CBP Says GSP Flagging Should Continue Despite Coming Expiration

CBP issued filing instructions in a CSMS message for goods eligible for the Generalized System of Preferences treatment after the GSP benefits program expires at the end of the year. As in previous GSP lapses, filers would continue to use the GSP special program indicator to flag their entries, but would have to pay duties at the normal, non-preferential rate for any imports with a time of entry during the lapse. GSP is currently set to expire Dec. 31 if the program isn’t extended by Congress. GSP renewal didn't make into year-end spending legislation, so expiration is likely (see 2012210040).

CBP “encourages importers to continue to flag GSP eligible importations with [Special Program Indicator] 'A' during the lapse, starting January 1, 2021,” it said.

Previous GSP renewals that followed a lapse in the program included retroactive application of GSP benefits. “CBP has programming in place that, in the event that GSP is renewed with a retroactive refund clause, will allow CBP to automate the duty refund process,” it said. CBP completed processing of refunds about a year after a GSP lapse ended in 2015 (see 1608080023) and more than 10 months after the last lapse in 2018 (see 1810310036).

CBP would continue to allow post-importation GSP claims made via post-summary corrections and protests after the lapse for importations made while GSP was still in effect. “CBP will not allow post-importation GSP claims made via PSC or protest subsequent to the expiration of GSP, for importations made subsequent to expiration,” it said.