The Customs Rulings Online Search System (CROSS) was updated Aug. 26. The following headquarters rulings were modified recently, according to CBP:
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.
After Mexico asked it for consultations (see 2108230041), arguing that the NAFTA approach to roll-up should be continued under USCMA, the Office of the U.S. Trade Representative said the request is under review. USTR spokesman Adam Hodge said that U.S. government officials "remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed.”
Less than two weeks after the U.S. and Mexico announced a resolution to a Rapid Response Mechanism complaint over labor violations at a General Motors plant in Mexico (see 2107090019), the second vote at the plant in Silao resulted in a rejection of the protection union. The complaint was brought because that same protection union did ballot-stuffing and intimidated workers during the first vote, advocates said.
The Mexican government has asked the Office of the U.S. Trade Representative for formal consultations under USMCA's dispute resolution process over a disagreement on how the auto rules of origin should work. Mexico says that when it agreed to a 75% regional value content standard at the end of the phase-in period, its negotiators were assuming that once a part is considered originating, its value should count as North American as you move to assemblies, and ultimately, to the vehicle as a whole. So, Mexico says that in the text on the rules of origin, if a core part is originating, its full value is counted in a super-core part, such as an engine, and if that engine is originating, its value counts in the RVC for the vehicle as a whole.
The Customs Rulings Online Search System (CROSS) was updated Aug. 17. The following headquarters rulings were modified recently, according to CBP:
International Trade Today is providing readers with the top stories from Aug. 9-13 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The Customs Rulings Online Search System (CROSS) was updated Aug. 10. The following headquarters rulings were modified recently, according to CBP:
After a ban on imported fish from an area of the Upper Gulf of California in Mexico failed to stop illegal fishing that threatens a nearly extinct porpoise, the Natural Resources Defense Council, the Center for Biological Diversity, the Animal Welfare Institute and the Environmental Investigation Agency are asking the Office of the U.S. Trade Representative to ask the tri-national Commission on Environmental Cooperation to establish a formal factual record of Mexico's failure to enforce its ban on gillnets in that region. Once the record is established, the groups are asking USTR to initiate a dispute against Mexico over the issue.
CBP's plans to extend the Part 102 marking rules from NAFTA to USMCA determinations of country of origin for nonpreferential claims and procurement under USMCA (see 2107010045) lacks the legal justifications needed to finalize the proposal, Novolex Holdings, a packaging conglomerate owned by the Carlyle Group, said in comments to the agency. "As proposed, such origin determinations would no longer abide by the precedent developed in over a century of determinations by the federal courts," the company said. The comments were posted Aug. 11 in the docket.
Two longtime career staffers at the Office of the U.S. Trade Representative have been nominated for deputy USTR positions. Maria Pagán, the deputy general counsel at the agency, has been chosen to serve as ambassador to the World Trade Organization. According to an announcement from the White House, Pagán handled the implementation package for USMCA and was the lead lawyer in the USMCA negotiation. USTR Katherine Tai said, "María Pagán has proven to be a shrewd negotiator with an unparalleled knowledge of our trade agreements that will serve the United States well as we re-establish relationships with our trading partners and work to reform the World Trade Organization."