The Charter Brokerage Quarterly Update
What You Need to Know
Q1 Industry Highlights 2021
USMCA replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020.
Now that the grace period has expired, members of the trade industry should expect to see increased scrutiny and review regarding USMCA compliance.
General System of Preferences (GSP)
GSP expired on December 31, 2020. Here are the fundamental changes:
- Specific articles produced in Thailand are no longer eligible for duty-free treatment (effective December 30, 2021)
- The Democratic Republic of the Congo has been reinstated as a beneficiary sub-Saharan African country
Section 301 Tariffs on China
Section 301 duties are still in effect and are still eligible for drawback.
To support the challenges brought on by COVID-19, the U.S. Trade Representative announced the extension of specific product exclusions on medical-care and COVID response products through September 30, 2021.
Section 232 Tariffs on Imports of Aluminum into the United States
The Q2 2021 Section 232 Absolute Quota Steel threshold was announced on Quota Bulletin 21-602.
Once the quota is reached, an importer may enter the goods into a foreign trade zone, warehouse, exportation, or destruction.
Importers with Department of Commerce approved quota exclusions are limited to their individually approved quantities. Quarterly quota limits do not restrict them.
Aluminum Import Monitoring and Analysis System (AIM)
The AIM system’s goal is to allow for effective monitoring of drastic increases in imports of specific aluminum products.
This program will require U.S. importers to apply for licenses for each import of covered aluminum products. Importers can apply for these import licenses through the AIM system website.
The U.S. Department of Commerce is expected to release a new effective date in an upcoming Federal Register Notice.
Why Charter Brokerage?
Charter Brokerage is a full-service customs brokerage provider with unmatched compliance experience.
To learn more, contact us at: firstname.lastname@example.org