On Monday, April 20, 2020, U.S. Customs and Border Protection (CBP) issued interim instructions for implementation of the U.S.-Mexico-Canada Agreement (USMCA).*  The instructions provide guidance regarding preferential tariff claims under the USMCA.  The Agreement, once it enters into force, provides for the immediate or staged elimination of trade barriers for goods originating in one of the three countries.  The instructions provide guidance regarding rules of origin (including for automotive goods), regional value content (RCV) calculation methods, de minimis rules, transshipment, eligibility for textiles and apparel, making preference claims, and certification and recordkeeping rules and requirements.

The instructions provide a rules of origin definition to determine whether a good qualifies as an “originating good” under the USMCA, such that it is eligible for preferential tariff treatment.  Under USMCA a good is “originating” in the United States, Mexico, or Canada when:

a) The good is wholly obtained or produced entirely in the territory of one or more of the Parties, as defined in Article 4.3 of the Agreement;

b) The good is produced entirely in the territory of one or more of the Parties using non-originating materials provided the good satisfies all applicable requirements of product- specific rules of origin;

c) The good is produced entirely in the territory of one or more of the Parties exclusively from originating materials; or
Continue Reading CBP Posts Interim Instructions for USMCA Implementation

On February 27, 2020, President Trump announced that he would not impose duties on imports of titanium sponge pursuant to his authority under Section 232 of the Trade Expansion Act of 1962, a statute that allows for the imposition of duties where imports threaten to impair the national security.  The decision was well-received by much

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Application of 232 duties to “derivative articles” is authorized by statute.  Indeed, while the

On January 15, 2019, President Trump and Chinese Vice Premier Liu He signed the long-awaited “phase one” trade deal at the White House. The deal represents the first step towards a comprehensive agreement between the two nations and progress in the U.S.-China relationship. The deal will help ease trade tensions signaling a truce in the

Last week, the United States and China reached an agreement on the long-awaited “phase one” trade deal.  The deal, originally announced in October, will include tariff reductions by the United States and a $200 billion increase of U.S. good purchases by China. According to U.S. Trade Representative Robert Lighthizer, the 86-page agreement is currently

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China’s practice of forcing U.S. companies

Last week, Congress sent to the President’s desk a bill supporting pro-democracy activists in Hong Kong.  The Hong Kong Human Rights and Democracy Act of 2019, sponsored by Sen. Marco Rubio (R-FL), passed the Senate by unanimous consent and the House by a vote of 417-1 (last month, the House passed a similar measure authored

The Office of the U.S. Trade Representative (USTR) has announced a hearing date and related deadlines for review of certain countries’ ongoing eligibility under the United States’ Generalized System of Preferences (GSP) program.  We previously wrote about these GSP reviews here, which may result in the United States’ decision to suspend duty-free GSP benefits

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