Advance rulings: limiting your USMCA import liability.

business commerce container export
Photo by Kaique Rocha on Pexels.com

Every importer of record needs to make declarations to Customs regarding tariff classification, valuation, origin of imported goods and more. Incorrect declarations can potentially lead to long term and expensive problems for the importer.

The NAFTA rules provided a method in which importers could seek guidance from Customs through an advance ruling to predetermine tariff classification, valuation, regional value issues, questions on qualifications of originating good, country of origin marking requirements, and more. NAFTA limited requests for guidance to only importers in the US and exporters and producers in Canada and Mexico who exported their goods to the US.

Fortunately, the new USMCA implemented several key changes. First, the USMCA not only allows an importer, but also allows an exporter, producer or anyone related to the trade transaction to request an advance ruling. Advance ruling requests are no longer limited to domestic residents.

Secondly, the USMCA agreement requires Customs to make a decision within 120 days – increasing transparency and predictability to the advance ruling process. Additionally, the USMCA also identifies the subjects that can be decided through ruling requests – tariff classification, customs valuation, origin of goods, quotas or “other issues agreed upon”.

Lastly, the USMCA offers increased protection in the event of customs modifying or revoking an advance ruling. Under the USMCA, an advance ruling cannot be revoked or modified if doing so will hurt the original ruling requester – unless the requester did not follow the advance ruling or the ruling was based on false information provided by the requester.

The best way to limit your USMCA import liability is to request an advance ruling – taking out the guesswork before the goods are shipped or entered into the US. Please do not hesitate to contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

USMCA regulations published.

As the USMCA is set to take effect in less than a month, the USTR has published the USMCA regulations on their website. The regulations can be viewed at the following: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/uniform-regulations

This is a long read and I haven’t read through a quarter of it. Will likely take me the entire weekend to go through the agreement.

In the meantime, if you have any questions how the new USMCA rules will impact your business, give me a call anytime or text, 832-896-6288 or by email at attorney.dave@yahoo.com.

CBP Launches United States-Mexico-Canada (USMCA) Center to Coordinate Implementation of USMCA.

aerial view photography of container van lot

Photo by Tom Fisk on Pexels.com

According to a U.S. Customs and Border Protection media releaes, CBP will open the USMCA Center prior to the start of the USMCA on July 1st. The USMCA Center will be the main communication hub for CBP and will include experts in operations, legal, audit and also virtual representatives from Canadian and Mexican customs authorities. The Center is there to ensure an efficient transition from NAFTA to USMCA.

Part of the center will also help the trade community with a focus on outreach, training and developing new regulations and procedures.

As you are aware, the USMCA replaces NAFTA and has been modernized to reflect technological changes in the past 25 years. The changes cover rules of origin, market to agricultural goods, digital trade, changes to labor rights of workers, and the protection of intellectual property rights.

The media release does want to remind members in the trade community the NAFTA rules will apply until July 1st. If you have any questions how the new USMCA will impact you, please contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

EU and Mexico reach new trade agreement.

pexels-photo-113885

Photo by freestocks.org on Pexels.com

Last week was the culmination of two years of negotiation between the European Union and Mexico to reach a new free-trade agreement. The last trade deal occurred in 2000 and that trade deal covered only industrial goods.

Details of the EU-Mexico trade agreement can be downloaded in PDF directly from the EU website here. Part of the new EU/Mexico trade deal changes include:

1. Almost all goods between the Mexico and EU will be duty free;
2. New rules on sustainable development and implementation of Paris Climate Agreement;
3. New rules on investment protection;
4. Simpler customs procedures to help boost exports.

While the terms of the agreement have been reached, the next step is to finalize the agreement, translate into EU languages and then submit the proposed agreement for signature and conclusion to the Council and European Parliament.

What’s significant about July 1, 2020.

pexels-photo-2348359

Photo by Kevin Bidwell on Pexels.com

With all the news coverage focused on the COVID-19 pandemic, the Trump administration quietly notified Congress yesterday (Friday, April 24, 2020) that the U.S.-Mexico Canada Agreement (USMCA) will take effect on July 1st.

If you have any questions how the new policy may impact your business, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Mexico and US agree to close border except for trade and workers.

pexels-photo-3800834

Photo by Hugo L on Pexels.com

According to the Wall Street Journal, the U.S. and Mexico have reached an agreement on closing border traffic between the two nations except to allow for trade and workers and essential traffic. The

Essential traffic includes for medical purposes, attend educational institutions and emergency response workers.

President Trump cited the CDC’s order on need to slow the spread of the Corona virus and to ensure there are enough health-care resources for US citizens. This closure comes a day after Canada and the US agreed to also close their border.

Besides traveling to Mexico or Canada, the State Department on Thursday issued a new travel alert asking Americans to go travel abroad and to return home unless planning to live abroad.

ITC publishes final determination of no material injury by imports of Fabricated Structural Steel from China, Canada and Mexico.

dirty industry stack factory

Photo by Life Of Pix on Pexels.com

About 30 minutes ago, the Federal Register published the final determination decision by the International Trade Commission finding no material injury by imports of fabricated structural steel from Canada, China and Mexico. The Final Determination can be viewed here: https://www.govinfo.gov/content/pkg/FR-2020-03-20/pdf/2020-05845.pdf

The petitioners have 30 days to file an appeal in court. If no appeal is filed, importers who paid duties may be eligible for a refund after the deadline to appeal expires.

If you want to learn more about getting a refund for your imports of fabricated structural steel from China, Canada or Mexico, contact experienced trade attorney David Hsu by phone/text at 832-896-6288, or by email at attorney.dave@yahoo.com.

Canada approves USMCA trade deal.

pexels-photo-374870

Photo by Burst on Pexels.com

While the US is focused on the Corona Virus (COVID-19), on Friday, Canada formally approved the United States-Mexico-Canada Agreement (USMCA), the last nation needed to implement the deal to replace the 25-year-old North American Free Trade Agreement (NAFTA).

The trade deal was ratified by the Mexican legislature last June, the US legislature this past January and formally ratified by Canada on Friday. The Canadian parliament is now shut down for five weeks in response to the coronavirus pandemic.

Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com if you have any questions about how the new USMCA will impact you and your business!

USMCA Signing Day for the US.

Donald_Trump_official_portrait

Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

Later today, President Trump will sign the house and senate approved USMCA bill. The replacement for the 25-year old trade agreement NAFTA won’t immediately take effect as Canada remains the only country that has not yet approved the USMCA (expected to do so in a few weeks). Give me a call/text if you have questions how the USMCA will impact you or your business – 832-896-6288 or send me an email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

USMCA to be signed on Wednesday 1/29.

Donald_Trump_official_portrait

Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

As you are aware, the Senate passed the USMCA legislation last week. According to Reuters, President Trump will sign the USMCA trade agreement next Wednesday at the White House. The Reuters article cites unnamed sources regarding invitations for the upcoming ceremony.

This new US Mexico Canada Agreement (USMCA) wills replace NAFTA and still requires formal approval from Canada.

Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com if you have questions how the new USMCA may impact your business.