Generalized System of Preferences (GSP) Expiration: A REMINDERGeneralized System of Preferences (GSP) Expiration
- January 2, 2018
Effective January 1st, the products that were once eligible for being duty-free under special program indicators “A”, “A+”, and “A*” are now subject to normal duty rates when imported. While CBP still requests that GSP eligible items are identified with an indicator, the goods are dutiable until further notice.
To ensure importers receive duty refunds upon GSP renewal, Shapiro will continue to flag GSP-eligible importations with the SPI “A,” even as we pay normal trade relations (column 1) duty rates on your behalf on otherwise GSP-eligible importations. Please also note the following:
- CBP now has programming in place that will allow CBP to automate the duty refund process, in the event that GSP is renewed with a retroactive refund clause.
- CBP will continue to allow post-importation GSP claims made via post summary correction (PSC) and protest (19 USC 1514, 19 CFR 174) after the expiration of GSP, for importations made while GSP was still in effect.
- CBP will not allow post-importation GSP claims made via PSC or protest after the expiration of GSP, for importations made subsequent to expiration.
- The expiration of GSP does not affect goods entered with African Growth and Opportunity Act (AGOA) preference. Effective January 1, 2017, the Harmonized Tariff Schedule of the United States (HTSUS) was modified so that all non-textile, AGOA-eligible tariff items indicate SPI “D” in the “Special” column. As such, since January 1, 2017, all non-textile AGOA claims have been made using the SPI “D”. AGOA preference remains in effect through September 30, 2025, irrespective of any lapse in GSP.
GSP periodically expires and must be renewed by Congress to remain in effect, but there are currently no major indicators that GSP will not be renewed in the near future.
Shapiro will continue to monitor the situation and provide updates as they become available.