House Reauthorizes Generalized System of Preferences

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House Reauthorizes Generalized System of Preferences

The House of Representatives voted February 14 to reauthorize the (GSP) through December 31, 2020, paving the way for an end to duties on flowers coming into the U.S. from Ecuador. The vote was 400 to 2. Despite the overwhelming House vote, the Senate has no immediate plans to act on GSP renewal. Legislation has not been introduced in the Senate and the House bill faces some procedural hurdles. Flowers entering the United States from Ecuador have been subject to import tariffs since January 1, 2018, after GSP expired at midnight December 31, 2017. Importers of record have been paying duties of 3.2 percent on mini carnations. All other flowers, excluding roses, have a 6.4 percent duty. Since January 1, 2018, and before, roses have been subject to a 6.8 percent duty because they are not eligible for duty-free status under GSP. GSP promotes economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories. GSP was created on January 1, 1976, by the Trade Act of 1974. The GSP periodically expires and must be renewed by Congress to remain in effect. SAF will continue to monitor this issue as it develops in the Senate.