Importers Should Be Testing Themselves on USMCA During Informed Compliance, Experts Say

Customs brokers and a trade attorney urged trade professionals to work with their importers now to prepare for enforcement of USMCA next year. Monica DeMars, manager of corporate customs for C.H. Robinson, told attendees at a National Customs Brokers & Forwarders Association of America conference session on Sept. 18 that when CBP begins enforcing USMCA, it will look at July-December entries from this year, not just start enforcing prospectively.

So, DeMars said, companies should go through a mini-audit, as if they had been asked for documentation from CBP on certificates of origin. She also warned that if companies didn't ask for USMCA benefits at the time of entry, but are making a post-importation claim, CBP may ask for more documentation than just a certificate of origin form. While there is no longer a single COO form, CBP created a template (see 2008170026) because so many brokers were uncomfortable with submitting the nine data elements without further direction. That template, they said, actually asks for more information than is required.

“They need to know if they can pass the test,” DeMars said. She reminded viewers of the online presentation that free trade agreements and revenue collection are priority issues for Customs.

For the rest of this year, if companies realize they wrongly claimed USMCA, they can notify CBP and won't be penalized as long as they pay the duties and merchandise processing fees. They need to let CBP know within 30 days of realizing the error.

The auto sector has a longer period of informed compliance, through July 1, 2021. No car company has yet learned exactly how long their transition periods can be, and for what vehicles, as they are still negotiating with the Office of the U.S. Trade Representative over individualized alternative staging regimes. When asked by International Trade Today if car companies could expect a longer period before enforcement begins if those transitions are still not settled on two months from now, DeMars said, “Who knows?” But she said it could be pushed out, and she wouldn't be surprised.

Adrienne Braumiller, founder of the Braumiller Law Group, said she thinks it's possible other importers will get a longer period of informed compliance, as well. “Do I think everybody will know everything they need to know by January,” she asked rhetorically, and answered: “Heck no.” Jose Gonzalez, a licensed customs broker and NCBFAA vice president, said there are still big question marks for automotive importers on how to comply, especially with labor value content. “USMCA was rushed through, a lot of details still haven't come out,” he said.