Understanding USMCA & Trade Compliance w/ Alejandro Alcalde

International Trade Resources Podcast

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Alejandro Alcalde to discuss the recent impact supply chain disruption, politics, and tariffs have had on trade between Mexico with the US and Canada. Alejandro is a trade compliance professional who is also currently studying for his trade lawyer diploma and consecutively attending the Mexico Trade and Law College in California, Mexico to get a degree in international business and customs law.

Americans like to call USMCA the “new NAFTA” because it replaced NAFTA. What has changed? Companies are keen to understand its impact on compliance for international trade. In this episode we will discuss these changes and other factors over the last few years that are catching companies off guard.

First, Kim and Alejandro discuss Country of Origin or COO and how that has become a major focus for imports from Mexico. Why? As companies shift production from China to Mexico, and in some cases only do final assembly or packing in Mexico that can impact COO. The rules of country of origin can be applied differently between USMCA and USTR regulations. In some situations based on value and in others based on substantial transformation - this is critical to understand!

Besides the COO issue Alejandro also talks about how the current president changed the tax system and moved it under the military. Customs is now more robust, and the impact felt by importers & exporters has increased. The Mexican government wanted to exert more control to reduce tax evasion, smuggling, etc.

Finally, Kim and Alejandro outline what steps a company can take to make sure they are compliant so that their shipments cross the border with ease. Best practices include; looking at the product’s BOM, the COO of raw materials / components, confirming the HTS code, and doing all this planning in advance of production.

Learn all this and more in this information-packed episode!

Things you’ll learn

Why defining the country of origin is important and how this is applied under different regulations / agencies like the USTR and USMCA.

What are the changes with the implementation of USMCA and under the current President of Mexico - and how are they felt in cross border trade.

Best practices to make sure your company understands and can comply with regulations so that shipments cross the border with ease.

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