CBP Says GSP Flagging Should Continue If Program Expires on Dec. 31
CBP issued filing instructions in a CSMS message 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. "In the event of a lapse and until further notice, importers are strongly encouraged to continue to flag otherwise GSP-eligible importations with the SPI 'A' pay Normal Trade Relations (column 1) duty rates," CBP said. "Importers may not file SPI 'A' without duties."
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Previous GSP renewals that followed a lapse in the program included retroactive application of GSP benefits. “In the event that GSP is renewed with retroactivity, CBP is developing program[m]ing to provide for the batch processing of refunds on all importations made with SPI 'A' and duties paid,” it said. CBP completed processing of refunds about a year after the last GSP lapse ended in 2015 (see 1608080023). The agency also advised filers to "ensure all importer of record information in ACE is up-to-date and valid, including the importer’s mailing address and banking information, if importer is a member of CBP’s ACH refund program. Accurate records will ensure any potential refunds may be processed expeditiously."
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. “Until further notice, CBP will not allow post-importation GSP claims on importations made subsequent to the expiration of GSP,” 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.