Proposed Changes to Compliance Standards for the Trade Agreements Act May Add Complexity


Determining compliance with the Trade Agreements Act (?TAA?) of 1979 has never been easy, but proposed rule changes intended to create predictability may add new complexity to the process. The U.S. Customs and Border Protection (?CBP?) has statutory and regulatory authority to issue country-of-origin advisory rulings and final determinations, including the TAA?s ?rule of origin? standard.[1] Determining the country of origin of manufactured goods under the TAA has been more of an art than a science, requiring companies to make country of origin determinations using the highly subjective ?substantial transformation? test. On July 25, 2008, CBP proposed extending application of the ?tariff shift? test and related rules set forth in 19 Code of Federal Regulations (?C.F.R.?) Part 102 to all country-of-origin determinations made under the customs and related laws and navigation laws of the United States, with certain exceptions.[2] The tariff shift test, which currently applies to trade among North American Free Trade Agreement (?NAFTA?) countries, would essentially replace the traditional substantial transformation test, including the test for making TAA country-of-origin determinations.

Please see full legal update for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.