[Federal Register Volume 60, Number 128 (Wednesday, July 5, 1995)]
[Notices]
[Pages 35103-35104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16331]
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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 the products of many developing countries to
enter the United States duty free. The GSP is currently scheduled to
expire at midnight on July 31, 1995, 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entered or withdrawn from a warehouse on or after August 1, 1995, if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
August 1, 1995, if Congress does not extend the GSP program before that
date.
FOR FURTHER INFORMATION CONTACT: For specific questions relating to the
Automated Commercial Systems: Irv Fisher, Office of Automated
Commercial System, 202-927-1220. For general operations questions:
Formal entries
Lisa Crosby, 202-927-0163
Informal entries
Debi Rutter, 202-927-1847
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 section 601 of the Uruguay Round Agreements Act, 19 U.S.C.
2465 note, Pub.L. 103-465, 108 Stat. 4990 (1994), duty-free treatment
under the GSP is presently scheduled to expire on July 31, 1995.
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, July 31, 1995, 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 August 1, 1995, 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 August 1, 1995. Duties at the most-favored-nation rate must be
deposited, or a claim may be made under another preferential program
for which the merchandise qualifies (for example, the Andean Trade
Preference Act, the Caribbean Basin Initiative, or the U.S.-Israel Free
Trade Area Agreement).
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 entries 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.
[[Page 35104]]
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 July 31, 1995, 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 by section 601 of the Uruguay
Round Agreements Act, Pub.L. 103-465, 108 Stat. 4990 (1994). Customs
Headquarters developed a computer program that identified entries made
using the SPI ``A'' while the program was lapsed and was able to
process most refunds without requiring further action by the importer.
Refunds were delayed somewhat while the program was being written and
de-bugged. Customs intends to use the same program this year if the GSP
is renewed with retroactive effect and believes it is the most
efficient way to process large numbers of refunds quickly.
Filers who do not wish to reprogram will be required to request
refunds in writing if the GSP is renewed retroactively, identifying the
affected entry numbers.
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 district 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 ``A''
transmitted via ABI after July 31, 1995 into a ``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 must 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, travellers and
importers will be advised verbally or with a written notice that they
may be eligible for a refund of GSP duties.
Travellers/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 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: June 28, 1995.
Philip Metzger,
Acting Assistant Commissioner, Field Operations.
[FR Doc. 95-16331 Filed 7-3-95; 8:45 am]
BILLING CODE 4820-02-P
