U.S. imports claimed under the Generalized System of Preferences (GSP) program were $18.7 billion in 2023, a year-over-year drop of 13 percent.

The GSP, which extends preferential tariff treatment to certain products from beneficiary developing countries, expired on December 31, 2020.

The scenarios? GSP reauthorization requires an act of Congress. GSP has already been allowed to expire several times since its enactment in 1974. Each time GSP has been renewed after a lapse, the renewal has been retroactive, allowing duties paid on GSP-eligible goods to be refunded after reauthorization.

The GSP program provided non-reciprocal tariff treatment and duties on certain products imported into the United States from designated beneficiary developing countries.

The chairman of the House Ways and Means Subcommittee on Commerce and Trade has indicated that he plans to introduce a bill that would reauthorize GSP.

It has not been determined whether possible future reauthorization of the GSP program will be fully retroactive and what the duration of such reauthorization will be.

GSP

During 2023, imports under GSP accounted for less than 1% of all U.S. imports of goods.

Imports from GSP beneficiaries entering GSP accounted for 9.3% of total imports from these countries during the same period.

From another angle, GSP imports from least developed beneficiary developing countries fell from $3.8 billion to $3.3 billion, or 12.5%, and accounted for 17.9% of GSP imports.

The top U.S. imports at the 6-digit HS level claimed under the GSP program during 2023 were bags, bags, trunks and suitcases for containers, and air conditioning parts.

The five GSP beneficiaries with the highest value of GSP products claimed in 2023 were Indonesia, Thailand, Cambodia, Brazil and the Philippines.

On the other hand, the five GSP beneficiary LDCs with the highest volume of GSP goods claimed were: Cambodia, Burma, Ethiopia, Nepal and Togo.