New Trade Legislation in Works to Revive GSP

The House of Representatives is rapidly developing new trade legislation with meaningful impacts on the Generalized System of Preferences (GSP) and more.

The America COMPETES Act of 2022 proposes sweeping action and policies to boost competitiveness with China. Along with a primary emphasis on technology development and production, the bill includes noteworthy supply chain measures. Namely, it aims to bring back the popular GSP system.

Bringing Back GSP Tariff Exclusions

According to reports, the America COMPETES Act will renew GSP with an expiration date of December 31, 2024, if passed into law. The renewal will also be retroactive to the program’s previous expiration date of December 30, 2020. Additionally, the new legislation proposes additional human rights requirements for eligibility.

The GSP system itself offers developing countries reduced-tariff opportunities for US-bound products. The U.S. adopted GSP in 1974 to help spur worldwide economic growth and human rights progress. Over the decades GSP has become one of the most popular and widely accessed U.S. trade programs.

American importers should pay attention to the renewal of GSP – opportunities for reduced tariffs will return if the bill is passed into law. The bill proposes adjustments to a range of other trade items as well. Changes to fish importation rules, Section 321 tariffs, AD/CV laws, and more may affect the way American importers conduct business.

Need help deciphering the new bill’s implications? Reach out to Scarbrough Consulting. We can help you find savings on GSP-eligible goods and back payments from retroactive GSP imports.