The U.S.–Japan Trade Agreement is effective as of January 1, 2020. U.S. Customs and Border Protection (CBP) has issued the requirements for those looking to claim preferential treatment under this trade deal.
In order to receive preferential treatment, goods must originate and meet all the requirements under the agreement. The filing instructions are as follows:
- From January 1, 2020 through January 13, 2020, importers must pay duties on qualifying goods under the Agreement and request a preferential tariff retroactive claim by filing a post summary correction (PSC) to request the duty refund. The Automated Commercial Environment (ACE) will accept the new special program indicator ‘JP’ as a prefix to the eligible tariff number on January 14, 2020.
- On or after January 14, 2020, ACE will accept the new special program indicator ‘JP’ as a prefix to the eligible tariff number. Importers claiming preferential treatment under the Agreement must include on the entry, the special program indicator “JP” as a prefix to the eligible tariff number for each qualifying good requesting such preference.
To claim preferential tariff treatment under the U.S.–Japan Trade Agreement, the following requirements must be met:
- Country of Origin must be ‘JP’
- Country of Export must be ‘JP’
- Once programmed in ACE, the Special Program indicator ‘JP’ must be placed before the eligible tariff number to make the claim.
- Claims for preferential treatment under this Agreement are not exempt from the merchandise processing fee (class code 499 and class code 311).
- The tariff-rate quota allocation for beef from Japan is modified as follows:
The country specific Japan beef quota (200,000 kg) is eliminated and added to “other countries.” This updates the “other countries or areas” limit to 65,005,000 kg.
There is no change to the entry filing process. The ACE quota module will process eligible beef from Japan under the “Other countries or areas” quota.
If you have questions, please reach out to your Mohawk Global customer service representative.