This bill extends preferential trade treatment for eligible African countries under AGOA through December 31, 2028, and retroactively applies duty-free status for goods imported during the lapse period.
Jason Smith
Representative
MO-8
This bill, the AGOA Extension Act, extends the preferential trade benefits under the African Growth and Opportunity Act (AGOA) for eligible African countries from September 30, 2025, to December 31, 2028. It also ensures retroactive duty-free treatment for eligible goods imported during any gap period between the original expiration and the enactment of this law. Additionally, the Act extends the authorization for certain customs user fees through the end of 2031.
AGOA Trade Benefits Extended to 2028, Ensuring Duty-Free Access for African Imports
The new AGOA Extension Act is all about keeping the trade lanes open between the U.S. and qualifying African nations. Essentially, it takes the African Growth and Opportunity Act (AGOA)—which allows certain goods from eligible sub-Saharan African countries to enter the U.S. duty-free—and extends its expiration date from September 30, 2025, to December 31, 2028. This is a big deal for supply chain stability, as it gives businesses three more years of predictable, tariff-free importing, benefiting everything from textiles to agricultural products.
The Retroactive Fix for Importers
One of the most important parts of this bill is Section 2, which addresses the financial headache that occurs when a trade program lapses before it’s renewed. If the current AGOA program were to expire on September 30, 2025, and this extension wasn’t signed into law until, say, January 2026, importers would have had to pay duties on all eligible goods shipped during that gap period. This act solves that problem by making the extension retroactive. If you imported a "covered article" during that potential gap period, the bill allows the goods to be treated as if the duty-free status was still active. This means importers can get a refund for any duties paid, ensuring continuity and saving businesses significant money.
Filing for Refunds: A 180-Day Clock
For businesses relying on this retroactive treatment, there’s a catch: you have to ask for it. Importers must file a request with U.S. Customs and Border Protection no later than 180 days after this law is enacted. You need to provide enough information to locate or reconstruct the original entry. Customs is then required to pay any refunds owed within 90 days after processing the claim. A key detail here is that the U.S. government will pay the refund, but without interest. For large importers who paid significant duties during the gap period, the lack of interest on those funds could represent a minor financial loss, even though the principal duty amount is returned.
The Customs Fee Fine Print
While the main focus is trade, Section 3 includes a quick, technical extension of certain customs user fees. These are the fees collected by Customs and Border Protection to fund their operations. The bill extends the authorization for these fees—including the Merchandise Processing Fee rate—by three months, pushing their expiration from September 30, 2031, to December 31, 2031. This is primarily an internal budgeting mechanism that ensures the funding stream for border processing continues for a little longer without disruption.