Corporate Trade Compliance

As of 2020, the United States entered into a new trade agreement with Mexico and Canada. This trade agreement replaced NAFTA (North America Free Trade Agreement) and is now formally known as the USMCA (United States-Mexico-Canada.) The USMCA brought about some major shifts and changes to how we are now asked to certify documents in order to comply with the current codified standards. As this process requires a complete overhaul of some of the major foundational aspects of certifications, Nifco Americas Corporation has taken it upon ourselves to provide you with a basic outline to ensure compliance. Use the USMCA button to view the outline.

General Rules of Interpretation (GRI)

Harmonized Tariff Schedule of the United States Basic Revision 6 (2021)
Annotated for Statistical Reporting Purposes

Use the GRI for HTA button to download

 

GENERAL RULES OF INTERPRETATION
Classification of goods in the tariff schedule shall be governed by the following principles:

 

  • (1) The table of contents, alphabetical index, and titles of sections, chapters, and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions:
  •  (2a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
  • (2b)Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that
  • (3) When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
    • (3a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
    • (3b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
    • (3c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
  • (4) Goods that cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin.
  • 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein:
    • (5a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases, and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers that give the whole its essential character;
    • (5b) Subject to the provisions of rule 5(a) above, packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.
  • (6) For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter, and subchapter notes also apply, unless the context otherwise requires.

USMCA Template

Use the Certificate of Origin button to download 3 options of blank templates in Excel. If you are unable to use the free template as Excel, please contact us at tradecompliance@us.nifco.com and we will send you a different format to suit your needs.

Labor Value Content (LVC)

United States-Mexico-Canada Agreement (USMCA)

 

Use the LVA Affidavit button to fill out the template. 

 

I, ____Name­­­___, certify that all parts produced in our facilities meet a production wage rate that is at least US $16/hour. The production wage rate is the average hourly base wage rate, not including benefits, of employees directly involved in the production of the part or component, and does not include salaries of management, R&D, Engineering or other workers who are not involved in the direct production of the parts or in the operation of production lines.  The average labor value is calculated in accordance with the applicable statutory and/or regulatory requirements (USMCA Regulations Chapter 4 Rules of origin, Article 7: Labor Value Content Footnote 76).  The information on this document is true.  I agree to maintain and present upon request by U.S. Customs and/or other government agencies, the documentation supporting the labor rate calculation.

 

 

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