Trade Agreements, Origin & Policy
Generalized System of Preferences
Also known as: GSP
The Generalized System of Preferences is a category of unilateral trade preference program under which developed countries grant reduced or duty-free access to selected products from designated developing countries, without requiring reciprocal concessions. Its aim is to promote economic growth in beneficiary countries by giving their exports a tariff advantage in wealthy markets. Eligibility depends on the product being on the program's covered list, the country retaining beneficiary status, and the goods meeting the program's origin and value-content requirements, and because such programs are periodically renewed or lapse, importers must track their current status to claim the benefit.
Worth checking rather than assuming: the program has lapsed and been renewed repeatedly, sometimes retroactively. Importers who stop claiming during a lapse and never go back for the refund when it is restored leave money behind.
Where it matters for compliance
- Where restored retroactively, refunds on entries made during the lapse generally require a claim.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.