An Update on the Renewal of the Generalized System of Preference (GSP) and The Refund Process

On June 29, 2015, the President signed the bill that reauthorizes GSP through December 31, 2017 and makes GSP retroactive to July 31, 2013.  As provided in the Act, duty-free treatment of GSP-eligible imports will become effective 30 days after enactment (July 29, 2015).

Effective July 29,2015, filers shall be entitled to file GSP-eligible entry summaries, utilizing the Special Program Indicator (SPI) “A,” “A+,” or “A*,” without the payment of duty for shipments entered or withdrawn from warehouse for consumption.

CBP will reimburse U.S. importers for duties paid on eligible products during the gap period.  Importers should be advised that duty refunds may take up to 90 days after liquidation or re-liquidation of entries..

U.S. Customs and Border Protection (CBP) will automatically begin processing refunds for entries filed via the Automated Broker Interface (ABI) with the Special Program Indicator (SPI) “A,” “A+,” or “A*” for duties deposited on GSP-eligible goods during the lapse period from August 1, 2013 through July 28, 2015. Therefore, no action by the Importer of Record is required for such entries.

Note: Since Flegenheimer International has been filing entries via ABI with the Special Program Indicator during the laps period from August 1,2013 through July 28,2015, duties will be reimbursed to the Importers automatically.

REMINDER: CBP regulations require that any party, claiming GSP benefits, maintain readily accessible documentation to substantiate a  claim.  Inability to produce the required records may result in disallowance of GSP preference.

Please read Regulatory Audit GSP (A Public Use Document) for complete information and requirements to claim GSP:

To read full posting from CBP and FAQs associated with the retroactive refunds for GSP qualifying entries, please click on the link below: