Generalized System of Preferences (GSP) reinstated - DACHSER Intelligent Logistics

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Generalized System of Preferences (GSP) reinstated

The Generalized System of Preferences (GSP) has been renewed effective April 22, 2018 as announced by the U.S. Customs and Border Protection (CBP). The GSP program expired on December 31, 2017, but has now been renewed through December 31, 2020. Duties on eligible transactions that occurred during the lapse will be refunded by CBP.
Generalized System of Preferences (GSP) reinstated

The Generalized System of Preferences (GSP) is a preferential trade program that allows 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. Here is a copy of the official CBP announcement.

The new law also provided for the retroactive refund of all duties (without interest) to the importer of record (IOR) on GSP-eligible goods entered during the January 1, 2018 through April 21, 2018 lapse period.

Administrative details of the GSP renewal:

GSP duty-free treatment will be applied to eligible articles from designated beneficiary countries that are entered, or withdrawn from warehouse, for consumption on or after April 22, 2018 through December 31, 2020. Beginning on that date, importers no longer must tender duty deposits for GSP entries.

Entries made in the refund period that were filed using the Automated Broker Interface as GSP-eligible (“Special Program Indicator “A”) will be automatically liquidated or re-liquidated, with no further action required by the importer to commence the refund process. Non-ABI entries, and any electronic entry made without the “A” indicator, will require submission of a request for liquidation or re-liquidation by the September 19, 2018 deadline.

Unless requested by the importer, DACHSER filed all eligible entries with the “A” indicator during the lapse period. Therefore, any entries processed by DACHSER should be eligible for an automatic refund by CBP. According to CBP, importers should receive the automatic refunds by mid-July 2018.

GSP Goods Subject to Section 232 (aluminum and steel):

As of March 23, 2018, GSP-eligible goods that are subject to Section 232 duties may not receive GSP duty preference in accordance with 19 USC 2463(b)(2). On imports subject to Section 232 duties, importers should pay the normal trade relations (column 1) duty rates and not submit the GSP Special Program Indicator (SPI) “A”.

Additional information and useful links including country-specific considerations are available on CBP’s GSP page. If you have any questions please contact your local DACHSER contact.

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