America Competes Act
What it Means for Importers
The America Competes Act Passed on February 4th, 2022.
The America COMPETES Act of 2022 is a legislation that will empower American workers and businesses. The legislation was passed on February 4th, 2022 by the U.S. House of Representatives. The goal behind the bill is to create opportunities and encourage competitiveness in several key technology and manufacturing areas over foreign economic rivals. The passing of this legislation will have impacts on customs brokers and freight forwarders, in addition to their clients.
Main Goals of the America Competes Act
1.
Address competition issues with foreign rivals.
2.
Maintain a technological competitive advantage globally.
3.
To promote scientific research & development in several key areas.
4.
Strengthen domestic supply chains and manufacturing.
The U.S House Committee on Financial Services
What Impact will the America Competes Act Have on Freight Forwarders and their Clients?
The passing of the America Competes Act will have impacts on customs brokers and freight forwarders, in addition to their clients.
The Generalized System of Preferences (GSP) Program:
The Generalized System of Preferences (GSP) Program would be renewed until 1/1/2024. This renewal will mean that importers will be retroactively refunded for duties paid on GSP-eligible products back to December 31, 2020 when the previous GSP program expired.
The overhaul of De Minimis:
The overhaul of De Minimis, also known as Section 321, would prohibit goods from countries that are non-market economies, such as China, and on the USTR watch list from using De Minimis benefits. Currently, goods under $800 in value are permitted to be imported without payment of duties, taxes and fees. Additionally, more data would be required to be provided to CBP on these shipments, and enforcement against abusers of De Minimis would be added. This would close a loophole that currently encourages foreign companies to split shipments to evade duties, and allows illegal and potentially harmful products to flow freely into US commerce.
Key Areas That the America Competes Act Bill Impacts
Manufacturing
$52 billion in federal funding has been invested to support the domestic production of semiconductors in the U.S. Semiconductors are a key component in many products including: consumer electronics, cars, healthcare, defense systems and other key products.