Importers Should Update Payment Info, as CBP Set to Complete Automatic GSP Refund Processing by Mid-July, Agency Says
It’s of the “utmost importance” that importers ensure their mailing addresses in ACE and Automated Clearinghouse (ACH) numbers are up to date as CBP begins processing refunds for entries during the recent lapse in the Generalized System of Preferences program, a CBP official said on CBP’s biweekly ACE call held April 26. CBP prefers that the information be updated electronically, as processing of paper requests may not happen until after refunds checks have been cut and mailed, which should happen for most filers by mid-July, the official said.
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That midsummer time frame is when CBP will likely wrap up the first phase of its GSP refund processing for GSP-eligible entries filed in ABI with Special Program Indicator “A.” Some 95 percent to 97 percent of filers fall within this first, automatic processing category, the official said on the call. CBP hopes to send refunds before mid-July “barring unforeseen issues,” but “nothing has gone awry” if no refund is received by then, he said.
Phases two and three of CBP’s refund processing will include entry summaries that could not be batch processed because they include goods subject to antidumping and countervailing duties or are Section 232 entries, as well as manual GSP refund claims, respectively. For phase two claims with AD/CVD and GSP on the same line, no GSP refund will be issued until the AD/CVD liquidation order has been issued, CBP said on its website. If Section 232 duties and GSP are on the same line, CBP will not issue a refund. For entries with GSP and Section 232 or AD/CVD on different lines, respectively, claims must be processed manually by the field.
By law, aluminum and steel products covered by Section 232 tariffs are not eligible for GSP, according to CBP. The exception is aluminum and steel goods from Argentina and Brazil, which currently enjoy exemptions from Section 232 tariffs and are eligible for GSP, at least until May 1 (see 1803230014).
Importer-requested claims on entries that were not marked SPI “A” will be processed manually after CBP’s phase one automatic processing has been completed. Congress set a deadline of Sept. 19, 2018, for post-importation claims on entries during the lapse, so even if a protest is filed within the 180-day period for protests but after that Sept. 19 deadline, such protests will be denied, the CBP official said.
Though the process is similar to that undertaken in 2015 following the previous lapse of GSP benefits, CBP expects an easier time of it this go-round, the CBP official said on the ACE call. The lapse period this time was only four months, as opposed to almost two years, so the agency will have to issue fewer refunds. But there is one added complication in that CBP has since moved refund processing from the legacy Automated Commercial System to ACE. CBP is “not expecting teething problems” but there is a possibility, the official said.
Goods covered by Section 201 safeguard duties on large residential washers and solar cells and panels are also not eligible for GSP benefits, CBP said in an April 26 CSMS message. “On imports subject to Section 201 measures, importers should pay the normal trade relations (column 1) duty rates and not submit the GSP Special Program Indicator (SPI) “A,” CBP said. Currently, the only imports that are affected by the restriction are solar cells and panels from the Philippines and solar cells, solar panels, washing machines and washing machine parts from Thailand. “Accordingly, these articles may not receive GSP duty preferences,” CBP said.