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09-Aug-2016 21:45

(Part One) The Generalized System of Preferences (“GSP”) is a program that has afforded beneficiary developing countries duty-free treatment of their qualified goods directly exported to the United States.

GSP was instituted on January 1, 1976, by the Trade Act of 1974. Chamber of Commerce in a 2005 study said that over 80,000 American jobs are associated with moving GSP imports from the docks to farmers, manufacturers, and retail shelves. S., GSP has been effective for prescribed periods, subject to expiration. In the past, when GSP lapsed, legislation intended to reinstate duty-free treatment eventually has been put in place.

Despite the fact that gold jewelry from Thailand was NOT qualified for GSP on July 1, 1998, U. Customs refunded the duties Samuel Aaron paid on entry, and then had second thoughts.

Eventually, in 2007, the Court of Appeals upheld the unorthodox “off-line” reliquidations and the issuance of bills between six and ten weeks AFTER the window for “voluntary reliquidation” would have allowed Customs to correct errors in the original liquidations.

Canada has a similar program called the General Preferential Tariff (‘GPT”). Duties paid in the interim may be retroactively refunded.

The United States Trade Representative describes GSP as a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products when imported from one of 123 designated beneficiary countries and territories. However, that retroactivity has not always been smooth.


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It was later restored to the list of qualified goods, but it was not on the list of qualified goods on July 1, 1998.The statutory language for the retroactivity of GSP in 1998 applied to goods qualified for GSP on July 1, 1998.

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