GSP Due to Expire on December 31, 2020
The Generalized System of Preferences (GSP), which provides duty-free treatment to goods of designated countries, will expire on December 31, 2020. If not renewed by that date, goods eligible for GSP will be subject to tariffs effective January 1, 2021.
GSP has expired several times in the last decade and each time, Congress has made the renewal retroactive. In a letter to Congress dated December 1, 2020, many U.S. importers are urging Congress to pass this legislation before the deadline and extend the GSP program.
There has been speculation that even if GSP is renewed, more than likely it will be renewed for a short period of time. Importers and other stakeholders have a limited opportunity to contact their Congress representatives and urge them to renew GSP as soon as possible.
C J will continue to monitor the situation and provide you with developments as they arise.