The Canada Border Services Agency issued some guidances on the regulatory changes that are coming as part of the U.S.-Mexico-Canada Agreement (see 2004030046), which is known as the CUSMA in Canada. Customs notice 20-14 covers implementation of the agreement, including tariff provisions, advanced rulings and proof of origin. Customs notice 20-13 gives an overview of the new definition for specially defined mixtures under the agreement. Among other things, “the new SDM definition now has a cooking requirement, goods must be par-fried, partially or fully cooked,” it said. “The definition will also change what is to be considered as part of the 13% other goods. Sauces are now excluded from the 13% calculation and bread, such as sandwich bread, can now be included in the 13% calculation.” Further information will come in a CBSA memo, it said. Customs notice 20-15 covers the change to Canada's de minimis threshold for low-value goods. “Effective on the day of coming into force of CUSMA, the CBSA will increase its Low Value Shipment (LVS) thresholds for all commercial importations (in addition to those for express shipments) to an estimated value for duty not exceeding CAD$3,300,” it said.
Country of origin cases
China recently announced procedures for returns of cross-border exported and imported e-commerce goods, according to an April 3 report from the Hong Kong Trade Development Council. Traders seeking to return goods must apply to China’s customs authority to “engage in return business,” the report said. Any returns must come with a “guarantee” that the returns are the original goods, the report said, and must be completed within a certain time frame. The measures for returns of exports took effect March 27, and for returns of imports, on March 28.
The Canadian government has sent its letter to the U.S. and Mexico certifying it is ready for the USMCA date of entry into force, Deputy Prime Minister Chrystia Freeland announced April 3, but a top Mexican official said his country did not certify it was ready by March 31, which means a June 1 date of entry into force is out of reach.
The Commerce Department Bureau of Industry and Security postponed its April export control seminar in Pennsylvania due to the COVID-19 pandemic, BIS said in a recent notice. The seminar, originally planned for April 15-16, will be rescheduled, BIS said.
India imposed new restrictions on exports of certain “animal by-products” to the European Union, India’s Department of Commerce said in a March 30 notice. The conditions, which apply to bone and bone products for human consumption and “gelatine,” require a certain “shipment clearance certificate” with the name and address of the exporter, address of the “registered plant,” the “nature of the export product,” the port of loading and more, the notice said. The conditions also require the exporter to provide a “health certificate” to the buyer with the harmonized system code, origin, destination, vessel name and more.
Indian agencies responsible for issuing certificates of origin under India’s free trade agreements are temporarily closed and unable to issue the certificates, due to a “lockdown” stemming from the COVID-19 pandemic, India’s Directorate General of Foreign Trade said in a March 28 notice. Certificates will be issued “retrospectively” after the agencies reopen, India said. In the interim, the country is urging its trading partners to “kindly allow the eligible imports under preferences on a retrospective basis subject to the subsequent production of the certificates of origin by the Indian exporters.” India said it will “stand ready to honour its preferential trade agreement imports” if it receives a similar request from trading partners.
The Trump administration should be doing more to restrict sales of emerging technologies to China, lawmakers said in interviews earlier this month. Senators commended the administration for increasing foreign direct investment restrictions (see 2002260042) and going further than previous administrations in confronting China’s unfair trade practices, but said they will continue pushing for tighter restrictions.
The government of Canada issued the following trade-related notices as of March 27 (note that some may also be given separate headlines):
The Commerce Department extended the public comment period for feedback on future temporary general license extensions under the Export Administration Regulations (see 2003100070), the agency said in a notice. The comments, which were originally due March 25, are now due April 22. The comments will determine the “continuing need” and the scope for future extensions for the temporary general license for Huawei, Commerce said in a March 25 press release.
A U.S. court upheld a conviction for Global Metallurgy CEO Erdal Kuyumcu, affirming he violated the International Emergency Economic Powers Act by exporting specialty metals to Iran (see 1606150015), according to court records filed March 17. Kuyumcu, who was hired by a Turkish company to source the U.S.-origin metals, was “fully aware” that the exports would be shipped to a company in Iran, the court said. The court also said Kuyumcu, who originally pleaded guilty, “has failed to show that there is a reasonable probability that he would not have pleaded guilty,” which was necessary under the appeal.