Generalized System of Preference (GSP) Free Trade Program Expires December 31,2017
The Generalized System of Preferences (GSP) is a renewable preferential trade program that allows the eligible products of designated beneficiary developing countries to enter the United States free of duty.
The GSP program was expired on July 31, 2013 but has been renewed from July 29, 2015 through December 31, 2017. Federal Register has released a guidance on the handling of refunds. There was a process in place by which importers can claim their duty refunds by filing a request for liquidation or re-liquidation with CBP within 180 days of enactment (by December 28, 2015). Then CBP would refund the duties not later than 90 days after liquidation or re-liquidation. Please note retroactive refunds are not automatic and subject to congressional approval.
During the expired time frames, importers that benefits from duty-free GSP transactions will be required to pay full duties on all subsequent transactions.
Flegenheimer International would like to remind the importers to plan for the next GSP expiration on December 31, 2017. We will continue to monitor as we hear further updates.
Questions regarding the GSP program may also be emailed to: FTA@dhs.gov.
To read Federal Register Notice (FRN) 80 FR 44986