Important Reminder: GSP Expiration December 31, 2017

Background: The GSP (Generalized System of Preference) provides duty-free treatment for over 3,500 products from a wide range of BCD’s (Beneficiary Developing Country’s) and an additional 1,500 products from LDBDC’s (Least Developed Beneficiary Developing Country’s).  The GSP program promotes economic growth in the world’s poorest countries. GSP is the largest and the oldest US trade program which was instituted on January 1, 1976 and authorized under the Trade Act of 1974.

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GSP-eligible products from all beneficiary countries: https://ustr.gov/sites/default/files/files/gsp/GSP%20eligible%20products%20for%20all%20BDCs%20July%202017.pdf

GSP-eligible products only from least-developed beneficiary countries: https://ustr.gov/sites/default/files/files/gsp/GSP%20eligible%20products%20only%20from%20LDBDCs%20July%202017.pdf

GSP-eligible agriculture products: https://ustr.gov/sites/default/files/files/gsp/GSP%20eligible%20agricultural%20products%20July%202017.pdf

GSP-eligible textile, apparel, and travel goods products: https://ustr.gov/sites/default/files/files/gsp/GSP%20eligible%20textile%20apparel%20and%20travel%20goods%20products%20July%202017.pdf

Dutiable products not eligible for GSP: https://ustr.gov/sites/default/files/files/gsp/Dutiable%20products%20not%20eligible%20for%20GSP%20July%202017.pdf

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REMINDER

The GSP expires periodically and must be renewed by Congress to remain in effect; it is set to expire this year on December 31, 2017; this includes goods entered or withdrawn from warehouse after midnight on 12/31/2017.
• CBP will not allow port-importation GSP claims made via PSC or protest following to the expiration of GSP.
• Importers are strongly encouraged to continue to flag GSP-eligible importations with the SPI “A”, even as they pay normal trade relations duty rates on otherwise GSP-eligible importations. FII will continue to do this.
• CBP is working to have programming in place that, in the event that GSP is renewed with a retroactive refund clause, will allow CBP to automate the duty refund process.
• The pending expiration of GSP has no effect on goods entered with African Growth and Opportunity Act (AGOA) preference
• GSP does not provide an MPF exemption, its expiration has no impact on the collection of the MPF.
• The time of entry can be as early as the time that the entry documents are filed, as long as the merchandise is within the port limits and such has been requested.

For more GSP information:
https://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences

https://ustr.gov/issue-areas/trade-development/preference-programs/generalized-system-preference-gsp

https://ustr.gov/sites/default/files/gsp/GSP%20Guidebook%20March%202017.pdf

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The GSP program is administered by the Office of the U.S. Trade Representative. Public inquiries about the program may be directed to the GSP Program Office at USTR, using the following contact information:

E-mail: gsp@ustr.eop.gov
Phone: (202) 395-2974
Fax: (202) 395-9674