GSP Renewal Is Early 2018 Priority, Ways and Means Chairman Says

Generalized System of Preferences renewal legislation is a priority for early 2018 congressional passage, House Ways and Means Committee Chairman Kevin Brady, R-Texas, told reporters Dec. 21, meaning that the tariff preference coverage will expire Dec. 31. He also suggested Senate Democrats, including Finance Committee ranking member Ron Wyden, D-Ore., haven’t OK’d such legislation to move forward. “We’re really waiting for a green light from Senate Democrats and from ranking member Wyden,” Brady said. “We’re hopeful that he can give us the green light so we can move forward early next year.” He added that he “had hoped” GSP renewal would be enacted prior to expiration, and that Congress “can move this thing fast” with congressional Democrats and Republicans “all on board.”

The notion that Wyden is holding up GSP renewal in any way is "nonsense," as Republicans control the House and Senate and can hold hearings and votes on any such legislation anytime, a Wyden spokesman said. "There have been no hearings or markups of GSP or MTB legislation. Rep. Brady is clearly trying to dodge responsibility for failing to extend two important programs for U.S. employers," in GSP renewal and the miscellaneous tariff bill, the spokesman said. "It is a ludicrous lie to suggest that Wyden or Democrats are in any way preventing GSP from being renewed."

Brady’s words all but dash any last industry hopes that a continuing resolution to fund the government into January will include language to renew GSP (see 1712200042). As of 2 p.m. Dec. 21, GSP renewal legislation hadn’t been introduced in either chamber. In a Dec. 19 CSMS message, CBP said filers will use the GSP special program indicator to flag entries and pay duties at non-preferential rates for any imports entered after any lapse in the program, as in previous GSP lapses (see 1712200005). An Office of the U.S. Trade Representative spokeswoman declined to comment on whether USTR hopes that Congress will pass GSP renewal legislation. USTR hasn’t weighed in to Congress on renewal of the program either, “not to my knowledge,” Brady said.