Legislative Update: GSP and ATPDEA Remain Set To Expire Dec 31st

10/27/2010

Both the Generalized System of Preferences (GSP) program and the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act are set to expire December 31, 2010. The African Growth and Opportunity Act GSP program, however will remain in effect through September 30^th, 2015 for countries listed as AGOA beneficiary countries.

Both the House Ways and Means Committee and the Senate Finance Committees continue to discuss extending the programs. Due to time restraints, any legislation extending these preference programs is likely to be a straight extension and unlikely to include reforms that Senate and House members have been considering. Should Congress fail to extend the programs before December 31^st, an extension occurring in 2011 may mirror prior extensions by being retroactive to the date of expiration. If this occurs, it would likely result in the refund of paid-in duties.    

Potential remains for the GSP eligibility of sleeping bags from Bangladesh to delay an extension bill. Senator Jeff Sessions has threatened to hold legislation extending the GSP over the issue (See Congress Considering Two-to Three Year Extension for Preference Programs Set to Expire on December 31st). On September 22, 2010 Senator Sessions introduced a bill to remove sleeping bags in HTS 9404.30.80 from GSP eligibility. He previously noted that his legislation could be attached to a broad GSP authorization bill.

For more information, please contact a Barnes/Richardson attorney and continue to visit www.barnesrichardson.com.