CONGRESS LOOKS TO AID TRADE WITH REINSTATEMENT OF GSP AND OTHER TRADE PROGRAMS

After two years, Congress is discussing the possible reinstatement of GSP (Generalized System of Preferences). The GSP Program was developed as a trade program to provide opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty. GSP is the largest and oldest U.S. trade preference program. GSP promotes economic development by eliminating duties on approximately 5,000 types of products when imported from one of the 122 designated beneficiary countries and territories. If the program is reinstated, refunds will be issued for qualifying goods. According to the Coalition for GSP, American companies have paid nearly $2 million per day in taxes since GSP expired July 2013.

From the Tuttle Law Offices Newsletter:

"GSP is a trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries (“BC”) and territories. GSP was instituted on January 1, 1976, by the Trade Act of 1974, but authorization for the program lapsed in 2013. Duty-free status is generally available to qualifying goods from qualifying countries if the BC content is 35% or more of the appraised customs value. During an April 22 markup, the Senate Finance Committee amended and sent to the Senate floor all four major trade bills: Trade Promotion Authority, Trade Adjustment Assistance, Customs Reauthorization and a preference package that contains renewals for the Generalized System of Preferences and the African Growth and Opportunity Act (“AGOA”). All were approved with decisive margins. Among the new provisions added as amendments are a temporary extension of an increase to the Merchandise Processing Fee, Miscellaneous Tariff Bill reform legislation, and tariff changes for performance outwear and athletic footwear."

Read the entire newsletter.

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