EXPANDING KOSOVO S EXPORTS TO THE UNITED STATES
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1 EXPANDING KOSOVO S EXPORTS TO THE UNITED STATES July 2011
2 PRESENTATION SUMMARY Kosovo s Exports into the U.S. Market Overview of the U.S. GSP Program Opportunities to increase Kosovo s exports, including under the Generalized System of Preferences (GSP)
3 KOSOVO S EXPORTS TO THE U.S. In 2009, Kosovo exported $395,925 of goods into the U.S. market. In 2010, Kosovo s exports dropped by more than 80% (global crisis), but have rebounded to $246, just in the first five months of In 2009 and 2010, Kosovo s exports included plastic and wood tableware and kitchenware (including wooden pizza shovels). There have been no exports of these items in Exported just for one year were black plastic one-gallon bags, fuel oil, TV cameras, wood upholstered chairs, & sports and travel bags.
4 KOSOVO S CURRENT EXPORTS TO THE U.S. Exports in 2011 (Jan-May): NEW: Stone Castle red wine ($196,916) NEW: Carpet weaving yarn of synthetic fibers ($25,080) NEW: Golden Eagle energy drink ($18,144) ALSO IN 2010: Furniture wired to support electrical items ($3,584) NEW: Plants used in perfumes, drugs, or for insect and mold repellant ($3,032) Of these goods, Golden Eagle qualified under GSP, but was not claimed; plants are dutyfree
5 KOSOVO - U.S. TRADE Kosovo became a U.S. GSP beneficiary in December 2008 The U.S. wants to become a destination for more Kosovar exports How to export more to the U.S. from Kosovo: through use of GSP duty-free opportunities through exporting products to the Southern European expat community of 4.3 million people plus their families 75% of whom live in the Northeast and Midwest Through exploiting Kosovo s competitive niches: vegetables, fruits, wood products, wine, waters
6 GSP PROGRAM Gives enhanced access to U.S. for developing countries products and expanded choices for U.S. industries and consumers Provides duty-free treatment for over 3,400 types of products from 129 countries $22.6 billion in total U.S. GSP imports (2010) The GSP program has not yet been renewed, but U.S. importers should claim GSP as they will get a refund when the program is renewed
7 GSP-ELIGIBLE EXPORTS Eligible: manufactured items and inputs, jewelry, electronics, some agricultural products, carpets, some textiles and apparel, chemicals, marble, and minerals Ineligible: most textiles and apparel, watches, footwear, handbags, luggage, gloves and leather goods
8 TYPES OF U.S. IMPORTS RECEIVING GSP DUTY-FREE TREATMENT
9 HOW TO QUALIFY FOR DUTY-FREE TREATMENT UNDER GSP 1. Must be a GSP-eligible product 2. Must be exported into the U.S. directly from Kosovo or pass through another country with a U.S. destination address 3. Must be a product of Kosovo 4. If the product uses inputs imported from other countries, the cost of the local content and processing must be at least 35% of the product s cost at time of export
10 IS MY PRODUCT ELIGIBLE FOR DUTY- FREE TREATMENT UNDER GSP? The easiest way to find out is to go to: Fill in the blank with: Any part of a product description. For example, jam OR The tariff number (four, six, or eight numbers). For example, 2007, , or Then click on List Items
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13 CLAIMING GSP DUTY-FREE TREATMENT U.S. importer MUST REQUEST duty-free treatment for the import How? Importer writes an A in front of the tariff number on U.S. Customs entry form 7501 If importer forgets: can apply to U.S. Customs for refund
14 LOCATION OF A ON THE CUSTOMS FORM
15 JOB OF THE EXPORTER? Remind your importer that your product is eligible for duty-free entry under GSP and to mark A on U.S. Customs Entry Form Keep good records (cost of production; where produced; if using imported components where they are from and their cost)
16 PHYTO-SANITARY AND SANITARY REQUIREMENTS 1. U.S. Food and Drug Administration (FDA) regulates nearly all foods (except most beef and poultry), cosmetics, biologics, drugs 2. Product requirements: pure and wholesome; safe to eat; produced under sanitary conditions; informative and truthful labels in English 3. Importer files notice and bond to Customs, which contacts FDA: a test may be needed 4. Bioterrorism Act: food facilities must be registered with FDA; must notify FDA in advance on shipments of imported food 5. Acidified and low-acid foods: must comply with FDA Title 21 CFR 114 (includes registration, thermal process filing, and testing):
17 PHYTO-SANITARY AND SANITARY REQUIREMENTS (CONTINUED) Food safety requirements: affect acidified and low-acid canned foods, bottled water & carbonated drinks, fruits, vegetables, juices Additional mandatory requirements are found in Chapter 5 of the FDA Compliance Policy Guide that affect food, colors, cosmetics, labeling, import-specific rules Fresh fruits, vegetables, and plants are governed by the Animal and Plant Health Inspection Service (APHIS) of the U.S. Department of Agriculture. More information can be obtained at: n=countrysummcommpi®ion_id=
18 WAYS TO INCREASE KOSOVO S EXPORTS 1. Build on Kosovo s strengths 2. Provide home foods to expatriate community 3. Review Kosovo s global exports eligible for GSP duty-free treatment into the U.S. 4. Look at what Kosovo s neighbors are exporting to the U.S. under GSP
19 BUILD ON KOSOVO S STRENGTHS Base metals, including nickel, ferronickel, & base metal products: duty-free into U.S. Vegetables: many fresh, chilled, processed, pickled and otherwise are GSP-eligible Wine: is not GSP-eligible but is finding a good market in the U.S., especially among expats Plants for perfume, drugs, insecticides, etc.: DF Furniture wired for electronic items (2-yr export) Fresh mushrooms not GSP-eligible; dried OK Jewelry: U.S. large consumer; all GSP-eligible Golden Eagle and other drinks: GSP-eligible Rich soils: blueberries (fresh/frozen GSP), kiwi, pears, saffron
20 PROVIDE HOME FOODS AND OTHER ITEMS TO EXPATRIATES 4.3 million Southern Europeans (plus families) live in the U.S. (2008) Groceries and restaurants sell geo-special foods, especially in the Northeast and Midwest Pickled and other processed peppers, cucumbers, and cabbage; mushrooms, other prepared vegetables (Etlinger, others) Marmalades, frozen blueberries Stonecastle wine exported to a Michigan importer Baked goods; Fluidi drinks Construction materials, such as Gure Slates Fashion designers and producers
21 CURRENT EXPORTS TO THE EU THAT WOULD ENTER DUTY-FREE UNDER GSP INTO THE U.S. MARKET Beverages such as waters and fruit juices Mineral and chemical products Machinery, appliances, and electric products Base metals and products of base metals Transportation equipment Plastic and wood products Hides and skins of leather Many fruits and vegetables (if not citrus)
22 GSP-ELIGIBLE WOOD ITEMS OF EXPORT INTEREST TO KOSOVO Plywood sheets: save 8% duty Baskets/bags of willow: save 5.8% Wood forks & spoons: save 5.3% Wood walking sticks, handles, parts: 5.2% Wood tools & handles: save 5.1% Wood doors: save 4.8% Inlaid wood articles: save 3.2% Wood windows & frames: save 3.2% Wood tableware/kitchenware: save 3.2% Wood statues & ornaments: save 3.2% Wood furniture: save 3.2%
23 NEIGHBORING COUNTRIES USE OF GSP (2010) Croatia (#24 of all GSP countries): $58.3 million in exports entered the U.S. under GSP 17.5% of all its exports to the U.S. Albania (#38) $19.8 million in exports entered the U.S. under GSP 64.7% of all its exports to the U.S. Serbia (#40) $15.7 million in exports entered the U.S. under GSP 9.6% of all its exports to the U.S. Macedonia (#51): $3.9 million in exports entered U.S. under GSP 11.7% of all of its exports to the U.S.
24 PRODUCTS EXPORTED BY KOSOVO S NEIGHBORS UNDER GSP Dried fennel, marjoram & tarragon (saved 1.9%) Spices (saved 1.9%) Vegetable fats and oils (saved 3.2%) Mineral & other waters (saved cents/liter) Sauces and preparations (saved 6.4%) Chewing gum (saved 4%) Soups, broths & preparations (saved 3.2%) Jams (saved 5.6%) Frozen raspberries, loganberries, black currents and gooseberries (saved 4.5%) Frozen blackberries, mulberries, currants (saved 9%)
25 PRODUCTS EXPORTED BY KOSOVO S NEIGHBORS UNDER GSP Furskin apparel and accessories (saved 4%) Ferrosilicon manganese (saved 3.9%) Copper-zinc alloy tubes & pipes (saved 1.4%) Drilling machines (saved 4.2%) Parts for measuring & regulating instruments (saved 1.7%) Metal armored safes, doors, lockers (saved 3.8%) Miscellaneous lead articles (saved 3%) Gold necklaces & other jewelry (saved 5.5%)
26 FOR MORE INFORMATION ON EXPORTING TO THE U.S.: Embassy of Kosovo, Washington, DC Ms. Gjeneza Budima Sandler Trade LLC Ms. Marideth Sandler
27 FOR FURTHER INFORMATION Office of the U.S. Trade Representative GSP Website: U.S. Customs & Border Protection U.S. Embassy in Pristina Fatmir Morina, Economic/Commercial Assistant Tel: , ext Fax:
28 FOR FURTHER INFORMATION U.S. Tariff Schedule U.S. Department of Commerce International Buyer Program International Partner Search
29 THANK YOU!
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