[Federal Register Volume 62, Number 107 (Wednesday, June 4, 1997)]
[Notices]
[Pages 30672-30673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14539]
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DEPARTMENT OF THE TREASURY
Customs Service
Procedures if the Generalized System of Preferences Program
Expires
AGENCY: Customs Service, Treasury.
ACTION: General notice.
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SUMMARY: The Generalized System of Preferences (GSP) is a preferential
trade program that allows eligible products of many developing
countries to enter the United States duty-free. The GSP is currently
scheduled to expire at midnight on May 31, 1997, unless its provisions
are extended by Congress. This document provides notice to importers
that claims for duty-free treatment under the GSP may not be made for
merchandise entered or withdrawn from a warehouse on or after June 1,
1997, if the program is not extended before that date. The document
also sets forth mechanisms to facilitate refunds, if the GSP is renewed
retroactively.
DATES: The plan set forth in this document will become effective as of
June 1, 1997, if Congress does not extend the GSP program before that
date.
FOR FURTHER INFORMATION CONTACT: For specific questions relating to the
Automated Commercial System:
Arthur Versich, Office of Automated Commercial System, 202-927-1042.
For general operational questions:
Formal entries
John Pierce, 202-927-1249
Informal entries
Thomas Wygant, 202-927-1167
Mail entries
Dan Norman, 202-927-0542
Passenger claims
Robert Jacksta, 202-927-1311
SUPPLEMENTARY INFORMATION:
Background
Section 501 of the Trade Act of 1974 (the Act), as amended (19
U.S.C. 2461) authorizes the President to establish a Generalized System
of Preferences (GSP) to provide duty-free treatment for eligible
articles imported from designated beneficiary countries. Beneficiary
developing countries and articles eligible for duty-free treatment
under the GSP are designated by the President by Presidential
Proclamation in accordance with sections 502(a) and 503(a) of the Act
(19 U.S.C. 2462(a) and 2463(a)). Pursuant to 19 U.S.C. 2465(a), as
amended by the GSP Renewal Act of 1996 (the Act, Pub.L. 104-188, 110
Stat. 1775, at Stat. 1917), duty-free treatment under the GSP is
presently scheduled to expire on May 31, 1997.
Congress is currently considering whether to extend the GSP
program. If legislation is enacted but does not become law before the
GSP expires, language may be included that would renew the GSP
retroactively to the date of its presently scheduled expiration and
Customs will need to reliquidate numerous entries to make refunds of
duties collected. However, if Congress does not pass legislation
renewing the GSP before midnight, May 31, 1997, no claims for duty-free
treatment under the program may be allowed on entries made after that
time.
Recognizing the impact that retroactive renewal and consequent
numerous reliquidations would have on both importers and Customs,
Customs has developed a mechanism to facilitate refunds, should GSP be
renewed retroactively. Set forth below is Customs plan that will be
implemented on June 1, 1997, if the GSP has not been extended by that
date.
Formal Entries
Claims--Duties Must Be Deposited
No claims for duty-free treatment under the GSP may be made for
merchandise entered, or withdrawn from warehouse for consumption on or
after June 1, 1997. Duties at the most-favored-nation rate must be
deposited, or a claim may be made under another
[[Page 30673]]
preferential program for which the merchandise may qualify (for
example, the Andean Trade Preference Act or the Caribbean Basin
Economic Recovery Act).
While estimated duties must be deposited, all filers who file entry
summaries through the Automated Broker Interface (ABI) may continue to
file using the Special Program Indicator (SPI) for the GSP (the letter
``A'') as a prefix to the tariff number for all merchandise that would
have qualified for the GSP if the GSP were still in effect. Customs
Automated Commercial System (ACS) will be reprogrammed to accept the
SPI ``A'' with the payment of duty.
Filers using the ABI may reprogram their software so that the SPI
``A'' can still be used as a prefix to the tariff number, but with the
payment of duty. While reprogramming is strictly voluntary, continued
use of the SPI ``A'' has some benefits. One benefit of continued use of
the SPI ``A'' is that the filer will not have to write a letter to
Customs requesting a refund if the GSP is renewed with retroactive
effect. Use of the SPI ``A'' will enable Customs to identify affected
line items and refund duties without a written request from the
importer. In other words, after May 31, 1997, the SPI ``A'' will
constitute an importer's request for a refund of duties paid for GSP
line items, should GSP renewal be retroactive. Other benefits are that
ACS will perform its usual edits on the information transmitted by the
filer, thereby ensuring that GSP claims are for acceptable country/
tariff combinations and eliminating the need for numerous statistical
corrections.
This plan was used when the GSP expired on September 30, 1994, and
was later renewed with retroactive effect and again when the GSP
expired on July 31, 1995, and was later renewed with retroactive
effect.
If the GSP expires, the Customs Headquarters-developed computer
program will refund all duties deposited for imports that otherwise
would have been eligible for GSP duty-free treatment if the GSP is
later renewed with retroactive effect. The computer program will
identify those entries filed through the Automated Broker Interface
(ABI) using the SPI ``A'' and will be able to process most refunds
without requiring further action by ABI filers.
Filers who do not wish to reprogram will be required to request
refunds identifying the affected entry numbers in writing if the GSP is
renewed retroactively.
ABI filers continuing to use the SPI ``A'' may use it as they do
now (for example, for warehouse entries and for formal consumption
entries).
Importers may not use the SPI ``A'' if they intend to later claim
drawback. Use of the SPI ``A'' is the importer's indication that he
wishes to receive a refund if the GSP is renewed retroactively. To
claim both this refund and drawback would be to request a refund in
excess of duties actually deposited. Importers who are unsure as to
whether they will claim drawback are advised not to use the SPI ``A''.
If the GSP is renewed retroactively, and they have not yet claimed
drawback, they may request a refund by writing to the port director at
the port of entry. If the GSP is not renewed retroactively, they will
still have the option of filing a drawback entry.
Continued use of the SPI ``A'' is not available to non-ABI filers.
Statistics
For statistical purposes, ACS will internally convert any SPI ``A''
transmitted via ABI after May 31, 1997, into a SPI ``Q''. If the GSP is
renewed retroactively to that date, Census will convert all ``Q''
statistics into ``A'' statistics, thereby ensuring that next year's
competitive need limitations under the GSP are accurate. This will also
vastly reduce the number of statistical corrections that would have to
be done by import specialists.
Refunds
If the GSP is renewed with retroactive effect, Customs will
reliquidate all affected ABI entry summaries with a refund for the GSP
line items. Field locations shall not issue GSP refunds except as
instructed to do so by Customs Headquarters.
If a filer files an ABI entry summary with the SPI ``A'', no
further action will need to be taken by the filer to request a refund;
filing with the SPI ``A'' constitutes a valid claim for a refund.
Refunds for summaries filed without the SPI ``A'' must be requested in
writing. Instructions on how to request a refund in writing will be
issued if the GSP is renewed with retroactive effect.
Informal Entries
Refunds on informal entries filed via ABI on a Customs Form 7501
with the SPI ``A'' will be processed in accordance with the procedures
outlined above.
Baggage Declarations and Non-ABI Informals
When merchandise is presented for clearance, travelers and
importers will be advised verbally or by a written notice that they may
be eligible for a refund of GSP duties.
Travelers/importers may write a statement directly on their Customs
declarations (CF 6059B) or informal entries (CF 363 or CF 7501)
indicating their desire for a refund. If GSP duty-free status is
reenacted with a retroactive provision, no further action to obtain a
refund will be required on the part of the importer who has written
such a statement. Failure to request a refund in this manner does not
preclude them from making a timely written request in the future.
Mail Entries
A written notice will be sent to the addressees with the CF 3419A
(Mail Entry) informing them that they may be eligible for a refund of
GSP duties.
The addressees may submit a claim requesting a refund of GSP duties
and return it, along with a copy of the CF 3419A to the appropriate
International Mail Branch (address listed on bottom right hand corner
of CF 3419A). It is essential that a copy of the CF 3419A be included
as this will be the only method of identifying GSP products and
ensuring that duties and fees have been paid.
Dated: May 30, 1997.
A.W. Tennant,
Field Operations Acting Assistant Commissioner.
[FR Doc. 97-14539 Filed 6-3-97; 8:45 am]
BILLING CODE 4820-02-P
