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12-27-2010 - GSP Will Expire on December 31, 2010

On December 22, 2010, the Senate and House passed an amended version of H.R. 6517, the Omnibus Trade Act of 2010, which contains a six week extension of the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) and Trade Adjustment Assistance (TAA), but does not contain the Generalized System of Preferences (GSP) extension. U.S. Trade Representative Kirk stated that the exclusion of the GSP extension from the version of H.R. 6517 passed by the House and Senate means that GSP will lapse on December 31, 2010.

Customs and Border Protection states that importers may continue to apply GSP to eligible goods entered or withdrawn from warehouse subsequent to midnight, December 31, 2010, but must pay the applicable normal trade relations (NTR, or column 1) rate of duty.  These entries will be flagged and once the program is reinstated and importers will receive a retroactive refund upon entry liquidation.

The House and Senate adjourned on December 22, 2010. Congress will reconvene at noon on January 5, 2011 for the first session of the 112th Congress. According to the USTR, the Obama Administration will continue to work with Congress in an effort to secure a full, long-term reauthorization of GSP and other trade preference programs.

For the latest information, or to assess a current duty rate, please contact your Geo. S. Bush & Co., Inc., Tel: 503-228-6501 or info@geosbush.com.