Generalized System of Preferences (GSP)
December 29, 2017 at 4:22 pm #17162
GSP and flowers from Ecuador
Does anyone have information here? It obviously will not be renewed by 12/31/17. Assuming it will be renewed at some point retroactively?
ThanksDecember 30, 2017 at 9:57 pm #17163
there is no official word yet. historically they work these out 2 to 6 months after. they will provide refunds back to 1/1/2018.
BUT that is not for sure,just what has happened beforeDecember 30, 2017 at 10:09 pm #17165
For those who are not aware GSP or Gereral System of Preferences is how Ecuador, in this case, is able to ship certain flowers into the US duty free. I believe rose are the exception with most other products falling within the GSP guidelines.
The act is temporary and thus must be renewed every few years and we are now at that date and it has not renewed in time. So it will lapse and importers will need to pay the duty and hope they get the money back when the act is renewed. The cost will be passed along in prices as line items or buried in the cost. Obviously it is a political tool as well so there are issues to be worked out before everyone signs.
The Ecuadorean and American governments have not been on warm terms for a while so there is no telling wheat will happen but I suggest they will work it out.
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