GSP Has Been Renewed: Now What? OHL Trade Services

Transcription

1 GSP Has Been Renewed: Now What? OHL Trade Services

2 A Brief History Established by the Trade Act of 1974 (19 U.S.C. 2461) A renewable preferential trade program that provides opportunities for many of the world s poorest countries to use trade to grow their economies and climb out of poverty 1 Eliminates duties on up to 5,000 types of products from one of 122 designated beneficiary countries and territories Excludes most articles of textile and apparel (HTSUS Section XI) May include gloves, jewelry, home goods, clocks, display cases, etc. 1 Office of the United States Trade Representative 2

3 Timeline of Renewal Congress fails to renew GSP Importers are instructed to continue using A SPI for eligible goods, pay duties in full Federal Register Notice published; outlines retroactive refund process Deadline for requesting refunds for (a) non-abi entries and (b) entries filed without A SPI June 29, 2015 July 29, 2015 December 31, 2017 July 31, 2013 Expiration Period Refunds to be issued automatically July 28, 2015 December 28, 2015 GSP is effective again GSP expires here we go again! President Obama signs Trade Preference Extension Act of 2015 Importers can stop paying duties effective today! Importers will soon regain GSP privileges, retroactivity confirmed, instructions not entirely clear 3

4 Refund Administration The circumstances under which the entry was filed will play a key role in how refunds are administered Claim made at time of entry? Liquidated or unliquidated? ABI or non-abi? If ABI, ACE or ACS? Flagged for Reconciliation? If the answer is no, a request for refund is necessary If the claim was not made at the time of entry, the liquidation status may affect the vehicle used to request a refund Only ABI entries will be refunded automatically If the claim was not made at the time of entry, those entries filed via ACE will require a PSC; those entries filed via ACS will require a letter or PEA Entries flagged for Recon will not be automatically refunded Put simply, Customs wants to minimize the administrative burden as much as you do and will automate refunds where possible Use the enclosed decision tree to guide your actions 4

5 Refund Administration Was GSP claimed at time of entry (A, A+, A*)? Claimed at time of entry NOT claimed at time of entry ABI (i.e. ACE, ACS) Non-ABI Liquidated Unliquidated Refund to be issued automatically It is strongly recommended that importers monitor the receipt of refunds very carefully Request a refund in writing to the respective Port Director by December 28, 2015 The request may cover a single entry or multiple entries The request must include (1) statement requesting a refund (2) an enumeration of the entry numbers and line items for which refunds are requested and (3) the amount requested to be refunded for each line item and total amount owed Request a refund in writing to CBP by December 28, 2015 that provides sufficient information for CBP to locate or reconstruct the entry If yes, file PSC ACE Within 270 days of date of entry? If no, submit a letter to the respective Port Director seeking a refund by December 28, 2015 Request a refund in writing to CBP by December 28, 2015 that provides sufficient information for CBP to locate the entry; a PEA is recommended ACS and non-abi The AM-100 liquidation report in ACE is a terrific tool for this purpose 5

6 Refund Management Reliquidation occurs because the entry had already liquidated by operation of law (19 CFR ) ACE Portal: AM-100 Courtesy Notice of Liquidation Importer Number Importer Name Goods Entered Port Code Goods Entered Port Name Filer Code Entry Number Date of Entry Entry Type Code Liquidation Date Initial Amount Liquidation Amount Liquidation Status Description Batch Number Acme Apparel Inc NEW YORK/NEWARK AREA OHL OHL /22/ /25/2015 $8, $7, Reliquidation Refund LQ150911F7W Acme Apparel Inc NEW YORK/NEWARK AREA OHL OHL /3/ /25/2015 $9, $8, Refund LQ XRP Acme Apparel Inc MIAMI, FL OHL OHL /15/ /25/2015 $ $ Reliquidation Refund LQ150916G13H Acme Apparel Inc SAN FRANCISCO INTL AIRPO OHL OHL /16/ /25/2015 $ $ Refund LQ ZVI Acme Apparel Inc BLAINE, WA OHL OHL /8/ /25/2015 $7, $ Refund LQ150911I4H Refund is evidence that the refund has been administratively processed; work with your respective A/R departments to confirm receipt 6

7 Recommendations Ask your broker for a list of all entries for which GSP was claimed If you re skeptical that the indicator was entered correctly, ask for a listing of entries by origin, manufacturer, or product number(s) If refunds are not received by November 1, 2015, request refund in writing at the respective port(s) of entry If refunds are not received by December 1, 2015, file a protest with respective port(s) of entry 7

8 Questions?