With the new revision of the US Congress, the Decision on extending the GSP (Generalized System of Preferences), which allows goods produced in Bosnia and Herzegovina to have authorized customs treatment on import into the United States, was adopted.
For all entities exporting or planning to export to the United States market, the validity of the General System of Preferences for Bosnia and Herzegovina, which was valid until the end of 2017, has been extended.
The GSP program entered into force on 22 April 2018 and is valid until 31 December 2020.
The US Global Preferred System (GSP) is a program designed to improve the economic growth of developing countries by providing preferential zero-import rate for over 5,000 products from 122 countries. Bosnia and Herzegovina is on the list of such countries.
It is important to note that this program applies retroactively so all importers who have already paid a customs duty on goods under the previous regime may apply for a refund of the costs incurred during the renewal process from the beginning of the year until April 22, 2018.
The products covered by the GSP program include many industrial products and raw materials, most jewelry, numerous agricultural products, chemicals, minerals, marble, carpets etc.
Products which are not on the list include most textiles, watches, shoes, bags, suitcases, certain leather goods and gloves.
Business entities may apply for duty-free treatment under the GSP program under the following conditions:
- The product must be covered by the GSP program;
- Must be a product derived from or raised in B&H;
- If non-B&H raw materials are used, local content and processing must be more than or equal to the value of the product;
- There must be direct import into the United States, without trade across third countries,
- The importer must apply for a benefit;
- Keep production / accounting records in order to assist the importer in verifying GSP requirements.
To check whether a particular product is covered by a free-of-charge treatment, interested traders can visit http://dataweb.usitc.gov/scripts/tariff_current.asp
It is worth noting that official state institutions may require that certain products, subject to compliance with all US market requirements, be included in the GSP list and thus allow for the free export of such goods.
Eurofast advises clients who export to the US market to carefully consider the "origin rules" requirement and prepare the necessary documentation. Our team is ready to help with any advice that is needed to ensure unimpeded access to the GSP program.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.