Industry-Wide News


Aug
14
2020
Industry-Wide News

Dear Friend and Costumer,
 
Hoping you, your family, and colleagues are all doing well,

On August 6, 2020, the President issued a Presidential Proclamation on Adjusting Imports of Aluminum Into the United States, announcing that certain aluminum articles imported under Harmonized Tariff Schedule of the United States (HTSUS) subheading 7601.10 that are the products of Canada will be subject to the additional 10 percent ad valorem rate of duty.

The increased rates of duty on certain aluminum articles that are the products of Canada are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 16, 2020.

The functionality for the acceptance of the 232 additional duties on aluminum articles that are the products of Canada will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, August 16, 2020.
 

Do not hesitate to contact us if you have any comments or questions.
Compliance.clx@rljones.com

Sincerely,
Compliance Department

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Jul
1
2020
Industry-Wide News

Dear Friends and Customers,

Please be sure to review and update to the most updated USMCA Final Implementing Instructions which replace the USMCA Interim Implementing Instructions issued on June 16, 2020. These instructions 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.

The supporting USMCA regulations, the new Part 182 of Title 19, Code of Federal Regulations (19 CFR 182) that includes the USMCA Uniform Regulations,  have been issued today July 1, 2020.  Additionally, the Harmonized Tariff Schedule of the United States will be amended effective, July 1, 2020 to include General Note 11 (GN11) with information on the USMCA rules of origin, product specific rules, and other requirements.

Effective July 1, 2020, the North American Free Trade Agreement (NAFTA) terminates and the USMCA enters into force.

The USMCA Implementing Instructions – June 30, 2020  CBP Publication Number 1118-0620.
There will be a Phase I Implementation, the first six months upon entry into force (July 1, 2020 to December 31, 2020), in which CBP understands that the trade may need time to adjust business practices to comply with the new requirements under the USMCA, particularly relating to the preferential tariff treatment of goods.
During the first six months after entry into force, CBP will focus on supporting the trade’s efforts to fully comply with USMCA requirements, including providing webinars and other outreach efforts to educate the trade on the new Agreement.

Importers are required to exercise reasonable care when making a claim under USMCA, including ensuring that they are in possession of a complete and valid certification of origin at the time of making a claim and meeting all recordkeeping obligations.

In order to provide the trade sufficient time to adjust to the new requirements and in consideration of the business process changes necessary to achieve full compliance, CBP may in appropriate cases, 4 show restraint in enforcement during the six-month period after USMCA’s entry-into-force. CBP will take into account the difficulties importers may face in complying with the new rules, as long as importers are making satisfactory progress toward compliance and are making a good faith effort to comply with the rules to the extent of their ability.

Implementation of the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) Uniform Regulations Regarding Rules of Origin.
This interim final rule is effective on July 1, 2020; comments must be received by August 31, 2020
 
Please contact us for any questions, our team well be ready to assist you.
 
Sincerely,

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Jun
19
2020
Industry-Wide News

Dear Friends and Customers

As previously reported, the implementation of the new USMCA will take effect on July 1, 2020.
 
We kindly request that you send us prior to July 1, 2020 the USMCA certifications for your products that qualify according to the new rules of origin. It is of high importance to receive these certifications in order to apply the preferential treatment.
 
In order to make a proper transition regarding your import operations, we require the following:

  • Change the legend on your invoices, "Qualifies for NAFTA" to "Qualifies for USMCA"
  • Review with your system provider the update of the Special Program Indicator (SPI) for your EDI documents, please replace “N” with “S”. If you do not have the change ready with your EDI provider by July 1, 2020, please contact us.
  • Send us USMCA certifications. As a reminder, NAFTA certificates will not be valid from July 1, 2020.

 
We are here to support you. Any questions please feel free to contact us at compliance.clx@rljones.com.

Sincerely,

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Jun
17
2020
Industry-Wide News

 
   

US-MEXICO-CANADA AGREEMENT (USMCA)

Updated Interim Implementation Instructions

06-17-2020

 
     
 

Information Bulletin

 
 

Dear Friends and Customers,
 

Please review updated USMCA Interim Implementation instructions published yesterday according to

CSMS #43062320. This version replaces the Interim Implementing Instructions issued on April 20, 2020.

These Updated Interim Implementing Instructions are informational and provide early guidance on the new requirements under the USMCA, including information on claiming USMCA preferential treatment for goods.

Please note, these instructions are not yet final.  The Final Implementing Instructions will be released prior to the date the USMCA enters into force and will provide the Trade and Field with additional details on the USMCA entry, compliance, and other requirements.

The supporting USMCA regulations, the new Part 182 of Title 19, Code of Federal Regulations 182 (19 CFR 182) is to include the USMCA Uniform Regulations and will be issued July 1, 2020. Additionally, the Harmonized Tariff Schedule of the United States will be amended effective, July 1, 2020 to include General Note 11 (GN11) with information on the USMCA rules of origin, product specific rules, and other requirements.

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

 

Please feel free to contact us if you have any questions or comments.
 
 
Sincerely,

 
 

 

 
     

 

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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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