CBP Says GSP Flagging Should Continue If Program Expires at End of Year
CBP issued filing instructions for goods eligible for the Generalized System of Preferences in the event the GSP program expires at the end of the year. As in previous GSP lapses (see 13071514), filers would continue to use the GSP special program indicator to flag their entries, but would have to pay duties at the normal, non-preferential rate for any imports with a time of entry during the lapse. GSP is currently set to expire Dec. 31 if the program isn’t extended by Congress, though lobbyists say GSP renewal legislation could be passed alongside the Miscellaneous Tariff Bill by the end of the year (see 1709120021).
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“In the event of a lapse and until further notice, importers are strongly encouraged to continue to flag GSP-eligible importations with the SPI ‘A,’ even as they pay normal trade relations (column 1) duty rates on otherwise GSP-eligible importations. Importers may not file SPI ‘A’ without duties,” CBP said in its CSMS message. “CBP is working to have programming in place that, in the event that GSP is renewed with a retroactive refund clause, will allow CBP to automate the duty refund process.” CBP completed processing of refunds about a year after the last GSP lapse ended in 2015 (see 1608080023).
If GSP lapses again, CBP would continue to allow post-importation GSP claims made via post-summary corrections and protests after the lapse for importations made while GSP was still in effect. “CBP will not allow post-importation GSP claims made via PSC or protest subsequent to the expiration of GSP, for importations made subsequent to expiration,” it said. “Requests for the suspension of liquidation under 19 CFR 159.12 pending the ... reinstatement of GSP will be denied.” Any lapse would not affect imports under the African Growth and Opportunity Act, which doesn’t expire until 2025, CBP said.