The complexity of the auto rules of origin in both NAFTA and the U.S.-Mexico-Canada Agreement are the result of what one observer calls the "political preoccupation" with retaining domestic auto manufacturing. Eric Miller, president of Rideau Potomac Strategy Group, noted that in NAFTA, that resulted in the tracing list, and in USMCA, that resulted in the labor value content and higher North American value targets, including for specific parts.
International Trade Today is providing readers with some of the top stories for May 11-15 in case they were missed.
The top executive for customs policy at UPS said the consequence of the COVID-19 pandemic will be that companies “reassess everything” about supply chains. Norm Schenk, executive vice president for customs policy, was on a panel that included the director of corporate customs for a major logistics provider, the head of customs for a major automaker, and the executive director of the Georgia Ports Authority. The panelists, hosted by the U.S. Chamber of Commerce on May 19, agreed that even after the crisis is over, trading will not return to how it was.
The Trump administration continues to seek some major changes to the Section 321 provisions that allow for streamlined customs processing for low-value shipments, said Megan Costello, a lobbyist with Sorini, Samet and Associates. Some in the administration want a total removal of the benefit, while others only want to make sure low-value shipments are subject to Section 301 tariffs, she said. Costello gave a presentation as part of the National Association of Foreign-Trade Zones virtual conference on May 13. An administration official said in April the Office of the U.S. Trade Representative was looking at how it can address some issues with the provisions (see 2004290052)
CBP has assessed about $62 billion in duties under the major trade remedies started during the Trump administration as of May 13, according to CBP's trade statistics page. That includes $51.4 billion in duties from the Section 301 tariffs on goods from China, and $486.1 million in Section 301 tariffs on goods from the European Union. CBP also has assessed about $7 billion under the Section 232 tariffs on steel and $2.1 billion under tariffs on aluminum. The Section 201 trade remedies on washing machines, washing machine parts and solar cells account for $1.7 billion in assessed tariffs. CBP's statistics account for refunds provided to importers.
CBP added on May 14 the ability in ACE for importers to file entries with recently excluded goods in the third tranche of Section 301 tariffs, it said in a CSMS message. The official Office of the U.S. Trade Representative notice for the exclusions was published on May 8 (see 2005050037). The exclusions are in subheading 9903.88.46. The exclusions are available for any product that meets the description in the Annex to USTR’s notice, regardless of whether the importer filed an exclusion request. The product exclusions apply retroactively to Sept. 24, 2018, and will expire after Aug. 7, 2020. The CSMS message also includes a summary of Section 301 duties that shows information on each tranche of tariffs and granted product exclusions.
The Office of the U.S. Trade Representative will grant extensions to 13 exclusions from the first list of Section 301 tariffs on China that were due to expire May 14, it said in a pre-publication copy of a notice posted to its website. The exclusions that weren't extended will expire May 14.
International Trade Today is providing readers with some of the top stories for May 4-8 in case they were missed.
The Office of U.S. Trade Representative announced a new round of Section 301 tariff exclusions (see 2005110005) that includes some medical supplies that were included in the fourth tranche of tariffs.
The Office of the U.S. Trade Representative issued another set of product exclusions from the fourth group of Section 301 tariffs on goods from China. The new exclusions from the tariffs include "three 10-digit HTSUS subheadings and five specially prepared product descriptions, which together respond to 27 separate exclusion requests," according to the notice. The product exclusions apply retroactively to Sept. 1, 2019, the date the fourth set of tariffs took effect. The exclusions will remain in effect until Sept. 1.