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%.
Keeping customs brokers updated with the details of U.S.-Mexico-Canada Agreement compliance is critical to helping smaller importers transition away from NAFTA, said Brenda Smith, executive assistant commissioner of CBP’s Office of Trade. Smith was interviewed on a June 25 podcast hosted by the Center for Strategic and International Studies about the USMCA, which enters into force July 1.
The labor provisions of the U.S.-Mexico-Canada Agreement on free trade “don’t only apply to U.S. companies doing business in Mexico,” regulatory law expert Ignacio Sanchez, with DLA Piper, told a webinar held June 24 to prepare clients for the treaty that takes effect July 1. USMCA also applies to “any facility producing goods in Mexico” for import into the U.S., he said.
The Office of the U.S. Trade Representative ought not to announce 10% tariffs on Canadian aluminum at the end of this week, just before the U.S.-Mexico-Canada Agreement goes into force, Ways and Means Chairman Richard Neal, D-Mass., told International Trade Today in an interview. The administration has not announced its intentions, but several outlets quoted unnamed sources saying the tariffs are coming if Canada doesn't agree to voluntary restrictions on its exports.
International Trade Today is providing readers with some of the top stories for June15-19 in case they were missed.
CBP issued an updated ACE deployment schedule that includes several additions related to the U.S.-Mexico-Canada Agreement. A USMCA tariff schedule database and other updates will be deployed July 1, the date the deal enters into force, CBP said in the change log. In August, CBP will deploy reconciliation changes to prevent merchandise processing fee refunds. That deployment is likely necessary because the USMCA legislation didn't specifically allow for MPF refunds. The Office of the U.S. Trade Representative is working with Congress for a legislative fix, though CBP recommends delaying reconciliation filings if possible until the MPF issue is figured out (see 2006160046).