U.S. Customs and Border Protection today issued a memorandum providing guidance concerning the United States Trade Representative’s Generalized System of Preferences annual review findings, GSP eligibility updates, and effective dates.
The new guidance follows a Presidential Proclamation dated October 30, announcing changes to GSP eligibility for preferential treatment based on USTR’s 2020 GSP Program review findings.
The GSP is the largest and oldest U.S. trade preference program. Established in the 1970s, the GSP promotes economic development by eliminating duties on thousands of products when imported from one of 119 designated “least-developed” beneficiary countries and territories.
The USTR’s annual GSP review is the culmination of several ongoing processes including program eligibility reviews, regular assessments of beneficiary developing countries, combined with input from stakeholders via public comment opportunities and petitions.
“Today’s announcement demonstrates the effective use of the GSP program to improve labor standards and help U.S. businesses and workers succeed,” said USTR Robert Lighthizer in a statement.
“It also demonstrates the Trump Administration’s commitment to robust monitoring and enforcement of our trade preference programs and underscores that when countries do not meet the congressionally mandated eligibility criteria, we will take action by limiting their preferential duty-free access to the U.S. market.”
- Revoked GSP Benefits: Effective December 30, 2020, a list of certain products imported from Thailand under GSP preferential treatment (approximate 17% of Thailand’s GSP trade) will be removed from the GSP eligibility list and no longer will be treated as duty-free.
- Removed GSP Benefits: Effective November 1, 2020, 12:01 am, parboiled rice (HTS 1006.30.10) is removed from the GSP eligible product list for all GSP beneficiary developing countries.
- Added GSP Benefits: Effective November 1, 2020, 12:01 am, Fresh-cut roses (HTS 0603.11.00) is added to the GSP eligible products for all GSP beneficiary developing countries.
- De Minimis CNL Waiver Decision: Effective November 1, 2020, the Competitive Need Limitations have been waived for products in which total imports of the article did not exceed $24.5 million.
- CNL Removal Decision: Effective November 1, 2020, six products from Argentina, Brazil, Ecuador, and Indonesia that exceeded the $190 million CNL threshold for imports from a single country have been removed from GSP eligibility.
- Continued GSP Benefits: The country of Georgia, Uzbekistan, and Indonesia will continue to receive GSP preferential treatment.
CBP advises that General Note 4 of the Harmonized Tariff Schedule has been modified to reflect these changes.
Additionally, regarding goods entered for consumption, or withdrawn from warehouse for consumption, on or after the mentioned effective date, the Automated Commercial Environment will be updated to accept and process-related GSP claims.
Need More Information?
- U.S. Suspending $1.3 Billion in GSP Preferences for Thailand (October 2019)
- USTR Announces Additional New GSP Enforcement Actions (October 2019)
Should you have any questions about this CBP guidance or have any other questions about the GSP program, don’t hesitate to contact one of our knowledgeable trade experts.