On July 1, 2020, the Federal Register published Presidential Proclamation 10053 of June 29, 2020 To Take Certain Actions Under the United States-Mexico–Canada Agreement Implementation Act and for Other Purposes, which modifies the Harmonized Tariff Schedule of the United States (HTS) –
- as set forth in Annex I to US International Trade Commission (USITC) Publication 5060 (which is incorporated by reference) to provide generally for the preferential tariff treatment being accorded under the USMCA, to set forth rules for determining whether goods imported into the customs territory of the United States are eligible for preferential tariff treatment under the USMCA, to provide tariff-rate quotas with respect to certain originating goods of Canada, and to provide certain other treatment to originating goods for purposes of the USMCA;
- as set forth in Annex II to USITC Pub. 5060 to implement the initial stage of duty reduction provided for in the USMCA, to provide for future staged reductions in duties for originating goods provided for in the USMCA, and to provide tariff-rate quotas with respect to certain goods provided for in the USMCA;
- as set forth in Annex III to USITC Pub. 5060 to reflect in the HTS the termination of tariff treatment under the North American Free Trade Agreement;
In addition, the Proclamation:
- authorizes the US Trade Representative (USTR) to exercise the President’s authority under section 103(c)(4) of the USMCA Implementation Act to take such action as may be necessary in implementing the tariff-rate quotas set forth in the Schedule of the United States to Annex 2–B of the USMCA to ensure that imports of agricultural goods do not disrupt the orderly marketing of agricultural goods in the United States;
- authorizes the Committee for the Implementation of Textile Agreements (CITA) after consultation with the Commissioner of US Customs and Border Protection (the “Commissioner”), to consult with representatives of Canada and Mexico for the purpose of identifying particular textile or apparel goods that are mutually agreed to be hand-loomed fabrics of a cottage industry, hand-made cottage industry goods made of those hand-loomed fabrics, traditional folklore handicraft goods, or indigenous handicraft goods, as provided in article 6.2 of the USMCA and authorizes CITA to exercise the President’s authority under section 103(c)(1) of the USMCA Implementation Act to provide duty-free treatment with respect to a good provided for under article 6.2 of the USMCA;
- authorizes USTR to fulfill the obligations of the President under section 104 of the USMCA Implementation Act to obtain advice from the appropriate advisory committees and the Commission on the proposed implementation of an action by Presidential proclamation; to submit a report on such proposed action to the appropriate congressional committees; and to consult with those congressional committees regarding the proposed action;
- authorizes the Secretary of Commerce to exercise the authority of the President under section 105(a) of the USMCA Implementation Act to establish or designate an office within the Department of Commerce to carry out the functions set forth in that section;
- authorizes CITA to review requests for modifications to a rule of origin for textile and apparel goods based on a change in the availability in the territories of the United States, Canada, and Mexico of a particular fiber, yarn, or fabric; to establish procedures governing such a request;
- authorizes CITA to exercise the President’s authority under sections 207(a)(1)(B) and 207(a)(2)(B) of the USMCA Implementation Act to direct appropriate action under sections 207(c) and 207(a)(2)(D) with respect to textile and apparel goods;
- authorizes the Secretary of the Treasury to exercise the President’s authority under section 207(a)(1)(B) of the USMCA Implementation Act to direct action under section 207(a)(1)(B)(i) or section 207(c) with respect to goods other than textile or apparel goods;
- authorizes USTR after consultation with the Secretary of Transportation, to exercise the President’s authority under section 324 of the USMCA Implementation Act; and
- authorizes USTR to exercise the function assigned to the President under section 611(a) of the USMCA Implementation Act to consult with the appropriate congressional committees and stakeholders regarding joint reviews under article 34.7 of the USMCA.
With respect to other free trade agreements and HTS modifications, the Proclamation:
- modifies General Note (GN) 25 of the HTS to reflect the modifications to the rules of origin under the USSFTA, as set forth in Annex IV of USITC Pub. 5060;
- modifies GN 34 to reflect the modifications to the rules of origin under the USCTPA as set forth in Annex V to USITC Pub. 5060;
- modifies GN 33 to reflect the modifications to the rules of origin under the KORUS as set forth in Annex VI to USITC Pub. 5060;
- modifies the HTS to make technical corrections necessary to provide the intended rules of origin under the USCTPA, the KORUS, and the USPATPA, as set forth in Annex VII of USITC Pub. 5060;
- modifies GN 4(d) and pertinent subheadings of the HTS as set forth in Annex VIII of USITC Pub. 5060 in order to provide the intended tariff treatment with respect to certain articles that are the product of Thailand; and
- modifies GN 4 (d) and pertinent subheadings of the HTS as set forth in Annex IX of USITC Pub. 5060 in order to make technical corrections to reflect the rates of duty in the “Rates of Duty 1-Special” subcolumn for certain subheadings with respect to certain articles of Argentina and Ukraine;
All the modifications of the Proclamation enter into effect on the date indicated in the appropriate Annex to USITC Pub. 5060.
