The purpose of the US Generalized System of Preferences or GSP is to give American industries and consumers a greater choice while assisting developing countries in the growth of their economy. It provides duty-free entry for over 4,650 products that come from 143 beneficiary developing countries or BDC.

GSP motivates developing countries to export by giving their products preferential entry in the markets of developed countries. Generalized System of Preferences consulting occurs through the website of government agencies that are in charge of trading between in US and other countries and vice versa. You can contact these offices in order to further understand the eligibility requirements. You must meet certain requirements to be eligible to import under GSP:

1. It must be on the Generalized System of Preferences eligible articles list.

2. You must import it from the GSP beneficiary.

3. It must have a 35 percent value added when the product inputs come from outside of the beneficiary.

4. The import or export must ask for duty-free treatments under the GSP by indicating before the US tariff line number.

Action Steps
The best contacts and resources to help you get it done

Know what are the BDC and eligible articles under Generalized System of Preferences

There are certain articles that the GSP prohibits from receiving duty-free treatment such as cotton, wool or certain footwear. There is also a list of beneficiary countries that the article has to come from.

I recommend: The United Nations Conference on Trade Development has a book for downloading entitled Generalized System of Preferences List of Beneficiaries. The Office of the United States Trade Representative has a list of articles that are acceptable for import under GSP.

Obtain Generalized System of Preferences forms

You would need Form A or GSP form A in order to import under the GSP. This is a certificate of origins stating that the donor country imports from a BDC.

I recommend: Export911 has general information and the list of countries that accept Form A. It also has a clickable sample in which it tells you what entries should go where and where you can obtain an official Form A. Unz and Company offers the various types of certificate of origins forms for purchasing.

Find a consultant for Generalized System of Preferences

There are plenty of places that will offer you Generalized System of Preferences advice. Independent businesses or websites of government organizations that offers general importing/exporting advice are good places to locate Generalized System of Preferences experts.

I recommend: Import Security Consultants offers GSP help as well as advices on customs and importing issues, is located San Marcos, CA and has clients worldwide. The United States International Trade Commission is your source for anything you would like to know about importing and exporting, which includes instant answers and trade data. It requires you to register in order to utilize their services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Generalized System of Preference is a part of a preference program to assist in the economic development of developing countries. It would be helpful to visit the United States Trade Representative website in order to understand the other preference programs just in case one of them fits your need. This will give you the opportunity to talk to a Generalized System of Preferences expert.