Industry Presses Congress on Travel Goods Inclusion in GSP
Lawmakers should pass the GSP Update for Production Diversification and Trade Enforcement (Update) Act in order to incorporate travel goods into the Generalized System of Preferences (GSP) program, said more than a dozen industry officials in a recent letter. The letter was sent to Senate Finance and House Ways and Means Committee leadership. Sens, Mark Begich, D-Alaska, and Roy Blunt, R-Mo., introduced the legislation in December 2013, while House members introduced a companion bill months prior (see 13121820).
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The Update Act would slash 15-20 percent tariffs on luggage, backpacks and handbags, which were previously considered import sensitive. “Because 99 percent of all travel goods are imported, the duties act as a heavy, regressive tax on the luggage Americans buy for their family trips, on the backpacks they buy for their children and on the travel goods they use in their everyday lives,” said the letter. “We urge you to engage in our efforts to amend the current GSP law as soon as possible to eliminate this outdated restriction on travel goods.” The GSP program expired on July 31, 2013, and lawmakers continue to struggle to find a means to advance the legislation (see 14032429).