U.S. Drops Duty-Free Deal for Gold Rope, Necklaces From India.

The Manufacturing Jewelers & Suppliers of America (MJSA) expressed its support for changes to the Generalized System of Preferences (GSP) program in the U.S. The Obama administration withdrew the duty-free status previously granted to gold rope and gold mixed-link necklaces from India.

This year, after reviewing which products should continue to benefit from duty-free treatment under the GSP, President Barack Obama determined that five products from three beneficiary countries were now sufficiently competitive in the U.S. to be charged duties.

"Duty-free Indian imports of rope chain and mixed link necklaces climbed dramatically from 2006 through 2009, exceeding the competitive need limitations of the GSP," said David W. Cochran, president  of MJSA. "The competition from these duty-free imports placed a severe burden on U.S.-based suppliers, who are already coping with a massive economic downturn."
 
The overall growth of lower-priced imports has helped to put the entire U.S. jewelry industry under great strain in the past decade, Cochran added during his testimony on Capitol Hill. MJSA has advocated that any country that no longer qualifies for GSP status should no longer receive duty-free treatment.

"While the U.S. jewelry manufacturing industry does not want to fall back on protectionist measures, it also does not want to see competitors receive an unfair cost advantage," said Cochran. "The elimination of India's duty-free status for mixed link and rope chain helps to rectify this situation, and puts U.S. and Indian companies on a more even playing field."

Source : Diamonds.net