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So Congress allowed GSP to expire, what next?

On December 31, 2017 the Generalized System of Preferences (“GSP”) trade program expired after Congress failed to reauthorize the program. The GSP is a program utilized by U.S. importers that allows for duty-free entry of specified products from 120 designated beneficiary countries. The GSP is the U.S.’s largest trade preference program, and in 2016 alone, U.S. imports under the GSP reached $18.95 billion.[1] As will be described in more detail below, although the GSP is currently expired and importers must pay duties on the entries of GSP-eligible goods, U.S. Customs and Border Protection (“CBP”) has “strongly encouraged” importers to continue to flag GSP-eligible imports with the applicable Special Program Indicator (“SPI”).

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