The Generalized System of Preferences (GSP) - has been retroactively renewed. The legislation, which was signed by the President on August 20, 1996, extends the GSP program through May 1997. In addition to extending the program, this legislation also retroactively renews GSP from October of last year.

Due to budgetary constraints, and a desire to postpone any monetary outlays by the U.S. Government, the legislation postpones the payment of any refunds until after October 1, 1996. This postponement results in all monies coming out of fiscal year 1997, thereby, not affect fiscal year 1996, an election year.

Entires of merchandise which would have been eligible for GSP treatment are divided into two categories for determining whether they are eligible for retroactive benefits. Merchandise entered by December 31 is eligible for refund if it old have been eligible for duty-free entry on the last day that the program was in effect - July 31, 1995. Merchandise entered after December 31 is eligible for refund if it would eligible for duty free entry on October 1, the day that GSP again takes effect. Thus merchandise and countries which graduate from the GSP program before October 1, 1996 will not be eligible for duty refunds unless the merchandise was entered before December 31.

If you have any questions, e-mail us. We will respond as soon as possible.

Riggle and Craven 19 South LaSalle Street #601 Chicago, IL 60603 312\368-8787 (Tel) 312\368-0939 (Fax)

This Page Last Modified on 8/27/96