Generalized System of Preferences Expires: What Next?
October 25, 2001
The Generalized System of Preferences (GSP) expired at midnight on September
30, 2001. As of October 1, 2001, Customs will not process most claims as
duty-free under the GSP. Customs Headquarters will use the same mechanism to
facilitate refunds utilized in the past when the GSP expired. Under this plan,
filers will be allowed to continue using the Special Program Indicator (SPI)
"A" for entry summaries. However, Customs will not process these
claims as duty-free under the GSP on or after October 1, 2001. Duties at the
normal-trade-relations rate (NTR) must be deposited. Refunds will only be
issued, if the GSP is renewed with retroactive effect, for those eligible
products entered or withdrawn from warehouse for consumption during the period
that GSP lapsed and that were eligible for duty-free treatment under the program’s
provisions prior to its expiration.
A bill has been submitted to retroactively extend the GSP until December 31,
2002. However, given the security and terrorism preoccupation in Washington,
D.C., it may be next year before the program is back in place.