Things to Remember About GSP

What are the responsibilities of exporters?

It is the duty of the exporter to be aware of whether his/her export products are eligible for GSP and the procedures for claiming the duty-free benefits offered under the scheme so that he/she may inform the buyer/importer.

How does an item qualify for GSP duty-free treatment?

1. The item MUST be listed as a GSP-eligible product (3, 400 items are listed).
2. It MUST be exported into the U.S. directly from Egypt or pass through another country on a bill of lading (without being opened at stops).
3. It must be manufactured or grown in Egypt.
4. If the product includes imported input, the cost of the local content and processing must amount to no less than 35% of the product’s price.

Who makes the request for GSP duty-free treatment and how?

The US importer. He/she must write or type an 'A' before the tariff number on Customs entry form 7501 to indicate that the product is GSP eligible. If the importer forgets, he/she can apply to US Customs for a refund.

Submitting petitions for the expansion of the GSP eligible products list

By law there is an annual process for the submission of petitions by countries that want to add products to the GSP eligibility list. Typically petitions are due on June 1, although ours are due on June 15. The results are announced by June the following year. This process requires effective communication between exporters and governmental ministries since exporters must apply for petitions through ministries and supply the ministries with the required data.