Congress’ failure to extend GSP beyond December 31 means U.S. companies must now pay tariffs on previously GSP-eligible, duty-free imports. It is estimated that expiration will cost American companies $2.5-$3.0 million in extra taxes for each day GSP remains expired.
It is critical that importers continue claiming GSP for eligible products despite the expiration. Companies must pay the taxes, but claiming GSP now will help expedite any refund process assuming Congress renews GSP retroactively. In the event of a prolonged expiration, it also will ensure that the Coalition does not underestimate costs of expiration, which are based on claimed imports. U.S. CBP’s GSP page has additional details.
Companies impacted by expiration are strongly encouraged to join our free GSP supporter list. The supporter list is our most effective advocacy tool because it provides real life examples of constituents across the country of companies that benefit from GSP and/or are hurt by expiration. About 350 organizations are already on the list.
Companies interested in receiving non-public information about GSP renewal prospects should consider paid membership in the Coalition for GSP. Dues are based on company size and savings, so those with the biggest stake pay more, but dues never exceed a company’s GSP savings for a typical 3-4 day span.
