BANGKOK, July 16 – Twelve Thai produced goods still enjoy trade benefits under the United States’ Generalised System of Preferences (GSP), according to Commerce Minister Boonsong Teriyapirom.
The announcement was made on June 30 by the United States Trade Representative (USTR) Office, taking effect the next day after Thailand’s Foreign Trade Department and the Royal Thai Embassy’s Commercial Affairs Office in Washington, DC had submitted the request.
The 12 granted GSP items are two items in the Competitive Need Limit (CNL) Waivers list and the other 10 under the De Minimis Waivers group.
The CNL Waivers apply to goods with import value exceeding the CNL ceiling as indicated by the US last year at the value equal US$150 million. Under CNL waivers, Thailand will be exempted from US import taxes from normal rates at 3 and 1.4 per cent for rubber gloves and air conditioner spare parts respectively.
The De Minimis Waivers apply to merchandise having the market share of over 50 per cent but the US import values for such goods are lower than the minimum value indicated last year by the US at US$20.5 million. The 10 Thai items in this category will be exempted from normal tariff at 10.8-8 per cent. They are seasoned fish, fresh durian, sun-dried papaya, processed papaya, fructose, sweetened corn, sweetened fruits/nuts, flavoured syrup, bleached buffalo leather, and porcelain figures.
Meanwhile, two Thai items removed from the previous US preference list, since July 1, are silver accessories and radial rubber tyres for trucks, both subject to normal US import tax rates at 5 and 4 per cent respectively. Both items previously enjoyed CNL waivers for at least five years and had an import value to the US last year at US$225 million, which was higher than the ceiling price.
As the remaining 12 items still gain the GSP, exempted from all tariff, Commerce Minister Boonsong urged all Thai entrepreneurs and exporters to make the maxim benefit from the privilege for higher export value which will also impact the country’s overall economy.