Current TONS News

March 12, 2012

HTS Modified to Prepare for U.S.-Korea Free Trade Agreement Implementation

On March 9, 2012 the U.S. International Trade Commission (USITC) released a document containing the approved Modifications to the Harmonized Tariff Schedule of the United States (HTSUS) to Implement the U.S.-Korea Free Trade Agreement.

As previously reported, the U.S.-Korea Free Trade Agreement is effective with respect to eligible goods of Korea that are entered, or withdrawn from warehouse for consumption, on or after March 15, 2012. On March 6, 2012 President Obama signed Proclamation 8738 which modified the HTSUS to account for the preferential tariff treatment afforded eligible goods under the agreement. This USITC document details those amendments.

Annex I of the document contains the text of new General Note 33 which covers rules of origin and other related topics. Annex II details the tariffs whose duty rates are modified by the trade agreement, including a timeline of when those modifications take place.

According to an earlier U.S. Trade Representative press release, upon entry into force:
- Almost 80 percent of U.S. exports of industrial products to Korea will become duty-free, including aerospace equipment, agricultural equipment, auto parts, building products, chemicals, consumer goods, electrical equipment, environmental goods, all footwear and travel goods, paper products, scientific equipment and shipping and transportation equipment.
- Almost two-thirds of U.S. exports of agricultural products to Korea will become duty-free, including wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine.

The USITC document is available for download at:
http://www.usitc.gov/tariff_affairs/hts_documents/USITCPub4308.pdf

Additional information concerning the U.S.-Korea Free Trade Agreement is available online at:
http://www.ustr.gov/uskoreaFTA

2012 Trade Policy Agenda and 2011 Annual Report Released

On March 1, 2012 the Office of the U.S. Trade Representative (USTR) issued a press release announcing the delivery to Congress of the President's 2012 Trade Policy Agenda and 2011 Annual Report.

As noted in the press release, the Trade Policy Agenda outlines the administrations key trade goals for 2012, including:
- Entry into force and implementation of trade agreements with Korea, Colombia, and Panama.
- Conclusion of negotiations for a high-standard Trans-Pacific Partnership (TPP) regional trade agreement.
- Enhanced trade enforcement efforts to investigate unfair trading practices in countries like China and hold our trading partners accountable for their commitments to comply with World Trade Organization (WTO) obligations.
- Extension of permanent normal trade relations to Russia so that American producers can compete on a level playing field as Russia joins the WTO rules- based global trading system.
- Continued American leadership at the WTO and in other forums toward greater international trade liberalization.

The 2011 Annual Report reviews the progress made last year on trade issues and goals.

The full text of the 2012 Trade Policy Agenda and 2011 Annual Report can be accessed online at:
http://www.ustr.gov/about-us/press-office/reports-and-publications/2012-0

The USTR press release is available at:
http://www.ustr.gov/about-us/press-office/press-releases/2012/march/president%E2%80%99s-2012-trade-policy-agenda-sets-ambitious

Tons News, for current and past issues of Tons News by E-mail request from tonsnews@tonslogistics.com  or call (310) 338-0337.

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Tons News is compiled from a number of public sources that, to the best of Tons knowledge, are true and correct. It is our intent to present only accurate information. However, in the event any information contained herein is erroneous, Tons accepts no liability or responsibility.