CBP Lacks Authority to Extend Liquidation of GSP Claims, Agency Tells Filers
Importers and brokers should not file requests to stop liquidation of claims potentially eligible for a renewed Generalized System of Preferences trade program, which expired last year, said CBP in a CSMS message. The National Customs Brokers & Forwarders Association of America recently advised filers to consider filing protests against liquidation to maintain rights to GSP benefits (see 14051211). Previous renewals of the GSP program allowed CBP to process retroactive refunds regardless of liquidation status, though it remains unclear if that would be the case even if GSP were renewed, the agency said.
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The agency lacks the ability to put off liquidation further to wait for the possible renewal of the trade program, it said. "CBP advises the trade community that neither requests to extend liquidation under 19 CFR 159.12, nor protest under 19 CFR Part 174, should be used to stop the liquidation of claim potential subject to GSP in anticipation that GSP will be renewed," the agency said. "Assuming that the goods were properly classified and appraised, they should be liquidated as scheduled. CBP does not have the legal authority to further extend liquidation pending possible renewal of GSP."
CBP previously told importers that they should continue to flag goods eligible for GSP despite expiration in case GSP is renewed with a retroactive clause (see 13071514). "If GSP were to be renewed, the legislation would specify an effective date for the date of renewal," said CBP. The GSP renewal date may allow for retroactive claims, it said. "On previous occasions when GSP was renewed retroactively, the legislation authorized CBP to disregard liquidation status in determining GSP eligibility and consequent refunds."