Generalized System of Preferences (GSP) Due to Expire on December 31, 2017
The Generalized System of Preferences (GSP) provides duty-free treatment to certain goods of designated beneficiary countries. To qualify for this duty free treatment, goods must be ‘direct shipped’ from the beneficiary country to the United States.
Periodically, the GSP program must be renewed through the US Congress. As of now, the program has not yet been renewed and is set to expire on December 31st, 2017. In the event that GSP is not renewed, US Customs is advising importers to indicate “GSP Eligible” on the invoice so that the Special Program Indicator (SPI) is claimed on the entry. Though it will not result in an immediate duty relief, retroactive refunds may be issued once the program is reinstated. This will allow CBP to automate the duty refund process for importers.