U.S. IMPORT INDUSTRY PREPARES FOR GSP EXPIRATION
The U.S. Generalized System of Preferences is set to expire on Sept. 30, and the chances of extending the trade program before the expiration date are dwindling.
Industry groups are vigorously lobbying members of Congress to extend GSP, which grants duty-free status to imports from developing countries. “We’re writing letters and making lobbying visits to Capitol Hill,” said Laura Baughman, executive director for the GSP Coalition in Washington. “It’s a priority to renew it again this year, but it probably won’t happen by Sept. 30. The industry should plan for that.”
The GSP last expired on June 30, 1999. Congress re-authorized the program in November 1999, retroactive to July 1, 1999.
For the past 10 years, Congress has repeatedly allowed GSP to expire, which forces importers in the program to start paying duties. Once the program is renewed by Congress, however, Customs must issue thousands refunds to the importers.