CBP Side-by-Side Comparison for 19 FTAs and Preference Programs
CBP posted a document to its website that provides side-by-side comparisons of the following 18 U.S. free trade agreements and preferential trade programs: NAFTA; Chile (CFTA); Singapore (SFTA); Australia (AFTA); Israel (ILFTA); Jordan (JFTA); Bahrain (BFTA); Morocco (MFTA); Oman (OFTA); Central America-Dominican Republic (CAFTA-DR); Peru (PTPA); Korea (UKFTA); Colombia (CTPA); Caribbean Basin Economic Recovery Act (CBERA); Caribbean Basin Trade Partnership Act (CBTPA); Generalized System of Preferences (GSP); African Growth and Opportunity Act (AGOA); Andean Trade Preference Act (ATPA); and Andean Trade Promotion and Drug Eradication Act (ATPDEA).
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GSP is the oldest preference program; it began in 1976, and CBERA came next in 1984. The newest trade agreements are OFTA, which began in 2009, and UKFTA and CTPA, which both began in 2012.
Provisions Compared Include Compliance Responsibility, MPF Exemptions, Documentation, Etc.
CBP's Side-by-Side compares about 25 provisions, including primary compliance responsibility, Merchandise Processing Fee (MPF) exemptions, direct shipment, rules of origin, documentation requirements, regional value content, de minimis, inventory management methods, port-importation claims, reconciliation claims, etc.
Examples of CBP's comparisons included the following:
Primary compliance responsibility. Under NAFTA, the exporter is primarily responsible for compliance, while under all the other programs, the importer has primary compliance responsibility.
MPF exemptions. Under GSP, the MPF is only exempt for lesser developed countries; for the other FTAs and preference programs it varies - the MPF can be exempt for originating goods only, exempt for all goods, not exempt at all, etc.
Documentation at time of claim. Most only require a "freeform" supporting statement with 10 elements1, to be available upon request by CBP; however NAFTA, CBTPA, and ATPDEA do require certain documentation to be in the importer's possession at the time the claim is made.
Direct shipment (transshipment) requirements. The preference programs, as well as a portion of the FTAs, do not allow the goods to leave Customs control.
Regional value content calculation. These vary. Some have a 35% requirement for materials and direct costs of processing; some are build-up, build-down, and net cost; NAFTA is transaction value and net cost, etc.
Note: CBP states that these Side-by-Sides are for comparative purposes and are not legally binding.
1rather than a freeform declaration, for the Israel FTA, it is a Form A
(See ITT's Online Archives 09111625 for summary of CBP’s 2009 Side-by-Side, and 07091415 for summary of CBP’s 2007 Side-by-Side.)