CBP Confirms Details of GSP Refund Request Process
The President is scheduled to sign the bill that renews the Generalized System of Preferences program on October 21, 2011. This GSP provision, which takes effect 15 days after that date (approximately November 5), will renew the GSP program retroactively from January 1, 2011 through July 31, 2013. This notice describes the GSP renewal provisions in H.R. 2832 and the process that CBP is expected to follow for refund requests for entries made during the period GSP lapsed.
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(H.R. 2832 also contains provisions to renew and revise Trade Adjustment Assistance, and make various MPF adjustments.)
31 Month Extension of GSP thru July 31, 2013
As passed by Congress, H.R. 2832 would renew GSP through July 31, 2013, effective for articles entered1 on or after 15 days after date of enactment.
Renewal Retroactive to December 31, 2010
Goods entered after GSP expired on December 31, 20102, but before the effective date of the renewal provision, that would have qualified for duty-free treatment or other preferential treatment under the GSP statute had the entry been made before GSP expired, will be eligible to be liquidated or reliquidated, with a refund of duty.
The Use of a GSP SPI During the Expired Period Is the Refund Request, No Add'l Steps Necessary
With past reinstatements of GSP, CBP has stated that filers who continued to use the GSP SPI "A" and "A+" during the expired period would not need to take any further action to request a refund (as the use of the SPI constituted a valid refund claim).
CBP sources have confirmed that CBP will be following the same procedures it did the last time GSP expired and was retroactively renewed. As a result, filers who filed their entries with a GSP SPI will receive automatic refunds without having to take any additional steps.
Entries Without a GSP SPI Will Require Refund Requests Within 180 Days
For entries which did not use the GSP SPIs, a request for liquidation or reliquidation will need to be filed with CBP no later than 180 days after October 21 that contains sufficient information to enable CBP to locate the entry, or to reconstruct the entry if it cannot be located. Any amounts owed would be paid, without interest, not later than 90 days after the date of liquidation or reliquidation.
PEAs. CBP sources stated by phone that if a GSP SPI was not used during the period that GSP lapsed, and a request for a refund needs to be made, it is likely that Post Entry Amendments can be used to request a GSP refund, as long as the rules for PEAs are followed. (Note that PEAs are no longer allowed for ACE entry summaries. See ITT’s Online Archives 11092014 for summary on use of PCSs for ACE.)
PSCs. Similarly, Post Summary Corrections should be able to be used for GSP refund requests as long as the rules for the program are followed. For example, PSCs can only be submitted within 270 days of the date that CBP accepted the entry. As the GSP program expired on December 31, 2010, some of the entries made in early 2011 may be outside the PSC time window.
Protests may be needed for liquidated entries. CBP sources added that if the entry has liquidated, it is likely a protest will be needed.
CBP may provide additional guidance on use of PEAs/PSCs for GSP refunds. CBP sources add that CBP may issue instructions on the use of PEAs and PSCs for GSP refund requests when it issues its instructions on the renewal of GSP, or it could address this issue in a FAQ.
KORUS Bill Contains Overlapping MPF Provisions
Note that the Korea free trade agreement implementing bill also includes a provision to amend the rate for the MPF, which could override some of the rate adjustments in H.R. 2832, depending on the effective dates of H.R. 2832 and the KORUS bill. (See ITT’s Online Archives 11101111 for summary of the MPF provisions in the GSP bill and the KORUS bill.)
1In this instance, the terms enter and entry include a withdrawal from warehouse for consumption.
2GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, expired on December 31, 2010.
(See ITT’s Online Archives 11101305 for announcement of the passage of H.R. 2832 by the House.
See ITT’s Online Archives 11090910 for summary on use of GSP SPI as a refund request if GSP was retroactively renewed.
See ITT’s Online Archives 11010418 and 10122711 for summaries of CBP instructions for using the GSP SPI during GSP’s lapse.)
Statement of Administration Policy available here
CBP FAQ on PEAs available here
CBP FAQ on PSCs available here
* number of months for GSP renewal corrected