CBP Issues Instructions on GSP's Expiration on Dec 31
The Generalized System of Preferences program for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act beneficiary countries, will expire for goods entered or withdrawn from warehouse after midnight, December 31, 2010.1
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U.S. Customs and Border Protection has issued a CSMS message providing instructions on the lapse of GSP, and the continued use of Special Program Indicators to facilitate any refunds resulting from any future retroactive renewal of the program.
GSP Renewal Was Not Included in Omnibus Trade Act
On December 22, 2010, the Senate and House passed an amended version of H.R. 6517, the Omnibus Trade Act of 2010, which contains a six week extension of the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) and Trade Adjustment Assistance (TAA), but does not contain a GSP extension. USTR Kirk stated that the exclusion of the GSP extension from the version of H.R. 6517 passed by the House and Senate means that GSP will lapse on December 31, 2010.
(As originally passed by the House on December 15, 2010, H.R. 6517 contained 18 month extensions of the GSP program and ATPA/ATPDEA, hundreds of duty suspensions and reductions (the second MTB), an amendment and extension of TAA, etc. However, that version of the bill died after Senator Sessions (R) placed a “hold” on the bill due to his opposition to GSP duty-free benefits for sleeping bags and other Senators objected to the TAA provisions for various issues, including moving a TAA extension without moving the U.S.-Colombia Free Trade Agreement.)
Congress Adjourned on December 22, Will Reconvene on January 5
The House and Senate adjourned on December 22, 2010. Congress will reconvene at noon on January 5, 2011 for the first session of the 112th Congress. According to the USTR, the Obama Administration will continue to work with Congress in an effort to secure a full, long-term reauthorization of GSP and other trade preference programs.
Importers Can Continue to Use SPIs, but Must Pay Duty
CBP states that importers may continue to apply the GSP SPIs (A or A+) to eligible goods entered or withdrawn from warehouse subsequent to midnight, December 31, 2010, but must pay the applicable normal trade relations (NTR, or column 1) rate of duty.
This will enable CBP, in the event that GSP is reauthorized with retroactivity, to liquidate all such preference claims with a refund.
1For 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.
(See ITT’s Online Archives or 12/23/10 news, 10122338, for BP summary of the Senate and House passing the amended version of H.R. 6517.
See ITT’s Online Archives or 12/22/10 news, 10122230, for BP summary on concerns with GSP stalled and information on past, “late” GSP extension having been retroactive to the date of expiration.)
(CSMS #10-000292, dated 12/23/10)