President Obama signed the Generalized System of Preferences (GSP) renewal bill on June 29, the White House announced, following its passage in Congress last week. The long-delayed legislation renews GSP and refunds tariffs paid on eligible imports.
The law takes effect on July 29, 2015, almost two years since it expired, and expires in December, 2017.
GSP allows 126 developing countries and territories to export thousands of goods to the United States without paying import duties depending upon the classification.
Many importers have been paying duty on these goods since July 2013, because of the Congressional delay on the legislation. With the passage of HR 1295, importers will now get refunds on those payments.
If you are a current client of WB Skinner, you will receive your refunds automatically.
If you are not a current WB Skinner client, contact Bill Skinner to find out how to receive your refunds.
Originally intended as a development program for poor countries, supporters of GSP say it also helps U.S. companies and consumers by reducing costs and creating jobs. In hailing the enactment of the GSP renewal, the Coalition for GSP said that now “companies can talk about all the positive effects stemming from GSP reauthorization – from increasing sales to new investments to hiring (or rehiring) and rewarding workers.”
According to the Office of the U.S. Trade Representative, U.S. businesses imported $19.9 billion worth of products under the GSP program in 2012, including many inputs used in U.S. manufacturing.
Essentially, GSP gives duty free status to certain commodities from certain underdeveloped nations.
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