CBP clarified a recent Harmonized Tariff Schedule update to explain that several origination requirements must still be met for a good to be eligible for Merchandise Processing Fee (MPF) exemptions for originating goods within a preference program. The clarification follows a Jan. 3 CSMS message highlighting a change to General Statistical (GSN) Note 3(c) within the 2014 HTS (see 14010624). The agency also said some preference programs that include MPF exemptions were mistakenly not named in the update.
The absence of General System of Preferences (GSP) tariff cuts have continued to take a significant toll on the revenues of U.S. importers across the commercial spectrum since the program’s July 2013 expiration, said 463 companies in a Jan. 28 letter addressed to House lawmakers and published by Renew GSP Today. “Over the past five and a half months, American companies like ours -- and our members -- have paid nearly $2 million per day in higher taxes while waiting for Congress to renew the program,” said the letter. “Most importantly, we use the GSP program to lower costs and remain competitive, and therefore need Congress to pass a retroactive renewal bill immediately.”
The 113th Congress may target Generalized System of Preferences renewal, Andean Trade Preference Act reauthorization and Trade Adjustment Assistance legislation, along with Trade Promotion Authority and trade pact implementation legislation in coming months, said a Jan. 23 Congressional Research Service (CRS) in a report titled “International Trade and Finance: Key Policy Issues for the 113th Congress, Second Session." The current Congress may also increasingly bring attention to CBP failures to fully collect antidumping (AD) and countervailing duty (CVD) measures, said the report.
Importers should continue to flag goods that are eligible for Generalized System of Preferences (GSP) despite the expiration of the program on July 31, said CBP Seattle in a trade information notice. The normal duty rate should be paid for GSP goods following the expiration, but continued flagging of the imports will allow CBP to process automatic duty refunds if GSP is renewed with a retroactive clause, the agency said. Importers should use the special program indicator (SPI) A or A+, it said. The expiration of GSP won't affect payment of the merchandise processing fee, said CBP.
Senate Finance Committee Chairman Max Baucus, D-Mont., Finance Committee ranking member Orrin Hatch, R-Utah, and House Ways and Means Chairman Dave Camp, R-Mich., introduced Trade Promotion Authority (TPA) on Jan. 9, drawing praise and criticism alike from lawmakers and industry officials. The sponsors tout strengthened provisions for labor and environment rules, currency manipulation, intellectual property rights protections, foreign market access guarantees for U.S. companies and improved consultation mechanisms for congressional oversight throughout trade negotiation processes in an overview of the bill (here). The sponsors also emphasized the critical role the Bipartisan Congressional Trade Priorities Act of 2014 (here) will play in bringing to close pending trade pacts, such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership.
The Treasury Department recently published its fall 2013 regulatory agenda for CBP, which lists three new items in the works, including amendments to CBP regulations that would add new notice requirements and appeal procedures for when CBP suspends or revokes an entry filer code or discontinues the ability to use immediate delivery and remote location filing (RLF) programs. The potential changes, proposed in February (see 13022521), are a major concern for the National Customs Brokers and Forwarders Association of America, which has said it would likely seek legal action if CBP were to try and revoke an entry filer code (see 13043021).
On Dec. 31-Jan. 1 the Foreign Agricultural Service posted the following GAIN reports:
The European Union issued the following trade-related releases Dec. 30-31 (notices of most significance will be given separate headlines):
International Trade Today is providing readers with some of the top stories for Dec. 16-20 in case they were missed.
Recent trade-related bills introduced in Congress include: