Q2 2019 brought many updates to tariffs, regulations and more in the international trade industry. We've compiled a recap of all of the must-know trade updates for importers and exporters as we embark on Q3.
Customs Trade Partnership Against Terrorism (CTPAT)
Customs and Border Protection (CBP) recently held their annual CTPAT Conference in San Antonio, TX, with an attendance of over 1,500 CTPAT members – from importers and exporters to Canadian and Mexican foreign manufacturers, from highway carriers and sea carriers to brokers and freight forwarders. A sea of people converged upon the seventh largest city in the nation and CBP did not disappoint – providing valuable information regarding the updated Minimum Security Criteria as well as how security in our agriculture is vital to our economy.
International Trade News: S301 List 3 Tariff Exclusion Requests
According to a notice issued by the Office of the United States Trade Representative last week, requests for S301 List 3 exclusions may be submitted between June 30, 2019 and September 30, 2019 through the USTR website, which will be available on June 30. Once a requester is registered, they may complete one or multiple exclusion requests. The notice provides a replica of the form and what information must be provided.
International Trade News: U.S. and Mexico Have Reached a Deal, Suspending Tariffs "Indefinitely"
The proposed additional five percent tariffs on goods from Mexico that were set to go into effect on June 10, 2019 have been "indefinitely suspended" due to a deal between the U.S. and Mexico, which occurred on Friday, June 7, 2019. According to the U.S. Department of State, the U.S. and Mexico will commit to strengthening bilateral cooperation and implementing Migrant Protection Protocols.
India Removed from Generalized System of Preference (GSP)
Under Executive Order 11888 of November 24, 1975, President Gerald Ford designated India as a beneficiary developing country for the purposes of Generalized System of Preference (GSP), an action afforded by The Trade Act of 1974. The goal of this Trade Act was to promote economic growth in developing countries while also providing all presidents with the ability to withdraw, suspend or limit the duty-free treatment afforded, based on various factors including the country's assurance that it will provide "equitable and reasonable access to the markets and basic commodity resources of such country" as well as refraining from unreasonable export practices.
Tips for a Lower-Stress Travel Experience This Summer
One of the busiest travel seasons has arrived, with travelers preparing to take trips that will have them transiting through airports both domestically and internationally, as well as crossing various international borders and possibly interacting with different customs officials. Both U.S. Customs and Border Protection (CBP) and the Transportation Security Administration (TSA) share tips to help make those encounters go more smoothly and quickly.
The Ocean Shipping Reform Act of 1998, which amended the Shipping Act of 1984, went into effect on May 1, 1999. This shipping act combined non-vessel operating common carriers (NVOCC) and ocean freight forwarders under one category labeled "ocean transportation intermediary" (OTI). An intermediary is defined as "a person who acts as a link between people in order to try to bring about an agreement."
S232 - Steel & Aluminum Tariffs (Worldwide Application)
S232 tariffs were ruled “constitutional” in March of this year by the Court of
International Trade. With this ruling, the S232 tariffs are expected to continue into the foreseeable future. Since the tariffs went into effect in March of 2018, there have been over 50,000 steel and aluminum exclusion requests made and the Bureau of Industry and Security has approved just over 25,000 through mid-March of this year. Click here to read more about S232 Tariffs on Aluminum and Steel imports.
On Sunday, May 5, the Administration announced that List 3 of the S301 tariffs, which are currently at 10% on $200 billion of Chinese imports, will be increasing to 25% effective Friday, May 10, 2019. Trade talks continue with China but are not progressing as hoped.
The Panama Canal Authority (ACP) imposed a draft restriction of 47 feet in mid-March. ACP plans to impose a more severe limit on April 11, 2019. This will directly impact the size and number of TEUs that will be available for loading through the Panama Canal.