Free Trade Agreements

Questions and answers about Free Trade Agreements

  • 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 […]

  • FTA AND TRANSHIPMENTS

    Question: We are shipping product from Mexico to various countries in South America.  However, due to slow vessel rotation, minimum required shipping quantities, etc… we find it difficult to transport directly from Mexico to South America. As an alternative, we are bringing the product from Mexico to the United States first, offloading the product, clearing […]

  • DR-CAFTA CLAIMS

    Question: Good afternoon, do any of the members have material and/or procedures they can share regarding importing merchandise under DR-CAFTA program?   How do you validate a DR-CAFTA claim? What documents are requested? ========== Answer: We import footwear under CAFTA-DR and last year we received a CF28 (about a year after we started importing under […]

  • PREFERENTIAL TRADE SOLICITATION

    Question: When qualifying items for free or preferential trade, how does your trade compliance group get up to date certificates of origin from raw material and component suppliers? Does your compliance group work with the Procurement function to get current certificates of origin from suppliers on annual basis? Or are supplier certificates of origin obtained […]

  • KOREA FTA SHIPMENT AND THIRD COUNTRY ROUTING

    Question: Can one still utilize the Korea-US FTA for a shipment routed through Germany? The origin of the product will be U.S. and the end user will be in Korea, but do the U.S. party being in Germany, it’s been agreed that the shipment will be shipped to Germany first. I want to say “yes”, […]

  • PAFTA ORIGIN CERT

    Question: Has anyone ever dealt with a situation where goods are manufactured by a sub-contractor in e.g. Egypt (or other member of PAFTA) and delivered from their to the customer, but the invoice is issued from your company direct to the customer?We are looking to get a PAFTA cert of origin. So should this be […]

  • AUSFTA INFORMATION

    Question: Can anyone out there point me in the direction of some public resources to study and review on the AUSFTA? ============= Answers: All US Trade Agreements here – https://ustr.gov/trade-agreements/free-trade-agreements Excellent source from AU Customs here – http://www.customs.gov.au/site/page5498.asp ===================== Rules of Origin (Chapter 5): https://ustr.gov/sites/default/files/uploads/agreements/fta/australia/asset_upload_file961_5150.pdf Product-Specific Rules of Origin (Annex 5-A): https://ustr.gov/sites/default/files/ANNEX%205A%20AustraliaFTA.pdf ===================== http://www.icpainc.org/wp-content/uploads/2014/10/AUSFTA-Annex-05.pdf http://www.icpainc.org/wp-content/uploads/2014/10/AUSFTA-Details.docx […]

  • MX – ISRAEL PREFERENTIAL TRADE

    Question: Does anyone have experience with exports to Israel? We have a customer in Israel that purchases products from us that have both US origin and MX origin goods (maquiladora). The goods produced in MX are imported into the US to our manufacture facility, consolidated into a container with our US produced goods, and exported […]