CBP - GSP-related guidance; use of liquidation extension and protest 

June 9: U.S. Customs and Border Protection (CBP) today released an announcement to the trade community concerning claims for Generalized System of Preferences (GSP) and related guidance on the use of liquidation extension and protest. CSMS #14-000326 (June 9, 2014)

GSP expired July 31, 2013. In 2013, CBP previously advised importers to continue to use SPI “A” to claim GSP, but to pay duty subsequent to July 31, 2013, so that in the event of a retroactive renewal, CBP could process refunds automatically.

Today’s CBP release explains that, assuming that the goods were properly classified and appraised, the entry summaries must be liquidated as scheduled.

The release states that “CBP does not have the legal authority to further extend liquidation pending possible renewal of GSP.” The CBP release states that, therefore, requests for an extension of liquidation solely for the purpose of awaiting GSP re-enactment will be denied. Within 180 days of liquidation, the importer, the broker, or attorney may protest any CBP decision related to imported merchandise in accordance with section 514 of the Tariff Act of 1930. CBP stated that it will review all protest submissions.

CBP noted that if GSP were to be re-enacted, the legislation would specify an effective date for the renewal and may (or may not) allow for retroactive claims. On previous occasions when GSP was re-enacted retroactively, the legislation authorized CBP to disregard liquidation status in determining GSP eligibility.

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

Or your local KPMG Trade & Customs professional.

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