Generalized System of Preferences (GSP) Information for U.S. Importers and Mongolian Exporters

The U.S. Embassy Ulaanbaatar, following up on March 8, 2006, Trade and Investment Framework Agreement (TIFA) discussions in Washington, provides the following information to promote increased use by Mongolia producers, importers, and exporters of the U.S. Generalized System of Preferences Program’s duty-free benefits administered by the Office of the U.S. Trade Representative (USTR).  There are many opportunities for duty-free entry into the United States of Mongolia’s exports that are offered by the U.S. GSP program for a large number of Mongolian products.  Additional information can be obtained from USTR’s website at: http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html

The U.S. Generalized System of Preferences (GSP) program is designed to promote economic growth in the developing countries and increase choices for U.S. industry and consumers. The GSP Program provides preferential duty-free entry for 3,400 products from 136 designated beneficiary countries and territories, including Mongolia. The GSP program was instituted on Jan. 1, 1976.  It is currently authorized through December 31, 2006, and efforts are underway to extend its authorization.

Certain Mongolian products imported into the U.S. are eligible for duty-free entry, providing tariff savings of approximately three to seven percent, thus making those current exports more competitive.  A recent USTR review of Mongolian products entering the U.S. revealed that dozens of Mongolian products exported to the U.S. qualified for GSP duty-free treatment but did not receive it for lack of marking a “A” on the appropriate place on U.S. Customs Form 7501. Please note that certain rules of origin apply and that products such as textiles and apparel are not eligible for GSP treatment. 

Further information can be found in USTR’s GSP guide book, which is available on the web at:  http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/asset_upload_file890_8359.pdf

The full list of eligible products can be found at:  http://www.ustr.gov/assets/Trade_Development/Preference_Programs/GSP/asset_upload_file403_8099.pdf

In addition, following the March 8 TIFA meeting, the U.S. and Mongolian Governments agreed to begin informal consideration of a GSP certified handicraft agreement.  The agreement gives duty-free treatment to certified exports to the U.S. of certain hand-loomed and folklore wall hangings and pillow covers, and certain hand-loomed fabrics.  The GSP guide book link listed above provides additional information. 

Please review USTR’s website carefully before contacting the Embassy’s Commercial Section for additional information. 

Phone: 976-11-329095 
E-mail:  commerce@usembassy.mn.