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Free Trade Certification

May 10, 2022

Are your customers asking you to certify your items for free trade under a free trade agreement? Do you source from or ship to a country that participates in a free trade agreement with the U.S.? Do you know how to manage that process in order to alleviate the duties paid?   A free trade agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods. Currently, there are 14 Free Trade Agreements in effect in the U.S. with 20 different countries.   An importer collects and maintains the information to support the FTA qualification. An exporter from the U.S. is required to complete a declaration verifying that their goods qualify for free trade with the participating country.   The rules associate with FTAs are complicated and the analysis is intricate. There are multiple steps to the process and each one must be completed in order to move onto the next:  
  1. Classify the product according to the HTSUS in order to determine the rule of origin for the specific finished product.
  2. Choose a preference criteria from the 4 available.
  3. Use the rule of origin to determine the qualification of the finished good.
  If you are already preparing certificates, are you confident that your certificates are completed accurately? It is imperative that you have knowledge of the product, it’s components, the HTSUS and appropriate rules pertaining to them all in regards to qualification.   The most widely recognized and known FTA is the United States Mexico and Canada Agreement (USMCA), which was formerly NAFTA. As the name would suggest, this agreement is valid between the U.S., Canada and Mexico. Most companies know about USMCA, but do you know if you qualify for any of the others?   When it comes to the USMCA, Canada is very strict. They are coming back regularly and requesting support documentation. If your back up is not compliant, you are exposing yourself to liabilities that could include excessive fines and potentially being banned from importing.   We have seen many errors by companies that try to manage their own programs. Some are still using NAFTA forms years after the implementation of USMCA, many of the forms are filled out incorrectly or incompletely and numerous have classification errors.
ITM works with many companies to help coordinate their free trade programs. Together, we identify all the exported products and their components. Then, ITM analyzes both the finished product and its components for FTA eligibility, works with your vendors in identifying and analyzing all of the components of your products and complete the documentation required to support the claims of FTA eligibility.

Contact us today if you would like to review your process or begin to take advantage of any of the 14 Free Trade Agreements available.

New tariffs on imported goods from most countries
By Jill LaMadeleine April 3, 2025
Effective at 12:01 a.m. on April 5, 2025, a 10% baseline tariff on imported goods from most countries, with a few exceptions, will be implemented. This baseline is in addition to regular duties and fees, current IEPPA duties, Section 201 duties, Section 301 duties, and any applicable AD/CVD.
New tariffs now in effect
By Jill LaMadeleine March 4, 2025
As of 12:01am, March 4, 2025, tariffs of 25% are effective on products from Canada and Mexico and energy products from Canada are subject to a 10% duty. Products that are presently excluded from these tariffs include goods that are for personal use, goods entered under Chapter 98, donations that are imported under HTSUS 9903.01.21and merely information items included under HTSUS 9903.01.22. All other imported items will carry the 25% tariff and no drawback is permitted on these duties.
Steel and Aluminum Tariffs
By Jill LaMadeleine February 18, 2025
The upcoming changes to steel and aluminum tariffs will significantly impact the steel and aluminum industries, with numerous provisions to ensure compliance. Importers, exporters, and manufacturers in the steel and aluminum sectors should stay informed about the latest developments and ensure their operations are aligned with these new tariff regulations.
By Jack LaMadeleine February 5, 2025
On February 1, 2025, President Trump signed an Executive Order (EO) that imposes an additional 10% ad valorem tariff on most imports from China, which includes products of Hong Kong. U.S. Customs and Border Protection (CBP) quickly followed up with important guidance regarding these changes, particularly impacting the trade community's handling of de minimis shipments from China. Effective February 4, 2025, de minimis shipments from China will no longer be eligible for the administrative exemption from duty under 19 U.S.C. § 1321(a)(2)(C), and will be subject to the new 10% tariffs.  Here's everything you need to know about the changes:
By Jack LaMadeleine February 5, 2025
The recent guidance from U.S. Customs and Border Protection (CBP) regarding de minimis shipments from China is a significant update. Here's a quick breakdown of the key points in the alert:
By Jack LaMadeleine February 1, 2025
International Tariff Management's February Newsletter
By Jack LaMadeleine January 27, 2025
On January 20, 2025, President Donald Trump was sworn in for his second term, and with that came big promises regarding trade policy. But a significant shift came just days later, on January 21, when Trump announced plans to impose 25% tariffs on Mexico and Canada—set to go into effect on February 1, 2025. This move represents a dramatic change in North American trade relations and could have wide-reaching effects on American consumers. At a signing ceremony in the Oval Office, Trump revealed that his administration would roll out tariffs on goods from two of the U.S.'s largest trading partners, Mexico and Canada. However, this new tariff decision doesn’t fully align with the aggressive trade strategy Trump promised during his campaign. The sweeping tariffs Trump pledged on his first day in office, including a 25% tariff on Mexico and Canada, have yet to materialize. His executive action, while still outlining a broad trade policy overhaul, serves more as a placeholder for a more extensive, long-term plan.
US Trade Agreement with Taiwan
By Jack LaMadeleine January 9, 2025
Although the United States and Taiwan (officially known as the Republic of China) do not maintain formal diplomatic relations, the two countries share strong cooperation in several areas, including trade. Trade discussions are managed through the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the U.S., under an arrangement called the U.S.-Taiwan Initiative on 21st Century Trade. This framework allows both nations to address trade and investment issues, while working toward mutual priorities over time.
By Jack LaMadeleine January 3, 2025
As of January 1, 2025, new tariff rates on certain Chinese imports will go into effect, as part of the ongoing Section 301 investigation into China's trade practices, particularly regarding technology transfer, intellectual property, and innovation. The United States Trade Representative (USTR) has announced additional tariff increases under the Section 301 Four Year Review, which impacts a range of products, including certain tungsten products, solar wafers, and polysilicon. If you're involved in importing these products or handling customs filings, it’s crucial to understand the latest developments and the steps required to comply with the updated regulations.
By Jack LaMadeleine January 1, 2025
Our team is excited to be back for another year of maximizing refunds and providing exceptional service for our partners!
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