The United States-Mexico-Canada Agreement contains the most complex automotive rules of origin of any trade deal, significantly raising rule requirements for the industry and steeply increasing costs for compliance programs, several experts said at an April 4 Center for Strategic and International Studies panel. Several industry leaders said the USMCA will force many companies in the automotive supply chain to make substantial changes. “The USMCA rule of origin is now by far the most complex, stringent requirement that exists in any free trade agreement in the world,” said Matt Blunt, president of the American Automotive Policy Council. “It really will force manufacturers to think more about the rule of origin and their sourcing decisions than they’ve ever done before.”
In the April 3 edition of the Official Journal of the European Union the following trade-related notices were posted:
Indonesia and South Korea agreed to exchange electronic certificate-of-origin data to “improve trade services” and “stop the misuse” of certificates of origin for Indonesian projects, according to an April 3 report from Antara News. The memorandum of understanding will “enhance trade and economic relations” between South Korea and Indonesia, the report said, and may lead to further cooperation. The two countries agreed to an “exchange program for employees to attend training programs and gain experience,” according to the report. Indonesian President Joko Widodo said “improvements will be made to the methods of exchanging trade information, an open telecommunication system and the development of procedures, standards and practices in keeping with trade documentation,” according to the report.
The implementation of Malaysia’s new customs declaration system, which was expected to be introduced in early 2019, has been delayed, according to a March 25 report from Baker McKenzie. Malaysia began a pilot version of the new system on March 5, the report said, which covers most imports and exports through Port Klang. While it is unclear when the new Ubiquitous Customs system will fully replace the current Sistem Maklumat Kastam, the report said the “scope of the implementation is (being) gradually expanded.”
The Nuclear Regulatory Commission recently issued a regulatory issue summary to clarify requirements for annual and quarterly reporting for exports of nuclear equipment and materials. According to the NRC, “based upon discussions with exporters that did not submit quarterly reports,” exporters may be confused about the different annual and quarterly reporting requirements. Annual reporting requirements are for exports under a general license for U.S.-origin goods listed in Appendix A to 10 CFR Part 110; quarterly licenses are for exports under a general or specific license for goods listed in Annex II of the Additional Protocol to the International Atomic Energy Agency agreement. “The two reporting requirements reference two distinct lists of equipment subject to reporting which share some items in common. Thus, the export of some components” may require both an annual report and a quarterly report because they appear on both lists, the NRC said. “Reporting under one of these requirements does not obviate the need to report under the other if both apply.”
In the April 2 edition of the Official Journal of the European Union the following trade-related notices were posted:
The Canadian Food Inspection Agency recently posted new guidance for importers declaring CFIA-regulated goods as Canadian goods returning. A paper declaration must be made to the Canada Border Services Agency for Canadian tariff codes 9813 or 9814, while all other declarations “for CFIA regulated goods returning to Canada can be submitted electronically,” CFIA said. The three main items that must be included on import declaration for Canadian goods returning are the country of origin (Canada), the country the product is being exported from, and the Automated Import Reference System (AIRS) end use, CFIA said.
India again delayed retaliatory tariffs on goods imported from the U.S., pushing the new start to May 2, according to a notice from India’s Ministry of Finance. The tariffs, first announced in May 2018 and most recently delayed until April 1, 2019, will target agricultural products, motorcycles, steel products, and phosphoric and boric acid, and are aimed at offsetting the $241 million in duties India expects its U.S. customers to pay on its steel and aluminum exports. The tariffs have been delayed multiple times after they were originally expected to take effect in June 2018. Many of the items already face high tariffs -- walnuts are taxed at 100 percent, fresh apples at 50 percent, chickpeas at 60 percent, motorcycles at 100 percent -- but the actions would add 10 percent more to many ag products, 20 percent more to walnuts and almonds, and 50 percent more to motorcycles.
China will continue to suspend tariffs on U.S.-made cars and auto parts past April 1, according to a notice from China’s State Council and a report from Reuters. In December, China originally announced it was suspending additional 25 percent tariffs on U.S. vehicles and parts as a show of good faith as the two countries negotiated a trade deal. The tariff suspension was scheduled to end April 1, but China announced on March 31 that the country would be upholding the suspension to “create a good atmosphere for the ongoing trade negotiations between both sides,” according to Reuters. China’s State Council said it will announce at a later date when the extension will expire.
U.S. Trade Representative Robert Lighthizer touched on India’s potential retaliatory tariffs against the U.S. and criticized the country’s “significant tariff and nontariff barriers” in the 2019 National Trade Estimate on Foreign Trade Barriers. The 540-page report, released March 29, said India’s tariff barriers “impede imports of U.S. products into India” and was critical of India’s “complex” customs system and failure to “observe transparency requirements.”