Free Trade Agreements

Questions and answers about Free Trade Agreements

  • Answers to Question on Costa Rica – China FTA

    QUESTION: I’ve never seen a rule such as this in the Costa Rica – China FTA. “No change in tariff classification is required, provided that there is a Regional Value Content of not less than 50%.”  Does this mean if I can tariff shift my product, I can avoid RVC?  Or I can only perform […]

  • ANSWER TO Question on Use of SPI C#

    QUESTION: Taking into account CSMS 14-000077, we understand that goods entered under Civil Aircraft Agreement that are marked or eligible to be marked the “product of” a country (let’s say Mexico in this case) with which the U.S. has an FTA that provides MPF exemption (let’s say USMCA in this case), can be imported free […]

  • ANSWERS TO QUESTION ON FTA HTS NOT IDENTIFIED IN ORIGIN RULES

    QUESTION: I would like to understand how trade manages situations when FTA text does not provide rules of origin for certain tariff classifications. For example, in the US/Morocco FTA text, it jumps from Chapter 13 tariff to Chapter 20 tariff.  What if I have an item that is classified in Chapter 18 or 19?  How do […]

  • AUSFTA SHIPMENT FROM CANADA

    QUESTION: Can we issue a AUSFTA for US goods shipping from Canada? In an effort to consolidate orders for our customer in Australia, we sell US goods to our Canadian entity that are stored in our warehouse until their orders are ready to ship.  When everything is ready the container is loaded with both US […]

  • US-Israel FTA Invoice Declaration

    QUESTION: We have a situation when exporting to Israel where our product has been substantially transformed in the US but does not meet the originating content value threshold to qualify for the US-Israel FTA. Often, the products are already duty free in Israel. Carriers continually ask us to sign the required invoice declaration but there […]

  • Can I claim FTA for a repaired unit being sent back?

    QUESTION: We have goods returned to us periodically that need to be repaired. The items are made in the US and the initial export/import to the foreign country qualify for the appropriate FTA. We repair them in the US and use either US made components (by us or suppliers) as well as components/parts that may […]

  • ASEAN-India Comprehensive Economic Cooperation Agreement (ASEAN-India CECA)

    QUESTION: Does anyone have any information whether this agreement, in effect since 2010, has any tariff reduction/preferential duty provisions? (I could not find any.) Any specific link/resources would be appreciated. Thank you. ********** Answers: Here is a link to some information: https://commerce.gov.in/trade/ASEAN-India%20Trade%20in%20Goods%20Agreement.pdf We have been successfully claiming benefits for ASEAN-qualified products in India for the […]

  • CPTPP

    QUESTION: Any members actively engaged with customers in Japan in providing certificates of origin under CPTPP? In addition to the certificate of origin requirements set out in Annex 3B, are you also being asked to provide further proof of origin on raw materials “In case customs asks for it”. We provide a blanket COO capturing […]

  • KOREA FTA RETURN PROCESS

    QUESTION: We understand a NAFTA certificate of origin is not required for items returning to the U.S. after repair (9802). However, is this also true for UKFTA (U.S.-Korea FTA) and other FTA agreements? The language in the agreement and USHTS Section XXII Subchapter II notes (19 CFR 10.1034), and Article 2.6, 6.15 and 6.16 of […]

  • FTA DOCS AFTER NAME CHANGE

    QUESTION: Our name legally changed in November, 2018. I was not notified by our US headquarters, but found out through other means. I have obtained new POA’s for the freight forwarders and brokers. I have also updated the continuous import bond and filed the 5106 with US Customs. This is a name change only, our […]

  • FTA – Excel Programmed Solution

    QUESTION: I put this out sometime last year and was inundated with “offers of assistance” from vendors. However, we only use NAFTA – and, within the next few years, most of our parts won’t qualify any more under it. That and we don’t want to budget tens of thousands of dollars for implementation plus another […]

  • CPTPP via drop-ship

    QUESTION: Japan company sells to us (US company) on terms of DAP Montreal. B/L shows ship to us (US Company) with consignment to a separate CA company address. We then sell to the Canadian company, DAP Montreal (“drop-ship” ); the CA company is the IOR in Canada. Goods physically move direct Japan to Canada, never […]