GSP

The Generalized System of Preferences (GSP) is a unilateral U.S. trade preference program that provides duty-free treatment to specified products from designated beneficiary developing countries. It was authorized by Title V of the Trade Act of 1974, codified at 19 U.S.C. §§ 2461-2467.

Status: lapsed. GSP expired on December 31, 2020 and has not been reauthorized by Congress as of 2026. While the program is dormant, importers should continue flagging GSP-eligible entries with the "A," "A+," or "A*" Special Program Indicator (SPI) at the time of entry. If Congress reauthorizes GSP with retroactive effect (as it has done in past lapses — most recently in 2018 covering the 2017-2018 lapse), CBP will issue refunds automatically for properly flagged entries.

How it worked. Under GSP, an article qualifies if:

1. It is on the GSP-eligible list (most agricultural and industrial products, with major exclusions for textiles, apparel, watches, and certain steel and footwear)
2. It is the growth, product, or manufacture of a beneficiary developing country (BDC) or a designated least-developed beneficiary developing country (LDBDC)
3. At least 35% of the appraised value was added in the BDC (substantial transformation plus local content)
4. The article is imported directly from the BDC to the U.S.

Competitive Need Limitations (CNLs). Even when GSP is active, eligibility for a particular product from a particular country can be revoked if imports exceed thresholds set in 19 U.S.C. § 2463(c).