President of Kyrgyzstan Sadyr Japarov instructed the Prime Minister Ulukbek Maripov to use the U.S. Generalized System of Preferences (GSP) program to strengthen bilateral relations between Kyrgyzstan and the United States, as well as to support Kyrgyz entrepreneurs at the state level. Press service of the head of state reported.
Under this program, developing countries are allowed to export duty-free up to 5,000 items to the United States of America. It allows exporting to the U.S. rare high-quality agricultural products produced in Kyrgyzstan (mountain honey, sea buckthorn, plums, peanuts, yaks and other animals, trout).
Currently, work is underway with the relevant state bodies to create all conditions at the state level so that Kyrgyz entrepreneurs can take full advantage of this program.
The General System of Preferences is a system of customs privileges, approved in 1971, provided to developing countries by developed countries. The main aim of the Generalized System of Preferences is to reduce or completely abolish customs duties on finished goods, raw materials and materials from developing countries, or to establish quotas for preferential import of goods.
According to M-Vector consulting agency:
- The goods must be included in the list of goods eligible for GSP;
- The product must be imported directly from a designated beneficiary developing country or association of countries;
- The product must be grown or manufactured in a beneficiary developing country and must meet the requirements for added value.
Under Act No. 19 of the U.S. Congress No. 2463, certain goods are prohibited from receiving the GSP. The lists of goods that have not received the right to GSP since January 1, 1995 include most types of textile products, watches, shoes, bags, types of luggage, work gloves, certain types of leather clothing, and etc.
