Retroactive GSP Renewal, Customs Reauthorization Expected as Part of Trade Package
Lawmakers introduced trade preference renewal legislation that will include the African Growth and Opportunity Act, the Generalized System of Preferences and two tariff preference levels for imports from Haiti as part of a wider trade push. Those renewals and other trade bills are expected to progress alongside Trade Promotion Authority, introduced April 16, said Congressional aides. Though some details are still being worked out, a customs reauthorization bill is also expected to be part of the package, said the aides.
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A bill renewing the trade preference programs will give “the administration new flexibility to suspend or selectively limit the benefits of participating countries - rather than solely being empowered to completely withdraw all benefits,” said Sens. Johnny Isakson, R-Ga., and Chris Coons, D-Del., in a statement (here). Those two lawmakers are continuing to pressure more South African market access for U.S. poultry. Notably, the GSP renewal includes retroactivity, said lawmakers.
During an April 16 Senate Finance Committee hearing, Ranking Member Ron Wyden, D-Ore., said the customs reauthorization will include duty evasion language from his Enforcing Orders and Reducing Circumvention Evasion (ENFORCE) Act. Aides later said, however, lawmakers and staffers are continuing to negotiate the details of the evasion language, which focuses on CBP investigations into evasion complaints. In the end, there may be a compromise between that language and competitor language in the PROTECT Act, said the aides. The trade remedy provisions will nonetheless be part of a Customs Reauthorization bill that will also move alongside TPA, the aides added. Trade experts have long expected Wyden to target enforcement as part of the trade bills (see 1501130001). A customs reauthorization bill hasn’t yet been introduced this Congress. The aides didn't comment on the other elements of customs reauthorization, such as de minimis language.
The GSP renewal and retroactive provisions are especially important, said the Coalition for GSP (here). “By refunding tariffs paid and extending the program through 2017, Congress would give companies the ability to make long-term sourcing decisions -- to the benefit of both suppliers in developing countries and their workers at home,” said Dan Anthony, the group's executive director. The National Customs Brokers & Forwarders Association of America was also pleased. "Our association has been very vocal about the need for reinstatement of the GSP program specifically, as the benefits that will be derived by our customers will enhance the ability for both the import and export trade community to realize increased international trade," said NCBFAA President Geoffrey Powell in an emailed statement. Still, considering the importance of the Automated Commercial Environment and the Single Window, "we would have liked to have seen more support for resourcing and implementation, not to mention guidance, for CBP," he said. "However, we intend to continue working toward these ends."