GSP Program Still Scheduled To Expire Dec 31, 2020

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GSP Program Still Scheduled To Expire Dec 31, 2020

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31-Aug-20

GSP Program Still Scheduled To Expire Dec 31, 2020

John S Connor continues to monitor the renewal of this very important program. Currently, there are no status changes to report.

Updates to this and other important trade developments can be found at John S Connor News

Why is the GSP program expiring?

The Generalized System of Preferences (GSP) program requires occasional re-authorization from Congress to continue in force. It has expired several times in the past, most recently at the end of 2017. It was subsequently renewed by Congress in 2018 with the renewal being retroactive to the expiration date.

Will Congress renew the GSP program sometime in 2021 and make it retroactive?

Unfortunately, there is no guarantee that Congress will renew the program again, when they will do so or if they do so, that the action will be made retroactive to the expiration date this time as well.

What happens if Congress does not renew the GSP program prior to the current expiration of Dec 31, 2020?

If Congress does not renew the GSP program then all items that were previously entered under the GSP program at either a free or reduced rate of duty will become dutiable at the standard or Column 1 General rates of duty.

If you know the harmonized tariff (HTS) number applied to the commodities you import, you can look up the current Column 1 General Duty rate online at hts.usitc.gov

For more information on GSP - look here