Generalized System of Preferences (GSP) Information
The U.S. Generalized System of Preferences (GSP) is a international shipping program that was put in place in order to aid in economic growth of developing countries. This program provides duty-free entry for certain territories and countries. This program had expired on December 31, 2010; however, President Obama signed legislation in October, 2011 which will make GSP trade benefits retroactive from January 1, 2011. This means that some of our customers will be receiving refund checks from the U.S. Treasury for Duties.
What Articles are Eligible for GSP Benefits?
An import can be eligible for duty free treatment through the Generalized System of Preferences (GSP) when it meets the following requirements:
- Must be on the GSP list of eligible articles
- Must be imported from a Beneficiary Developing Country (BDC)
- The particular BDC needs to be eligible for GSP duty free treatment for that particular article
- Must be the product of a BDC and meet value-added requirements
- The importer/exporter must put the right GSP Special Program Indicator (SPI) on the imported article
How Do I Claim GSP Benefits?
The importer is the one who needs to claim the preference for the GSP benefit by using the SPI code “A” or “A+” before the HTSUS tariff-line number when completing the documents for entry. There are other ways to claim GSP after the fact, but they become more complicated.
If you filed your entries electronically, you will automatically be reimbursed for duties paid during the lapse in the GSP program if your products were eligible, and you used the appropriate SPI code. If you did not use the special program indicator code, go here for instructions on how to file for reimbursement.
As with many international shipping matters, dealing with potential GSP benefits can be confusing and overwhelming. Please, give us a call at (877) 764-9441 so that we can help you through the process and give you specific information based on your individual logistics needs.