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GSP Special Tariff Status Expired at End of 2020

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Archives, Global Trade Daily, News

GSP Special Tariff Status Expired at End of 2020

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U.S. Customs and Border Protection (“CBP”) issued a notice announcing the lapse of the Generalized System of Preferences (“GSP”) special tariff program, effective December 31, 2020, unless renewed by an act of Congress. The GSP is the oldest U.S. trade preference program and was established by the Trade Act of 1974. GSP effectively promotes the economic development of countries by eliminating duties on thousands of products when imported from one of 119 designated beneficiary countries and territories.

This specialized tariff treatment status is denoted by “special tariff program indicators” (“SPI”) “A,” “A+,” and “A*” in the Harmonized Tariff System of the United States (“HTSUS”). Under the GSP, the symbol “A” indicates that all GSP countries are eligible for duty-free treatment, “A*” indicates that certain GSP countries are ineligible for duty-free treatment, and “A+” indicates approximately 1,500 additional tariff items for which only the “Least Developed Beneficiary Developing Countries” are eligible for duty-free treatment. As a result of the lapse, GSP eligible goods entered or removed from the warehouse for consumption will be assessed “General” or “Column 1” duty rates as of January 1, 2021.

CBP encourages importers to instruct their broker to flag entries of GSP eligible items with SPI “A” until further notice, starting on January 1, 2021, but importers may not file SPI “A” without paying normal duties at the time of entry. On post-importation GSP claims, CBP states the following: “CBP will continue to allow post-importation GSP claims made via post summary correction (PSC) and protest (19 USC 1514, 19 CFR 174) subsequent to the expiration of GSP, for importations made while GSP was still in effect. CBP will not allow post-importation GSP claims made via PSC or protest subsequent to the expiration of GSP, for importations made subsequent to expiration.”

The GSP program has been reauthorized 14 times since it was originally scheduled to expire in 1985, but only 4 of those reauthorizations occurred prior to the expiration of the program. The most recent extension of GSP by Congress was part of the Consolidated Appropriations Act of 2018, which extended the GSP program until December 31, 2020. With the economic stimulus negotiations currently dominating the discussion in Congress, it is currently unclear whether GSP reauthorization will be included in any year-end legislation, though GSP reauthorization last passed the House and Senate in 2018 with strong bipartisan support. It is possible that the next Congress will renew the GSP program with retroactive effect, which has been done several times in the past.

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Nithya Nagarajan is a Washington-based partner with the law firm Husch Blackwell LLP. She practices in the International Trade & Supply Chain group of the firm’s Technology, Manufacturing & Transportation industry team.

Cortney O’Toole Morgan is a Washington D.C.-based partner with the law firm Husch Blackwell LLP. She leads the firm’s International Trade & Supply Chain group.

Camron Greer is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington D.C. office.

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Archives, Executive Education, Global Trade Daily, Stories

Lifelong Learning: Enhancing Your Supply Chain Skill Set at Any Age

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Even the most seasoned supply chain professional will tell you they can always learn a little bit more about their field. Whether it’s mastering a new software program or simply brushing up on your business skills, the more you learn the better you can invest that education into growing your business.

Work experience will only get you so far. That’s where supply chain education programs come into the picture. From degree programs at top-tier universities to certificates at trade schools and distance learning facilities, today there are more continuing education options than ever before.

If you are considering returning to school to brush up on or better hone your supply chain education skills, or even looking to recruit new employees with the most cutting-edge education, check out these programs, and get some ideas about what to look for when searching for a supply chain education program.

TRAINING AND CERTIFICATION PROGRAMS

A training or certificate program can boost your skills and resume without the heavy investment in a degree program. They also generally take less time to complete than degree programs, but they may not carry as much weight as degree programs would, either. Still, they provide valuable education and insight into many specific aspects of supply chain, and those skills can still be very useful to your business. Check out:

Northwestern University-Kellogg Executive Education. This program at Northwestern University’s Kellogg School of Management runs just three days and offers executive training on transportation, outsourcing, facilities management, inventory and more. It gives students a further peek into the latest supply chain technologies and techniques to help them keep running their businesses in a way that works for today and the future.

American Production and Inventory Control Society (APICS). A professional supply chain organization with its own certification program, APICS is open to Association of Supply Chain Management (ASCM) members as well as non-members. The program offers students strategies to level up their skills, earn the APICS certification and do so without the time investment of a major degree.

DEGREE PROGRAMS

Though they require significant time and often a significant financial investment, degree programs not only provide valuable education, but they also pad your resume so you can carry the education with you should you ever transfer jobs. Degree programs can also help improve your salary and position at your current job. Here are some of the top supply chain higher education programs in the country.

Michigan State University. Ranked No. 1 in supply chain and logistics management programs by U.S. News & World Report for three years running, Michigan State’s full-time MBA program covers everything from supply-chain management to logistics systems and technology. The program offers certificates ranging from Master to Advanced Master in topics such as global supply chain management and integrated supply chain management. Many other MSU-specific certificate options are also available.

Massachusetts Institute of Technology (MIT). The supply chain management program at MIT in Cambridge, Massachusetts, is the No. 2 ranked program by U.S. News & World Report, which also places MIT’s business school at No. 3 overall. Meanwhile, Eduniversal ranks MIT’s supply-chain program the No. 1 program of its kind in the world. The MIT program will earn you your master’s in supply-chain management in just 10 months. The program covers all aspects of supply-chain management, and the school is the founding member of the MIT Global Supply Chain and Logistics Excellence Network (SCALE), an organization that allows for collaboration between students, faculty, researchers and industry experts. The SCALE program was designed to promote new research, processes and technologies for the betterment of the industry.

UNDERGRAD AND HIGH SCHOOL PROGRAMS

Whether you’re in a professional setting and never got a complete supply-chain education, you’re looking for programs for someone else, or you’re trying to recruit new supply chain graduates, undergraduate and high school or vocational supply chain programs are excellent resources. These programs are often taught by industry insiders and have access to some of the newest technology and techniques, giving program graduates an up-to-date education in the supply-chain industry. Also, because they are focused on supply chain and generally nothing else, these programs can be completed faster than traditional college degree programs, which means less time waiting for the right candidate.

Rutgers University. The Supply Chain Education Partnership at Rutgers in Newark, New Jersey, is a comprehensive program for high school students who would like a career in supply-chain management. Though the program is just one week long, it covers a great deal of information, including business logistics, global procurement and sourcing as well as information technology systems and systems, applications and products (SAP). Open to local students, the program is designed to introduce students to the world of supply-chain management and hopefully attract them to the field as a university major and future professional.

Other vocational/high school programs. Many high school programs offer hands-on training through classes, vocational school and internships to help train the younger generation in all facets of supply-chain management. For some, these programs may be enough of a baseline education to be hired straight out of school without needing a degree; for others the classes may pique an interest in the field and help students determine their college major. Check your local school district for schools that may offer these programs.

ONLINE CLASSES

Online classes allow students to attend a supply chain education program from anywhere in the world, which is especially helpful when no such program exists at your local university. Many prestigious universities offer online classes, so there is no need to miss out on a top-quality education simply due to geography.

University of Texas, Dallas. The university boasts of a distance learning master’s program that includes supply chain management courses at both the undergraduate and graduate levels. However, the distance learning program also makes it easy for busy professionals to get a world-class education without having to live in the Dallas-Fort Worth area. The comprehensive program covers every facet of the supply-chain industry, including management, operations and quality of service and goods.

With so much changing in the supply-chain industry, there’s only so much you can learn by doing things one way, whether it be reading textbooks, attending webinars and lectures, or simply working in the field. Both education and hands-on experience in the supply-chain industry are necessary for comprehensive mastery. From the highest person at the executive level to middle management or the newest worker on the warehouse floor, a combination of skills from all ends of the spectrum are invaluable keys to your supply-chain education—and to the success of your business.