Background on CBP Country of Origin Determination and USMCA
All merchandise of foreign origin imported into the United States (U.S.) must generally be marked with its country of origin, and it is subject to a country of origin (COO) determination by CBP. The country of origin of imported goods may be used as a factor to determine eligibility for preferential trade treatment under a free trade agreement.
Forced Labor is the third most lucrative illicit trade, behind only drugs and weapons, and has an annual trade value of roughly $150 Billion. Right now, over 40 million people around the world are victims of some type of forced labor, including modern slavery, human trafficking, etc.
Thankfully, U.S. Customs and Border Protection has been working to curb this inhumane practice.
Diaz Trade Law’s President, Jennifer Diaz and Associate Attorney, Denise Calle are enthusiastic to announce that another one of their articles, “USMCA Import Considerations for Practitioners,” was published by Bloomberg Law! Below is the article reproduced with permission for your reading pleasure. We’d love to hear your feedback!
You can read the article here, by clicking USMCA Import Considerations for Practitioners (where you’ll have the ability to access all of the great hyperlinks) you cannot click on below.
The U.S.-Mexico-Canada Agreement (“USMCA”) is a pending free trade agreement that will replace the North American Free Trade Agreement (“NAFTA”). The USMCA was signed in December 2019 and was ratified by all three countries in March 2020. Currently, the USMCA is being implemented and the agreement will enter into force on July 1, 2020.
Update –> In a tweet on June 7th by President Trump, the trade world was notified that the immediate threat of tariffs was officially off the table… for now.
The SAT of the Mexican Government has issued hundreds of questionnaires to U.S. exporters demanding proof that the country of origin of the merchandise shipped from the United States to Mexico really qualified under NAFTA. The problem is that U.S. exporters are not taking the Mexican Government questionnaires seriously enough, resulting in the Mexican Government penalizing the Mexican importer which then sues the U.S. exporter.
In one of the most important recent decisions, the U.S. Court of International Trade dismissed a case filed against the CEO of his importing company that had made false statements to U.S. Customs and Border Protection in the entry documents. This Court decision has significant implications for every owner, officer, and manager of any company involved in importing merchandise into the United States.