USCIB Identifies Countries With Burdensome Customs Processes in National Trade Estimate Submission to USTR
Arduous processes in Mexico, Ecuador, Colombia and Ghana are among the most significant customs-related issues that the Office of the U.S. Trade Representative should report in its 2017 National Trade Estimate (NTE) Report on Foreign Trade Barriers, the U.S. Council for International Business (USCIB) said in comments to USTR (here). Mexico’s April 2015 amendment to its Customs Law Rules requires that importers of record provide documents reflecting the valuation of imported goods to Mexican customs brokers by the time of importation. But the requirement demands documents that are usually issued to importers after importation, or that are confidential or “non-existent,” USCIB said. The Mexican government has delayed enforcement of the requirement five times. Several customs regulations can’t be enforced because they are “impossible to implement,” a byproduct of the Mexican tax authority’s regular crafting of regulations without industry input, USCIB said.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The Mexican government is also proposing a regulation to increase the value-added tax and duties for express shipments, in addition to other requirements like reporting the Harmonized System code of every product in an express shipment and monthly reports showing tax IDs for customers and shipment invoices, USCIB said. “This would mean that all imports will need a Custom agent and a formal classification of merchandise, and undergo the normal import procedure for large cargo,” USCIB said. “It would apply even when the cost is minimal or there is no declared value a specific import.” The rule would add to companies’ monetary and time-related costs, and contradict Mexican government negotiations with NAFTA partners about streamlining e-commerce, the group said. But USCIB also said a July regulation creating a new federal authority for the development of Mexican special economic zones should translate to new zones that bring customs, tax, financial and administrative advantages for industrial investments.
In Ecuador, U.S. food product importers, particularly fast food franchisees, reported that Ecuadorian government agencies were confused over how to enforce a regulation mandating that the nation’s animal and plant health service require a sanitary/phytosanitary certificate for processed agricultural products, including “low-risk,” cooked foods, USCIB said. This, and intentional delays by Ecuadorian officials of entries of imported products as part of a policy of “import substitution,” have caused lags in import processing, USCIB said.
Ecuador’s neighbor Colombia bans all imports and exports of mobile devices and parts through mail or express mail, and prohibits all mobile phone exports with limited exceptions for travelers, waste electrical and electronic equipment, and exports for overseas processing and subsequent import, USCIB said. A Colombian government decree issued in October 2015 set these requirements, and dictates that each cell phone have a government verification certificate at the time of import, and that all importers and exporters pre-register with the Colombian National Police as a condition for authorization to trade mobile phones, even though Colombia hasn’t established systems required to implement the rules.
USCIB also called on Ghana to disentangle its inconsistent methods for valuing software in order to assess customs duties. Ghana and other West African countries should apply the valuation method provided by a 1984 General Agreement on Tariffs and Trade Committee on Customs Valuation decision (here) that enables countries to calculate the customs value of software based solely on the value of the data-carrying device itself, USCIB said. “In some instances, countries are using this method, while in others they are assessing duties based on the IP value of the loaded software,” the groups said. “To ensure wide availability of best-in-class technologies, Ghana and other West African countries should consistently apply the valuation method provided for” in the 1984 decision.