Travel goods from Sri Lanka to get duty free entry into US

By APD Writer Jamila Husain

COLOMBO, July 21 (APD) - Export of travel goods from Sri Lanka will get duty free entry to the United States following a decision by the US to approve the inclusion of travel goods from all GSP (General System of Preferences) beneficiary countries, the Foreign Ministry said here Friday in a statement.

The move would enable the duty-free entry of products such as bags, wallets and backpacks in to the US market after being previously charged 6 to 20 percent of tariff.

"Following this concession, Sri Lankas travel goods exports to the United States will have the potential to regain the market share previously enjoyed by Sri Lanka by making the country among top 10 suppliers to the US market, once again," the Foreign Ministry said.

Production of travel goods in Sri Lanka continues to remain as Small and Medium Enterprise (SME) industry, which provides livelihood to a considerable number of men and women at the grassroots level and this development would bolster the local manufacturing industry and investments in this industry.

It would also lead to the creation of new jobs in the travel goods manufacturing sector in Sri Lanka.

US companies having a manufacturing plant in Sri Lanka and the travel goods industry could also export the finished product not only to the US market under zero duty but could also export to the EU under the EU GSP Plus and India and Pakistan under the respective Free Trade Agreements as well, the Ministry said.

(ASIA PACIFIC DAILY)