On July 12, 2013, U.S. Customs and Border Protection (CBP) issued CSMS #13-000348, in which they provide guidance regarding the approaching expiration of the Generalized System of Preferences (GSP), the Andean Trade Preference and Act (ATPA), and the Andean Trade Promotion and Drug Eradication Act (ATPDEA), which is set for July 31, 2013.
In the CSMS, CBP states the following regarding flagging of GSP, ATPA and ATPDEA once the programs expire:
- For GSP, importers should pay the normal trade relations (column 1) duty rate but continue to flag GSP-eligible importations with the applicable Special Program Indicator (SPI) "A" or "A+." If the program is renewed with a retroactive clause, CBP will be able to automatically issue duty refunds for those entries with the SPI
- The procedure above will not apply to ATPA and ATPDEA-eligible goods, as CBP does not have a corresponding procedure for these programs
- Goods eligible for benefits under the African Growth and Opportunity Act (AGOA) will continue to receive benefits if the tariff in the Harmonized Tariff Schedule (HTS) displays SPIs "A," "A+," or "D"
CBP also notes that the expiration of these preference programs will not impact the Merchandise Processing Fee (MPF).
The CSMS is available online here.