EXPANDING KOSOVO’S EXPORTS

TO THE UNITED STATES

July 2011

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)

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, 756 - just in the first five months of 2011.

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 2011.

Exported just for one year were black plastic one-gallon bags, fuel oil, TV cameras, wood upholstered chairs, & sports and travel bags.

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 duty-free

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

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

GSP PROGRAM

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

TYPES OF U.S. IMPORTS RECEIVING

GSP DUTY-FREE TREATMENT - 2010

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

HOW TO QUALIFY FOR DUTY-FREE

TREATMENT UNDER GSP

IS MY PRODUCT ELIGIBLE FOR DUTY-

FREE TREATMENT UNDER GSP?

The easiest way to find out is to go to:

http://dataweb.usitc.gov/scripts/tariff_current.asp

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, 200799, or 20079925

Then click on “List Items”

http://dataweb.usitc.gov/scripts/tariff_current.asp

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

CLAIMING GSP DUTY-FREE

TREATMENT

LOCATION OF “A” ON THE CUSTOMS FORM

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)

JOB OF THE EXPORTER?

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

http://www.fda.gov/Food/

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):

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:

https://epermits.aphis.usda.gov/manual/index.cfm?actio

n=countrySummCommPI&REGION_ID=

WAYS TO INCREASE KOSOVO’SEXPORTS

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

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

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

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)

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%

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.

NEIGHBORING COUNTRIES’ USE OF GSP

(2010)

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 0.2 – 0.26 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%)

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%)

PRODUCTS EXPORTED BY KOSOVO’S

NEIGHBORS UNDER GSP

FOR MORE INFORMATION ON

EXPORTING TO THE U.S.:

Embassy of Kosovo, Washington, DC Ms. Gjeneza Budima

gjeneza.budima@ks-gov.net

1 202 380 3581

Sandler Trade LLC Ms. Marideth Sandler

sandler@sandlertrade.com

http://sandlertrade.com

FOR FURTHER INFORMATION

Office of the U.S. Trade Representative GSP Website: http://www.ustr.gov/trade-topics/trade-development/preference-programs

U.S. Customs & Border Protection http://www.cbp.gov/xp/cgov/trade/

U.S. Embassy in Pristina Fatmir Morina, Economic/Commercial Assistant

Email: MorinaFH@state.gov Tel: +381-38-59-59-3000, ext. 3183 Fax: +381-38-549-890

FOR FURTHER INFORMATION

U.S. Tariff Schedule http://dataweb.usitc.gov/scripts/tariff_current.asp

U.S. Department of Commerce International Buyer Program

http://export.gov/ibp/

International Partner Search http://export.gov/salesandmarketing/eg_main_018197.asp

THANK YOU!

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