For US Importers – GSP Reinstated by Congress???
Legislation was introduced that would reinstate the GSP (Generalized System of Preferences) program through December 31, 2017 and allow for duty refunds to eligible products imported while the program was suspended.
The GSP program reduces tariffs on imports from nearly 130 countries and expired on July 31, 2013. American companies have paid over $1 billion in import taxes since the program expired and nearly 700 American companies and associations have urged Congress to renew GSP retroactively.
From Dan Anthony, Executive Director of the Coalition for GSP press release:
“This legislation would provide great relief to American companies that depend on the GSP program. By refunding tariffs paid and extending the program through 2017, Congress would give companies the ability to make long-term sourcing decisions – to the benefit of both suppliers in developing countries and their workers at home.”
From JOC:
Generally, it was accepted that GSP was and is a good thing – for developing countries exports and good for U.S. importers that can acquire GSP goods duty-free. Unfortunately, it was not renewed in 2013 when it came up for renewal amid intense congressional gridlock.
As you may know, GSP renewal legislation has passed the Senate and then the House. However, since the House bill differed from the Senate-passed one, the Senate must vote again. Further complicating matters is a new plan for the Senate to make additional changes that will require yet another House vote – and a lot of trust between Republicans and Democrats.
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