4 ms·

The issue here is that goods produced or imported into a FTZ should not qualify as American made or origin. The foreign company should not be able to claim a t

The issue here is that goods produced or imported into a FTZ should not qualify as American made or origin. The foreign company should not be able to claim a tax exemption on re-importing to the u.s. The simple solution is to have the manufactured/imported goods in a FTZ not qualify as American made. Because they're not, if they haven't been subject to all America's rules and regulations

dalbasal 7y ago
The "simple* solution would be to not have FTZ, or to not have that tarrif exemption. But... Each of these had their reasons. What you're suggesting is having a made-in-america-but-not-exactly category. It might be the right solution, but it's not a simple one.
- username444 7y ago
  No, I'm suggesting simply "not made in America". The more I think about this, the more I'm convinced it's bad reporting, or misquoting. As a Canadian that exports, I've been to presentations out on by CBP and cross-border warehousing services that covered FTZ. There's no way something this basic gets past them.
  - avar 7y ago
    It's not bad reporting, it's true. This is how "rules of origin" work in general. For an example relevant to Canada pead e.g. what the CETA (EU-Canada) deal has to say about "rules of origin"[1]. For the gory details start reading at page 549 of the full text[2]. Here's an article about how Canadian car manufacturing gets a rebate on raw materials used for exported vehicles[3]. None of this is unusual, having this happen within a FTZ is just a way to speed up the paperwork part of it. You can setup a process where you don't first have to pay tariffs and then seek a rebate, instead you don't pay the tariffs in the first place and the government makes sure the goods are for export. Some of those good then make their way back into the country, at which point you might pay tariffs on them. 1. http://trade.ec.europa.eu/doclib/docs/2017/september/tradoc_156062.pdf http://trade.ec.europa.eu/doclib/docs/2017/september/tradoc_... 2. http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_152806.pdf http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_... 3. https://www.reuters.com/article/us-usa-trade-canada-autos/rebates-protect-canadas-auto-industry-from-retaliatory-tariffs-idUSKBN1K60CC https://www.reuters.com/article/us-usa-trade-canada-autos/re...

dalbasal 7y ago

The "simple* solution would be to not have FTZ, or to not have that tarrif exemption. But... Each of these had their reasons. What you're suggesting is having a made-in-america-but-not-exactly category. It might be the right solution, but it's not a simple one.

username444 7y ago
No, I'm suggesting simply "not made in America". The more I think about this, the more I'm convinced it's bad reporting, or misquoting. As a Canadian that exports, I've been to presentations out on by CBP and cross-border warehousing services that covered FTZ. There's no way something this basic gets past them.
- avar 7y ago
  It's not bad reporting, it's true. This is how "rules of origin" work in general. For an example relevant to Canada pead e.g. what the CETA (EU-Canada) deal has to say about "rules of origin"[1]. For the gory details start reading at page 549 of the full text[2]. Here's an article about how Canadian car manufacturing gets a rebate on raw materials used for exported vehicles[3]. None of this is unusual, having this happen within a FTZ is just a way to speed up the paperwork part of it. You can setup a process where you don't first have to pay tariffs and then seek a rebate, instead you don't pay the tariffs in the first place and the government makes sure the goods are for export. Some of those good then make their way back into the country, at which point you might pay tariffs on them. 1. http://trade.ec.europa.eu/doclib/docs/2017/september/tradoc_156062.pdf http://trade.ec.europa.eu/doclib/docs/2017/september/tradoc_... 2. http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_152806.pdf http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_... 3. https://www.reuters.com/article/us-usa-trade-canada-autos/rebates-protect-canadas-auto-industry-from-retaliatory-tariffs-idUSKBN1K60CC https://www.reuters.com/article/us-usa-trade-canada-autos/re...