GENERALIZED SYSTEM OF PREFERENCES PROGRAM EXPIRES IN U.S.
The Generalized System of Preferences program expired at midnight
Wednesday.
GSP gives importers duty-free status on certain goods imported from
developing countries. The program also helps manufacturers in developing
countries sell their products in the United States.
Importers that pay duties on GSP-eligible goods after June 30 should
keep a record of these entries to obtain refunds after Congress renews the
program.
Brokers must use a special program indicator "A" with the tariff
number
for entries filed electronically through Customs’ Automated Broker
Interface system. This indicator tells Customs that these imports will be
due a refund once GSP is restored.
Congress renewed the program from July 1, 1998 to June 30 by attaching
it to the 1998 Tax and Trade Relief Extension Act. The best hope for
renewing GSP in 1999 will be through another tax extender bill passed in
September or October this year, said the Coalition for GSP, a
Washington-based industry group that supports GSP renewal.
The Senate Finance Committee recently proposed extending GSP for five years.