83 FR 17561 - Renewal of the Generalized System of Preferences (GSP) and Retroactive Application for Certain Liquidations and Reliquidations Under the GSP

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 83, Issue 77 (April 20, 2018)

The Generalized System of Preferences (GSP) is a renewable preferential trade program that allows the eligible products of designated beneficiary developing countries to enter the United States free of duty. The GSP program expired on December 31, 2017, but has been renewed through December 31, 2020, effective April 22, 2018, with retroactive effect between January 1, 2018, through April 21, 2018, by a provision in the Consolidated Appropriations Act, 2018. This document provides notice to importers that U.S. Customs and Border Protection (CBP) will again accept claims for GSP duty-free treatment for merchandise entered, or withdrawn from warehouse, for consumption and that CBP will process refunds on duties paid, without interest, on GSP-eligible merchandise that was entered during the period that the GSP program was 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. CBP will continue conducting verifications to ensure that GSP benefits are available to eligible entries only.

[Federal Register Volume 83, Number 77 (Friday, April 20, 2018)]
[Notices]
[Pages 17561-17562]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08411]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Renewal of the Generalized System of Preferences (GSP) and 
Retroactive Application for Certain Liquidations and Reliquidations 
Under the GSP

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: The Generalized System of Preferences (GSP) is a renewable 
preferential trade program that allows the eligible products of 
designated beneficiary developing countries to enter the United States 
free of duty. The GSP program expired on December 31, 2017, but has 
been renewed through December 31, 2020, effective April 22, 2018, with 
retroactive effect between January 1, 2018, through April 21, 2018, by 
a provision in the Consolidated Appropriations Act, 2018.
    This document provides notice to importers that U.S. Customs and 
Border Protection (CBP) will again accept claims for GSP duty-free 
treatment for merchandise entered, or withdrawn from warehouse, for 
consumption and that CBP will process refunds on duties paid, without 
interest, on GSP-eligible merchandise that was entered during the 
period that the GSP program was 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. CBP will 
continue conducting verifications to ensure that GSP benefits are 
available to eligible entries only.

DATES: As of April 22, 2018, the filing of GSP-eligible entry summaries 
may be resumed without the payment of estimated duties, and CBP will 
initiate the automatic liquidation or reliquidation of formal and 
informal entries of GSP-eligible merchandise that was entered on or 
after January 1, 2018, through April 21, 2018, 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 September 19, 
2018.

ADDRESSES: Instructions for submitting a request to CBP to liquidate or 
reliquidate entries of GSP-eligible merchandise that was entered on or 
after January 1, 2018, through April 21, 2018 but without the SPI Code 
``A'' are located at http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences.

FOR FURTHER INFORMATION CONTACT: General questions concerning this 
notice should be directed to Seth Mazze, Office of Trade, Trade 
Agreements Branch, 202-863-6567 or at [email protected]. For operational 
questions regarding: Formal/Informal Entries and Baggage Declarations: 
Randy Mitchell, 202-863-6532; Mail Entries: Robert Woods, 202-344-1236; 
Non-ABI Informal Entries: Contact the appropriate Center of Excellence 
and Expertise. Questions from filers regarding ABI transmissions should 
be directed to their assigned ABI client representative.

SUPPLEMENTARY INFORMATION:

Background

    Section 501 of the Trade Act of 1974, as amended (19 U.S.C. 2461), 
authorizes the President to establish a Generalized System of 
Preferences (GSP) to provide duty-free treatment for eligible articles 
imported directly from designated beneficiary countries for specific 
time periods. Pursuant to 19 U.S.C. 2465, as amended by section 201(a) 
of Pub. L. 114-27, 129 Stat. 371, duty-free treatment under the GSP 
program expired on December 31, 2017.
    On March 23, 2018, President Donald J. Trump signed the 
Consolidated Appropriations Act, 2018 (Pub. Law 115-141, 132 Stat. 348) 
(the Act). Section 501 of Title V of the Act pertains to the extension 
of duty-free treatment and the retroactive application for certain 
liquidations and reliquidations under the GSP. Section 501(b)(1) 
provides that GSP duty-free treatment will be applied to eligible 
articles from designated beneficiary countries that are entered, or 
withdrawn from warehouse, for consumption on or after April 22, 2018 
through December 31, 2020. Section 501(b)(2) provides that for entries 
made on or after January 1, 2018 through April 21, 2018 (30th day after 
the date of enactment of the Act), to which duty-free treatment would 
have applied if GSP had been in effect during that time period 
(``covered entries''), any duty paid with respect to such entry will be 
refunded provided that a request for liquidation or reliquidation of 
that entry, containing sufficient information to enable U.S. Customs 
and Border Protection (CBP) to locate the entry or to reconstruct the 
entry if it cannot be located, is filed with CBP no later than 
September 19, 2018 (180 days after enactment of the Act). Section 
501(b)(2)(C) provides that any amounts owed by the United States 
pursuant to section 501(b)(2)(A) will be paid without interest.
    Field locations will not issue GSP refunds except as instructed to 
do so by CBP Headquarters. The processing of retroactive GSP duty 
refunds will be administered by CBP according to the terms set forth 
below.

[[Page 17562]]

Duty-Free Entry Summaries

    As of April 22, 2018, filers may resume filing GSP-eligible entry 
summaries without the payment of estimated duties.

GSP Duty Refunds

Formal/Informal Entries

    CBP will automatically liquidate or reliquidate formal and informal 
entries of GSP-eligible merchandise that were entered on or after 
January 1, 2018 through April 21, 2018, and filed electronically via 
the Automated Broker Interface (ABI) using Special Program Indicator 
(SPI) Code ``A'' as a prefix to the listed tariff number. Such entry 
filings will be treated as a conforming request for a liquidation or 
reliquidation pursuant to section 501(b)(2)(A) of the Act, and no 
further action by the filer is required to initiate a retroactive GSP 
duty refund. To avoid confusion, importers should not submit post-
importation GSP claims on tariff items filed with the SPI ``A'' at 
entry summary. CBP expects to begin processing automatic refunds for 
these entries shortly after April 22, 2018.
    CBP will not automatically process GSP duty refunds for formal 
covered entries that were not filed electronically via ABI, nor for 
formal and informal covered entries that were filed electronically via 
ABI with payment of estimated duties, but without inclusion of the SPI 
Code ``A'' as a prefix to the listed tariff number. In both situations, 
requests for liquidation or reliquidation of covered entries must be 
made no later than September 19, 2018, pursuant to the procedures set 
forth in http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences.

Mail Entries

    For merchandise that was imported via the mail, addressees must 
request liquidation or reliquidation of covered entries no later than 
September 19, 2018, pursuant to the procedures set forth in http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences.

Baggage Declarations and Non-ABI Informals

    For non-ABI informal entries and baggage declarations, travelers/
importers must request liquidation or reliquidation of covered entries 
no later than September 19, 2018, pursuant to the procedures set forth 
in http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences.

    Dated: April 18, 2018.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2018-08411 Filed 4-18-18; 4:15 pm]
 BILLING CODE 9111-14-P