GSP Renewed By Omnibus Spending Bill

On Friday March 23rd, President Trump signed the omnibus spending bill which included language for Generalized System of Preferences (GSP) renewal.  GSP will be reinstated on April 23rd (30 days after enactment) and valid through December 31st, 2020.  GSP will also apply retroactively to entries from January 1st through the reinstatement date.

U.S. Customs and Border Protection (CBP) will publish guidelines on how to obtain refunds for duties paid during the lapsed period.  If these guidelines are similar to the previous GSP Reauthorization, CBP will automatically refund the duty on entries where GSP was claimed without a formal written request.  For entries where GSP was not claimed and were eligible, we expect CBP to publish guidelines outlining how to process and resubmit claims for GSP preferences in order to obtain a refund.

About Generalized System of Preferences (GSP): 

According to U.S. Customs and Border protection “The Generalized System of Preferences (GSP) provides duty-free treatment to goods of designated beneficiary countries. The program was authorized by the Trade Act of 1974 to promote economic growth in the developing countries and was implemented on January 1, 1976.  The GSP periodically expires and must be renewed by Congress to remain in effect. The 2015 GSP reauthorization (H.R. 1295) expired on December 31, 2017.”

For more information, please contact your local MIQ Logistics representative.