CBP Amends "Imported Directly" Requirement under Bahrain FTA

U.S. Customs and Border Protection (CBP) has amended its regulations on an interim basis to change certain provisions relating to the requirement under the U.S.-Bahrain Free Trade Agreement that a good must be imported directly from one country to the other to qualify for preferential tariff treatment. This rule removes the condition that a good passing through the territory of an intermediate country while en route from one FTA party to the other must remain under the control of the customs authority of the intermediate country, a condition that is not contained in either the FTA or the U.S. law implementing it.

As a result of this change, the only requirement for a shipment passing through an intermediate country to be considered to be imported directly under the U.S.-Bahrain FTA is that it not undergo production, manufacturing or any other operation outside the territories of the U.S. or Bahrain other than unloading, reloading or any other operation necessary to preserve the good in good condition or transport it to the U.S. or Bahrain. Operations that may be performed in an intermediate country include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the U.S. or Bahrain.

This rule is effective as of May 22.

To read this article, please visit WorldTrade\Interactive.

Canada Moves Forward on FTAs with Colombia, Peru

The Canadian government announced recently that legislation has been introduced to implement the free trade agreements Canada recently concluded with Colombia and Peru. Trade minister Stockwell Day said these FTAs will provide Canadian companies with “a competitive edge in many sectors, including wheat, paper products, mining, oil and gas, engineering and information technology.” The agreements also include “robust” side agreements on labor and environmental standards.

An FTA between the U.S. and Peru took effect Feb. 1 but a similar pact with Colombia has yet to pass Congress. Both the White House and key Democratic lawmakers have said they plan to establish benchmarks with respect to labor rights in Colombia that will have to be met before legislation to implement that FTA will be taken up. Minister Day indicated that Canada is taking a different approach, stating that “we believe that engagement, rather than isolation, is the best way to support positive change.”

To view the full article, visit WorldTrade\Interactive at http://www.strtrade.com/wti/wti.asp?pub=0&story=30702&date=4%2F6%2F2009&company=

US FTZs and Duty-Free Treatment

In the 110th Congress (2007-2008), Representative Bill Pascrell sponsored legislation that would have corrected an inequity currently faced by manufacturers operating in U.S. Foreign-Trade Zones (FTZs). Such manufacturers must compete in the US marketplace against duty-free imports manufactured abroad by firms in FTZ partner countries. This unequal treatment occurs even when the FTZ products meet the rules of
origin under NAFTA and other US Free Trade Agreements.

Pascrell’s bill (H.R.6415;110th Congress)would have provided that goods that are manufactured in a US-based FTZ and comply with the rules of origin under a trade agreement, to which the United States is a party, may enter the customs territory of the United States at the rate of duty applicable under that agreement.

Pascrell’s bill was not acted on during the last Congress, so it died at the end of the session. There is a renewed effort to reintroduce this bill, as part of an effort to boost the competitiveness and reduce costs of US based manufacturers who employ US workers. The initiative is being supported by a combination of public and private entities that recognize the importance of trade as an economic stimulus, and seek to increase the competitiveness of US-based manufacturers in the global marketplace.

Is your company interested in furthering the goals of this initiative? For further information or to learn more, please contact Megan Wilson, AAEI’s Director of Government Affairs at mwilson@aaei.org

US Implements FTA with Peru

President Bush issued Jan. 16 a proclamation implementing the U.S. free trade agreement with Peru. Effective Feb. 1 this proclamation will modify the Harmonized Tariff Schedule to reflect the duty benefits and rules of origin under this FTA, remove Peru as a beneficiary country under the Generalized System of Preferences, set forth special provisions concerning textiles and apparel, and make technical and conforming changes in the HTSUS general notes. The proclamation also makes certain technical changes to the HTSUS to properly implement the U.S. FTAs with Morocco, Bahrain and Costa Rica.

For the full article, visit WorldTrade\Interactive at http://www.strtrade.com/wti/wti.asp?pub=0&story=30061&date=1%2F20%2F2009&company