Over the weekend, we were tipped off to the website for Megabeadstore, which is based in Albany, California. The company imports component jewelry parts, and GSP waived tariffs of 5.0 percent to 13.5 percent. To date, Megabeadstore has absorbed the cost of the new tariffs in the hopes that Congress would act quickly to renew the program. However: “As of May 1, 2011, we will need to raise prices on all imported items that are no longer duty free.”
The website further notes: “We are hoping for swift action by Congress in restoring the U.S. Generalized System of Preferences. When and if this happens, we will immediately lower prices on all applicable items to reflect duty free status.”
If you’re raising prices because of GSP expiration, make sure to let everyone know why. Unlike many problems facing small businesses, there is a simple fix. Congress just needs to find the will to move forward. The more people they hear from – companies and customers alike – the better they will understand the negative impacts of letting GSP remain expired.