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 November 07, 2017      




“The Generalized System of Preferences (“GSP”) trade preference program utilizing special program indicator 9SPI) “A”, “A+” and “A*” barring Congressional action, will expire for goods entered or withdrawn from warehouse after midnight, December 31st, 2017. CBP has no information as to whether or not this preference program will be renewed and if it is renewed, whether there will be a lapse period, or whether there will be a retroactive clause providing for a refund of claims made during such a period.  There is no guarantee that the policy of refunding duty will continue.  In fact CBP explicitly does not commit to refunding of duties. However, 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.

Special Procedures for GSP-Eligible Goods

In the event of a lapse and until further notice, importers are strongly encouraged to continue to request flagging of GSP –eligible importations with the SPI code applicable as they pay normal trade relations (column 1) duty rates on otherwise GSP-eligible importations.  Importers may not file SPI “A” without duties.

Post-Importation GSP Claims Made via PSCs and Protest

CBP will continue to allow post-importation GSP claims made via post summary correction (PSC) AND PROTEST (19usc 1514, 19 CFR 174) subsequent to the expiration of GSP, 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.

African Growth and Opportunity Act (AGOA)

The pending expiration of GSP has no effect on goods entered with African Growth and Opportunity Act (AGOA) preference. Effective January 1, 2017, the Harmonized Tariff Schedule of the United Sates (HTSUS) was modified so that all non-textile, AGOA-eligible tariff items indicate SPI "D" in the "Special" column. As such, since January 1, 2017, all non-textile AGOA claims have been made using the SPI "D". AGOA preference remains in effect through September 30, 2025, irrespective of any lapse in GSP.

Merchandise Processing Fee (MPF)

Since the GSP does not provide an MPF exemption, its expiration has no impact on the collection of the MPF. Goods of least-developed beneficiary developing countries (LDBDCs) listed in HTSUS General Note 4(b)(i) maintain their MPF exemption per 19 CFR 24.23(c)(1)(iv).

Informational Links:

CSMS# 17-000622 - Generalized System of Preferences (GSP) Due to Expire December 31, 2017


 The information contained in this newsletter has been compiled from various industry newsletters and other public sources. While we use reasonable efforts to furnish accurate and up-to-date information Page & Jones, Inc. is not liable or responsible for the accuracy or reliability of any information contained herein.

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