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India Removed from Generalized System of Preference (GSP)

Posted by Ascent Global Logistics on Jun 4, 2019 4:07:18 PM

India Removed from Generalized System of Preference (GSP)

Under Executive Order 11888 of November 24, 1975, President Gerald Ford designated India as a beneficiary developing country for the purposes of Generalized System of Preference (GSP), an action afforded by The Trade Act of 1974. The goal of this Trade Act was to promote economic growth in developing countries while also providing all presidents with the ability to withdraw, suspend or limit the duty-free treatment afforded, based on various factors including the country's assurance that it will provide "equitable and reasonable access to the markets and basic commodity resources of such country" as well as refraining from unreasonable export practices.

The current administration has determined that India has not met some of the basic agreements of the GSP program and, as such, they will be terminated from the GSP designation effective June 5, 2019. Any import cargo from India entered into the commerce of the United States as of June 5, 2019 must be entered as Non-Special Program Indicator (SPI) cargo, subject to the normal duty rates assigned to that particular tariff.

Turkey was removed from GSP on May 17, 2019 and the exemption from safeguard measures on Crystalline Silicone Photovoltaic Cell products and large residential washers.

India will be removed from GSP on June 5, 2019 and the exemption from safeguard measures on CSPV products and large residential washers.

Any merchandise from India or Turkey subject to the safeguard measures implemented by Proclamation 9693 and Proclamation 9694 that is admitted into a United States Foreign Trade Zone on or after 12:01am EST on June 5, 2019 must be admitted as "privileged foreign status," as defined in 19 CFR 146.41, and will be subject upon entry for consumption to the safeguard measures implemented by Proclamation 9693 and Proclamation 9694.

If you have questions, please contact us or reach out to your Ascent Global Logistics representative directly. 

Topics: International Freight Forwarding, Tariffs, International Trade

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