Mexico announced changes to its Authorized Economic Operator (AEO) program to offer customs-related benefits for maquiladora factories. One of the largest changes allows tariff relief for a period of 36 months for items imported temporarily into Mexico or with regard to maquiladora factories, merchandise transferred to companies not operating under the IMMEX (Industria Manufacturera, Maquiladora y de Servicio de Exportación) regime, KPMG said in an alert Feb. 2. Mexico also added two additional digits to its commercial identification numbers to exert more statistical control over its import and export transactions, along with eliminating certain low-volume tariff items and subheadings -- changes made effective at the end of 2020. Other changes include the possibility of canceling value-added tax certifications if companies did not timely submit their renewal request at the end of 2020. Also, firms must now evaluate the implications of “subcontracted” personnel for VAT certification purposes, as the information from suppliers must be updated, due to labor reforms in USMCA.
The Census Bureau updated the Schedule B and Harmonized Tariff Schedule tables in the Automated Export System to “accept changes” to the new Jan. 1 codes, the Census Bureau said in a Dec. 30 email. Census said AES will accept shipments with “outdated codes” during a 30-day grace period beyond the Dec. 31 expiration date, but reporting an outdated code after the grace period will result in a “fatal error.” Census also said it updated the Automated Commercial Environment AESDirect program with the 2021 codes, adding the program will also accept outdated codes during the grace period.
The Commerce Department published its fall 2020 regulatory agenda for the Bureau of Industry and Security, including new mentions of rules to amend Hong Kong under the Export Administration Regulations, releases of controlled technologies to standards setting bodies and a range of new technology controls.
The World Customs Organization on Nov. 13 released correlation tables comparing the upcoming 2022 version of the Harmonized System tariff schedule with the 2017 version. “While not legal instruments, the Correlation Tables have become essential tools for Members and the wider trade community in preparing for the introduction of a new edition of the HS. These tables provide guidance on the correlations between the Seventh Edition of the Harmonized System (HS), which comes into force on 1 January 2022 and the current HS 2017 (Sixth Edition) of the HS,” the WCO said. One of the two tables correlates the 2022 version with the 2017 version, and includes explanations of any changes. The other sets the correlation starting from the 2017 version to the 2022 version, the WCO said.
The Canada government issued the following trade-related notices as of Sept. 23 (some may also be given separate headlines):
China revised its import procedures for a range of batteries, the country’s customs authority said in a Sept. 7 notice, according to an unofficial translation. The changes, which take effect Oct. 1, will “optimize the quality and safety inspection and supervision methods” for 22 subheadings of batteries, China said, by allowing traders to issue self-declarations for the safety regulations required for battery imports. If traders do not choose to self-declare, China said it will continue to adopt its “current inspection and supervision method.” The batteries range from button-type, to those with various weights of mercury or alkaline zinc, or with vanadium, or possessing certain voltage.
More companies are seeking drawback payments as the economic slowdown has increased the importance of cash on hand, CBP officials and industry executives said during the American Association of Exporters and Importers virtual conference Aug. 20. “In general, I would say COVID's had a major impact on our businesses and it's also made our company even more focused on getting cash in the door,” said Kathleen Palma, senior executive for international trade compliance at GE. “One of the levers that our leadership has been looking at has been drawback.” At the same time, Palma expects that because the company is bringing in fewer shipments, that will be reflected in fewer drawback claims going forward.
Vietnam recently imposed antidumping duties on “biaxially oriented polypropylene film products” originating in China, Malaysia and Thailand, the Hong Kong Trade Development Council said July 27. The film, typically used in “packaging materials,” will be subject to a duty rate of 9.05% to 23.71% for five years. The products are classified under two Harmonized System subheadings -- 3920.20.10 and 3920.20.91. The decision came after Vietnam determined that the “sales volume, profit margins, market share and production capacity” of its domestic film producers had “declined significantly over recent years” due to cheaper imports from the three countries. Vietnam is, however, offering duty exemptions for imports of the film because some of its producers “lack the capacity” to manufacture it.
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.”
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.