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Kuehne + Nagel
KN Advisory | LAX & LBG Marine Terminal Operators to Increase Traffic Mitigation Fee
CBP updates on Merchandise Processing Fee (MPF) and Generalized System of Preferences (GSP)



Dear Valued Customers,

We want to remind you of two important updates from the U.S. Customs and Border Protection (CBP):

Merchandise Processing Fee (MPF) – adjustment January 1, 2018

CBP has announced that the Merchandise Processing Fee (MPF) assessed on most imports into the U.S. will be adjusted effective January 1, 2018. While the calculation rate (0.3464 percent) will remain unchanged, the current minimum rate of $25.00 will be $25.67 and the current maximum rate of $485.00 will be $497.99. Read: CSMS Message 17-000734. To verify whether the MPF is applicable on your shipments, contact your Kuehne + Nagel representative.

Generalized System of Preferences (GSP) – Expires December 31, 2017
Without Congressional action, the Generalized System of Preferences (GSP), special program indicator (SPI) “A”, “A+” and “A*”, will expire for goods entered or withdrawn from warehouse after midnight, December 31, 2017. The following are a few special procedures in case Congress does not renew the program:

In the event of a lapse and until further notice, importers are strongly encouraged to continue to flag GSP-eligible importations with the SPI “A”, even as they pay normal trade relations (column 1) duty rates on otherwise GSP-eligible importations. Importers may not file SPI “A” without duties.

 

  • CBP is working to have 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.
     
  • The pending expiration of GSP has no effect on goods entered with African Growth and Opportunity Act (AGOA) preference. Effective January 1, 2017, the Harmonized Tariff Schedule of the United Sates (HTSUS) was modified so that all non-textile, AGOA-eligible tariff items indicate SPI “D” in the “Special” column. As such, since January 1, 2017, all non-textile AGOA claims have been made using the SPI “D”. AGOA preference remains in effect through September 30, 2025, irrespective of any lapse in GSP.
     
  • Since the GSP does not provide a Merchandise Processing Fee (MPF) exemption, its expiration has no impact on the collection of the MPF. Goods of least-developed beneficiary developing countries (LDBDCs) listed in HTSUS General Note 4(b)(i) maintain their MPF exemption per 19 CFR 24.23(c)(1)(iv).
     
  • Per 19 CFR 141.68(a)(2) & (3), time of entry can be as early as the time that the entry documents are filed, provided that the merchandise is within the port limits and such has been requested. For additional information on the significance of time of entry and how to calculate it, please see page 11 of the Informed Compliance Publication “What Every Member of the Trade Community Should Know About: Entry” available at www.cbp.gov/sites/default/files/documents/icp073_3.pdf
     
  • Extension of Liquidation - Requests for the suspension of liquidation under 19 CFR 159.12 pending the pending the reinstatement of GSP will be denied.
     

Read: CSMS# 17-000622. For any further questions, please directly contact the Trade Agreements Branch at FTA@dhs.gov.


Sincerely,

Kuehne + Nagel Management