CBP Side-by-Side Comparison for 20 FTAs and Preference Programs
CBP posted a document to its website that provides side-by-side comparisons of 20 U.S. free trade agreements and preferential trade programs. This updated version adds information from the U.S.-Panama Trade Promotion Agreement (PATPA), which was implemented in October (see 12103121).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
NAFTA; Chile (CFTA); Singapore (SFTA); Australia (AFTA); Israel (ILFTA); Jordan (JFTA); Bahrain (BFTA); Morocco (MFTA); Oman (OFTA); Central America-Dominican Republic (CAFTA-DR); Peru (PTPA); Korea (KFTA); Colombia (CTPA); Panama (PATPA); Caribbean Basin Economic Recovery Act (CBERA); Caribbean Basin Trade Partnership Act (CBTPA); Generalized System of Preferences (GSP); African Growth and Opportunity Act (AGOA); Andean Trade Preference Act (ATPA); and Andean Trade Promotion and Drug Eradication Act (ATPDEA). See 12070624 for the previous version of the comparison document.
GSP is the oldest preference program; it began in 1976, and CBERA came next in 1984. The newest trade agreements are KFTA, CTPA and PATPA, which all began in 2012.
Provisions Compared Include Compliance Responsibility, MPF Exemptions, Documentation, Etc.
CBP's Side-by-Side compares about 25 provisions, including primary compliance responsibility, Merchandise Processing Fee (MPF) exemptions, direct shipment, rules of origin, documentation requirements, regional value content, de minimis, inventory management methods, port-importation claims, reconciliation claims, etc.
Examples of CBP's comparisons included the following:
Primary compliance responsibility. Under NAFTA, the exporter is primarily responsible for compliance, while under all the other programs, the importer has primary compliance responsibility.
MPF exemptions. Under GSP, the MPF is only exempt for lesser developed countries; for the other FTAs and preference programs it varies - the MPF can be exempt for originating goods only, exempt for all goods, not exempt at all, etc.
Documentation at time of claim. Most only require a "freeform" supporting statement with 10 elements,1 to be available upon request by CBP; however NAFTA, CBTPA, and ATPDEA do require certain documentation to be in the importer's possession at the time the claim is made.
Direct shipment (transshipment) requirements. The preference programs, as well as a portion of the FTAs, do not allow the goods to leave Customs control.
Regional value content calculation. These vary. Some have a 35% requirement for materials and direct costs of processing; some are build-up, build-down, and net cost; NAFTA is transaction value and net cost, etc.
CBP said the document is for comparative purposes and isn't legally binding.
1rather than a freeform declaration, for the Israel FTA, it is a Form A