CSMS Message: 93-000586

TO : ALL ABI BROKERS.

FROM : LISA CROSBY

SUBJECT : GSP--ALTERNATE CLAIMS

DATE : 06/21/93

3172071
JUNE 21, 1993

CATEGORY: GSP CO:TO:T:T LAC

TO : REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT
AND PORT DIRECTORS

FROM : DIRECTOR
OFFICE OF TRADE OPERATIONS

SUBJECT: SWITCH FROM CLAIMS UNDER THE GSP TO CLAIMS UNDER OTHER
PREFERENTIAL TRADE PROGRAMS

PASS TO: ENTRY OFFICERS, IMPORT SPECIALISTS, INSPECTORS AND OTHER
INTERESTED PARTIES SUCH AS BROKERS AND IMPORTERS

BACKGROUND:

AS YOU WERE ADVISED IN EMAIL MESSAGES 3155071 AND 3168071,
DATED JUNE 9 AND JUNE 17, 1993, RESPECTIVELY, THE GENERALIZED
SYSTEM OF PREFERENCES (GSP) WILL EXPIRE AT MIDNIGHT ON JULY 4, IF
NOT EXTENDED BY LAW. IF THE GSP DOES EXPIRE, IMPORTERS CURRENTLY
USING THE GSP WILL LIKELY SWITCH TO ANOTHER PREFERENTIAL TRADE
PROGRAM FOR WHICH THEIR GOODS QUALIFY (E.G., ANDEAN TRADE
PREFERENCE ACT (ATPA), CARIBBEAN BASIN INITIATIVE (CBI), U.S.-
ISRAEL FREE TRADE AREA AGREEMENT). BECAUSE THE GSP RULE OF ORIGIN
IS STRICTER THAN THE RULE ORIGIN UNDER ANY OF THESE OTHER
AGREEMENTS, MERCHANDISE WHICH WOULD HAVE QUALIFIED FOR DUTY-FREE
TREATMENT UNDER THE GSP NECESSARILY QUALIFIES UNDER THE ATPA, CBI
OR U.S.-ISRAEL FTA. HOWEVER, THE CERTIFICATE OF ORIGIN, FORM A,
MAY HAVE "GENERALIZED SYSTEM OF PREFERENCES" WRITTEN IN THE UPPER
RIGHT-HAND CORNER.

MOREOVER, AS IMPORTERS SWITCH TO OTHER PROGRAMS, IT BECOMES
INCREASINGLY IMPORTANT THAT ALL CUSTOMS OFFICERS KNOW WHICH
COUNTRIES ARE BENEFICIARIES OF EACH PROGRAM. MANY FIELD LOCATIONS
HAVE ERRONEOUSLY INFORMED IMPORTERS THAT VENEZUELA AND PERU ARE
BENEFICIARIES OF THE ATPA; BINDING RULINGS TO THIS EFFECT HAVE ALSO
BEEN ISSUED. IT SEEMS THAT MANY PEOPLE DRAW THIS CONCLUSION BY
LOOKING AT THE LIST OF ASSOCIATIONS OF COUNTRIES UNDER GENERAL NOTE
3(C)(II)(A), WHICH INCLUDES THE ANDEAN GROUP, CONSISTING OF
BOLIVIA, COLOMBIA, ECUADOR, PERU AND VENEZUELA. GENERAL NOTE
3(C)(II)(A) RELATES TO THE GSP AND MEMBERS OF THE ANDEAN GROUP ARE
TREATED AS ONE COUNTRY FOR PURPOSES OF THE GSP ONLY. GENERAL NOTE
3(C)(IX)(A) LISTS THOSE COUNTRIES THAT ARE BENEFICIARIES OF THE
ATPA.

ACTION:

1. NO CLAIM UNDER THE ATPA, CBI OR U.S.-ISRAEL FTA SHALL BE
DENIED MERELY BECAUSE THE CERTIFICATE OF ORIGIN, FORM A, WAS
ORIGINALLY PREPARED FOR USE IN CONJUNCTION WITH THE GSP.
CLAIMS MAY ONLY BE DENIED IF THE MERCHANDISE IS FOUND NOT TO
MEET THE REQUIREMENTS OF THE GIVEN PROGRAM.

2. ONLY ECUADOR, BOLIVIA AND COLOMBIA ARE BENEFICIARIES OF THE
ATPA.

QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO LISA
CROSBY, TRADE AGREEMENTS BRANCH, AT (202)927-0163.

PHILIP METZGER

Referenced By

CSMS #93-000614