USMCA

CBP issued the following releases on commercial trade and related matters:​

A Mexican federal official, along with Mexican and U.S. attorneys, believe that Mexican firms will have to sharply change their labor relations policies, but they aren't as sure about how often labor issues will be brought up, in the context of the U.S.-Mexico-Canada Agreement. If the U.S. government doesn't agree that a Mexican company has come into compliance with Mexican labor laws, it could lead to goods from that producer being barred from USMCA tariff benefits.

CBP is planning an initially lax approach to enforcement of certifications of origin once the U.S.-Mexico-Canada Agreement enters into force on July 1, said Maya Kumar, director of textiles and trade agreements at CBP, while on a June 1 agency webinar about the deal. “The first six months of this trade agreement, we can pretty much say there will be very little enforcement to no enforcement,” she said. “We understand the position, CBP understands the position that we're in. So we will use maximum flexibility” to avoid putting “trade under stress.” In the unlikely event of a USMCA-related request for information through a Customs Form 28 during those six months, CBP will allow for “extra time to go ahead and get the documents you need from the suppliers,” she said. “The idea is that for the first six months to be extra flexible and then to still use flexibility when we request documents.”

CBP issued the following releases on commercial trade and related matters:​

Even as COVID-19 delays some advances in trade facilitation -- such as being able to use a single window to export into Canada -- the U.S.-Mexico-Canada Agreement has good news for it, panelists said during a Dickinson Wright webinar May 28.

Mexico's Economy Minister Luz de la Mora said that the uniform regulations that pertain to issues outside the auto industry will be ready by July 1 -- but strongly suggested that the uniform regulations will not be ready by the date of entry into force of the U.S.‐​Mexico‐​Canada Agreement. “There has been great progress on non-auto URs, and they will be ready by July 1, as for the auto rules of origin, we expect to advance substantially in coming weeks,” she said during a Cato Institute interview May 27. She said that Mexico wants “to make sure the transition to the new regime is effective, efficient.”

International Trade Today is providing readers with some of the top stories for May 18-22 in case they were missed.

The government is considering how quickly it can get through a legislative fix to U.S.-Mexico-Canada Agreement implementation provisions that allow for duty refunds on post-importation preference claims, but not a refund of merchandise processing fees, said Maya Kumar, director of textiles and trade agreements at CBP. She said on May 22 that CBP officials “do not think that was the intent of the law.” Kumar, who was speaking at the National Association of Foreign-Trade Zones virtual conference, said that if it's at all possible, CBP would like to see that fixed by Congress before USMCA's entry into force July 1. “We’re trying to work with [the office of the U.S. Trade Representative] as well as Congress and see how quickly they can do that,” she said.

CBP issued the following releases on commercial trade and related matters:​

CBP will be “implementing new requirements in ACE for processing entries subject to the new U.S.-Mexico-Canada trilateral trade agreement (USMCA)” on July 1, the agency said in an updated ACE deployment schedule. That's the same day the USMCA takes effect. CBP also has determined it will deploy Electronic Vessel Manifest Confidentiality in ACE on May 22, and it removed “Analytical Formula for Continuous Bond Sufficiency due to change in project scope,” according to the change log.