CBP Updates FTA Side-by-Side Comparison to Reflect 2017 HTS

CBP recently posted a document (here) that provides side-by-side comparisons of 18 U.S. free trade agreements and preferential trade programs. This updated version includes a new section on whether or not "Tariff Shift Rules Updated to 2017 HTSUS" for each agreement. CBP also updated the expiration dates for the Generalized System of Preferences and African Growth and Opportunity Act (see 1506290045). CBP noted that the document, dated March 29, is for comparative purposes and isn't legally binding.

Provisions Compared Include Compliance Responsibility, MPF Exemptions, Documentation, Etc.

CBP's Side-by-Side compares about 25 provisions, including primary compliance responsibility, Merchandise Processing Fee (MPF) exemptions, direct shipment, rules of origin, documentation requirements, regional value content, de minimis, inventory management methods, port-importation claims, reconciliation claims, etc.

Examples of CBP's comparisons included the following:

Primary compliance responsibility. Under NAFTA, the exporter is primarily responsible for compliance, while under all the other programs, the importer has primary compliance responsibility.

MPF exemptions. Under GSP, the MPF is only exempt for lesser developed countries; for the other FTAs and preference programs it varies -- the MPF can be exempt for originating goods only, exempt for all goods, not exempt at all, etc.

Documentation at time of claim. Most only require a "freeform" supporting statement with 10 elements, to be available upon request by CBP; however NAFTA and the Caribbean Basin Trade Partnership Act (CBTPA) do require certain documentation to be in the importer's possession at the time the claim is made.

Direct shipment (transshipment) requirements. The preference programs, as well as a portion of the FTAs, do not allow the goods to leave Customs control.

Regional value content calculation. These vary. Some have a 35 percent requirement for materials and direct costs of processing; some are build-up, build-down, and net cost; NAFTA is transaction value and net cost, etc.