The American Association of Exporters and Importers, IBM and U.S. subsidiaries of the Foxconn Technology Group all disagree with CBP's proposed use of Part 102 rules of origin in non-preferential claims and procurement under USMCA (see 2107010045), they said in the comments recently posted in the docket for the proposal. Meanwhile, lithium-ion battery producer, Inventus Power, and the American Iron and Steel Institute voiced support for the changes in their comments. So far, the comments show a deep split between industries in support (see 2107270049) and against (see 2109010006) the proposal.
International Trade Today is providing readers with the top stories from Aug. 30 - Sept. 3 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
CBP should take a different approach than the one it proposed for the rules of origin used on non-preferential claims and procurement under USMCA (see 2107010045), the Business Alliance for Customs Modernization said in comments to the agency. “BACM requests that CBP withdraw this [notice of proposed rulemaking] and engage the trade community in a dialogue about the type of rule of origin the United States should use for non-preferential purposes -- an objective test or a subjective test -- and then issue a new NPRM based on that input,” it said. BACM, which is made up of “large U.S.-based multinationals,” is the latest to come out against the proposal (see 2108120033 and 2108090027).
International Trade Today is providing readers with the top stories from Aug. 23-27 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The U.S. is now facing formal complaints from both Mexico and Canada over how it's calculating regional value content in the auto rules of origin under USMCA. Canada formally joined Mexico's call for consultations, it announced Aug. 26. Canada says that, like Mexico, it does not agree "with the interpretation of the United States of the relationship between the core parts and vehicle regional value content calculations."
The Customs Rulings Online Search System (CROSS) was updated Aug. 26. The following headquarters rulings were modified recently, according to CBP:
After Mexico asked it for consultations (see 2108230041), arguing that the NAFTA approach to roll-up should be continued under USCMA, the Office of the U.S. Trade Representative said the request is under review. USTR spokesman Adam Hodge said that U.S. government officials "remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed.”
Less than two weeks after the U.S. and Mexico announced a resolution to a Rapid Response Mechanism complaint over labor violations at a General Motors plant in Mexico (see 2107090019), the second vote at the plant in Silao resulted in a rejection of the protection union. The complaint was brought because that same protection union did ballot-stuffing and intimidated workers during the first vote, advocates said.
The Mexican government has asked the Office of the U.S. Trade Representative for formal consultations under USMCA's dispute resolution process over a disagreement on how the auto rules of origin should work. Mexico says that when it agreed to a 75% regional value content standard at the end of the phase-in period, its negotiators were assuming that once a part is considered originating, its value should count as North American as you move to assemblies, and ultimately, to the vehicle as a whole. So, Mexico says that in the text on the rules of origin, if a core part is originating, its full value is counted in a super-core part, such as an engine, and if that engine is originating, its value counts in the RVC for the vehicle as a whole.
The Customs Rulings Online Search System (CROSS) was updated Aug. 17. The following headquarters rulings were modified recently, according to CBP: