MUMBAI: Indian exporters are hopeful that the US will quickly renew its Generalised System of Preferences (GSP), which would expire on July 31.
Exports to the US under GSP Form A Certificate of Indian Origin are allowed duty-free entry. Pending renewal of GSP programme, exports from India are subject to US import custom duties.
"US GSP trade preference programme is due for renewal on July 31, 2013 and timely renewal of GSP is very important for maintaining stable bilateral trade between the two countries and to avoid uncertainty in quoting/bidding for any new business which will adversely affect the trade of both countries," CII National Committee on Exports Chairman Sanjay Budhia told PTI here.
He added: "US jobs and corporate interests are equally linked to the renewal of GSP programme," as it allows US businesses cheaper import of raw materials from India.
Last time the renewal was delayed by about three months. "Though the time gap had been covered by retrospective effect in the administrative action, it had put both US importers and overseas exporters at a disadvantage for some time," Budhia said.
US-based businesses imported USD 19.9 billion worth of products under the GSP programme in 2012, including many inputs used in manufacturing.