Some new provisions within the USMCA seem to make claims of U.S. goods returned under Harmonized Tariff Schedule heading 9801 for U.S. origin goods much less important than was the case under NAFTA. Kevin Riddell, director-trade and regulatory compliance at Tremco Group in Canada, highlighted the changes, which allow for USMCA claims on U.S. origin goods, in a recent LinkedIn post. While Riddell said he hadn't tried to enter U.S. goods under the new USMCA provisions, a CBP spokesperson confirmed that “a USMCA claim may be made on goods of U.S. origin, provided it satisfies its applicable rule of origin and all other requirements of the Agreement have been met.”
China announced a ban on certain animals and animal products from Rwanda due to a foot-and-mouth disease outbreak in Rwanda’s Eastern Province, a July 13 notice said, according to an unofficial translation. The import ban applies to “cloven hoofed animals and their related products,” directly or indirectly from Rwanda, including products originating from those animals that have not been processed or are “still likely to spread disease although processed.” Customs authorities will return or destroy any imports, China said.
The Commercial Customs Operations Advisory Committee’s Secure Trade Lanes Subcommittee Export Working Group issued draft recommendations this week ahead of the COAC’s July 15 meeting. The group recommends that CBP review, compare and eliminate any “duplicative and unnecessary” data elements between the Electronic Export Information and Air, Ocean, and Rail manifest. The group also recommended that the duplicative data elements only be required from the owner of the data “since it is the most timely and accurate source,” and recommended that CBP “provide a data-flow and process-flow map” for government agencies. The map would define where data originates, “such as the EEI, the Manifest, and Departure messages,” the group said.
The Canada government issued the following trade-related notices as of July 13 (some may also be given separate headlines):
Japan recently published a list of 21 proposed geographical indications for agricultural goods from the European Union, including cheese, ham, olive oil, sausage, butter, baked goods and jam, the U.S. Department of Agriculture Foreign Agricultural Service said in a July 7 report. If the proposals are finalized, Japan will not “monitor compliance with product specifications for [the] GI designations in their country of origin.” The list was published July 7. Public comments are due Oct. 7.
Rep. Rick Larsen, one of the chairpersons of the New Democrats' trade task force, told the Washington International Trade Association that he thinks the U.S. has not gotten any benefit out of the Trump administration's trade war. When asked by International Trade Today if a Joe Biden administration would roll back the Section 301 tariffs, even if China does not give concessions on industrial subsidies or state-owned enterprises, Larsen said, “I think the next administration needs to reset where we are, how we’re going to approach this.”
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.
Hong Kong is advising importers of U.S.-origin goods to check with their sellers about possible trade interruptions after the Bureau of Industry and Security increased restrictions on exports to the region. Hong Kong’s Trade and Industry Department will work with “the licensees concerned to cancel the relevant unused licences,” the agency said July 2. “Otherwise, traders might risk themselves violating the relevant U.S. laws and regulations.”
Testimony by Liz Truss, the United Kingdom's international trade secretary, revealed that no chapters have been closed yet in negotiations with the U.S., and suggests that barriers to U.S. exports of poultry and beef and price controls on pharmaceutical drugs continue to be sensitive areas for the British. Truss was updating Parliament about the second round of negotiations on a free trade agreement with the U.S.
The government of Canada issued the following trade-related notices as of July 1 (some may also be given separate headlines):