Congress Fails to Extend GSP; ATPDEA and TAA Granted 6-Week Extension

International Alert

Following a failed effort in the Senate to reach agreement on longer-term extensions of the Generalized System of Preferences (“GSP”) program, the Andean Trade Promotion and Drug Eradication Act (“ATPDEA”) and Trade Adjustment Assistance (“TAA”), yesterday, the House and Senate passed six-week extensions of ATPDEA and TAA, but failed to extend GSP, which will expire on December 31, 2010.

In addition, by not acting on H.R. 6517, the House-passed omnibus trade bill that would have extended these preference programs for 18 months, the Senate also failed to act on the Miscellaneous Tariff Bill that was passed by the House on December 15.

We expect the House and Senate to resume debate on MTB legislation early in the 112th Congress and to act swiftly to reauthorize GSP, including providing, as needed, for retroactive recovery of any duties that importers will have to pay as of January 1, 2011 for goods that otherwise would have been duty-free under GSP.

However, GSP’s imminent expiration will create near-term customs compliance challenges for importers, and will impose additional costs in the form of duties on products that otherwise would be duty-free and costs associated with retroactive recovery of any duties paid.

For more information on the impact of GSP’s expiration, U.S. preference programs and trade-related legislative initiatives, please contact our trade policy and import customs practices:

Richard Abbey,, 202-626-2901  

Welles Orr,, 202-626-1481

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