U. S. Senate Fails to Extend GSP
The
111th meeting of the U.S. Congress adjourned on
December 23, 2010 without extending the Generalized
Systems of Preferences (GSP) program which
subsequently expired on December 31, 2010. Although
the House of Representatives passed the Omnibus
Trade Act of 2010, including GSP trade preference
program, on December 15, 2010, the Senate failed to
reach agreement on longer term extensions of the
GSP as well as the Andean Trade Promotion and Drug
Eradication Act (ATPDEA) and Trade Adjustment
Assistance (TAA) programs.
U.S. Customs and Border Protection (CBP) issued a notification via Automated Broker Interface (ABI) that importers may continue to apply the GSP special program indicators “A” and “A+” on eligible goods entered or withdrawn from warehouse after December 31, 2010, however, they must pay the applicable Column 1 rate of duty.
It is expected that the GSP program will be reauthorized in the 112th Congress including provision for retroactive recovery of any duties that importers must pay as of January 1, 2011, for goods that would be duty-free if GSP program was in force.
CBP noted that GSP program indicators will enable CBP to liquidate all GSP preference claims with a refund if the program is reauthorized with retroactivity.
U.S. Customs and Border Protection (CBP) issued a notification via Automated Broker Interface (ABI) that importers may continue to apply the GSP special program indicators “A” and “A+” on eligible goods entered or withdrawn from warehouse after December 31, 2010, however, they must pay the applicable Column 1 rate of duty.
It is expected that the GSP program will be reauthorized in the 112th Congress including provision for retroactive recovery of any duties that importers must pay as of January 1, 2011, for goods that would be duty-free if GSP program was in force.
CBP noted that GSP program indicators will enable CBP to liquidate all GSP preference claims with a refund if the program is reauthorized with retroactivity.