August 1st2014) marked the one-year “anniversary” of the loss by U.S. importers of GSP duty-free access to the US market. The Generalized System of Preferences (GSP) program allows about 5,000 products from about 127 developing countries to enter the United States on a duty-free basis. The program helps exports from developing countries to be competitive in the U.S. market and US importers who rely on the program for access to lower-priced consumer goods and manufacturing inputs.
Not for the first time, the U.S. legislation that authorizes this program has expired. Bills introduced in 2013 to renew GSP have gone nowhere. GSP is still expired!
Will GSP be Renewed?
The Obama Administration has urged Congress to renew GSP.
The Renew GSP Today Coalition continues its campaign to get the program renewed as soon as possible.
The twenty members of the Alliance of GSP Countries have added their voice to this campaign.
US Congress has requested data on how the loss of benefits has impacted US companies. These impacts include job layoffs and forced curtailment of growth.
What to Do
GSP-eligible products can continue to enter the United States. Importers have the following options:
For eligible products arriving from Africa or the Caribbean, the importer can enter using the African Growth & Opportunity Act (AGOA) or the Caribbean Basin Initiative (CBI) programs which also permit duty-free entry into the US market. (Products from Bolivia may also be eligible for the Andean Trade Preference Act (ATPA) program.)
Ineligible products will be assessed the most-favored nation (MFN) or non-discriminatory tariff rate that is applied to goods arriving from most US trade partners.
Click here for more information.
Join and follow the Renew GSP Campaign!
View the impact of GSP Expiration and take the survey.
Contact us for help with taking advantage of AGOA & CBI for eligible products!