On Monday, the Motor & Equipment Manufacturers Association thanked Congress for correcting legislation that eliminated the right to a refund of the merchandise processing fee.
The correction, part of the FY21 Omnibus Appropriation Act, allows MEMA members and other manufacturers to take advantage of a refund of this customs user fee under the U.S.-Mexico-Canada Agreement, NAFTA, and other free trade agreements.
Officials with MEMA said the MPF fix was a critical priority for its members.
“We are very pleased that the MPF refund fix was included in the FY 21 Omnibus Appropriations and COVID 19 bill,” MEMA President and CEO Bill Long said. MEMA fought hard for this vital refund, and our members worked with Congress for months to make this happen. This means that vehicle parts suppliers will again receive this customs fee refund after a product is imported from Canada and Mexico. Our industry is facing a time of economic difficulty and challenges in implementing complex new USMCA motor vehicle part rule of origin provisions. This change will benefit the bottom line of each MEMA member that imports from USMCA nations during this time of a significant liquidity crunch resulting from our national public health crisis.”
The USMCA, signed into law by President Trump in January 2020, updated and replaced the 25-year-old previous trade agreement between the three countries – NAFTA – and created new laws on intellectual property protections, the internet, investment, and incentives to make cars in North America.