Expiration of Generalized System of Preferences December 31, 2020

US Customs and Border Protection (CBP) issued Cargo System Messaging Service (CSMS) announcement # 45244051 advising of the expiration of the Generalized System of Preferences (GSP) on December 31, 2020, unless Congress acts by extending the program.  A copy of the CSMS message is available here.  

Effective for all goods entered on or after January 1, 2021, the General Rate of Duty will apply to all imported merchandise even if the goods are currently eligible for a reduced free rate of duty under GSP.  This will result in an increase in your duty liability for imported goods if you are currently claiming benefits under GSP.  Delmar will continue to flag entry lines with the appropriate “A” or “A+” Special Program Indicator (SPI) as indicated by the CSMS, however, duties will need to be tendered until GSP is renewed.  By continuing to file the SPI it will allow CBP to automatically refund duties deposited directly to the import so long as Congress includes a retroactive refund clause in the renewal.   

If you have any questions you may contact CBP’s Trade Agreement branch at FTA@cbp.dhs.gov or Delmar’s US Advisory Services team via email here

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