, handicrafts, textiles and woolen products have been enjoying the GSP facility from US. Singh told Republica that some garment varieties, pashmina, footwear, carpets and handicraft goods, which have good export prospects in the US, are among the seven new products included in the list. “We have also demanded GSP facility for 70 products which lost GSP facility after the phase out of duty-free quota-free facility in 2005. Such products mainly include shorts, paints, blouse and skirts,” added Singh. According to Uday Raj Pandey, the US has been imposing an average of 17 percent customs duty on Nepali RMGs and pashmina products. This has weakened the competitiveness of Nepali products in the US market compared to the products from other countries that are enjoying the GSP facility. The legal authorization of GSP program expired on July 31, 2013. However, the US Congress is considering a legislation that would extend the authorization of GSP. The GSP is a program designed to promote economic growth in the 127 countries of developing world by providing preferential duty-free entry for up to 5,000 products. US imported products worth US$ 19.9 billion under the GSP program in 2012. According to a study commissioned by US Chamber of Commerce in 2005, over 80,000 American jobs are associated with moving GSP imports from the docks to farmers and manufacturers. Products eligible for duty-free treatment under GSP includes manufactured items like different types of chemicals, minerals and building stone; jewelry; carpets; and some agricultural and fishery products. Similarly, some textiles and apparel products, watches, footwear, handbags and luggage products are among the goods that are not eligible for duty-free treatment under GSP.
Published on 2013-09-30 02:37:49