On Wednesday, March 23rd, the U.S. approved passage of $1.3 trillion omnibus spending bill that would keep the government operating through September. Passing in both Senate and House, the bill included extension of the Generalized System of Preferences (GSP) through December 31, 2020. A relief for many importers, who’ve been paying full duties since January 1st when the program originally expired.
The U.S. Generalized System of Preferences (GSP) is a program designed to promote economic growth in the developing world. Established in 1976, the program provides duty-free treatment for over 3,500 products from “designated beneficiary countries” and 1,500 products from “least-developed beneficiary developing countries.”
The renewed bill now includes the following additional measures:
- refunds for tariffs paid from January 1st;
- Annual Competitive Need Limit (CNL) evaluation;
- USTR must now submit an annual report on eligibility criteria;
- annual review announcement date updated to November 1st; and
- GSP will be renewed through December 31, 2020;
For a further look inside the U.S Generalized System of Preferences, check out the U.S. Generalized System of Preferences Guidebook or contact a Green Worldwide representative today.
