Insights on Customs & Import Compliance

Any importer who claims preferential tariff treatment under the Agreement for a good imported into the United States from a USMCA country must keep the following documentation for a period of no less than five years from date of entry:

The USMCA permits CBP to verify whether a good entered with a claim for preferential tariff treatment qualifies as originating by written request, or questionnaire; a visit to the premises of the exporter or producer; and any other procedure that may be decided by the Parties.

The USMCA textile and apparel rules of origin are generally based on the “yarn forward” rule, which requires the formation of the yarn (spinning or extruding) and all processes following yarn formation to occur in the USMCA territory.

The USMCA does not require the use of CBP Form 434, as there is no prescribed format for certificate of origins under the USMCA.

Effective April 20, 2020, the US government is making available a temporary 90-day postponement of certain import payment deadlines for companies and individuals experiencing “significant financial hardship” due to the economic fallout from the novel coronavirus disease (COVID–19).

This updates our prior Alert regarding the importation and distribution of respirators and other masks to be used to meet the significant US health care challenges posed by the COVID-19 pandemic.

To facilitate the importation of personal protective equipment (PPE) and other medical supplies responsive to the novel coronavirus disease (COVID–19) pandemic, the government continues to waive some tariffs, but balks on broad relief.

After initially accepting requests from importers in light of the novel coronavirus (COVID–19) pandemic to defer payment of duties—a means of relief that the Trump Administration had reportedly been considering—US Customs and Border Protection (CBP) has issued guidance withdrawing this option.

On Wednesday, March 25, 2020, the U.S. Trade Representative (USTR) is scheduled to publish a Federal Register notice requesting comments on the removal of Section 301 tariffs from Chinese medical-care products—including those that have been previously denied an exclusion—needed to respond to the COV

The coronavirus (COVID-19) is affecting all elements of society – with changes coming every day. These changes include the import, trade and transportation sectors. We will keep you updated on these changes as they occur.

The Department of Homeland Security (DHS) recently released a Department-wide strategy to combat human trafficking, child exploitation and forced labor in the supply chain. 

Last week, the Trump Administration announced a plan to crack down on the sales of contraband and counterfeit goods online. The steps will affect a number of parties in the supply chain from importers and sellers to customs brokers and forwarders to e-commerce providers.

On January 15, 2020, President Trump and Chinese Vice Premier Liu Hu signed the long-awaited US-China Trade Agreement after nearly two years of a trade war that has resulted in crippling tariffs on almost $500 billion worth of bilateral trade.

Our readers will be aware that the USMCA (CUSMA) is on track for US ratification and – by most accounts – will come into force possibly as early as mid-2020. This is not a lot of time for company executives to prepare. In addition, the three USMCA Partners will soon be meeting to set USMCA implement

Not to be outdone by the recent USMCA breakthrough, there have been significant end-of-the-year developments on the Section 301 tariff front. US importers should take stock as they wrap up activities for 2019 and continue planning for 2020.

Earlier today, House Democrats appeared before cameras on Capitol Hill to announce they had reached an agreement with the Trump Administration on the final text of the United States-Mexico-Canada Agreement.

List 4A goes into effect, all Section 301 tariffs to increase by 5 percent, USTR deadlines loom, and the President orders American companies to “search for alternatives” to China sourcing. This is your end-of-summer Section 301 China tariffs roundup.

On August 1, 2019, Trump posted a tweet that beginning on September 1, 2019, importers can expect a 10% tariff on $300 billion of Chinese goods.

At a press conference at the G20 Summit in Japan on June 29, President Trump said he will not lift current Section 301 tariffs on China, but also would not add tariffs on any additional Chinese imports “for at least the time being” as part of an agreement to resume negotiations with China. 

On June 20, 2019, the Office of the United States Trade Representative (USTR) published a notice outlining the procedure for requesting exclusions from List 3 of the Section 301 tariffs on Chinese imports via a new web portal.

Because of the length of time since China Section 301 duties were first imposed on July 6, 2018, many 2018 entries first covered by the duties are approaching their liquidation date (if they have not liquidated already).

In response to the increasing numbers of illegal border crossers, primarily from the Central American countries of El Salvador, Honduras and Guatemala, crossing into the US along the US – Mexico border, President Trump has previously indicated he would “shut the border.”

On May 21, 2019, the Office of the United States Trade Representative (USTR) published a Federal Register notice requesting comments on the proposed exclusion process for List 3 of the Section 301 tariffs on Chinese imports.

For these tariffs to become effective, the US Trade Representative will need to publish a final notice after public comment and hearing.

On April 8, 2019, the USTR announced that it is initiating an investigation under Section 301 of the Trade Act of 1974 to enforce the rights of the United States in the WTO dispute involving subsidies provided to the large civil aircraft industry by the European Union.