In calls hosted by CBP on the last day of NAFTA, and the first day of USMCA, trade professionals were anxious to understand what they should change in paperwork.
USMCA
The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.
The U.S. Trade Representative announced the appointment of USMCA state-to-state dispute panelists July 1:
The U.S. named six panelists for the Rapid Response Labor Mechanism, for the enforcement of USMCA labor protections:
CBP issued its final USMCA implementing instructions late June 30, it said in a CSMS message issued late that day. “These USMCA Implementing Instructions replace the Updated USMCA Interim Implementing Instructions issued on June 16, 2020, and provide guidance on the new requirements under the USMCA, including information on USMCA entry, compliance, rules-of-origin, origin certifications, new auto requirements, textile requirements, and other requirements for claiming USMCA preferential treatment for goods,” CBP said. “Effective July 1, 2020, the North American Free Trade Agreement (NAFTA) terminates and the USMCA enters into force.”
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, celebrated the switchover from NAFTA to the U.S.-Mexico-Canada Agreement -- coming July 1 -- but also talked about a trade irritant with Canada and one with Mexico in a conference call with reporters June 30.
The Labor Department is seeking comments on its interim rules for how automakers can establish that enough of their vehicles were produced with $16/hour labor. Stakeholders have until Aug. 31 to comment.
CBP issued the following releases on commercial trade and related matters:
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.
The Office of the U.S. Trade Representative is increasing the in-quota amount of refined sugar, other than specialty sugar, available to Canada, per the U.S.-Mexico-Canada Agreement. Effective July 1, USTR is increasing the amount of Canadian refined sugar allowed under the TRQ by 36,287 metric tons raw value (MTRV), USTR said. “Refined sugar imported from Canada pursuant to this notice may be made from non-originating raw sugar,” the agency said. “Only refined sugar with a sucrose content, by weight in the dry state, corresponding to a reading of 99.5 degrees polarity or more will be permitted. No certificate for quota eligibility is required for sugar entering under this additional in-quota quantity.”