GSP Due to Expire on December 31, 2017
The Generalized System of Preferences (GSP), which provides duty-free treatment to goods of designated countries, will expire on December 31, 2017. Special program indicators (SPI) “A,” “A+,” and “A*” will be affected.
GSP has expired several times in the last decade and each time, Congress has made the renewal retroactive. Anticipating a possible renewal, Customs and Border Protection (CBP) has issued the standard procedures for entries affected by the GSP program.
These entries should continue to be marked with the designated Special Program Indicators (SPI). When the program is renewed, and if the renewal is made retroactive, CBP will process refunds for those entries flagged correctly. CBP is currently working on programming that, in the event GSP is renewed retroactively, will allow for automated refund of duty.
Please note the expiration of GSP has no effect on goods entered with the African Growth and Opportunity ACT (AGOA). Duty preferential treatment under this act will continue so that all non-textile AGOA claims made with the SPI “D” will remain in effect through September 30, 2025, regardless of a lapse in GSP.
Information on these programs is available on CBP website.
C J will continue to monitor the situation and provide you with developments as they arise. As always, please contact your local C J International representative if you have any questions about how this may affect your shipments.