IMMEX More of What You Need to Know
By Brenda Cordova, Braumiller Law Group, Mexico Counsel
IMMEX is an acronym that in Spanish stands for Industria Manufacturera, Maquiladora y de Servicios de Exportacion (Manufacturing, Maquiladora and Export Services Industry). It is a program from the Mexican federal government focused on promoting foreign investment, exports, creation of jobs, development of technology, etc. Companies can apply for an authorization to operate under this program provided they comply with the requirements. This would allow them to qualify for Customs benefits on the, import duty rate and the value added tax.
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From my perspective, as well as what seems to be many others in the west and around the globe, the incredibly long table that Vladimir Putin sits behind separating himself from his minions, as well as other country’s visiting diplomats, whom he is ignoring, has gotten a lot longer, and it’s not a covid related stretch. I don’t know if the previous two years of pandemic isolation was the catalyst for the attack on Ukraine, but regardless, the ensuing economic isolation of the Russian state from a good portion of the world is now evolving on a massive scale. In the not-too-distant future, Russia could very well be viewed as another N. Korea, that is, if the Russian people will accept this, and I highly doubt that will be the case, as outside information continues to seep in through the cracks.
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Antiboycott Compliance for U.S. Companies
By Mike Smiszek, Senior Trade Advisor, Braumiller Consulting Group
It’s 7:00pm on a Friday, and it’s also the last day of your company’s fiscal quarter. You’re the shipping department manager responsible for loading several crates of widgets onto a truck that will take them to JFK Int’l Airport, where they are booked on a flight to Amsterdam. This shipment fulfills a huge order your company landed from a new customer, so you’re looking forward to telling your boss that the order was shipped—meaning that the revenue can be recognized for the quarter. But then the phone rings. It’s the customer’s freight forwarder (FF), asking you to make a minor change to the commercial invoice. They tell you that the customer wants you to add a brief statement: “These widgets are not of Israeli origin.” Seems simple enough, right? Even though the invoice already indicates that the widgets are of U.S. origin, what harm can there be in adding a statement that is factually correct?
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Since the end of 2020, almost all companies were forced to begin paying the Section 301 duties as most available exclusions expired. This was a major hit for companies who were relying on the exclusions, as the additional duties were either 25% (List 1, 2, and 3) or 15% (List 4A). In August 2021, the Office of the United States Trade Representative (“USTR”) released a process to reinstate certain exclusions that were previously valid. After months of review, on March 28, 2022, the USTR released the list of Section 301 exclusions that would be reinstated. If a company can utilize one or more of the reinstated exclusions, it means it no longer must pay the additional tariffs for those specific products. With that in mind, here is some of the notable information from the recent FR Notice:
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Country of origin of imported merchandise is a cornerstone enforcement area for Customs & Border Protection (“CBP” or “Customs”) and is the accurate tracing of materials across multiple countries, and is a crucial aspect of maintaining a compliant global supply chain. Recently, CBP has requested information from importers in the form of a Customs Form-28 (“CF-28”) that asks for additional documentation that demonstrates proof of the origin declared. Sometimes, the CF-28s will mention that the inquiry is related to the assessment of Antidumping/Countervailing Duties or Section duties, but others are not so specific
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By Cindy Le, Braumiller Law Group
The Doi Moi reforms were officially initiated in Vietnam in 1986 following many years of struggles resulting from the reunification of North Vietnam and South Vietnam in 1975 and had adopted the Soviet Union’s economic style of central planning and self-isolation. Goods and services were highly regulated under the traditional centrally-planned economy and any means of production were owned by the state. After the mid-1980s, Vietnam realizes that the country was on the brink of economic collapse and the development model the country had borrowed from the Soviet Union and the Eastern European bloc had proven to be outmoded with flaws that hindered the country’s economic growth.
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By Linnea Deeds, Director of Educational Services, Braumiller Consulting Group
After six years, Bureau of Industry and Security (BIS) has a Senate-confirmed Assistant Secretary for Export Enforcement, Matthew S. Axelrod. In a recent fireside chat hosted by the Silverado Policy Accelerator, Mr. Axelrod, shared many insights into the direction of Bureau of Industry and Security (BIS) priorities and what the trade may expect from the Office of Export Enforcement (OEE) in the coming year. Of particular interest is a planned review of administrative enforcement and the self-disclosure program. The last time a review occurred was in 2016 which resulted in aligning the BIS procedures more closely with the Department of Justice (DOJ), Mr. Axelrod’s previous agency.
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The President issued an Executive Order on Ensuring Responsible Development of Digital Assets on March 9, 2022. The value of the cryptocurrency and digital assets sector exceeds $3 trillion and has the potential to grow much larger with proper regulation. No country has taken a lead role to develop regulation that will foster innovation while simultaneously protecting consumers, investors and businesses from criminal activity related to digital assets. This Executive Order is a bold move by the United States to assess and analyze the digital asset sector. If responsible legislation based on the EO can be drafted and passed, the US stands to authorize a strong, effective regulatory approach that also fosters innovation.
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