The Generalized System of Preferences (GSP) and the Miscellaneous Tariff Bill (MTB) expired on December 31, 2020. As of the New Year, importers must pay duty on goods previously eligible for GSP and MTB.
When GSP expired in the past, it was made effective retroactively after its renewal. Additionally, US Customs and Border Protection automatically refunded GSP duties for those entry summaries marked with the special indicator (SPI) “A” preceding the tariff number during the lapse period. Those filed without the SPI required importers to submit post summary corrections or protests. GSP lowers duties for thousands of goods from 119 beneficiary countries.
The expiration of MTB means reduced duty and duty-free treatment is no longer available for 1,660 products. Typically, Congress determines MTB eligibility based on an International Trade Commission (ITC) report compiled after reviewing and analyzing submissions from the trade. In its most recent report, ITC indicated 2,695 requests could meet (or meet with some modifications) requirements for approval.
Congress has not made clear when they may take action on GSP or MTB legislation. However, Deringer will continue to provide information on the renewals of GSP and MTB.
