100 Assns, Firms Urge Congress to Extend GSP Before Dec 31
The Generalized System of Preferences (GSP) program (i.e., A, A*, and A+) for most beneficiary countries, i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, will expire on December 31, 2010, unless a law extending it is enacted.
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(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.
Trade Associations, Companies Urge Congress to Renew GSP Before Dec 31st
On November 10, 2010, almost 100 associations and companies signed a letter to the leadership of the House Ways and Means and Senate Finance Committees urging them to make the renewal of the GSP program a priority before the end of the year. Press release, with link to letter, available here.
House, Senate Committees Still Support GSP, ATPDEA Extension; Timing, Vehicle TBD
According to a Congressional source, the House Ways and Means and Senate Finance Committees are still supportive of an extension of the GSP and ATPA/ATPDEA programs before they expire at the end of the year. The source states that although such support exists, the vehicle for an extension, as well as the timing of the extension are still to be determined.
(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.)
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 10/25/10, 09/28/10, and 09/29/10 news, 10102515, 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 October 2010, the U.S. Trade Representative accepted for review in the 2010 GSP Annual Review, a petition to withdraw from GSP eligibility certain types of sleeping bags (HTS 9404.30.80). At the request of the USTR, the International Trade Commission is seeking comments for a newly initiated investigation on the GSP eligibility of sleeping bags, etc.
(In July 2010, the USTR 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 ITC, 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.)