Proposals to extend GSP for two years introduced in Congress 

July 19:  Legislation introduced in Congress this week would extend trade preference programs for more than two years.

A Senate bill introduced late yesterday would extend the Generalized System of Preferences (GSP)—a program that supports international trade and lowers costs for U.S. manufacturers and retailers by granting duty-free access to many products they import from developing countries.


The GSP program is set to expire on July 31, 2013. The bill introduced in the Senate would extend GSP through September 30, 2015.


A companion bill was introduced in the House on July 17, 2013.

Revenue offsets

The costs of the legislation would be fully offset by provisions:


  • Extending the merchandise processing fee until January 22, 2022
  • Extending the Consolidated Omnibus Budget Reconciliation Act (COBRA) fee until January 29, 2022
  • Increasing the amount of the required installment of estimated tax due in 2019 for certain corporations and reducing the amount due in following periods by the corresponding amount

Background

GSP provides duty-free access to the U.S. market for 3,500 products from approximately 130 developing countries and access for nearly 1,500 additional products from “least-developed” countries.


In 2012, U.S. businesses imported about $20 billion worth of products duty-free under GSP, including many used in U.S. manufacturing.



For more information, contact a professional with KPMG’s Trade & Customs practice:


Douglas Zuvich

(312) 665-1022


Andrew Siciliano

(631) 425-6057


John L. McLoughlin

(267) 256-2614


Todd R. Smith

(949) 885-5617


Luis A. Abad

(212) 954-3094


Amie Ahanchian

(202) 533-3247


Or your local KPMG Trade & Customs professional.




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