CBP is issuing a notice amending its National Customs Automation Program reconciliation test to provide for the filing of post-importation claims under 19 USC 1520(d) -- also known as 520(d) claims -- for U.S.-Canada-Mexico Agreement treatment beginning on July 1. As with 520(d) claims for NAFTA and other free trade agreements, importers of entries flagged for USMCA must file their reconciliation entries within 12 months of the earliest import date for the flag. Post-importation refunds of merchandise processing fees (MPF) are not currently allowed under USMCA, but CBP says importers may “wish to flag USMCA entries for the possibility of MPF refunds for a post-importation USMCA claim, as CBP will provide for refunds consistent with any legislative changes.” For goods entered prior to July 1, the date when USMCA takes effect, importers may continue to submit post-importation NAFTA claims. “Since importers may file post-importation claims at any time within one year after the date of importation, no post-importation claims for NAFTA preference will be accepted after June 30, 2021,” CBP said.
International Trade Today is providing readers with some of the top stories for June 22-26 in case they were missed.
President Donald Trump on June 30 released the annexes to Presidential Proclamation 10053, including provisions to implement the U.S.-Mexico-Canada Agreement, scheduling it for publication in the July 1 Federal Register. Among the annexes are new General Note 11 to the Harmonized Tariff Schedule, which lays out USMCA rules of origin. The proclamation also adds new special program indicators (SPIs) “S” and “S+” throughout the tariff schedule for goods eligible for USMCA treatment. These changes take effect July 1.
CBP Executive Assistant Commissioner for Trade Brenda Smith told reporters June 30 that CBP staffers “are very well-prepared to implement the agreement” that takes over from NAFTA at midnight.
CBP is issuing an interim final rule to implement rules of origin provisions for the U.S.-Mexico-Canada Agreement that will take effect July 1. The interim rule creates new Part 182 to the customs regulations for USMCA, and amends existing NAFTA regulations under 19 CFR Part 181 so that they no longer apply to entries on or after July 1. Most of 19 CFR Part 182 is vacant, but CBP says it will fill out the regulations over the coming year. Comments on the interim regulations are due Aug. 31.
The process to submit written complaints for either the rapid response mechanism or for violations of the U.S.-Mexico-Canada Agreement's labor chapter will be published in the Federal Register June 30, and the Office of the U.S. Trade Representative is soliciting comments on the submission procedures. Comments are due by Aug. 15.
CBP issued the following releases on commercial trade and related matters:
CBP on June 29 posted a series of fact sheets on upcoming requirements under the U.S.-Mexico-Canada Agreement that are set to take effect July 1. The fact sheets highlight key differences between USMCA and NAFTA, including in the areas of customs duties, temporary admission, treatment of customs duties, most favored nation tariff rates, indirect materials and intermediate materials. Others cover USMCA provisions on regional value content, accumulation, recovered materials, sets and kits, accessories, remanufactured goods and fungible materials. The fact sheets should be considered guidance documents for informational and advisory purposes only, and are not intended to have legal or binding effect, CBP said.
Although lawmakers thought eliminating the NAFTA certificate would be helpful, some importers are more comfortable with structure, so there will be a certificate template available on CBP's trade agreements web page “as soon as possible,” Adam Sulewski, USMCA Center project leader at CBP, said during a conference call June 29. He reminded importers, “We can accept those required nine data elements in any form.”
The Office of Information and Regulatory Affairs completed its review of the interim final rule from the Department of Labor on certification under the U.S.-Mexico-Canada Agreement. The review was completed on June 24, it said. The labor value content, as it is known, is needed for both cars and light trucks to meet the new auto rules of origin under the USMCA. For cars, starting July 1, 33% of the vehicle must come from workers making at least $16 an hour in the U.S., $20.91 in Canada, or 304.21 pesos in Mexico, if the company is not granted alternative staging. If it is granted alternative staging, the threshold is 25%.