The Charter Brokerage Quarterly Update
What You Need to Know
Q4 Industry Highlights 2020
The Consolidation Appropriations Act of 2021
- became law on December 27th, 2020
- retroactive effective date July 1st, 2020
Includes USMCA updates to the following:
- treatment of goods entered through foreign trade zones
- MPF refunds on post-importation claims
(i.e. 520(d) and reconciliation claims)
FTZ Update Under USMCA:
It prohibits non-originating goods used in production processes within FTZs from ever qualifying as originating goods even if all conditions under the general rules are otherwise satisfied.
Merchandise Processing Fee Refunds for USMCA Preferential Treatment:
Authorizes CBP to refund MPF for post-importation claims for USMCA preferential treatment.
(i.e. 520(d) and reconciliation claims)
End of Restrained Enforcement Period
At the time of USMCA implementation, CBP elected to exercise a period of restrained enforcement, from July 1 through December 31, 2020, on USMCA preferential treatment claims.
The period of restrained enforcement concluded on December 31, 2020.
Commerce Provides Relief For Exporters With Six-Month Extension on Licenses
The U.S. Department of Commerce is allowing exporters to request six-month validity period extensions for licenses that were due to expire on or before December 31, 2020.
BIS has streamlined the extension of the validity process and estimates approval within two to three business days.
This will ensure exporters have the opportunity to benefit fully from the authorization granted.
Miscellaneous Tariff Bill
The Miscellaneous Tariff Bill (MTB) is a law that temporarily reduces or suspends the import tariffs paid on specific products imported into the U.S.
Typically, companies importing the products request the duty restrictions or suspensions by submitting a petition for each concerned product.
The current MTB expired on December 31, 2020, which will result in an increase in duty rates on the affected products.
No action has been taken to date on a new Miscellaneous Tariff Bill; we do not expect a new Bill will be passed before the current Congress concludes its term.
Generalized System of Preferences (GSP)
The GSP program expired on December 31, 2020, but does not have any impact on the African Growth and Opportunity Act (AGOA).
AGOA remains in effect until September 30, 2025.
Why Charter Brokerage?
Charter Brokerage is a full-service customs brokerage provider with unmatched compliance experience.
To learn more, contact us at: inquiries@charterbrokerage.net