Free Trade Agreements

Questions and answers about Free Trade Agreements

  • JORDAN FTA QUALIFICATION

    Question:   We are looking at importing goods from Jordan under the US-Jordan FTA. For that FTA, 35% of the value must originate in Jordan with up to 15% of US input counting toward the 35%. We had some questions as to what would qualify as a “direct cost of processing” in Jordan. I am […]

  • TRADE PREFERENCE QUALIFICATION TIMES

    Question: We are a CPG manufacturer that is asked to certify a large number of complicated products under various FTAs each year, namely NAFTA and CAFTA. Although we begin gathering the necessary product information from our customers in early October, and we begin soliciting certifications from our own vendors that cover various key components around […]

  • FTA vs TRADE PREFERENC

    Question: With TPP on the forefront, can anyone give me an good explanation of the differences and similarities between FTAs and Trade Preference Programs?  A matrix for comparison would be very helpful. **************** Answers: legislation-wise they are structurally identical ****************** A trade preference program is a unilateral agreement. Preferential treatment is allowed for goods coming […]

  • FTA DIRECT SHIP RULE

    Question: Many of the Free Trade Agreements require that the goods move from the origin to destination without entering the commerce of a third country.  Has anyone done the following scenario?  Did it meet the FTA requirements?   A German company buys USA origin steel and has it shipped to Mexico. In Mexico, the steel […]

  • KORUS COO

    Question: I have a situation with one of our customers in Korea. We supply titanium bars, 3 meter long, straightened, and centerless ground and polished. The product requires very tight diameter tolerance. We purchase the raw material from Japan in coil form. (HS code:  8109.90.6031.) We draw the raw material down to the required diameter. […]

  • UAE TRADE AGREEMENTS

    Question: Can anyone advise where I can find a list of the free trade agreements to which the United Arab Emirates in a member? I am specifically trying to determine if there are any existing FTA in force with India, Pakistan and/or Bangladesh. Any information about non-apparel textile rules of origin would be greatly appreciated. […]

  • RUSSIAN GSP REFUNDS

    Question: The GSP Reauthorization FAQ on the CBP website states that “GSP reauthorization provides for retroactive benefits to goods imported from a country that is a beneficiary of the GSP program as of July 29, 2015.  As such, retroactive benefits exclude countries such as Bangladesh and Russia that lost eligibility during the GSP lapse”. I […]

  • USIFTA CALCULATION

    Question: I need some assistance on a US/Israel FTA shipment.  We are shipping an item we manufacture to Israel. I understand the 35% domestic content requirement, but when factoring in labor, my situation confuses me. Here are the details: Invoice value: $9,258 US Material content: $961 Labor cost: $9,408 (yes, that is correct) So, as […]

  • NAFTA CERT FOR AUSFTA

    Question: Our company is starting to qualify product that we ship to Australia for the US Australia Free Trade agreement. We have a  NAFTA program in place in  which we solicit our suppliers for originating items included in our bill of material or for  purchased item to ensure qualification of the good for NAFTA.   […]

  • GSP DOCUMENT TRAIL

    Question: We take advantage of GSP with one of our suppliers in Thailand.  In the near future, our invoice transaction flow will be changing slightly with this supplier.  This supplier will begin invoicing one of our subsidiaries in the APAC region, and then that subsidiary will invoice our U.S. Company. Therefore, in the future, the […]

  • THIRD PARTY FTA INVOICE

    Question: When there is a direct shipment between countries within a FTA, but a third party invoice is generated outside the FTA countries, can FTA preference still be claimed?   The following is an example: German entity makes a sale to an Australian customer. Product sold is physically located in the US and qualifies for […]

  • GSP DIRECT-SHIP RULE

    Question: We have a consolidation center in Belgium. We have some shipments from countries that are eligible for GSP or other free trade agreements.  Does the direct ship requirement negate the eligibility because the imports are being consolidated in another country? ========== Addl Answer: I understand your concerns about the direct shipment.  However, there have […]