The Generalised System of Preferences (GSP) granted by the United States to 119 designated beneficiary countries and territories expired on 31 December 2020.
What's included in the GSP?
This trade program, which was implemented in 1976 and is the largest and oldest US trade preference program, grants developing countries zero-tariffs on eligible goods.
Some 5,000 tariff items are eligible for GSP benefits, approximately 3,500 of which are available to all GSP countries and 1,500 of which are available solely to “least developed beneficiary developing countries”.
What's the status of its renewal?
It’s unclear how the new Biden administration might evolve the program – from adding or removing beneficiary countries, to linking eligibility requirements to reflect human rights actions or perhaps altering the list of covered products.
The GSP last expired at the end of 2017, before being reauthorised in April 2018, and renewed retroactively so that importers could seek refunds of duties paid during the break.
As such, GSP beneficiaries are waiting for the US Congress to pass a new bill that would reactivate the trade privilege for another three years.
How can technology help navigate these evolving rules and regulations?
CargoWise is a single-platform software solution that shares customs entry data across your operations and network of partners, allowing you to enter data once, then transfer it to a new entry automatically, any time and from anywhere.
It features direct links to the Automated Commercial Environment, a CBP system, so you can be confident you're keeping pace with complex local customs changes, while also enjoying increased operational efficiencies.
For example, US Customs and Border Protection (CBP) is encouraging filers to continue to flag GSP eligible importations with the SPI ‘A’ during the lapse, effective from 1 January 2021.
The good news is CargoWise can automatically calculate the duty for lines with the GSP claim. And if and when GSP is renewed, this means CBP can efficiently automate your duty refund process.
Looking to accelerate the speed and accuracy of your customs clearance processes? Create, manage and clear your import and export customs declarations in more than 30 countries with CargoWise. Learn more
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