Trans-Pacific Partnership (TPP)
The U.S. is currently negotiating the Trans-Pacific Partnership with 11 other Asia-Pacific countries. This free trade agreement is highly anticipated. Importers and exporters alike are particularly interested in potential duty reductions in Japan and Vietnam who are TPP member countries that do not have current free or preferential trade agreements with the U.S. Last week Michael Roll of Pisani and Roll, LLP presented a seminar on the similarities and differences of the proposed TPP and existing free trade agreements. The TPP still has significant legislative hurdles to navigate before it enters into force. It is uncertain when we could see the passage of TPP, most predictions exceed a year's time. Here's a brief recap of what you should know about the TPP:
TPP will not supersede already in effect free trade agreements. NAFTA will remain in effect.
Duty will be phased out over the course of several years. In order to see when your commodity's proposed zero duty rate will enter into force (presuming the agreement is implemented), see the Tariff Elimination Schedule, Annex 2D of the agreement.
There is no official TPP Certificate of Origin, however, at the time of entry should an importer request TPP duty reduction, a declaration containing all minimum data requirements and signed by the importer, export or producer must be on-hand.
For the full text of the agreement, click here. If you have any questions about what TPP may mean for your imports or exports, please contact your Allports import or export specialist. Additionally, advisory committee reports on the TPP have been recently published on the Office of the United States Trade Representative website. Click here to find out more about your sector.
