House Expected to Vote on GSP/MPF Increase Bill on Sept 7
House Ways and Means Committee leaders1 introduced H.R. 2832 on September 2, 2011, in order to renew GSP and increase the merchandise processing fee for formal entries by 65%. The House could pass H.R. 2832 on September 7, as it is being considered under a suspension of the rules procedure.2
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
GSP Would be Retroactively Renewed through July 31, 2013
H.R. 2832 would renew the Generalized System of Preferences (GSP) program through July 31, 2013.
The bill lays out procedures for retroactive application of GSP (and reimbursement of duties paid) for articles that entered after December 31, 2010 (its date of expiration), but before the date of renewal.
(GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, expired on December 31, 2010.)
MPF for Formal Entries Would be Increased by 65%
In order to "pay for" the GSP renewal, H.R. 2832 would also increase the MPF on formal entries to 0.3464% ad valorem, from the current rate of 0.21% ad valorem, an increase of 65%.
Action on GSP Bill Could Lead to Progress on TAA and Pending FTAs
According to trade sources, if the House passes H.R. 2832 and it goes to the Senate, the Senate could amend the measure to attach a Trade Adjustment Assistance renewal provision. (Under an August "agreement," the Senate is expected to take up TAA before it deals with the pending FTAs.) Action on TAA could prompt the President to submit the implementing legislation for the pending FTAs (Korea, Colombia, and Panama) to Congress.
(Note that press sources indicate that President Obama’s address to Congress on his plans for generating jobs will feature enactment of these three FTAs as one of his job creators.)
1Chairman Camp (R) along with co-sponsors Committee Ranking Member Levin (D), Trade Subcommittee Chairman Brady (R), and Subcommittee Ranking Member McDermott (D).
2Under a suspension of the rules, no floor amendments are allowed and a 2/3 vote is required to pass. This procedure is usually reserved for non-controversial measures.
(See ITT's Online Archives or 08/04/11 news, 11080415, for BP summary of Senate agreement for moving FTAs, TAA.
See ITT's Online Archives or 07/13/11 news, 11071320, for BP summary of the draft FTA bills’ MPF increases and GSP renewal provisions.
See ITT’s Online Archives or 07/08/11 news, 11070822, for BP summary of the House Ways and Means and Senate Finance Committee approval of draft FTA bills with GSP renewal and MPF increase.)
Details on the Coalition for GSP's "GSP Supporter List, which includes almost 300 companies, is available here
House Majority Leader’s schedule, with link to text of H.R. 2832, available here