CSMS Message: 01-001017

SEPTEMBER 24, 2001

ENT-8:FO:TP:IA:TA AL

TO: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS

PASS TO: PORT DIRECTORS; ASSITANT PORT DIRECTORS, TRADE; IMPORT
SPECIALISTS; ENTRY SPECIALISTS; INSPECTORS; IMPORTERS;
BROKERS AND OTHER INTERESTED PARTIES

SUBJECT: SCHEDULED EXPIRATION OF THE GENERALIZED SYSTEM OF
PREFERENCES ON SEPTEMBER 30, 2001

BACKGROUND:

THE GSP IS CURRENTLY SCHEDULED TO EXPIRE AT MIDNIGHT ON SEPTEMBER 30,
2001, UNLESS CONGRESS EXTENDS ITS PROVISIONS. CLAIMS FOR PREFERENTIAL
TREATMENT UNDER THE GSP MAY BE MADE AS SPECIFIED IN THE INSTRUCTIONS
BELOW FOR MERCHANDISE ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR
CONSUMPTION ON OR AFTER OCTOBER 1, 2001. HOWEVER, CUSTOMS WILL
NOT PROCESS THE CLAIMS AS DUTY-FREE UNDER THE GSP ON OR AFTER
OCTOBER 1, 2001, IF THE PROGRAM IS NOT EXTENDED BEFORE THAT DATE.

NOTE: IF THE GSP IS EXTENDED BY CONGRESS PRIOR TO SEPTEMBER 30, 2001,
A NOTICE WILL BE PROVIDED VIA THE CUSTOMS ELECTRONIC BULLETIN BOARD
(CEBB), BULLETIN BOARD OTO5, AND VIA ADMINISTRATIVE MESSAGE TO
ALL ABI FILERS.

CUSTOMS HEADQUARTERS WILL USE THE SAME MECHANISM TO FACILITATE REFUNDS
UTILIZED IN THE PAST WHEN THE GSP EXPIRED. UNDER THIS PLAN, FILERS WILL
BE ALLOWED TO CONTINUE USING THE SPECIAL PROGRAM INDICATOR (SPI) "A" FOR
ENTRY SUMMARIES FILED ON OR AFTER OCTOBER 1, 2001. REFUNDS WILL ONLY
BE ISSUED, IF THE GSP IS RENEWED WITH RETROACTIVE EFFECT, FOR THOSE
ELIGIBLE PRODUCTS ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION
DURING THE PERIOD GSP IS LAPSED THAT WERE ELIGIBLE FOR DUTY-FREE
TREATMENT UNDER THE PROGRAM'S PROVISIONS PRIOR TO ITS EXPIRATION.

THE GSP WILL NOT EXPIRE FOR THE AFRICAN GROWTH AND OPPORTUNITY ACT
(AGOA) BENEFICIARY COUNTRIES. PURSUANT TO THE TRADE AND DEVELOPMENT ACT
OF 2000, GSP BENEFITS FOR THE AGOA BENEFICIARY COUNTRIES WILL EXPIRE ON
SEPTEMBER 30, 2008.

ACTION:

1. IF THE GSP IS NOT EXTENDED BY LEGISLATIVE ACTION PRIOR TO SEPTEMBER
30, 2001, AS OF OCTOBER 1, 2001, CUSTOMS WILL CONTINUE TO ACCEPT CLAIMS
MADE UNDER THE GSP FOR MERCHANDISE ENTERED, OR WITHDRAWN FROM WAREHOUSE,
FOR CONSUMPTION ON OR AFTER OCTOBER 1, 2001. HOWEVER, CUSTOMS WILL
NOT PROCESS THESE CLAIMS AS DUTY-FREE UNDER THE GSP ON OR AFTER
OCTOBER 1, 2001. DUTIES AT THE NORMAL TRADE RELATIONS (NTR) RATE MUST
BE DEPOSITED, OR A CLAIM MAY BE MADE UNDER ANOTHER PREFERENTIAL TRADE
PROGRAM FOR WHICH THE MERCHANDISE QUALIFIES (I.E., THE ANDEAN TRADE
PREFERENCE ACT, THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT).

2. IMPORTERS ARE TO BE REMINDED THAT THE TIME OF ENTRY IS DEFINED
DIFFERENTLY FOR VARIOUS TYPES OF ENTRIES (SEE 19 C.F.R.141.68-69) AND
ARE CAUTIONED TO BE PARTICULARLY MINDFUL OF THE KIND OF ENTRY THAT WILL
ALLOW THEM TO AVAIL THEMSELVES OF THE MOST ADVANTAGEOUS DUTY RATE.

3. WHILE ESTIMATED DUTIES MUST BE DEPOSITED, ALL FILERS WHO FILE ENTRY
SUMMARIES THROUGH THE AUTOMATED BROKER INTERFACE (ABI) MAY CONTINUE TO
FILE USING THE SPI "A" AS A PREFIX TO THE TARIFF NUMBER FOR ALL ENTRIES
THAT HAVE QUALIFIED FOR THE GSP IF THE GSP WERE STILL IN EFFECT.
THOSE ABI FILERS WHO WISH TO CONTINUE USING THE SPI "A" WILL HAVE TO
REPROGRAM THEIR SOFTWARE ALLOW THE TRANSMISSION OF AN ENTRY FOR WHICH
THEY ARE CLAIMING PREFERENTIAL TARIFF TREATMENT UNDER THE GSP ALONG WITH
THE PAYMENT OF ESTIMATED DUTIES. CUSTOMS AUTOMATED COMMERCIAL SYSTEM
(ACS) WILL BE REPROGRAMMED TO ACCEPT THE SPI "A" WITH THE PAYMENT OF
DUTY. ALTHOUGH THE REPROGRAMMING BY IMPORTERS IS STRICTLY VOLUNTARY,
IF THE FILER ELECTS TO DO SO THERE ARE SOME BENEFITS. ONE BENEFIT
OF REPROGRAMMING IS THAT ABI FILERS WILL NOT HAVE TO REQUEST IN
WRITING A REFUND OF DUTIES DEPOSITED SHOULD THE GSP BE RENEWED WITH
RETROACTIVE EFFECT. CUSTOMS WILL AUTOMATICALLY REFUND DUTIES
DEPOSITED TO THOSE ABI FILERS. ALSO, ACS WILL PERFORM ITS USUAL
EDITS ON THE INFORMATION TRANSMITTED BY THE ABI FILER, ENSURING THAT
GSP CLAIMS ARE FOR ACCEPTABLE COUNTRY/TARIFF COMBINATIONS, THEREBY
ELIMINATING THE NEED FOR STATISTICAL CORRECTIONS.

4. ABI FILERS WHO DO NOT WISH TO REPROGRAM, THOSE WHO DO NOT USE THE SPI
"A" AND ALL NON-ABI FILERS WOULD BE REQUIRED TO REQUEST, IN WRITING, A
REFUND OF DUTIES DEPOSITED TO THE PORT DIRECTOR AT THE PORT OF ENTRY,
IF THE GSP IS RENEWED RETROACTIVELY.

5. IMPORTERS ARE TO BE ADVISED THAT THEY MAY NOT USE THE SPI "A" IF
THEY INTEND TO LATER CLAIM DRAWBACK BECAUSE CLAIMING BOTH THE REFUND
OF DUTIES DEPOSITED 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 THE IMPORTER OR ITS AGENT HAS NOT
YET CLAIMED DRAWBACK, THEN THE IMPORTER MAY REQUEST A REFUND OF DUTIES
DEPOSITED BY WRITING TO THE PORT DIRECTOR AT THE PORT OF ENTRY.

6. REFUNDS ON INFORMAL ENTRIES FILED VIA ABI WITH THE SPI "A" WILL BE
PROCESSED IN ACCORDANCE WITH THE PROCEDURES OUTLINED ABOVE.

7. WHEN MERCHANDISE IS PRESENTED FOR CLEARANCE ON A BAGGAGE DECLARATION
OR NON-ABI INFORMAL, TRAVELERS AND IMPORTERS WILL BE ADVISED VERBALLY
THAT THEY MAY BE ELIGIBLE FOR A REFUND OF GSP DUTIES. TRAVELERS/
IMPORTERS DESIRING A REFUND SHOULD REQUEST THE CUSTOMS OFFICER TO
ANNOTATE THE RECEIPT OF PAYMENT TO INDICATE THAT THE MERCHANDISE MAY BE
ELIGIBLE FOR GSP DUTY-FREE TREATMENT. SHOULD THE GSP BE RENEWED WITH
RETROACTIVE EFFECT, THE TRAVELER/IMPORTER MUST REQUEST THE GSP DUTY-
REFUND IN WRITING TO THE PORT DIRECTOR AT THE APPROPRIATE CUSTOMS
PORT OF ENTRY. THE WRITTEN REQUEST FOR REFUND OF DUTIES DEPOSITED MUST
INCLUDE A COPY OF THE RECEIPT OF PAYMENT.

8. FOR MAIL ENTRIES, SHOULD GSP BE RENEWED WITH RETROACTIVE EFFECT, THE
ADDRESSEE MAY SUBMIT A CLAIM REQUESTING A REFUND OF GSP DUTIES ALONG
WITH A COPY OF THE CF 3419A TO THE APPROPRIATE INTERNATIONAL MAIL BRANCH
(ADDRESS LISTED ON THE 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 THE GSP ELIGIBLE MERCHANDISE AND ENSURING
THAT DUTIES AND FEES HAVE BEEN PAID.

CONTACTS:

INQUIRIES RELATING TO LEGISLATIVE EFFORTS TO RENEW THE GSP SHOULD
NOT BE DIRECTED TO CUSTOMS. PUBLIC INQUIRIES REGARDING LEGISLATIVE
ACTION TO THE GSP MAY BE DIRECTED TO:

HOUSE WAYS AND MEANS COMMITTEE (202) 225-6649
SENATE FINANCE COMMITTEE (202) 224-4515

FOR SPECIFIC QUESTIONS RELATING TO ACS, PLEASE CONTACT JAMES MACDONALD,
OFFICE OF INFORMATION AND TECHNOLOGY, AT (202) 927-1027.

QUESTIONS REGARDING TYPES OF ENTRIES AND THEIR CORRESPONDING TIMES OF
ENTRY SHOULD BE REFERRED TO THE ENTRY BRANCH AT (202) 927-0380.

FOR GENERAL OPERATIONAL INQUIRIES, CONTACT:

FORMAL ENTRIES ARLENE LUGO, (202) 927-4183
INFORMAL ENTRIES DAN NORMAN, (202) 927-0542
MAIL ENTRIES ROBERT WOODS, (202) 927-1236
PASSENGER CLAIMS WESLEY WINDLE, (202) 927-0167

\SIGNED\
ELIZABETH G. DURANT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS
EXECUTIVE DIRECTOR, FIELD PROGRAMS

Referenced By

CSMS #01-001033