CETA savings depend on what happens at U.S. hubs

Issue 091 risograph cover: CETA savings require origin and transit conditions, including customs control at U.S. hubs; the proposed PROTECT USA Act and Congress-passed Russia sanctions bill are not yet law; a Malaysian response to third-country import restrictions depends on treaty entry into force and a qualifying U.S. notification.

Bottom line

Confirm customs control and permitted handling at the U.S. hub before counting CETA tariff savings in a Canada-EU quote.

A Canadian shipment can pass through a U.S. hub and retain CETA tariff preferences if it meets the agreement's origin and transit conditions.

CETA transit: For goods that already meet CETA's origin rules, the U.S. leg must remain under customs control and involve only permitted handling. An importer may need carrier documents covering the route and customs-control records for the transit leg. Confirm the warehouse's actual procedures and who can produce the records before approving the quote.

Read the full analysis: CETA Tariff Savings Can Survive Transit Through the U.S..

PROTECT USA: The House bill, which has not become law, would preserve an exception for otherwise lawful ordinary-business responses to information requests. If enacted, its separate adverse-action ban could reach a buyer that suspends purchases or declines renewal because a covered supplier refuses a CSDDD-related request. Suppliers covered by the bill and their EU buyers should review the requested undertaking alongside the consequences of refusal.

Read the full analysis: PROTECT USA Could Complicate CSDDD Supply Contract Renewals.