Posted on November 15, 2012
The U.S. - Panama Trade Promotion Agreement was signed into law in October of 2011, however it was not implemented. President Barak Obama has proclaimed that it is effective as of October 31, 2012.
Here is what you need to know about the U.S. – Panama Trade Promotion Agreement:
General Note: Harmonized Tariff Schedule General Note 35 (GN 35) will contain specific information on this agreement.
1) Good is wholly obtained
2) Good is produced entirely in the territory
a. Each of the non-originating materials undergoes an applicable tariff shift
b. The good satisfies any applicable regional value content (RVC)
3) Good is produced entirely in the territory
Regional Value Content Methods:
1. The Build Up Method based on the value of originating materials
2. The Build Down Method based on the value of non-originating materials
3. Net Cost method may be used for certain automotive goods
De Minimis is 10% of the value for most goods, or 10% of the total weight for textiles or wearing apparel.
MPF (Merchandise Processing Fee) is exempt on originating goods.
Special Program Indicator is “PA”
False or unsupported claims must be corrected within 30 days of discovery.
Certificate: Claims may be made using a written or electronic certification issued by the exporter or producer, or based on the importer’s knowledge. The certificate must not be in a prescribed format, and may cover a single importation or identical goods within a 12-month period. The certificate must contain certain data elements:
Post Import Claims: Made in accordance with 19 USC 1520 (d)
Upon implementation, of this agreement goods of Panama will immediately lose benefits under GSP, CBERA and the CBTPA.
If you have any questions of if your company would like to explore taking advantage of these preferential duties please contact Allyn International at email@example.com.