Free Trade Agreements

Questions and answers about Free Trade Agreements

  • USIFTA QUALIFICATION

    QUESTION: Does anyone in the membership have a process or work instruction on how to properly qualify an item for the US-Israel FTA? ========== Answers: To qualify for no duty under U.S. Israel Free Trade Agreement (FTA) a 35% of the contents must be originating from the United States. If you are trying to calculate […]

  • USIFTA CALC AND PROFIT

    QUESTION: US Content Required to qualify for US-Israel FTA: 35% of the appraised value of the item at the time of import into Israel   US Content = (1) The cost or value of the materials produced in the United States, plus (2) the direct costs of processing operations performed in the United States constitutes […]

  • ORIGIN CHANGE FROM FOREIGN PROCESSING

    QUESTION: If a company ships various components, in bulk quantities,  of US origin to Costa Rica for further production and/or assembly, would these actions change the origin of the finished item(s) to Costa Rica? Would this depend on the nature of the further processing? How does/would accumulation be considered in this determination? What other factors […]

  • FTA IMPLEMENTATION PROCESS

    QUESTION: For Companies that have implemented FTA software, did you implement one FTA at a time? one region at a time? one region multiple FTA’s? why did you go with each option? What are the pros and cons? Learnings? ========== Answer: We implemented FTA as part of our initial GTM software implementation. We started with […]

  • BORDER TAX AND FTAs

    QUESTION: If there is a border tax imposed in the near future, does anyone have an idea of the affect on US Free Trade Agreements? ========== Answers: This is the million dollar question.  No, there is no way in knowing how and what would be impacted by a new border tax.  Just Google statements made, […]

  • LABOR IN RVC CALCULATION

    QUESTION: Can non-direct labor cost (such as overhead) be counted as originating for purposes of RVC? ===================== ANSWERS: To answer this question read the portion of the General Notes in the HTSUS that applies to the specific free trade agreement which allows for RVC — that specifies what costs can be used. ===================== If using […]

  • US-AU TARIFF SHIFT SCENARIO

    QUESTION: The final product is 8537.10 It has parts classified in 8538.90 valued over de minimis   The tariff shif​t rule is: A change to headings 8537 through 8538 from any other heading.   The rule does not mention if the change of headings from any other heading includes within the headings of 8537-8538 or […]

  • USIFTA CERTIFICATES

    QUESTION: I found a pad of US Israel Certificates of Origin with a copyright of 1985. The only difference I can see between that and the 1993 version is box 11 – the older ones are missing the “Exporter as producer” portion of the box. Can I still use them or will they cause issues […]

  • FTA CERT BACKDATING

    QUESTION: Has anyone in the membership been asked to backdate the “date signed” block on FTA certificates? I have been receiving these requests for certificates for Peru and my response is always no. Some customers want the certificates to be dated on 1/1 of the current year, but I am refusing to backdate the date […]

  • CERTS OF ORIGIN

    QUESTION: I am in a new job and have noticed that the company provides a lot of generic certificates of origin with their shipments.  Generally there is one certificate for each shipment regardless of any blanket period listed on the sheet.   I will stress that at this time, we are NOT providing any NAFTA certificates […]

  • AGOA CLAIMS

    QUESTION: Does a supplier in South Africa need to apply to export under AGOA benefits?  If so, how does the application process work? If an approved AGOA exporter in South Africa purchases parts from a non approved AGOA exporter and then exports the parts to the US, is it possible for the US importer to […]

  • KORUS FABRIC COMPLIANCE

    QUESTION: I want to know according to the non compliance ruling if I have fabric from Korea that is cut in USA and sent as cut parts into a CAFTA country to be sewn and exported into USA Is this still compliance or not ? The fact that has been cut in USA made it […]