Two significant trade programs offering duty reduction treatment for import goods, the Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB), are set to expire December 31, 2020.
MISCELLANEOUS TARIFF BILL
This means, starting January 1, 2021, import duties will be reinstated for the 1,660 products covered by the Miscellaneous Tariff Bill Act of 2018.
Customs and Border Protection (CBP) confirmed the expiration in CSMS #45299138 message to the trade community earlier this week.
GENERALIZED SYSTEM OF PREFERENCES
Additionally, the Generalized System of Preferences, which provides duty-free and duty reducing treatment to over 5,000 products from 119 countries, will also expire at 12:00 AM on January 1, 2021.
The White House release a proclamation in October outlining six key changes to the existing GSP program.
U.S. Customs and Border Protection (CBP) encourages importers to continue to flag GSP eligible importations with SPI “A” during the lapse, starting January 1, 2021.
Importers may not file SPI “A” without paying duties. CBP has programming in place that, in the event that GSP is renewed with a retroactive refund clause, will allow CBP to automate the duty refund process.
CBP will continue to allow post-importation GSP claims made via post summary correction (PSC) and protest (19 USC 1514, 19 CFR 174) subsequent to the expiration of GSP, for importations made while GSP was still in effect. CBP will not allow post-importation GSP claims made via PSC or protest subsequent to the expiration of GSP, for importations made subsequent to expiration.
CSMS #45244051 – GUIDANCE: Generalized System of Preferences (GSP) Expires effective, December 31, 2020
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