Generalized System of Preferences Retroactively Renewed | Practical Law

Generalized System of Preferences Retroactively Renewed | Practical Law

President Obama recently signed the Trade Preferences Extension Act of 2015 (TPEA), which retroactively reauthorizes the Generalized System of Preferences (GSP). The GSP provides preferential duty-free importation of a variety of products from developing countries.

Generalized System of Preferences Retroactively Renewed

Practical Law Legal Update 5-617-7090 (Approx. 4 pages)

Generalized System of Preferences Retroactively Renewed

by Practical Law Commercial
Published on 28 Jul 2015 • USA (National/Federal)
President Obama recently signed the Trade Preferences Extension Act of 2015 (TPEA), which retroactively reauthorizes the Generalized System of Preferences (GSP). The GSP provides preferential duty-free importation of a variety of products from developing countries.
On June 29, 2015, President Obama signed the Trade Preferences Extension Act of 2015 (TPEA) into law, which retroactively reauthorizes the Generalized System of Preferences (GSP) (Pub. L. No. 114-27). The GSP is designed to promote economic growth in benefitting developing countries (BDCs) by providing for the preferential, duty-free importation of a variety of products from BDCs. The GSP lapsed on August 1, 2013. For general information on the GSP and its lapse, see Legal Update, US Generalized System of Preferences Lapsed July 31, 2013.
Under the TPEA, the GSP is:
  • Effective on goods imported between July 29, 2015 through December 31, 2017.
  • Retroactively effective on goods imported between the GSP lapse (August 1, 2013) and its reauthorization (July 29, 2015). US Customs and Border Protection (CBP) will issue refunds for duties paid on imports during this time period, which duties would have been eliminated had the GSP been in effect. However, unlike previous reauthorizations, CBP will not automatically issue refunds to parties. Parties seeking refunds for qualifying imports must submit requests to CBP:
    • by December 28, 2015; and
    • in compliance with the requirements of the TPEA and CBP directive, including by providing sufficient information to allow the CBP to locate an entry summary (see CBP: GSP Refund Process).
The GSP does not apply, currently or by retroactive application, to goods imported from:
  • Russia. GSP benefits for products from Russia have been terminated.
  • Bangladesh. GSP benefits for products from Bangladesh are currently suspended.
For a complete list of GSP-eligible BDCs, see US Trade Representative: Information on Countries and Products Eligible for GSP and On Procedures for Modifying the GSP Program.
In addition to reauthorizing the GSP, the TPEA also extends:
  • The African Growth and Opportunity Act, for 10 years after its September 30, 2015 expiration date.
  • The expiration dates for two preferential programs for Haiti for an additional 5 years after the expiration date in 2020.
For information on US and international tariffs, see Practice Note, US and International Regulation of Tariffs.