GSP renewal; retroactive application for liquidations and reliquidations

GSP renewal; retroactive application for liquidations

U.S. Customs and Border Protection today released for publication in the Federal Register a general notice announcing the renewal of the duty-free entry of goods and products under the Generalized System of Preferences program.

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The Generalized System of Preferences (GSP) is a renewable preferential trade program providing direct entry into the United States, duty-free of eligible goods and products from designated beneficiary developing countries.

  • The GSP program expired July 31, 2013, but has been renewed through December 31, 2017 (effective July 29, 2015).
  • The GSP program renewal is retroactive between August 1, 2013, to July 28, 2015.

Today’s CBP notice [PDF 200 KB] informs importers that:

  • CBP will again accept claims for GSP duty-free treatment for merchandise entered, or withdrawn from warehouse, for consumption.
  • CBP will process refunds on duties paid, without interest, on GSP-eligible merchandise that was entered during the period August 1, 2013, to July 28, 2015—the period when the GSP program had lapsed.
  • Formal and informal entries that were filed electronically via the Automated Broker Interface (ABI) using Special Program Indicator (SPI) Code "A" as a prefix to the tariff number will be automatically processed by CBP, and no further action by the filer is required to initiate the refund process.
  • Non-ABI filers, and ABI filers that did not include SPI Code "A" on the entry, must timely submit a duty refund request to CBP. 
  • Effective July 29, 2015, the filing of GSP-eligible entry summaries may be resumed without the payment of estimated duties.
  • CBP will initiate the automatic liquidation or reliquidation of formal and informal entries of GSP-eligible merchandise that was entered on or after August 1, 2013, through July 28, 2015, and filed via ABI with SPI Code “A” notated on the entry.
  • Requests for refunds of GSP duties paid on eligible non-ABI entries, or eligible ABI entries filed without SPI Code “A,” must be filed with CBP no later than December 28, 2015.

For more information, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com
Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com
 
Or your local KPMG Trade & Customs professional.

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