Without Congressional action the Generalized System of Preferences (GSP) trade preference program will lapse and expire after July 31, 2013.  Simply put, a lapse or expiration of GSP means Customs duties will be levied on a wide variety of products imported from developing countries.   Importers bear the brunt of a lapse in GSP by being forced to pay the applicable regular rate of duty at the time of importation.

Although GSP has widespread support in Congress, the outlook for the passage of legislation prior to the July 31, 2013 deadline is not positive.  Many in the industry are stating the real question is: will Congress get it done by the end of the year and will they extend the program retroactively enabling importers to seek a refund of duties paid during the lapse period?

The Obama Administration is working to renew GSP prior to its expiration but a short timeline and recent history do not paint a promising picture.  The Renew GSP Today Blog managed by the Coalition for GSP stated, “If GSP expires, American companies will face an extra $2 million dollars per day in new taxes.”

Like many other industry and trade associations, the National Customs Brokers and Forwarders Association of America (NCBFAA) is working with the Coalition for GSP to step up the pressure on legislators by sending every member of Congress a letter warning of the consequences for Congress’ failure to act.

If you import under the GSP or simply want to show your support for the program, add your company name to the GSP Coalition’s Supporter List. There is no cost for being on the “Supporter List.” The more companies that are on the list, the stronger the message will be to lawmakers.