Renewal of the Generalized System of Preferences (GSP) and GSP Refund Process

On Friday, March 23, 2018, the President signed into law H.R. 1625 (Public Law 115-141), the “Consolidated Appropriations Act, 2018,” which in addition to providing full-year federal appropriations through September 30, 2018, extended GSP with retroactivity, for goods entered or withdrawn from a warehouse for consumption from January 1, 2018 through December 31, 2020. The new law, effective April 22, 2018, also provided for the retroactive refund of all duties (without interest) to the importer of record (IOR) on GSP-eligible goods entered during the January 1, 2018 through April 21, 2018 lapse period.

  • Effective April 22, 2018, the filing of the GSP-eligible entry summaries has resumed without payment of additional duties.
  • As of March 23, 2018, GSP goods subject to Section 232 (Aluminum and Steel) may not receive GSP duty preference in accordance with 19 USC 2463(b)(2).
    • As GSP countries, Brazil and Argentina, are exempt from Section 232 per the HTSUS Chapter 99 and may claim GSP.
  • As of February 7, 2018, GSP goods subject to Section 201 measures (certain solar cells, solar panels, washing machines, and washing machine parts), with respect to articles of Thailand or Philippines, are the only GSP-eligible goods that are subject to Section 201 measures and may not receive GSP duty preferences.

U.S. Customs Border and Protection (CBP) will initiate the automatic liquidation or reliquidation of the GSP-eligible merchandise that entered during the lapsed period from January 1, 2018 through April 21, 2018 and filed electronically via the Automated Broker Interface (ABI) with SPI Code “A” notated.

  • As stated by CBP, importers should receive all GSP refunds by mid-July 2018, barring unforeseen matters.
  • If GSP-eligible goods did not include the SPI Code “A” on the entry summary, a duty refund request may be submitted to CBP no later than September 19, 2018.
  • If Section 232 duties and GSP are on the same entry line, then no GSP refund will be issued, since 19 USC 2463(b)(2) precludes GSP program benefits accruing to Section 232 goods.
  • If Section 201 duties and GSP are on the same entry lines, then no GSP refund will be issued for imports for the lapse period, since 19 USC 2463(b)(2) precludes GSP program benefits accruing to Section 201 goods.

Additional information and useful links are listed below:

MIQ Logistics will monitor the liquidation of the GSP entries filed for the refunds. For more information, please contact your local MIQ Logistics representative.