Generalized System of Preferences (GSP)

While authorized, eligible products from about 119 beneficiary countries entered duty-free if at least 35 percent of their value was added in the beneficiary country and they were imported directly, claimed with special program indicator A. Competitive need limits removed benefits for dominant suppliers. Congress had not renewed the program as of October 2026, so normal duties apply; past renewals were retroactive, and importers have kept flagging eligible entries to preserve refund claims.

GSP matters because its lapse raised costs on many small consumer goods, such as handbags, jewelry and home goods from India, Thailand or Indonesia, which now pay full MFN duties. An e-commerce brand sourcing from those countries should model landed cost without GSP while tracking renewal bills, because earlier reauthorizations refunded duties paid during a lapse. Importers who keep flagging eligible entries and retain origin records are best placed to claim refunds if Congress renews the program retroactively.

• Landed CostTotal cost to get a product ready to sell
• Country of OriginCountry where goods were made
• Harmonized Tariff ScheduleHTSUS product codes that set import duty rates

• Trade Act of 19741974 · US law behind Section 301, 201 and 122 tariffs
• African Growth and Opportunity Act (AGOA)2000, extended through 2028 · US duty-free access for eligible sub-Saharan goods
• Trade Act of 20022002 · US law mandating advance electronic cargo data

1. 19 U.S.C. Chapter 12, Subchapter V, Generalized System of Preferences law.cornell.edu