USMCA Part 102 Rule Change, Cosmetic ACE Enhancements Coming in 2022, Lawyer Says
A Sandler Travis lawyer, looking forward to trade developments in 2022, said CBP is scheduled to issue a final rule in February for USMCA implementation, including applying the part 102 rules for nonpreferential purposes to goods produced in Canada and Mexico (see 2107010045). "This would avoid situations where goods could qualify under the USMCA as a product of Mexico, but still be hit with Section 301 tariffs," Mark Tallo said on the firm's "Two Minutes on Trade" podcast.
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Firms may also be able to avoid the tariffs if the Office of the U.S. Trade Representative opens the Section 301 exclusion process beyond previously granted products, as Tallo predicted will happen "in response to pressure from Congress and the private sector."
He said the Court of International Trade is expected to issue a ruling in the third quarter of 2022 on whether applying Section 301 tariffs on products from lists 3 and 4A was outside the statutory authority for USTR. He said an appeal is likely.
Tallo also said he's hoping the ACE portal modernization will make the interface a bit more user-friendly. "This is more of a facelift of the current portal, as it will involve standing up a new improved portal in parallel. The first phase is scheduled to be deployed in late January, with full implementation over the next year," he said.