Industry-Wide News


May
22
2020
Industry-Wide News

Dear friends and customers,
 
As we have informed previously, USMCA will be implemented on July 1st 2020.  We will be happy to assist you during this transition process.

We encourage your compliance teams to review the new rules of origin to determine if you continue to qualify under the new USMCA. The latest USMCA Rules of Origin (specific by product) can be found on Chapter 4, Annex 5-B, at: https://ustr.gov/sites/default/files/files/agreements/FTA/USMCA/Text/US_Tariff_Schedule.pdf or as an attachment to this email.

Many of the new USMCA rules of origin remain unchanged or are most favorable than under NAFTA; however, it is important for you to review these rules and confirm if your products qualify under the new USMCA.

Below are important steps to consider during this transition:

  • Review the Bill of Materials for each finished good you wish to qualify for USMCA. Make sure to include full description of the finished product with 10 digit HTS, full description for each component and its 10-digit HTS, Country of origin, value for each component, any packaging, and value added(labor).  Review the process made in Mexico to help determine the extent of the transformation in Mexico. If picture can be included in your Costed Bill of Material, you may add it.  
  • Request the new USMCA Certifications from your suppliers to make sure that originating components used in your production still qualify under the new USMCA.
  • For products that did not qualify for NAFTA under De Minimis for a small margin in value, we encourage you to do a USMCA study since new USMCA increases the foreign component allowance from 7% to 10% and you might now qualify under USMCA.
  • Confirm if your system/database/Anexo 24 will be ready by July 1st 2020 to report the new USMCA claim in your EDI invoices.  Please note Special Program Indicator (SPI) was previously MX to indicate your product qualified under NAFTA and will now require an “S” to claim USMCA.  We will still need you to declare country of origin MX in addition to your Special program Indicator (SPI).
  • If you currently submit non-edi invoices or do not have the capability to report the new “S” to indicate when you claim USMCA, please be sure to let us know.  You may add as a comment “USMCA” or “Qualifies for USMCA” on commercial invoice to indicate the part numbers you intend to claim.  We cannot assume all part numbers or products on your invoice qualify for USMCA; therefore,  we recommend you report a claim individually, either a comment or for example: MX/S 0703.10.4000

As an importer, you will be required to have an origin certification at the time a USMCA claim is made. Please make sure you coordinate with exporter and producer to decide who will prepare and submit the origin certification and make sure we receive it prior to day of importation.

USMCA will no longer require CBP Form 434 NAFTA, instead you may use any free form that meets the 9 minimum requirements (Chapter 5 Origin Procedures, Article 5.2 and Annex 5-A)

  • Importer, exporter or producer Certification
  • Certifier
  • Exporter Name
  • Producer Name
  • Importer name
  • Description and HS Code
  • Origin Criteria
  • Blanket Period
  • Authorized Signature and Date
  • Certification Statement

 
For your convenience we have prepared  the attached certification of origin format.  
  
Feel free to contact us if you have any questions or comments.
 
 
Sincerely,

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Apr
28
2020
Industry-Wide News

Dear Friends and Customers,

Last week, the Office of the United States Trade Representative (USTR) announced that the United States–Mexico–Canada Agreement (USMCA) would enter into force on July 1st 2020.

U.S. Customs and Border Protection (CBP) issued interim implementing instructions on April 20 via administrative message CSMS #42429822 US-Mexico-Canada Agreement (USMCA) Interim Implementation Instructions, intended to provide early guidance on new requirements under the USMCA. These instructions are for advance informational and advisory purposes only.  They are not final and are subject to further revision.

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/april/usmca-enter-force-july-1-after-united-states-takes-final-procedural-steps-implementation

Contents on the interim implementing instructions are subject to change pending the issuance of GN 11 on Harmonized Tariff Schedule establishing Rules of Origin and 19 CFR 182 regulations. The final instructions will be released prior to the date the USMCA enters into force which will be July 1st 2020, and will provide additional details on entry, compliance, and other requirements.

Until the USMCA enters into force, the North American Free Trade Agreement (NAFTA) requirements remains in effect.

Interim rules include: Origination, Rules of Origin, Regional Value Content, De Minimis (Non-Textiles), Merchandise Processing Fees (MPF) exemption,  Country of Origin Marking Rules, Sets, Transit and Transshipment, Preference Claims, Post-Importation Claims, Certification or Other Document Requirements, Correction of False/Unsupported USMCA Claims, Recordkeeping Requirements, Verification by CBP,  Issuing a Determination, Impact of a Negative Determination on a Blanket Certification, Pattern of Conduct, Protest Rights,  Supporting Documents, Eligible Articles, Steel and Aluminum Certification.

For automotive: Rules of Origin for Automotive Goods, Automotive Rules of Origin and Procedures, Calculation of LVC requirement Parts and Components for Passenger Vehicles and Light Trucks, Certification for Certain Vehicles, Passenger Vehicles, Light Trucks, and Heavy Trucks, Labor Value Content, Labor Value Content Certification. 

For textiles: Eligibility for Textiles and Apparel, Textile and Textile Apparel Rules of Origin, USMCA Eligibility for Textiles and Apparel, Short Supply.
 

Below please find additional related links:


Please feel free to contact us if you have any questions.

Sincerely,

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Apr
24
2020
Industry-Wide News

Dear Friends and Customers,

We have shared on previous bulletins certain restrictions on the exportation of personal protective equipment (PPE) considered scarce in the USA.

We would like to inform that, on April 21st 2020, a notice of exemptions from the allocation order issued through a Temporary Final Rule for FEMA was published. 

Please note that 5 out of the 10 exemptions the exporter/shipper will require an attestation letter to be submitted via DIS before exportation to prevent your shipments from being detained.

The below list include only the 5 exemptions that will require an attestation letter signed by a responsible company official: 

  • Exports of covered materials by non-profit or non-governmental organizations that are solely for donation to foreign charities or governments for free distribution (not sale) at their destination(s).    
  • Intracompany transfers of covered materials by U.S. companies from domestic facilities to company-owned or affiliated foreign facilities. 
  • Shipments of covered materials that are exported solely for assembly in medical kits and diagnostic testing kits destined for U.S. sale and delivery. .                
  • In-Transit Merchandise:  Shipments in Transit through the United States with a Foreign Shipper and Consignee, Including Shipments Temporarily Entered into a Warehouse or Temporarily Admitted to a Foreign Trade Zone. (for exemption 8 it largely applies to goods temporarily entered into a bonded warehouse or Foreign Trade Zone with the intent to leave the US).
  • Shipments for Which the Final Destination is Canada or Mexico.

For the full list of 10 exemptions please review the attached Administrative message CSMS #42439611 https://content.govdelivery.com/accounts/USDHSCBP/bulletins/28793bb?reqfrom=share

RL Jones will submit your letter on each EEI /AES transmission through DIS, or by email to CBP. We will therefore need this signed letter at the time we receive commercial invoice.

INSTRUCTIONS ON PREPARING LETTER:         

  • Include a description of which exemption(s) the exporter is claiming;
  • Provide details regarding the shipment that are sufficient for the CBP and FEMA officials to determine whether the shipment falls under the claimed exemption(s), including the required information identified in the Federal Register notice published on April 21, 2020;
  • Add a statement that the provided information is true and accurate to the best of the exporter’s knowledge, and that the exporter is aware that false information is subject to prosecution under the DPA, as outlined in the allocation order.
  • Regarding exemption 9, the letter of attestation must state that the covered materials are for use in Canada/Mexico, and will not be transshipped through those countries Covered materials can be found at https://www.federalregister.gov/documents/2020/04/21/2020-08542/prioritization-and-allocation-of-certain-scarce-or-threatened-health-and-medical-resources-for


Please feel free to contact us if you have any questions.

Sincerely,

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Mar
23
2020
Mar
20
2020
Industry-Wide News

  Dear Friends & Customers,

The federal government has announced that effective tonight, all non-essential travel

(passengers/pedestrian) between US and Mexico will not be allowed.  However, all cross

border trade (cargo) will not be affected.   All essential travel (passenger/pedestrian),  

and commercial trade will be allowed.  

Please see attached Federal Notice and RL Jones Bulletin. 

 

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Mar
18
2020
Industry-Wide News

Dear Friends and Customers,
 
FDA’s Import Operations currently remain functional and operational.  Activities including FDA Prior Notice review, FDA entry processing, FDA sampling/examination of high risk shipments, FSVP inspections, filer assessments, and compliance activities are all ongoing.
 
While most import operations are not currently experiencing delays, the import community should expect delays in the receipt of hard copy notices. FDA will have a lessened capacity to generate and mail hard-copy Notices of FDA Action (release notices, sampling notices, etc.). FDA strongly encourages all members of the import community who deal in FDA-regulated articles to utilize the FDA Import Trade Auxiliary Communication System (ITACS) for current entry status and to receive FDA notices electronically.
 
FDA is continuously monitoring COVID-19 events and will provide updates as circumstances warrant. Additionally, COVID-19 information can be found on FDA’s website for Coronavirus Disease 2019 (COVID-19).
 
Feel free to contact us for any questions or comments.
Compliance.clx@rljones.com

Sincerely,
Department of Compliance

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