GSP
GSP EXPIRES AGAIN
11/01
On September 30, 2001, nonAGOA GSP
expired again. There are attempts to reenact it being considered in
Congress. However, as with previous expirations, importers will be
required to pay duty at the regular rates and wait for refunds if and
when GSP is reinstated. There is no technical trade bill anticipated in
this session of Congress, thereby making renewal that much more unlikely
this year.
GSP REFUNDS PROCESSED
5/00
Customs recently announced refunds of
many entries have been processed now that GSP was reinstated. Those
completed are entries which were filed electronically and were
liquidated or scheduled to liquidate at no change. Filers who flagged
their entries as GSP at time of filing but have yet to receive their
refunds should check with the port of entry to find out the status of
those monies.
All other GSP entries (not scheduled to
liquidate, change liquidations, reliquidations and manually filed
entries) will be processed manually by Customs. Importers should make
sure they receive their refunds and if not, refund requests must be
filed with Customs no later than June 14, 2000.
GSP RENEWAL
3/00
Customs has issued an announcement stating that GSP refunds will
start to be processed on January 7, 2000. Actual refund checks should be
issued within eight (8) to ten (10) weeks thereafter. Importers have
until June 13, 2000 to file refund requests whether or not GSP was
claimed at time of entry.
GSP RENEWED FOR TWO YEARS
11/99
The Congressional budget reconciliation bill includes
renewal of GSP retroactive from July 1, 1999 through September 30, 2001.
The exact language is to be published shortly but apparently allows
refunds even for those products where GSP eligibility changed after the
program last expired. The signature of Pres. Clinton is expected
shortly. Given the cyclical nature of the renewal process, Customs is
expected to begin issuing the refunds shortly after enactment.
GSP RENEWED
12/99
On December 17th GSP renewal was signed into law. The renewal period
is July 1, 1999 through September 30, 2001. Customs will
soon publish the procedures by which refunds will be paid.
GSP EXPIRES
7/99
On June 30th, GSP again
expires. While active efforts are underway in both Houses of Congress, neither will
be able to move a bill to enactment in time. Importers can again expect to pay duty
with refunds to follow when GSP is again retroactively enacted.
GSP RENEWAL
12/98
GSP was renewed effective October 21, 1998, for more
details see our web site.
GSP RENEWED
10/98
GSP was extended from July 1, 1998 through June 30,
1999 and made retroactive to June 30, 1998 when it previously expired. Importers have 180
days after October 21st to make their written refund requests. Customs has completed its
reprogramming so, as before, if the entry was filed using the "A" indicator,
importers can expect Customs to automatically refund duties. If entries were filed without
the "A" indicator, written refund requests must be filed. Entries should be
tracked to make sure all refunds are timely issued by Customs.
GSP EXPIRATION
7/98
On June 30, 1998, the GSP Program again expired. Renewal is expected
but there are currently no bills proposed for that purpose. As before, Customs is allowing
entries to be filed electronically with the "A" indicator to facilitate later
refunds.
GSP RENEWED AGAIN
8/97
GSP has again been renewed, this time from June 1, 1997
through June 30, 1998. Customs is to start processing duty refunds at the end of August.
It will take about two months for Customs to issue all the refunds. If the entry was filed
non-ABI or GSP was not claimed with the "A" designator at time of entry,
importers will have to file written refund requests no later than January 31, 1998.
Importer should monitor their refunds to make sure any needed claims are filed timely.
GSP EXPIRES
6/97
May 31, 1997 GSP again expired. Proponents are trying to
get it renewed as part of the budget reconciliation process. It is too early to tell
whether that effort will be successful or what changes to eligibility of countries or
products may result.
GSP REFUNDS STATUS
10/96
Through a recent administrative message, Customs has made clear that
the vast majority of GSP refunds are scheduled for liquidation/reliquidation during
October 1996. Importers are reminded to carefully monitor their entries for duty refund
payments as all applications for refunds must be filed with Customs no later than February
3, 1997.
GSP
RENEWED
5/96
In a move surprising for its speed, in the last minute
G.S.P. was added to the minimum wage bill (H.R. 3448) which was signed into law last week.
The renewal period is August 1, 1995 through May 31, 1997. However, the new law does not
take effect until October 1, 1996. As a result, importers are required to pay duty until
then. As to refunds of duties previously paid, Customs currently estimates it will take
approximately two (2) months from October 1, 1996 for it to prepare and issue the
necessary refund orders. What is not clear is how much additional time the Treasury Dept.
will require to actually issue the checks.
Importers should bear in mind that even once
reinstated, there will be changes in eligibility. Pakistan lost GSP eligibility for some
products as of July 1, 1996. Malaysia loses eligibility for all products on January 1,
1997. The new law also changes country eligibility lowering the qualifying GNP from
$11,800 to $8,600. Greenland, French Polynesia, Cyprus and the Cayman Islands are expected
to be impacted by this GNP change.
GSP RENEWAL
2/96
Given the current climate in Washington, D.C.,
it is now clear there is little hope for GSP renewal until after the November Presidential
elections. While efforts are still being made to find a means to renew GSP earlier, the
budget, welfare and Medicare battles currently being fought are consuming all the interest
of Members of Congress such that, right now, there is no one willing to champion trade
issues.
A number of companies have suffered adversely waiting for GSP renewal. It is reported some
of those companies are on the verge of bankruptcy. Their pricing is not competitive if
duty is included. If it is excluded, the company loses money on its sales. If you are so
affected and would like to take action, please call or e-mail us to obtain information
about what you can do to help the situation.
GSP Renewed
In a move surprising for its speed, in the last minute
G.S.P. was
added to the minimum wage bill (H.R. 3448) which was signed into law by Pres. Clinton in
late August. The renewal period is August 1, 1995 through May 31, 1997. However, the new
law does not take effect until October 1, 1996. As a result, importers are required to pay
duty until then. Entries made on or after October 1, 1996 may be filed duty free. As to
refunds of duties previously paid, Customs currently estimates it will take approximately
two (2) months from October 1, 1996 for it to prepare and issue the necessary refund
orders. What is not clear is how much additional time the Treasury Dept. will require to
actually issue the refund checks.
Importers should bear in mind that even once reinstated, there will
be changes in eligibility. Pakistan lost GSP eligibility for some products as of July 1,
1996. Malaysia loses eligibility for all products on January 1, 1997. The new law also
changes country eligibility lowering the qualifying gross national product (GNP) from
$11,800 to $8,600. Greenland, French Polynesia, Cyprus and the Cayman Islands are expected
to be impacted by this GNP change. When a country reaches $8,600 in GDP, it is required to
continue to meet the 50% competitive need limit (CNL) on all eligible articles for the
following two (2) years. CNL is reduced from $122 million to $75 million beginning January
1, 1996. CNL looks to whether or not an article from an eligible country equals or exceeds
a 50% share of the total value of U.S. imports of that article. If so, then the article is
no longer GSP eligible. The standard annual increase level is now set at $5 million yearly
commencing January 1, 1996. The CNL standard is inapplicable if the article was not
produced in the U.S. as of January 1, 1995. The new law also allows the President to
designate any article as GSP eligible from an eligible country provided the article is not
import-sensitive. Textiles and apparel, footwear, handbags, luggage, flat goods, work
gloves, leather wearing apparel, watches and selected electronic, glass and steel articles
remain exempt from GSP. Further, if an article has been considered for eligibility and
been denied, it may not be reconsidered for another three (3) years.
Whether or not the entries were previously liquidated, Customs has
180 days to issue duty refunds which are to be issued only upon proper request filed with
the proper Customs officer. U.S. Customs has repeatedly advised the importing public that
if an entry was filed electronically and an "A" preceded the tariff number,
Customs would automatically issue a refund of duty. Automatic refunds were issued the last
time GSP expired and was then renewed. Nonetheless, importers would be wise to monitor
their entries to insure receipt of all duties due plus interest. In the case of
non-electronic filers, written claims should be filed with the local port to obtain duty
refunds. The 180 day refund period starts on the date of enactment - August 20, 1996, so
all refund claims must be filed on or before February 16, 1997.
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