By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

The U.S. Office of Trade issued a notice to the Federal Register today, 90 FR 55964, detailing the U.S. – Korea trade agreement. Subsequently U.S. CBP issued a CSMS message, # 66987366, instructing the trade community on how to implement the details within the FRN.

Summary:

• Retroactive to Nov 14 and forward
  • If MFN is greater than or equal to 15%, MFN rate applies – no IEEPA Reciprocal.
  • If MFN is less than 15%, IEEPA Reciprocal of 15% applies – MFN is “zeroed.”
  • Applies to general commodities and to lumber, timber, and their derivatives.
  • Civil aircraft and parts will be exempt from IEEPA Reciprocal.

• Retroactive to Nov 1 and forward
  • Auto and Auto Parts only!
  • If MFN is greater than or equal to 15%, MFN rate applies – no IEEPA Reciprocal.
  • If MFN is less than 15%, IEEPA Reciprocal of 15% applies – MFN is “zeroed.”

We will continue to monitor the situation and issue updates as warranted.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.