CBP Provides Guidance on Generalized System of Preferences Refunds

Wednesday, July 22, 2015

CBP Provides Guidance on Generalized System of Preferences Refunds

The President signed the bill into law on June 29, 2015. Pursuant to Title II of the Trade Preferences Extension Act of 2015 duty-free treatment of GSP-eligible imports (for goods entered or withdrawn from warehouse) will resume effective 30 days after enactment, on July 29, 2015.

There have been a lot of questions surrounding CBP’s plans for refunding duties on the entries eligible for GSP that occurred during the lapse of the program.  As mentioned in an FHK trade alert sent on June 29, 2015, CBP would issue specific instructions about securing refunds for entries made during this time frame.

CBP plans to automatically refund GSP duties paid for eligible goods that were submitted with a GSP claim (entries with the SPI “A”, “A+,” or “A*” as a prefix to the tariff number) during the lapse period – August 1, 2013 through July 28, 2015. Therefore, a request for refund should not be made at the port of entry for any entries previously submitted with the GSP indicator.

For eligible GSP goods that were entered without the GSP indicator (SPI “A”, “A+,” or “A*”) during the lapse, the importer must request the refund in writing. The request must contain sufficient information (including the entry number, the line number, and requested refund) to enable CBP to locate the entry or to reconstruct the entry if it cannot be located. A post-entry amendment (PEA) or post summary correction (PSC) can also be submitted but is not required.

Refund requests must be received by CBP no later than December 28, 2015.

Any amounts owed by the United States pursuant to Public Law 114-27 to the liquidation or re-liquidation of any entry of an article will be paid, without interest.

For more information regarding GSP refunding:

http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences/faq-gsp-reauthorization