After almost 5 years from the date of the original signing, the US-Korea Free Trade Agreement, also known as the KORUS FTA, will go into force on March 15, 2012. According to the US Trade Representatives website, “once it enters into force, the Agreement will be the United States’ most commercially significant free trade agreement in more than 16 years.”
The Trans Pacific Partnership, or TPP, has been getting a lot of discussion time lately at conferences, in offices and in government agencies. But what are the implications to global trade? The following is a brief summary of the TPP and resources that can be used to find out more information.
At the recent C5 6th European Forum on Export Controls held in Brussels, much discussion took place around Article 22 of the European Commission (EC) Regulations. Article 22 focuses on the transfer to dual use goods between European Union (EU) member state countries and defines when this movement is not freely allowed. The discussion at C5 covered the implementation and enforcement of this regulation. Thus far, eight countries have confirmed they are actively implementing Article 22. Those eight countries include Bulgaria, Czech Republic, Estonia, Germany, Greece, Hungary, The Netherlands, and the United Kingdom.
A few months ago, the Mexican Government announced a new regulation known as Mexican Foreign Trade’s Unique Portal, or Ventanilla Única de Comercio Exterior Mexicano (VUCEM). The first announcement was about the opening of the trial period from November 30, 2011 until January 1, 2012. After the trial was successfully completed in January, another announcement was made giving all companies doing business in Mexico until March 1, 2012, to prepare their companies to file Comprobante de Valor Electrónico (COVE) via the VUCEM. As many companies were frantically preparing for this enforcement date, the Mexican Government and the Mexican Confederation of Association of Customs Brokers (CAAAREM) issued a reprieve. In a press release sent on February 23, 2012, the Arturo Rojas Rivas, Central Administrator of Competence and customs modernization, announced an extension until June 1, 2012 for the enforcement of the VUCEM. Today, the Mexican Tax Administration Authorities (SAT) announced this extension in a press release making this official.
US Customs & Border Protection (CBP) has issued an updated Frequently Asked Questions (FAQ) document regarding Instruments of International Traffic Imported with Residue. This new document, which can be downloaded here, has information on the “importation of instruments of international traffic (IIT) with residue of bulk products.” According to the document, “CBP prepared this document to assist the trade community in understanding the obligations for transporting carriers concerning the advance electronic cargo information and importers for entry requirements.”
US Customs and Border Protection (CBP) has recently added a new webpage titled “Trade Transformation” that is dedicated to providing updates and information on the various pilot initiatives currently underway. CBP says it will use this new resource to publish updated information on initiatives the agency is pursing to improve the way US imports are processed by the agency for both higher security and expedited treatment of legitimate trade.
With the recent changes to tariff schedules based on the WCO 2012 HS updates, many people are wondering what effect this will have on trade agreements and rules of origin? According to the Integration Point Global Trade Content team, a group of trade professionals who monitor regulation changes on a regular basis, in most cases, the tariff updates do not affect free trade agreement rules of origin.
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There are many aspects to consider when making global sourcing decisions and looking at all of them is critical before signing any contracts. One way to ensure that all areas of cost are being reviewed in your company is to make sure the trade compliance and procurement departments are in sync. Find out how these departments can find hidden costs and act in a proactive mode, instead of reactive, when implementing a global sourcing strategy. Join Integration Point & DPM Consulting for an educational, free webcast on February 29th at 2:00 p.m. EST to learn more about Global Sourcing Best Practices – What Trade Compliance & Procurement Can Accomplish Together.
Are you currently exporting items classified on the US Munitions List (USML)? What about items on the Commerce Control List (CCL)? If you are, then you may want to be sure to closely watch the current reorganization of these two lists that is taking place. Currently, the Bureau of Industry and Security (BIS), which falls under the US Department of Commerce, is publishing proposed rulings that describe how articles the President determines no longer warrant control under the United States Munitions List (USML). This is being done to open up more export avenues for US companies that produce and sell items that could be used for military or civilian purposes. This also means that companies should be checking to see if their products still need an export license or if they now have the correct export control classification number (ECCN).
