CBP Compares Features of NAFTA, SFTA, CFTA, AFTA, DR-CAFTA, and GSP
U.S. Customs and Border Protection has posted a document to its Web site that provides side-by-side comparisons of the Generalized System of Preferences and U.S. free trade agreements (FTAs) including the North American Free Trade Agreement, U.S.-Singapore FTA, U.S.-Chile FTA, U.S.-Australia FTA, and the U.S.-Dominican Republic-Central America FTA.1
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In comparing the FTAs and GSP, CBP lists differences and similarities in the requirements for items such as primary compliance responsibility, merchandise processing fee (MPF) exemptions, documentation at importation, direct shipments, etc.
Highlights of CBP's comparisons and listed elements included the following:
Primary compliance responsibility. Under NAFTA, the exporter is primarily responsible for compliance, while under the other FTAs and GSP, the importer has primary compliance responsibility.
MPF exemptions. Under all of the compared FTAs, the MPF is exempt for originating goods, but under GSP, the MPF is only exempt for least-developed beneficiary developing countries (LDBDCs).
Documentation at importation. Under NAFTA, importers must have a NAFTA Certificate of Origin in their possession at the time of claim (19 CFR 181.21), while the other compared FTAs require a freeform statement with 10 elements or knowledge (19 CFR 10.511 or 19 CFR 10.411); and GSP requires knowledge.
Direct shipment requirements. Under NAFTA and DR-CAFTA, direct shipment is required and must stay under CBP control, while under the other FTAs, direct shipment is not required and compliance with differing sections of 19 CFR and non-ABI entries are required. Under GSP, LDBDCs may ship through one another, as can the associated countries.
Regional value content calculation. Under NAFTA, regional value content is calculated using transaction value and net cost, while under SFTA and CFTA, build-up and build-down methodologies are used. AFTA and DR-CAFTA also use build-up and build-down methodologies in addition to net cost for automotive goods. Under GSP, direct cost of processing is used.
Duty phase-out periods. Under NAFTA, complete duty phase-out will occur on January 1, 2008, while the complete duty phase-out dates for the other FTAs range from January 1, 2013 for SFTA to March 1, 2026 for DR-CAFTA.
General Elements. The general elements listed in CBP's table include: agreement names, U.S. Code (USC), Code of Federal Regulations (CFR), Harmonized Tariff Schedule (HTS) General Note number, Special Program Indicator (SPI), and expiration.
Importing. Additional comparisons in CBP's table related to importing include: marking rules (non-textile), preference criteria, general rules of origin, Chemical Reaction Rule of Origin or tariff shift, tariff shift rules, advance rulings, and special origination rules.
Value. The comparisons in CBP's table related to value include: general regional value content percent, special rules for automotive goods, accumulation of originating value in non-originating materials, and de minimis (non-textile).
Inventory. The comparisons related to inventory include fungible goods and fungible materials.
Post-Importation. The table compares post-importation claims and 520(d) reconciliation.
U.S. CBP. The table compares U.S. CBP elements such as determinations communicated to exporter and prior disclosure.
1DR-CAFTA is also abbreviated as "CAFTA-DR."
(See ITT's Online Archives or 09/05/07 news, 07090535, for earlier BP summary of CBP's posting of the comparison document to its Web site. See ITT's Online Archives or 03/31/05 and 12/06/04 news, 05033115 and 04120615, for BP summaries of similar CBP comparisons in 2005 and 2004, respectively.)
CBP FTAs/GSP comparison document, posted 08/27/07, available at http://www.cbp.gov/linkhandler/cgov/import/international_agreements/fta_comparison.ctt/fta_comparison.pdf