Two domestic bicycle manufacturers filed a petition Oct. 19 seeking new Section 201 safeguard duties on mass-market bicycles. Detroit Bikes and Bicycle Corporation of America say the dominance of imported mass-market bicycles makes it impossible for U.S. manufacturing to re-establish itself. The companies seek a tariff-rate quota over a period of four years, along with a decrease in the de minimis level for imported bikes and duty-free access for parts used in U.S. bicycle manufacturing operations. The duties would apply to bicycles from all countries, though the International Trade Commission can exempt free trade agreement partners.
PALM SPRINGS, Calif. -- CBP’s revised Form 5106 importer ID requirements are currently getting “final approvals” from the Office of Management and Budget and should be coming “sooner rather than later,” said John Leonard, executive director for CBP Trade Policy and Programs, on Oct. 19. The majority of brokers don’t have to be too worried about the changes, seeing that most compliant brokers are already meeting the revised requirements anyway, Leonard said, speaking at the Western Cargo Conference.
Changes to de minimis is the most significant change from NAFTA in customs administration and trade facilitation under the rewritten agreement, practitioners say, but exactly how that will work in practice is still unknown. Shipments from the U.S. or Canada into Mexico will not face duties if they are valued at less than $117, and will not have to pay tax if they are valued at less than $50. Shipments into Canada from NAFTA partner countries will be tax-free if valued under 40 Canadian dollars, and duty-free at under 150 Canadian. (Mexico's $117 limit matches C$150 at current exchange rates.)
The Trump administration issued its Fall 2018 unified regulatory agenda, advancing its deregulatory program through “structural reforms as well as the practical work of eliminating and revising regulations,” according to the agenda’s introductory statement. The effect can be seen on the individual regulatory agendas of agencies that regulate imports and exports, with many putting out shorter lists that include the elimination of rules and the creation of new regulatory exemptions.
While the changes are likely at least a year away, a KPMG managing director of Trade & Customs Services, Gisele Belotto, told clients that the "changes [to NAFTA] are pretty extensive, and a lot more than changing the name." KPMG held a webcast on understanding the trade implications of the United States-Mexico-Canada Agreement on Oct. 16. While media coverage has been extensive on the changes to the auto rules of origin, and how that will make it more difficult for Mexican and Canadian autos to enter the U.S. duty-free, KPMG professionals noted that many other products' rules of origin became looser, making it easier to qualify the imports as originating in one of the NAFTA countries.
CBP released the recommended changes to foreign-trade zone regulations that were approved during the Oct. 3 Commercial Customs Operations Advisory Committee meeting (see 1810040019). Among other things, the COAC recommended that CBP revisit the treatment of Section 321 entries through FTZs.
International Trade Today is providing readers with some of the top stories for Oct. 1-5 in case they were missed.
The Commercial Customs Operations Advisory Committee (COAC) approved a broad set of recommendations for updating the foreign-trade zone regulations in 19 CFR 146 during its Oct. 3 meeting. The recommendations, which came through the Trade Modernization Subcommittee, are meant to address several issues, including confusion over the application of trade remedies to goods in FTZs and Section 321 entries for small value items. "Updating our FTZ practices and regulations is overdue," said Treasury Department Deputy Assistant Secretary Timothy Skud.
Merchandise imported in bulk and then stored in a foreign-trade zone prior to sale is not eligible for the Section 321 exemptions when the goods are withdrawn upon consumer sales, CBP said in a Sept. 18 ruling. CBP's ruling, HQ H282601, was in response to a ruling request from Sandler Travis lawyer Robert DeCamp on behalf of the American Apparel and Footwear Association. CBP's analysis in this ruling is similar to another ruling on de minimis shipments and FTZs (see 1807180022). There are efforts underway to change the treatment of such goods, on Capitol Hill (see 1808150007) and in CBP's regulations through the Commercial Customs Operations Advisory Committee (see 1810040019).
The U.S.-Mexico-Canada Agreement is not a rewritten NAFTA, President Donald Trump said Oct. 1. Instead, "This one is a brand new deal," he said during a White House event. Lawyers who have begun reading the text say the treaty builds on the Trans-Pacific Partnership and the original NAFTA, while including some important new provisions. Mark Warner, a Canadian-U.S. trade lawyer, said that while Trump's speech was full of puffery, "the auto stuff is significant. I don’t think anyone should say it’s not significant."