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Company : Industry News

GSP - Now or Never???

If you are a U.S. importer who has been enjoying duty-free treatment on products originating from a GSP-eligible country, you may want to take stock of your future purchasing plans. Duty free entitlements under the current Generalized System of Preferences will expire as of December 31st, 2008.


Although periodic renewal concerns of this broad trade program are not new for the importing community, the end of this calendar year may prove different. In conjunction with the usual budgetary obstacles, there is a widespread opinion within Congressional circles that GSP has lost its traditional and intended purpose of providing duty-free entry of products manufactured in underdeveloped or “least” developed countries. The two dominant members of the program, Brazil and India, have now recognized significant economic development, thus a belief has emerged that the GSP should be overhauled to focus on poorer countries. Unfortunately, a dedicated effort to this policy re-evaluation may not take place before time runs out.


As dawn breaks on January 1st, 2009, the death toll may ring on the Generalized System of Preferences. If and when a resurrection of the program should occur, a completely different set of rules may appear.


For more information, please contact Venetia Huffman, Vice President, Operations & Compliance or your CVI customer service representative.

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