Further CBP Instructions on GSP Lapse, ATPDEA Extension, Etc.
U.S. Customs and Border Protection has issued CSMS messages regarding the expiration of the Generalized System of Preferences program for most beneficiary countries and the extension of the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) for Colombia and Ecuador.
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(On December 29, 2010, the President signed into law an amended version of H.R. 6517, the Omnibus Trade Act of 2010, which extended ATPA/ATPDEA for these two countries for six weeks, but did not extend GSP1. See ITT’s Online Archives or 12/30/10 news, 10123010, for BP summary.)
GSP Expired for Non-AGOA Countries, but Expected to be Renewed Retroactively
GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act beneficiary countries, expired for goods entered or withdrawn from warehouse after midnight, December 31, 2010.
CBP states that GSP has lapsed and been renewed in the past and there is an expectation that Congress will consider reauthorization of the program in early 2011, likely to be retroactive to January 1, 2011.
Importers Can Continue to Use GSP SPIs, but Must Pay Duty
CBP previously issued a CSMS message stating that importers may continue to apply the GSP SPIs (A or A+) to eligible goods entered or withdrawn from warehouse subsequent to midnight, December 31, 2010, but must pay the applicable normal trade relations (NTR, or column 1) rate of duty. This will enable CBP, in the event that GSP is reauthorized with retroactivity, to liquidate all such preference claims with a refund.
(See ITT’s Online Archives or 12/27/10 news, 10122711, for BP summary of CBP’s earlier instructions on GSP’s expiration.)
AGOA Countries Can Still Claim GSP Status
CBP states that as the African Growth and Opportunity Act (AGOA) has not expired, goods of AGOA beneficiary countries may continue to receive preference on tariff items with SPI “A” or “D” in the “Special” column of the HTS.
To receive AGOA preference on a good of a tariff item with SPI “D” in the “Special” column of the HTS, the importer will continue to file the entry summary with SPI “D” and without duty. To receive AGOA preference on a tariff item with the SPI “A” in the “Special” column of the HTS (and thus no “D”), the importer will file the entry summary with SPI “A” but without duty.
(AGOA-GSP is scheduled to remain in effect through September 30, 2015.)
ATPDEA Extended for Six Weeks for Colombia and Ecuador, Not Peru
The Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) has been extended for six weeks through February 12, 2011 (from December 31, 2010) for Colombia.
The extension for Ecuador is through February 12, 2011 (from December 31, 2010) unless the President reports to Congress that Ecuador does not satisfy ATPA/ATPDEA beneficiary criteria.
The benefits for Peru were not renewed and expired on December 31, 2010. (Note that Bolivia was suspended from ATPA/ATPDEA eligibility as of December 15, 2008.)
Expiration of GSP Has No Impact on MPF
CBP notes that the expiration of GSP has no impact on the payment/non-payment of the merchandise processing fee (MPF).
1The bill also extended Trade Adjustment Assistance (TAA).
CSMS #11-000001 (dated 01/03/11) on goods from AGOA countries claiming GSP status is available here.
CSMS #11-000003 (dated 01/03/11) on GSP expiration/ATPDEA extension is available here.