State breakdown of $304 million in (eventual) GSP savings through April 2018
GSP benefits have been back in place for two months, though companies continue to wait for refunds of tariffs paid during the expiration. The map below shows the overall value of imports claiming GSP (in blue) and eventual tax savings (in red) by state from the first four months of 2018. Nearly all of these...
Continue readingState breakdown of $145 million in taxes paid through February 2018 due to GSP expiration
GSP benefits resumed a week and a half ago and importers must no longer pay tariffs on GSP-eligible goods. Yet it may be a while before tariffs are fully refunded. The map below shows the overall value of GSP imports (in blue) and tax costs due to expiration (in red) by state during the first...
Continue readingGSP benefits back in effect
As of today, GSP is back in effect and importers no longer must pay tariffs on new import shipments claiming GSP. CBP will begin the process for issuing automatic refunds to products that claimed GSP during the lapse. CBP published a formal Federal Register notice Friday with details. Information on requesting refunds for products that...
Continue readingGSP expiration cost American companies $67 million in February 2018
GSP benefits kick back in in just a few days, but it will be a while until we know the full cost of tariffs paid by American companies due to expiration. According to the latest available data, American companies paid $67 million in extra taxes because Congress failed to renew GSP last year. In the...
Continue readingProducts at risk of losing GSP benefits as part of USTR Annual Review process
GSP benefits aren’t back into effect yet but there already are new threats to GSP importers: more than $1 billion of 2017 imports that will be eligible when GSP is reinstated could lose benefits as part of the 2017/2018 Annual Review. As announced in a recent Federal Register notice, companies must submit petitions to retain...
Continue readingCBP provides details on GSP reinstatement, refunds
CBP recently updated its GSP page to reflect renewal in the last month’s omnibus spending bill. According to CBP, GSP duty-free benefits will officially “restart” on April 22. Products that claimed GSP during the lapse will be eligible for automatic refunds. CBP will begin that process shortly after April 22. Duties will be refund...
Continue readingGSP officially renewed through December 31, 2020
This afternoon, President Trump signed the omnibus spending bill that includes the GSP renewal language passed by the House in February. The bill: renews GSP through December 31, 2020; refunds tariffs paid from January 1 through the reinstatement date; changes the annual review announcement date from July 1 to November 1; updates some dates related...
Continue readingGSP renewal language included in omnibus spending bill
Last night, an “omnibus” spending bill was introduced that includes the GSP renewal language passed by the House in February. If Congress passes the bill tomorrow – the goal since government funding runs out at 12:01AM Saturday – GSP benefits would go back into effect on April 22. The bill would extend GSP through December.....
Continue reading$24,959.85? $30,172.01? Every penny of taxes paid due to GSP expiration hurts.
This week we heard from two small businesses impacted by GSP expiration – Sugarpod LLC in Hillsboro, Oregon and Inplac in Charlotte, North Carolina – that reported paying $24,959.85 and $30,172.01 so far because of GSP expiration. Not $25,000 and $30,000, or even $24,960 and $30,172, but $24,959.85 and $30,172.01. Because every penny of...
Continue readingState breakdown of $77 million in taxes paid in January 2018 due to GSP expiration
GSP expiration cost American companies $77 million in extra taxes in January. The “potential” savings – assuming they are eventually refunded – are over $13 million (21%) higher than savings in January 2017. Put differently, GSP usage has taken off and the pain of expiration will be worse than years past. The map below shows...
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