Express shippers are troubled by a footnote that suggests the U.S. could lower its de minimis rate for NAFTA partners (see 1811060010) and ask that it be removed, said Michael Mullen, executive director of the Express Association of America, during a Nov. 15 U.S. International Trade Commission hearing. Mullen also said the fact that the taxes and duties levels are separate means the $40 Canadian and $50 for Mexico will be the operative de minimis amounts. That Canadian level "is among the lowest in the world," Mullen said, adding that Mexico already offers simplified duties and taxes above $50 and $117, so the administration needs to make sure the pact does not make things worse.
International Trade Today is providing readers with some of the top stories for Nov. 5-9 in case they were missed.
NEW YORK -- The assistant U.S. trade representative for textiles acknowledged there are changes to NAFTA "you may not like," before he pitched changes to the pact that could be beneficial for the garment industry. Bill Jackson, who noted that textiles is the only sector to have a dedicated office at USTR, was speaking Nov. 7 at the Apparel Importers Trade and Transportation Conference. United States Fashion Industry Association President Julia Hughes, who was interviewing Jackson, agreed that the rewrite is "a mixed bag" for her industry.
The de minimis footnote within the U.S.-Mexico-Canada Agreement is cause for "serious concerns" for the Customs Matters and Trade Facilitation Industry Trade Advisory Committee (ITAC 12), the committee said in an addendum to its report on the trade deal. The addendum, which is dated Oct. 24 but was released by the Office of the U.S. Trade Representative this week, is among multiple reports updated after Canada agreed to join the deal between the U.S. and Mexico. While the main advisory committee offered some light criticism in its support of the deal (see 1811060023), individual ITACs included some more pointed concerns.
Fourteen trade groups wrote to the U.S. trade representative asking him to strip language in the U.S.-Mexico-Canada Agreement that suggests the de minimis level could be lowered to be closer to the NAFTA region trading partners' levels. The letter, sent Nov. 6, was initiated by the National Foreign Trade Council, and notes that Congress unilaterally raised the de minimis level in 2016 because "reduced logistics costs improve the bottom line of American small businesses across industries who import low value components for assembly and value-added manufacturing operations." It helps firms that import samples, the letter said, and benefits "importers and logistics firms by reducing the time and cost to process millions of shipments and shaving a half-a-day or more from clearing each shipment."
CBP issued the following releases on commercial trade and related matters:
The main advisory committee for the Office of the U.S. Trade Representative unanimously supports the U.S.-Mexico-Canada Agreement as "far better than the existing NAFTA," and encouraged Congress to enact it as quickly as possible. The committee includes three union leaders, and the rest of its 21 members are either from right of center think tanks or business interests.
CBP will require advance electronic manifest filing for all commercial trucks with Section 321 shipments starting Jan. 1, the agency said in a Nov. 5 CSMS message. The growth in e-commerce "combined with the increase in the De Minimis value, has resulted in a significant growth in shipments being manifested and released under Section 321," CBP said. "The lack of an electronic manifest eliminates CBP’s ability to conduct a risk assessment or perform advance targeting within the Automated Targeting System (ATS), results in slower processing times and longer wait times."
No business or labor group came out against the U.S.-Mexico-Canada Agreement, in comments filed to the International Trade Commission, even as some groups expressed concerns about aspects of the deal to replace NAFTA. Comments are due before the ITC holds a hearing on Nov. 15.
International Trade Today is providing readers with some of the top stories for Oct. 22-26 in case they were missed.