The Generalized System of Preferences (GSP) is a trade program that provides the world’s poorest countries an opportunity to utilize trade to grow their economies.  Established in the Trade Act of 1974, GSP is the largest and oldest U.S. trade preference program.   GSP promotes economic development by eliminating duties on thousands of products when imported from over a hundred designated countries and territories. 

The GSP trade program expired without Congressional reauthorization on January 1, 2021.  As of today, there is no timeline or expectation as to when GSP will be reauthorized.  GSP has expired on ten occasions.  In the past, when Congress extended the program, duty-free treatment was applied to GSP-eligible products retroactively back to the date of expiration.  Importers could then seek refunds on GSP-eligible duty-paid products imported during the lapse period.

The Miscellaneous Tariff Bill (MTB) is a bill authorized by Congress that temporarily reduces or eliminates duties on products that are not available in the U.S.  Like the GSP program, the MTB expired in December 2020.  It is estimated that the expiration of this bill has cost U.S. manufacturers and businesses $1.4 billion in tariffs. 

Typically, the MTB and GSP are passed by Congress simultaneously.  Due to Congress’ failure to renew GSP and reauthorize MTBs, manufacturers, distributors, and consumers will pay higher prices for goods.

With the winter recess just weeks away, it certainly looks like 2023 will pass without either of these programs being authorized by Congress.