Customs Duty

More commenters on NAFTA renegotiations pushed for the U.S. to protect development of ACE and a North American single-window system in any updated agreement. The American Association of Exporters and Importers said in comments to the Office of the U.S. Trade Representative (here) that NAFTA should allow electronic signatures for the certification process in all three parties. The signature should be generated by software identifying and authenticating the signer and confirming the signer’s approval, AAEI said. “Acceptance of this type of electronic signature is distinct from NAFTA’s current and outdated practice of requiring certificates that are either hand-signed or that include an electronically reproduced image of an original handwritten signature.”

In recent editions of the Official Journal of the European Union the following trade-related notices were posted (here):​​​​​​​

Duty deferral provisions within NAFTA should be left out of any updated deal, the National Customs Brokers & Forwarders Association of America said in comments to the U.S. trade representative (here). Under NAFTA, some products processed in the U.S. "require a special deferral entry to be filed with duty payment to CBP" when exported to Canada or Mexico, the group said. "This special entry and duty payment would not apply if the same shipment were exported to any other country outside of NAFTA" and therefore "hinder U.S. exports to Mexico and Canada," the group said. The NCBFAA comments were in response to a USTR request for public input on how it should update NAFTA.

In the June 7 issue of the CBP Customs Bulletin (Vol. 51, No. 23) (here), CBP published notices that propose to revoke or modify rulings and similar treatment for glass plant watering bulbs and Chelal Fe.

NAFTA negotiators should embrace trade facilitation and “do no harm” to existing cross-border relationships as they rework the agreement, trade associations said in comments to the U.S. Trade Representative (here). USTR on June 13 extended the deadline for comment submission on the expected NAFTA renegotiation from June 12 until 11:59 p.m. on June 14, citing "high interest" and a need to ensure all interested participants have an opportunity to comment. USTR requested input on potential modifications to the agreement following the administration’s formal notification to Congress that it intends to start renegotiating the agreement as early as mid-August (see 1705220007 and 1705180043).

The International Trade Commission recently launched a Section 201 safeguard investigation on imports of large residential washers, it said in a notice (here). Whirlpool requested the safeguard duties in a petition filed May 31, subsequently amended in early June. The investigation will determine whether to impose a tariff-rate quota on large residential washers imported from any country, though some countries with preferential trade agreements with the U.S. may be exempt, Whirlpool said in its petition.

An importer’s conduct in a court case does not affect the amount of penalties that should be assessed for tariff misclassification, the Court of International Trade said in a decision issued June 7 (here). Although the government had sought $324,540 in penalties from Horizon Products International for the importer’s negligent misclassification of its plywood imports in a duty free tariff subheading, CIT instead authorized half that. A “significant penalty” was warranted for “slow-playing the Government,” but failure to cooperate in a court case should instead be addressed by other means, it said.

Trade associations from the U.S., Canada and Mexico are recommending that NAFTA renegotiations include trilateral strengthening of respective trade remedy laws, tools and processes for coordinated enforcement and information sharing, and continued treatment of China as a non-market economy for antidumping duty purposes. In a list of joint recommendations (here), groups including the American Iron and Steel Institute, the Canadian Steel Producers Association, and Canacero, the Mexican Iron and Steel Industry Chamber, also call for improved customs operations, strengthened rules of origin and enhanced regional value content requirements to incentivize investment and job growth in North America.

Actions resulting from the Commerce Department’s ongoing national security investigation on steel imports could disrupt U.S. import-intensive industries and any remedies should be tailored to specific types of steel, companies said in comments to Commerce (here). Commerce recently posted comments it accepted through May 31 on its Section 232 investigation on steel imports, which would allow the Trump administration to impose tariffs, quotas or other import restraints if the review finds steel imports endanger U.S. national security. Commerce Secretary Wilbur Ross has said the department should finish the examination this month (see 1705240034).

Upcoming NAFTA renegotiations should result in the prohibition of customs duties on digital transmissions, Canadian and Mexican de minimis levels consistent with the U.S. threshold, and a ban on burdensome customs procedures, the Internet Association said in an outline of priorities for the expected trilateral discussions (here). NAFTA should ensure governments can’t add extra charges to the flow of music, video, software, e-books and games across borders, the association said. World Trade Organization members have agreed to a temporary moratorium on such duties, which some countries have threatened to apply, the association said. With regard to de minimis, the “artificially low” levels of Mexico and Canada disproportionately impact internet-enabled U.S. businesses that regularly ship low-value items, especially small companies, the group said. NAFTA should bring Canada’s and Mexico’s thresholds up to the U.S. $800 level, the association said.