Podium speaker tribune with USA flags and sign of White House

08/01/2024

President Biden and Ambassador Tai address the African Growth and Opportunity Act (AGOA) reinstatement

Check out this week's Customs Corner to read about President Biden's comments on the AGOA reinstatement, USTR delays, and more.

Trade and Customs Updates

1) President Biden and Ambassador Tai address the African Growth and Opportunity Act (AGOA) reinstatement

 

The AGOA is undergoing significant discussions for reform as its expiration date in 2025 approaches. The proposed reforms aim to modernize AGOA to better align with the current economic and geopolitical landscape of Africa. The AGOA Reform was held in Washington D.C. last week and both President Biden and U.S. Trade Representative Tai released statements on their support. 
 

Statement from President Biden:

“As stakeholders gather tomorrow for the African Growth and Opportunity Act Forum in Washington, I call on Congress to quickly reauthorize and modernize this landmark Act—which is set to expire in 2025.

 

For more than two decades, the bipartisan African Growth and Opportunity Act has formed the bedrock of America’s economic partnership with African nations.  In sub-Saharan Africa, it has increased the competitiveness of African products, led to the creation of tens of thousands of quality jobs, and helped advance human rights. Here at home, AGOA has created investment opportunities and new markets for American businesses.  And on both sides of the Atlantic, AGOA has promoted sustainable economic growth and resilient supply chains.  

 

As I’ve said before, America is all in on Africa.  This week—and in the weeks to come—let’s prove it.  And together, let’s ensure future generations of Americans and Africans can meet the challenges and seize the opportunities of the decades ahead.”

 

Except from Ambassador Tai’s Comments:

“When I say that AGOA is the cornerstone of our economic partnership, I don’t mean it in the abstract—it has positively touched so many people’s lives already.  And it has the potential to do so much more.

Especially during a time when more people are feeling an increased sense of economic insecurity, our trade tools must be used to democratize economic opportunity for more people—they must be used for building out the common good.

In the midst of uncertainty that we are all experiencing in our economies and in the global economy today, what must remain constant is what we stand for, what our values are.

Because our economies are more than just a set of statistics.  Our economies are made of people, so our economic policies, including and maybe especially our trade policies, we know must serve our people.  This is foundational for the Biden-Harris Administration and it’s foundational for AGOA itself.

The AGOA Forum this week is important and timely, because we have an opportunity to make it even better and more effective.”
 

2) USTR Delays August 1 Section 301 Increases

 

On May 28, 2024, the U.S. Trade Representative (USTR) proposed changes to the actions under the Section 301 investigation into China's technology transfer, intellectual property, and innovation practices. The press release can be found here.

 

Over 1,100 public comments were received in response. USTR, in consultation with the Section 301 committee, is reviewing these comments and expects to issue its final determination in August 2024. The proposed modifications are anticipated to take effect approximately two weeks after the final determination is made public.
 

See here for the full list of HTS due to increase in 2024. 
 

3) Changes to Customs User Fees Coming October 1, 2024

 

CSMS # 61572319 confirms the Customs User Fee Changes as of October 1, 2024.

 

Key Points

  1. The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change.
  2. The MPF minimum and maximum for formal entries (class code 499) will change.
    1. The minimum will change from $31.67 to $32.71; and
    2. The maximum will change from $614.35 to $634.62.

 

Other Changes

  1. The Surcharge for Manual, Formal Entry/Release (class code 500) will change to $3.93.
  2. The fee for Informal Entry/Release, automated and not prepared by CBP personnel (class code 311a), will change to $2.62.
  3. The Express Consignment Carrier/Centralized Hub Facility fee will change to $1.31 per individual waybill/bill of lading.
    1. An individual air waybill is the bill at the lowest level, and is not a master bill or other consolidated document. See 82 FR 50523 (Nov. 1, 2017).
  4. The Commercial Vessel (class code 485) or Commercial Aircraft (class code 495) Passenger Arrival customs fee will change to $7.20 per passenger.
  5. The Commercial Vessel Passenger Arrival from Exempt Areas (class code 484) customs fee will change to $2.53 per passenger.
  6. The Commercial Truck Arrival fee (class code 492) will change to $7.20. 
    1. The Commercial Truck Arrival Fee is the CBP fee only; it does not include the fiscal year 2025 United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) Agricultural and Quarantine Inspection (AQI) User Fee ($12.40) that is collected by CBP on behalf of USDA to make a total Single Crossing Fee of $19.60.  See7 CFR 354.3(c) and 19 CFR 24.22(c)(1).
    2. Once eighteen Single Crossing Fees have been paid and used for a vehicle identification number (VIN)/vehicle in a Decal and Transponder Online Procurement System (DTOPS) account within a calendar year, the payment required for the nineteenth (and subsequent) single-crossing is only the $12.40 AQI fee and no longer includes CBP's $7.20 Commercial Truck Arrival fee (for the remainder of that calendar year).
  7. The Dutiable Mail fee (class code 496) will change to $7.20.

 

4) Drawback Accelerated Payment Availability for USMCA Drawback Claims

 

CSMS # 61535739 provides an update to CSMS # 45792120. Accelerated Payment (AP) will be available for all USMCA drawback claims in late August 2024. CBP will confirm this through a CSMS once the necessary programming is deployed in the Automated Commercial Environment (ACE). Approved AP claimants can then request AP for eligible USMCA drawback claims, provided all requirements, including bonding, are met.


For eligible unliquidated claims currently on file, claimants must contact the filing office to have the claim returned to trade control and then resubmit it with the AP request.
 

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