Import Export Customs Compliance and Trade News

Trade and customs compliance and regulation news that affect import, export, transportation, logistics, and supply-chain industry and how you do business.
Denise Valles

NAFTA Series 1 of 3

What have we learned?
In the trade world we are celebrating 20 years of NAFTA. Looking back we realize how much NAFTA has matured and evolved to the world’s largest trade treaty.  
In this series of emails we will be providing you with history, facts, and some tips to take a look at NAFTA over the years and where it is now. Even though your company has been claiming NAFTA for years, it’s always good to review current policies and procedures which tend to get watered down with personnel and management changes.
Practical Advice from NAFTA’s “Front Lines”
1. Language matters. 
 NAFTA uses some common words such as materials, goods, parties, territory, exporter and producer. When Customs uses these words, they do so using a limited definition. Frequently, exporters misunderstand the idea of a “producer” and freely accept COO’s from non-producing distributors or intermediaries. Under the NAFTA, these documents are of questionable value. 
2. “A” is for audit. 
Preference criterion A (one of several codes, A through F, that NAFTA allows you to assign to the method used to qualify your product as NAFTA) has a limited use and is generally reserved for natural or agricultural products produced wholly in North America. Most manufactured goods will originate under criteria B or C. While an “A” might be a good grade in school, using this preference criterion improperly will trigger unwanted regulatory scrutiny.
3. Don’t forget the processing fees. 
Imports into the US are subject to a merchandise processing fee (MPF = .3464% min $25, max $485) while imports into Mexico are subject to derecho de trámite aduanero (DTA = 0.8 percent). NAFTA originating goods are exempt from these fees. Even if your good has low or no duty, the elimination of these fees may be a benefit. Canada has no processing fees.
 According to John D. Goodrich, author of the book, “NAFTA: A Practical Guide to Regulation, Documentation & Procedures”.
If you would like more information on NAFTA Training; click here or call us at 800.860.5030.
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Denise Valles

Mexico New Tax Reform (New Date)

Avoid Paying VAT on IMMEX/Maquila Operations In-Depth Value Add Tax (VAT) Certification Process  Agenda: General analysis of the tax and customs Reforms.  VAT on sales, definitive imports and temporary imports.  Benefits of Certification.  How to complete application and gather required documents.  Analysis and strategies to completing the application.   Importance of having an updated inventory control system. Webinar Details: Date: New Date Coming Soon! Time : 9:00 am - Noon Central Time Price : $250...
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Denise Valles

The Importance of Continuing Education in Trade Compliance

By Karin L. Bogue   Companies involved in international trade understand that laws, regulations and government expectations change regularly.   By the time the organization gets used to one regulation, the government changes the rules.  These frequent changes and the nature of the business make it necessary for international compliance employees and other stakeholders to keep track of current events.    An indispensable component for any effective trade compliance program is continuing education.  When conducting a...
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Denise Valles

Are You Prepared for a Customs Import Audit

    Letter to Global Training Instructor Hello John, Don’t know if you will remember me since it has been a while since I attended all your seminars here in Cleveland and we had you out to our facility to give us a couple of presentation on INCOTERMS and Export Compliance for our CSR’s & Sales people. All I can tell you is, Thank You ! ! ! !  Today we had an “informal audit”...
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Catherine J Petersen

How To Cure The Letter Of Credit Headache

The Challenge:  My firm has just received an order for shipment of one of our machines under a letter of credit for only the second time.  The last order under a letter of credit was just a miserable  experience!  We spent hours preparing our documents; yet when we submitted them to the bank selected by the buyer, they advised us that there were errors (discrepancies) in all of our documents.  We were eventually paid, but...
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Catherine J Petersen
Each international transaction has many details that may be clarified between the seller and the buyer in a contract and then rein... Read More
Wednesday, 25 February 2015 14:42
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