.
The Quest
              
Inside this issue:

Single transaction bonds required for suspected AD/CVD shipments

Appeals court reverses case involving ‘independent contractor’

$5.2 million verdict against a transportation broker and driver in negligent hiring case

C-TPAT and AEO to be mutually recognizable in June 2012

Goods from Argentina to lose GSP benefits

Claims Review:
International Coverage

      

                    

              
Goods from Argentina to lose GSP benefits

U.S. Customs and Border Protection (CBP) has issued bulletin CSMS #12-000162 to announce that goods from Argentina will no longer be eligible for benefits granted under the Generalized System of Preferences (GSP). The notice takes effect for all goods entered or withdrawn from warehouse consumption on or after May 28, 2012.

In a Presidential Proclamation issued in March of this year, President Obama suspended Argentina’s GSP eligibility because of Argentina’s failure to act in good faith in enforcing two longstanding arbitral awards. According to U.S. Trade Representative Ron Kirk, Argentina’s government has not paid two longstanding arbitral awards in favor of U.S. companies, which were awarded under the United States-Argentina bilateral investment treaty and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. These arbitral awards amount to more than $300 million. Ambassador Kirk urged the Government of Argentina to pay the awards and noted that such payment would allow the United States to consider reinstating Argentina’s GSP eligibility.

Customs brokers and their importer clients should be aware that bond claims can occur when countries lose their GSP status and entries are filed incorrectly. If entries from Argentina continue to be filed as GSP, CBP can assess liquidated damages for the non-payment of duties.

Avalon remains committed to providing the highest level of service to our clients and keeping you apprised of governmental changes affecting your business. We are the leading provider of U.S. Customs bonds and other surety and insurance products for customs brokers and transportation providers.


    
For more information, please contact your local Avalon office or Andriana Davis at (847) 700-8087 or at adavis@avalonrisk.com. A list of our offices may be found at www.avalonrisk.com.
             
       

Avalon Risk Management

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