CSMS Message: 95-000614

TO : ALL ABI BROKERS.

FROM : LISA CROSBY

SUBJECT : GSP-EXPIRATION

DATE : 06/19/95

5165071
JUNE 14, 1995

CATEGORY: GSP CO:TP LAC

TO : PORT DIRECTORS

FROM : DIRECTOR
TRADE COMPLIANCE

RE : EXPIRATION OF THE GENERALIZED SYSTEM OF PREFERENCES ON
JULY 31, 1995

PASS TO: IMPORT SPECIALISTS AND OTHER INTERESTED PARTIES SUCH AS
BROKERS AND IMPORTERS

BACKGROUND:

THE GSP IS CURRENTLY SCHEDULED TO EXPIRE AT MIDNIGHT ON JULY 31,
1995, UNLESS ITS PROVISIONS ARE EXTENDED BY CONGRESS. PLEASE BE
NOTIFIED THAT CLAIMS FOR DUTY-FREE TREATMENT UNDER THE GSP MAY
NOT BE MADE FOR MERCHANDISE ENTERED OR WITHDRAWN FROM WAREHOUSE
ON OR AFTER AUGUST 1, 1995, IF THE PROGRAM IS NOT EXTENDED BEFORE
THAT DATE.

CUSTOMS HEADQUARTERS INTENDS TO USE THE SAME MECHANISM TO
FACILITATE REFUNDS AS IT USED WHEN THE GSP EXPIRED ON SEPTEMBER
30, 1994, AND WAS LATER RENEWED WITH RETROACTIVE EFFECT BY
SECTION 601 OF THE URUGUAY ROUND AGREEMENTS ACT, PUB.L. 103-465,
108 STAT. 4809 (1994). UNDER THIS PLAN, FILERS WERE ALLOWED TO
CONTINUING USING THE SPECIAL PROGRAM INDICATOR (SPI) "A" FOR
ENTRY SUMMARIES FILED ON OR AFTER AUGUST 1, 1995.

CUSTOMS HEADQUARTERS DEVELOPED A COMPUTER PROGRAM THAT IDENTIFIED
ENTRIES MADE USING THE SPI "A" WHILE THE PROGRAM WAS LAPSED AND
WAS ABLE TO PROCESS MOST REFUNDS WITHOUT REQUIRING FURTHER ACTION
BY THE IMPORTER. REFUNDS WERE DELAYED SOMEWHAT WHILE THE PROGRAM
WAS BEING WRITTEN AND DE-BUGGED. CUSTOMS INTENDS TO USE THE SAME
PROGRAM THIS YEAR IF THE GSP IS RENEWED WITH RETROACTIVE EFFECT
AND BELIEVES IT IS THE MOST EFFICIENT WAY TO PROCESS LARGE
NUMBERS OF REFUNDS QUICKLY.

ACTION:

1. UNLESS THE GSP IS EXTENDED BY LEGISLATIVE ACTION, NO CLAIMS
FOR DUTY-FREE TREATMENT UNDER THE GSP MAY BE MADE FOR
MERCHANDISE ENTERED, OR WITHDRAWN FROM WAREHOUSE FOR
CONSUMPTION ON OR AFTER AUGUST 1, 1995. DUTIES AT THE MOST-
FAVORED-NATION RATE MUST BE DEPOSITED, OR A CLAIM MAY BE
MADE UNDER ANOTHER PREFERENTIAL PROGRAM FOR WHICH THE
MERCHANDISE QUALIFIES (FOR EXAMPLE, THE ANDEAN TRADE
PREFERENCE ACT, THE CARIBBEAN BASIN INITIATIVE, OR THE U.S.-
ISRAEL FREE TRADE AREA AGREEMENT).

2. IMPORTERS ARE REMINDED THAT THE TIME OF ENTRY IS DEFINED
DIFFERENTLY FOR VARIOUS TYPES OF ENTRY (SEE 19 C.F.R.
141.69) 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. FOR EXAMPLE, THE ENTRY
DATE FOR MERCHANDISE RELEASED UNDER IMMEDIATE DELIVERY
PROCEDURES IS THE DATE THE ENTRY SUMMARY IS FILED, NOT THE
DATE THE MERCHANDISE IS IMPORTED.

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 WOULD HAVE QUALIFIED
FOR THE GSP IF THE GSP WERE STILL IN EFFECT. CUSTOMS
AUTOMATED COMMERCIAL SYSTEM (ACS) WILL BE REPROGRAMMED TO
ACCEPT THE SPI "A" WITH THE PAYMENT OF DUTY. WHILE
REPROGRAMMING IS STRICTLY VOLUNTARY, CONTINUED USE OF THE
SPI "A" HAS SOME BENEFITS. ONE BENEFIT OF CONTINUED USE OF
THE SPI "A" IS THAT THE FILER WILL NOT HAVE TO WRITE A
LETTER TO CUSTOMS REQUESTING A REFUND IF THE GSP IS RENEWED
WITH RETROACTIVE EFFECT. USE OF THE SPI "A" WILL ENABLE
CUSTOMS TO IDENTIFY AFFECTED LINE ITEMS AND REFUND DUTIES
WITHOUT A WRITTEN REQUEST FROM THE IMPORTER. OTHER BENEFITS
ARE THAT ACS WILL PERFORM ITS USUAL EDITS ON THE INFORMATION
TRANSMITTED BY THE FILER, THEREBY ENSURING THAT GSP CLAIMS
ARE FOR ACCEPTABLE COUNTRY/TARIFF COMBINATIONS AND
ELIMINATING THE NEED FOR NUMEROUS STATISTICAL CORRECTIONS.

4. IMPORTERS MAY NOT USE THE SPI "A" IF THEY INTEND TO LATER
CLAIM DRAWBACK. USE OF THE SPI "A" IS THE IMPORTER'S
INDICATION THAT HE WISHES TO RECEIVE A REFUND IF THE GSP IS
RENEWED RETROACTIVELY. TO CLAIM BOTH THIS REFUND 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 THEY HAVE NOT YET
CLAIMED DRAWBACK, THEY MAY REQUEST A REFUND BY WRITING TO
THE DISTRICT DIRECTOR AT THE PORT OF ENTRY. IF THE GSP IS
NOT RENEWED RETROACTIVELY, THEY WILL STILL HAVE THE OPTION
OF FILING A DRAWBACK ENTRY.

5. ABI FILERS WHO DO NOT WISH TO REPROGRAM, WHO DO NOT USE THE
SPI "A" FOR A PARTICULAR ENTRY SUMMARY, AND ALL NON-ABI
FILERS WILL BE REQUIRED TO REQUEST REFUNDS IN WRITING IF THE
GSP IS RENEWED RETROACTIVELY, IDENTIFYING THE AFFECTED ENTRY
NUMBERS.

6. REFUNDS ON INFORMAL ENTRIES FILED VIA ABI ON A CUSTOMS FORM
7501 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, TRAVELLERS AND IMPORTERS
WILL BE ADVISED VERBALLY OR WITH A WRITTEN NOTICE THAT THEY
MAY BE ELIGIBLE FOR A REFUND OF GSP DUTIES. TRAVELLERS/
IMPORTERS WILL BE PERMITED TO WRITE A STATEMENT DIRECTLY ON
THEIR CUSTOMS DECLARATIONS (CF 6059B) OR INFORMAL ENTRIES
(CF 363 OR CF 7501) INDICATING THEIR DESIRE FOR A REFUND.
IF GSP DUTY FREE STATUS IS ENACTED WITH A RETROACTIVE
PROVISION, NO FURTHER ACTION WILL BE REQUIRED ON THE PART OF
IMPORTERS TO OBTAIN A REFUND. FAILURE TO REQUEST A REFUND
DOES NOT PRECLUDE IMPORTERS FROM MAKING A TIMELY REQUEST IN
THE FUTURE.

8. FOR MAIL ENTRIES, A WRITTEN NOTICE WILL BE SENT TO THE
ADDRESSEES WITH THE CF 3419A (MAIL ENTRY) INFORMING THEM
THAT THEY MAY BE ELIGIBLE FOR A REFUND OF GSP DUTIES. THE
ADDRESSES MAY SUBMIT A CLAIM REQUESTING A REFUND OF GSP
DUTIES AND RETURN IT, ALONG WITH A COPY OF THE CF 3419A TO
THE APPROPRIATE INTERNATIONAL MAIL BRANCH (ADDRESS LISTED ON
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 GSP PRODUCTS AND ENSURING THAT DUTIES
AND FEES HAVE BEEN PAID. IF GSP DUTY FREE STATUS IS ENACTED
WITH A RETROACTIVE PROVISION, NO FURTHER ACTION WILL BE
REQUIRED ON THE PART OF THE ADDRESSES TO OBTAIN A REFUND.

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

OFFICE OF THE U.S. TRADE REPRESENTATIVE 202-395-6971
HOUSE WAYS AND MEANS COMMITTEE 202-225-3625
SENATE FINANCE COMMITTEE 202-224-4515

FOR SPECIFIC QUESTIONS RELATING TO THE AUTOMATED COMMERCIAL
SYSTEMS CONTACT IRV FISHER, OFFICE OF AUTOMATED COMMERCIAL
SYSTEM, 202-927-1220. QUESTIONS REGARDING TYPES OF ENTRIES AND
THEIR CORRESPONDING TIMES OF ENTRY SHOULD BE REFERRED TO THE
ENTRY BRANCH AT 202-927-2148. FOR GENERAL OPERATIONAL QUESTIONS,
CONTACT:

FORMAL ENTRIES LISA CROSBY, 202-927-0163
INFORMAL ENTRIES. . . . . . . . . .DEBI RUTTER, 202-927-1847
MAIL ENTRIES . DAN NORMAN, 202-927-0542
PASSENGER CLAIMS. . . . . . . . . .ROBERT JACKSTA, 202-927-1311

PHILIP METZGER