Reminder - GSP for Most Countries & ATPDEA Expire Dec 31 Unless Extended

(For AGOA beneficiary countries, both the GSP program (i.e., A, A*, and A+) and the AGOA-GSP program (i.e., D) remain in effect through September 30, 2015.

In addition, the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) will expire on December 31, 2010 (for Colombia, Peru, and Ecuador), unless a law extending it is enacted.

House, Senate Committees are Still Discussing GSP and ATPDEA Extension

According to Congressional sources, the House Ways and Means and Senate Finance Committees are still discussing an extension of the GSP and ATPA/ATPDEA programs. Sources have previously expressed the opinion that due to time constraints, any such legislation is likely to be a straight extension, rather than a reform of these trade preference programs. One source has previously stated that the committees are considering a multi-year extension of GSP and ATPA/ATPDEA.

In the Past, “Late” Extensions Have been Retroactive to Date of Expiration

Given the time constraints facing Congress, it is difficult to know if extension legislation will really be enacted before the programs expire on December 31. Note that in the past, extensions that occurred after expiration (sometimes many months after) have been retroactive to the date of expiration (resulting in the refund of any paid-in duties).

(See ITT’s Online Archives or 08/08/02 news, 02080805, for 2002 CBP instructions on the retroactive renewal of the Standard GSP program, which was issued in August 2002 for the period of October 1, 2001 to December 31, 2006.

See ITT’s Online Archives or 09/28/10 and 09/29/10 news, 10092820 and 10092901, for recent BP summaries on the pending expiration of GSP and ATPA/ATPDEA.)

GSP Eligibility of Sleeping Bags Could Again be an Issue

In 2009, prior to the enactment of a one-year extension of the GSP and ATPA/ATPDEA programs, sources had reported that Senate passage of the GSP extension legislation was threatened by objections raised by Senators Sessions (R) and Shelby (R) over GSP eligibility for sleeping bags made in Bangladesh. It is not yet known whether Senators Sessions and Shelby will take similar action in 2010.

On September 22, 2010, Senator Sessions introduced S. 3823, a bill to remove sleeping bags in HTS 9404.30.80 from GSP eligibility. In his press release on the bill, Senator Sessions (R) noted that his legislation could be attached to a broad authorization of the GSP program that the Senate is expected to consider in 2010.

In July 2010, the U.S. Trade Representative denied a petition to remove GSP eligibility for sleeping bags classified under HTS 9404.30.80 as part of its 2009 annual GSP review.

(In April 2010, the International Trade Commission, at the request of the USTR, issued a report on the economic effect of possibly removing sleeping bags in HTS 9404.30.80 from GSP, which found that imports of the subject sleeping bags declined by 35% during 2005-2009. See ITT’s Online Archives or 07/02/10 and 04/21/10 news, 10070221 and 10042131, for BP summaries.)

(See ITT’s Online Archives or 09/23/10 news, 10092305, for BP summary announcing the introduction of S. 3823. See ITT’s Online Archives or 08/10/10 news, 10081017, for BP summary of H.R. 5940, a House bill to remove GSP eligibility for sleeping bags in HTS 9404.30.80.

See ITT’s Online Archives or 12/30/09 news, 09123005, for BP summary of the President’s extension of GSP and ATPA/ATPDEA through December 31, 2010.)