USMCA Interim Final Rule

U.S. Customs and Border Protection has published an interim final rule in the Federal Register to implement regulations under Title 19 Code of Federal Regulations (CFR) 182 related to USMCA. Specifically, this IFR, which takes effect March 18, 2025, expands upon existing regulations to address:

 

  1. Automotive goods

  2. Textile and apparel goods

  3. Drawback and duty-deferral program requirements

  4. Recordkeeping and protest requirements

  5. Temporary admission of goods requirements

  6. Applicable fee provisions

  7. Other conforming amendments to fulfill the USMCA-related commitments

 

USMCA Automotive Goods Implementing Regulations

 

  • CBP has included a 120-day delayed compliance date for vehicle certification regulations, allowing producers time to comply with the additional requirements and procedures.

  • To qualify for USMCA preferential tariff treatment, covered vehicles (light trucks, heavy trucks, and passenger vehicles), the producer must certify to CBP that the production of the vehicle meets three key requirements:

    • Labor Value Content (LVC)

    • Steel Purchasing Requirement

    • Aluminum Purchasing Requirement

  • Starting on May 19, 2025, the producer of the covered vehicle must submit the LVC, steel purchasing, and aluminum purchasing certifications to CBP at least 90 days prior to the beginning of the certification period with the additional data elements specified in the relevant regulations using the USMCA Automotive Certification Portal located at https://trade.cbp.gov/USMCA/s/

  • CBP is assigning a unique identifier for each USMCA vehicle certification - LVC certification, steel purchasing certification, and aluminum purchasing certification. This vehicle certification identifier, generated at the time of submission, by the USMCA Automotive Portal, must be provided on entry summary documents to claim preferential tariff treatment.

  • When claiming USMCA preferential tariff treatment for automotive goods or making a post-importation claim, the importer of the covered vehicle must submit the unique identifier assigned by CBP on each of the LVC, steel purchasing, and aluminum purchasing certifications. These unique identifiers enable CBP to link the vehicle’s importation to the relevant certifications, ensuring compliance with USMCA vehicle certification requirements.

  • A covered vehicle may be originating under the USMCA pursuant to an alternative staging regime if it meets the conditions set forth in 19 CFR 182.106 and has been authorized by the Office of the U.S. Trade Representative.

    • If the terms of the alternative staging regime specifically exempt the vehicle producer from the LVC, steel purchasing, or aluminum purchasing requirement or if the terms of the alternative staging regime contain different LVC, steel purchasing, or aluminum purchasing requirements from the USMCA product-specific rules of origin requirements for covered vehicles, the vehicle producer is required to submit a separate vehicle certification that covers only those vehicles subject to the alternative staging regime to CBP.

  • CBP may deny USMCA preferential tariff treatment for claims where vehicle producers fail to meet:

    • The standard automotive goods requirements without an authorized alternative staging regime,

    • A determination has been made that the producer fails to meet the requirements of the alternative staging regime as outlined by USTR, or

    • The vehicle producer fails to submit the required separate vehicle certification for covered vehicles subject to an alternative staging regime.

 

 

Textile and Apparel Goods Implementing Regulations

 

CBP has determined that TPLs under the USMCA will be administered using a certificate of eligibility. Therefore, CBP is adding the TPL requirements, including the requirements for the certificate of eligibility, to 19 CFR part 182, subpart H.

 

Since goods under TPLs are not considered originating, a certification of origin is not required for textile or apparel goods subject to a TPL claiming USMCA preferential tariff treatment. Instead, per USMCA Annex 6-A, Section C, the importing USMCA country may require a document issued by the competent authority of a USMCA country, such as a certificate of eligibility, to provide information demonstrating that the good qualifies for duty-free treatment under a TPL, to track allocation and use of a TPL, or as a condition to grant duty-free treatment to the good under a TPL.

 

Subpart H to 19 CFR part 182 also outlines the requirements and procedures for a textile or apparel good verification conducted pursuant to a USMCA Article 6.6 site visit. The USMCA provides CBP with two alternative means of conducting a textile or apparel good verification.

 

 

Drawback Implementing Regulations 

 

The interim final rule expands the USMCA drawback and duty-deferral regulations in 19 CFR 182, Subpart E, by including additional provisions not previously addressed. Under the new rule, drawback claims filed against exports to Canada or Mexico must now be filed as USMCA Drawback, with a few exceptions. These exceptions primarily apply to claims filed under 19 USC 1313(j)(1)—commonly known as "Type 58" or direct identification, unused merchandise claims—as well as rejected merchandise claims for "goods not conforming to sample or specification" or "goods shipped without consent of consignee."

 

The drawback refund under USMCA Drawback is based on the lesser of the customs duties paid to either (1) the United States or (2) Canada or Mexico. Additionally, the liquidation timeline for USMCA Drawback has been updated, now requiring a three-year period after entry into Canada or Mexico prior to the drawback claim's liquidation.

 

Recordkeeping and protest requirements

 

Under USMCA Article 5.8.1 and 19 U.S.C. 1508(b)(4)(A), importers claiming USMCA preferential tariff treatment must retain records for at least five years from the importation date. These records include documentation related to the good's importation, certificate of origin (if completed by the importer), and records and supporting documents related to transshipment and must be made available for examination and inspection

 

CBP has amended 19 CFR 163 to align with these recordkeeping requirements and incorporated additional updates in 19 CFR 182.

 

CBP has amended 19 CFR 174 to extend protest rights to USMCA importers, exporters, and producers, aligning with USMCA Articles 5.15.1 and 7.15. These amendments ensure exporters and producers who completed a certification of origin have the same rights to review and appeal origin determinations as importers. As a result, an importer, or a qualified exporter or producer, may file protests to contest denials of USMCA preferential tariff treatment for claims made at entry or of a USMCA post-importation claim.

 

 

Temporary admission of goods requirements

 

Goods temporarily imported into the U.S. under bond for repair, alteration, or processing and subsequently exported to Canada or Mexico will have duties assessed based on their condition at the time of importation into the United States. Duty must be paid within 60 calendar days of export or the date of entry into a Canadian or Mexican duty-deferral program unless reduced or waived under specific claims.

 

CBP updated 19 CFR 10.31(f) to align with USMCA Article 2.7, requiring that the goods be brought in by nationals of Canada or Mexico, as opposed to a Canadian or Mexican resident, to qualify as originating goods.

 

CBP revised 19 CFR 10.31(f) to clarify that for temporary importations, a bond must be equal to double the amount of duties and fees (or more if required by the Center of Excellence and Expertise). The revision distinguishes between duties and fees, as they are treated separately under the General Agreement on Tariffs and Trade (GATT), replacing the phrase "duties, including fees" with "duties and fees" to clarify that fees are not included in duties.

 

 

Applicable fee provisions

 

CBP updated 19 CFR 24.23 and 19 CFR 24.36 to reflect changes related to the USMCA merchandise processing fee. The USMCA also provides a merchandise processing fee exemption. Per USMCA Article 2.16.3, no USMCA country may impose a customs user fee on originating goods, with a footnote further clarifying that this commitment only applies to the United States with respect to the merchandise processing fee. Section 203 of the USMCA Implementation Act amended U.S. law to prohibit fees for processing merchandise that qualifies as originating under 19 U.S.C. 4531 or for duty-free treatment under USMCA Annex 6-A.

 

 

Other conforming amendments to fulfill the USMCA-related commitments

 

  • Instruments for International Traffic 

    • CBP is revising 19 CFR 10.41a(g) to comply with USMCA Article 2.7.11, which requires extending the timeframe for temporary admission of shipping containers upon request. Containers designated as instruments of international traffic (IIT) currently must exit the U.S. within 365 days of the date it was admitted or be treated as removed from international traffic, requiring an entry for consumption.

    • Under USMCA Article 2.7.11, CBP is revising 19 CFR 10.41a(g)(1) to allow extensions for temporary admission of shipping containers designated as instruments of international traffic (IIT) beyond the 365-day limit. The extension applies to containers admitted from Canada or Mexico upon request by the filer of the original application under § 10.41a(a)(1). Requests must be submitted in ACE before the 365-day deadline, including the container number, last arrival date, intended departure date, and reason for the delay. CBP will provide extension details through ACE. Containers failing to exit by the extension's expiration date will also be treated as removed from international traffic, requiring an entry for consumption.

    •  

  • 19 CFR 123 - CBP Relations with Canada and Mexico 

    • Part 123 of the CFR outlines special regulations pertaining to  CBP procedures at the Canadian and Mexican borders, including provisions governing reports of arrival, manifesting, unlading and lading, instruments of international traffic, shipments in transit through Canada or Mexico, commercial traveler's samples transiting the United States or Canada, baggage arriving from Canada or Mexico, and electronic information for rail and truck cargo in advance of arrival. Section 123.0 defines the scope of Part 123 and cross-references other relevant parts of Title 19 that address CBP procedures for Canadian and Mexican goods. CBP is updating § 123.0 to include cross-references to the USMCA regulations in Part 182.

 

 

Comments on this interim final rule must be received by March 18, 2025. 

 

Please refer to the below references: 

Show all news