The President’s words and actions have implications far beyond the borders of the United States. It has yet to be seen, what, if any effects, his recent overseas trip will have on trade and customs warehouses. However, many of his recent remarks have left many in the industry scratching their head and bracing for the implications. Whether his trip does or not, President Trump’s position is likely to affect Customs and Border Patrol, as well as every company that imports goods and uses customs warehousing for their goods.
The Role of a Customs Warehouse and International Trade
Many companies employ the services of a customs warehouse because it makes it easier to get their goods into the US. Primary responsibility has been placed on the importer of record to correctly make their entries. Failure to do so can result in seized entries and lost import privileges, as well as both civil and criminal penalties. They can also assist with determining whether or not customs requirements are being consistently followed and these businesses can also help to coordinate required recordkeeping.
Customs Warehouses and NAFTA
Those involved in international trade, including those that own and run a customs warehouse, may have gotten nervous when President Trump recently lamented about dairy farmers in Wisconsin and New York “getting killed by NAFTA.” However, his statement was incorrect because the product at the center of the dispute, ultrafiltered milk, was not part of the original agreement and has been exported to Canada tariff-free since the early 1990s. The two countries are continuing to argue over the effects of the new pricing and the World Trade Organization may have to step in to resolve it. This is because Canada has begun to sell nonfat dry milk products to Mexico and the U.S. put tariffs on Canadian softwood lumber, which is another longstanding trade issue.
There are other implications that the President can have on the trade agreement and the customs warehouses that depend on it. One of those things is changes to C-TPAT which is the trusted importer program. In addition, border taxes could be imposed where there are not any now. This could discourage imports that compete with U.S. manufacturing and to take away any advantage offered to non-U.S. companies that allow the rebate of value-added taxes for exports.
If you are an importer in the El Paso area and would like help navigating the rocky roads into the US, contact Cordova Brokerage. They have been on the border since 1994.