International Trade Today is providing readers with some of the top stories for June 29-July 2 in case they were missed.
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.
CBP issued the following releases on commercial trade and related matters:
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.”
The International Trade Commission posted Revision 14 to the 2020 Harmonized Tariff Schedule. The semiannual update to the HTS implements USMCA, which took effect July 1, and adds new tariff numbers for a variety of products, including diagnostic reagents and personal protective equipment. All changes take effect July 1, unless otherwise specified.
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.
CBP issued the following releases on commercial trade and related matters:
The chairman of the House Ways and Means Committee and two Democrats on the Senate Finance Committee asked follow-up questions to U.S. Trade Representative Robert Lighthizer about the ethics of USTR officials soliciting consulting business on complying with rules of origin in the USMCA. Sen. Robert Menendez, D-N.J., who asked Lighthizer about Bloomberg reports that revealed the consulting business (see 2006180029), sent the letter to USTR on July 1. Chairman Rep. Richard Neal, D-Mass., sent his letter a week earlier.
The International Trade Commission posted Revision 14 to the 2020 Harmonized Tariff Schedule. The semiannual update to the HTS implements USMCA, which took effect July 1, and adds new tariff numbers for a variety of products, including diagnostic reagents and personal protective equipment. All changes take effect July 1, unless otherwise specified.
Importers continue to ask CBP what they should do about importing used cars that were built in Canada, the U.S. or Mexico, when they cannot know if those vehicles meet the new regional value content standards.
Drawback filers should not file any USMCA drawback claims at this time, CBP said in a CSMS message. Some technical changes to ACE need to be made before CBP can accept USMCA claims, and the agency will send out another CSMS message when they have been deployed. “Please continue to file NAFTA drawback claims, if applicable, under the NAFTA requirements,” CBP said. Filers will not be allowed to commingle NAFTA and USMCA imports on the same drawback claim. “The date of entry determines which agreement controls, not the date of claim,” it said.