CBP issued the following releases on commercial trade and related matters:
USMCA
The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.
International Trade Today is providing readers with some of the top stories for June 29-July 2 in case they were missed.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said, “generally technical fixes are easy to do,” and told International Trade Today that such a bill to make fixes to USMCA's implementation bill could hitch a ride on a Continuing Resolution to fund the government, if the bill were completed in time. Grassley said a week ago that he hasn't had any discussions on the technical fixes needed, including allowing post-importation refunds of merchandise processing fees.
Because the Office of the U.S. Trade Representative was in such a hurry on implementation, some USMCA details needed by traders are either wrong or missing. For instance, there are tariff numbers that are invalid, because negotiators used the 2012 Harmonized Tariff Schedule numbers. On a call with trade professionals July 6, CBP staffers said importers or exporters can email CBP with a tariff number in question, and the agency can provide guidance on how to claim USMCA treatment for those goods.
The International Trade Commission posted Revision 14 to the 2020 Harmonized Tariff Schedule. The semiannual update to the HTS implements USMCA, which took effect July 1, and adds new tariff numbers for a variety of products, including diagnostic reagents and personal protective equipment. All changes take effect July 1, unless otherwise specified.
CBP issued the following releases on commercial trade and related matters:
The chairman of the House Ways and Means Committee and two Democrats on the Senate Finance Committee asked follow-up questions to U.S. Trade Representative Robert Lighthizer about the ethics of USTR officials soliciting consulting business on complying with rules of origin in the USMCA. Sen. Robert Menendez, D-N.J., who asked Lighthizer about Bloomberg reports that revealed the consulting business (see 2006180029), sent the letter to USTR on July 1. Chairman Rep. Richard Neal, D-Mass., sent his letter a week earlier.
The International Trade Commission posted Revision 14 to the 2020 Harmonized Tariff Schedule. The semiannual update to the HTS implements USMCA, which took effect July 1, and adds new tariff numbers for a variety of products, including diagnostic reagents and personal protective equipment. All changes take effect July 1, unless otherwise specified.
Importers continue to ask CBP what they should do about importing used cars that were built in Canada, the U.S. or Mexico, when they cannot know if those vehicles meet the new regional value content standards.
The U.S. Trade Representative announced the appointment of USMCA state-to-state dispute panelists July 1: