The Generalized System of Preference (GSP): USA - Thailand

The Generalized System of Preference (GSP) was created by Congress in the United States of America in 1974 with two clear aims: to increase the choices of American companies and consumers, and to provide new economic opportunities in developing countries. Ever since its implementation more than three decades ago, the GSP has proven extremely successful for all involved.

Under the terms of the GSP program, approved developing countries are given preferential treatment and duty-free trade conditions on a range of selected products when they export to the US.

American businesses and, ultimately, American consumers benefit as they are able to import and purchase goods such as petroleum, gold jewelry, silver jewelry, and aluminum alloy products without having to pay import duty. Equally, manufacturers in developing countries are given a competitive advantage in reaching the very lucrative US market, leading to increased trade revenue and a more stable local economy.

The GSP is, however, no panacea, nor is it a free-for-all. Certain articles are prohibited from receiving duty-free treatment under the terms of the GSP, and goods which are eligible must be of a high standard to satisfy the demanding US market.

Thanks in no small part to its ability to produce high quality goods at internationally competitive prices, Thailand is one of the countries that has benefited most from the American GSP program. Accounting for roughly 15% of Thailand’s total exports, America is the main market for Thai merchandise sold overseas, with approximately 20% of all these exports being exempt from duty under the GSP program.

In recent years, two of the top six products imported into the US under the GSP program have been gold jewelry and silvery jewelry – two products that Thai manufacturers consistently produce to a high standard yet at surprisingly competitive prices.

Unsurprisingly then, the leading US imports from Thailand under the GSP have been Jewelry of Precious Metals, specifically gold and silver, making up almost a quarter of the total merchandise imported into the US from Thailand under the duty-free protection of the GSP.

Royi Sal is proud to be a fully-participating member of the GSP program. All our American customers are able to take advantage of the program’s duty-free conditions when they purchase our wholesale gold and silver jewelry for import into the US.

Royi Sal has always offered the finest quality jewelry at surprisingly affordable prices, but thanks to the GSP, our wholesale jewelry is also duty-free for American importers.

To find out more about the terms and conditions of the GSP program and to learn how you can take advantage of the highest quality wholesale jewelry free of duty, contact us here