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Rule2025-00550

Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) Implementing Regulations Related to Textile and Apparel Goods, Automotive Goods, and Other USMCA Provisions

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

January 17, 2025

Effective

March 18, 2025

Issuing agencies

Homeland Security DepartmentU.S. Customs and Border ProtectionTreasury Department

Abstract

This interim final rule amends the U.S. Customs and Border Protection (CBP) regulations to add implementing regulations for the preferential tariff treatment and related customs provisions of the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) with respect to general definitions, drawback and duty-deferral programs, textile and apparel goods, and automotive goods. This document also amends the regulations to implement the temporary admission of goods, to delineate recordkeeping and protest requirements, to clarify the fee provisions, and to make conforming amendments, including technical corrections to other laws as required by statute.

Full Text

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<title>Federal Register, Volume 90 Issue 11 (Friday, January 17, 2025)</title>
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[Federal Register Volume 90, Number 11 (Friday, January 17, 2025)]
[Rules and Regulations]
[Pages 6456-6502]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00550]

[[Page 6455]]

Vol. 90

Friday,

No. 11

January 17, 2025

Part V

Commodity Futures Trading Commission

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Internal Revenue Service

Department of the Treasury

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19 CFR Parts 10, 24, 113, et al.

Agreement Between the United States of America, the United Mexican
States, and Canada (USMCA) Implementing Regulations Related to Textile
and Apparel Goods, Automotive Goods, and Other USMCA Provisions; Final
Rule

Federal Register / Vol. 90 , No. 11 / Friday, January 17, 2025 /
Rules and Regulations

[[Page 6456]]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 24, 113, 123, 141, 144, 163, 174, and 182

[USCBP-2024-0017; CBP Dec. 24-18]
RIN 1685-AA00 (Formerly RIN 1515-AE65)

Agreement Between the United States of America, the United
Mexican States, and Canada (USMCA) Implementing Regulations Related to
Textile and Apparel Goods, Automotive Goods, and Other USMCA Provisions

AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.

ACTION: Interim final rule; request for comments.

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SUMMARY: This interim final rule amends the U.S. Customs and Border
Protection (CBP) regulations to add implementing regulations for the
preferential tariff treatment and related customs provisions of the
Agreement Between the United States of America, the United Mexican
States, and Canada (USMCA) with respect to general definitions,
drawback and duty-deferral programs, textile and apparel goods, and
automotive goods. This document also amends the regulations to
implement the temporary admission of goods, to delineate recordkeeping
and protest requirements, to clarify the fee provisions, and to make
conforming amendments, including technical corrections to other laws as
required by statute.

DATES: This interim final rule is effective on March 18, 2025. However,
compliance with the labor value content certification, steel purchasing
certification, and aluminum purchasing certification provisions in
Sec. Sec. 182.95, 182.96, and 182.97 will only be required for those
vehicle certifications submitted to CBP on or after May 19, 2025.
Comments regarding this interim final rule must be received by March
18, 2025.

ADDRESSES: Please submit comments, identified by docket number USCBP-
2024-0017, by the following method:
Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow
the instructions for submitting comments.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to <a href="http://www.regulations.gov">http://www.regulations.gov</a>, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to <a href="http://www.regulations.gov">http://www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT: Operational Aspects and Audit Aspects:
Raymond J. Irizarry, Director, Textiles and Trade Agreements Division,
Trade Policy and Programs, Office of Trade, U.S. Customs and Border
Protection, (202) 945-7236 or <a href="/cdn-cgi/l/email-protection#377163767754554719535f4419505841">[email&#160;protected]</a>.
Legal Aspects: Yuliya A. Gulis, Director, Commercial and Trade
Facilitation Division, Regulations and Rulings, Office of Trade, U.S.
Customs and Border Protection, (202) 325-0042 or
<a href="/cdn-cgi/l/email-protection#6c15190005150d420d420b1900051f2c0f0e1c4208041f420b031a">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

I. Public Participation

Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of this
interim final rule. U.S. Customs and Border Protection (CBP) also
invites comments that relate to the economic, environmental, or
federalism effects that might result from this interim final rule.
Comments that will provide the most assistance to CBP will reference a
specific portion of the interim final rule, explain the reason for any
recommended change, and include data, information or authority that
support such recommended change.

II. Background

On November 30, 2018, the ``Protocol Replacing the North American
Free Trade Agreement with the Agreement Between the United States of
America, the United Mexican States, and Canada'' (the Protocol) was
signed to replace the North American Free Trade Agreement (NAFTA). The
Agreement Between the United States of America, the United Mexican
States (Mexico), and Canada (the USMCA) \1\ is attached as an annex to
the Protocol and was subsequently amended to reflect certain
modifications and technical corrections in the ``Protocol of Amendment
to the Agreement Between the United States of America, the United
Mexican States, and Canada'' (the Amended Protocol), which the Office
of the United States Trade Representative (USTR) signed on December 10,
2019.
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\1\ The Agreement Between the United States of America, the
United Mexican States, and Canada is the official name of the USMCA
treaty. Please be aware that, in other contexts, the same document
is also referred to as the United States-Mexico-Canada Agreement.
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Pursuant to section 106 of the Bipartisan Congressional Trade
Priorities and Accountability Act of 2015 (19 U.S.C. 4205) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), the United States
approved and implemented the USMCA through the enactment of the United
States--Mexico--Canada Agreement Implementation Act (USMCA
Implementation Act), Pub. L. 116-113, 134 Stat. 11 (19 U.S.C. Chapter
29), on January 29, 2020. Section 103(a)(1)(B) of the USMCA
Implementation Act (19 U.S.C. 4513(b)(1)) provides the authority for
new or amended regulations to be issued to implement the USMCA, as of
the date of its entry into force.
Mexico, Canada, and the United States certified their preparedness
to implement the USMCA on December 12, 2019, March 13, 2020, and April
24, 2020, respectively. As a result, pursuant to paragraph 2 of the
Protocol, which provides that the USMCA will take effect on the first
day of the third month after the last signatory party provides written
notification of the completion of its domestic procedures required for
entry into force, the USMCA entered into force on July 1, 2020.
Subsequent to the USMCA's entry into force date, on December 27,
2020, the Consolidated Appropriations Act, 2021 (Appropriations Act),
Pub. L. 116-260, was enacted with Title VI of the Act containing
technical corrections to the USMCA Implementation Act. All of the
changes contained within Title VI of the Appropriations Act are
retroactively effective on July 1, 2020, the USMCA's entry into force
date. See sections 601(h) and 602(g) of Title VI of the Appropriations
Act. These changes included amending section 202 of the USMCA
Implementation Act (19 U.S.C. 4531) to prohibit non-originating goods
used in production processes within foreign trade zones (FTZs) from
qualifying as originating goods under the USMCA. See section 601(b) of
Title VI of the Appropriations Act. Additionally, section 601(e) of
Title VI of the Appropriations Act amended 19 U.S.C. 1520(d) to allow
the refund of merchandise processing fees for USMCA post-importation
claims. The Appropriations Act also included technical corrections to
other laws. These other laws, such as the African Growth and
Opportunity Act and the Caribbean Basin Economic Recovery Act,
implemented the relevant trade preference programs using the NAFTA

[[Page 6457]]

rules of origin. With the repeal of the North American Free Trade
Agreement Implementation Act (NAFTA Implementation Act), section 602(a)
and (b) of Title VI of the Appropriations Act amended these other laws
to include the USMCA rules of origin.
Pursuant to USMCA Article 5.16, the United States, Mexico, and
Canada trilaterally negotiated and agreed to Uniform Regulations. The
USMCA Free Trade Commission adopted the Uniform Regulations in its
Decision No.1, effective as of the date of entry into force of the
USMCA. Annex I to that decision includes: \2\
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\2\ Available at: <a href="https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/free-trade-commission-decisions/usmca-free-trade-commission-decision-no-1">https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/free-trade-commission-decisions/usmca-free-trade-commission-decision-no-1</a>.
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<bullet> The Uniform Regulations Regarding the Interpretation,
Application, and Administration of Chapter 4 (Rules of Origin) and
Related Provisions in Chapter 6 (Textile and Apparel Goods) of the
Agreement Between the United States of America, the United Mexican
States, and Canada (Uniform Regulations regarding Rules of Origin), and
<bullet> The Uniform Regulations Regarding the Interpretation,
Application, and Administration of Chapters 5 (Origin Procedures), 6
(Textile and Apparel Goods), and 7 (Customs Administration and Trade
Facilitation) of the Agreement Between the United States of America,
the United Mexican States, and Canada (Uniform Regulations regarding
Origin Procedures).

In accordance with USMCA Article 5.16, modifications or additions to
the Uniform Regulations shall be considered regularly by the USMCA
Parties to reduce their complexity and to ensure better compliance. To
this end, further iterations of the Uniform Regulations may be
negotiated. Part 182 of title 19 of the Code of Federal Regulations
(CFR) (19 CFR part 182) contains the Uniform Regulations regarding
Chapter 4 Rules of Origin and related provisions of Chapter 6 in
Appendix A. The Uniform Regulations for Chapter 5, remaining provisions
of Chapter 6, and Chapter 7 regarding Origin Procedures are
incorporated in title 19 of the CFR, including 19 CFR part 182, as
appropriate for U.S. administrative processes and procedures. Part 182
of title 19 of the CFR will be amended through subsequent rulemaking to
reflect future changes to both sets of the Uniform Regulations, as
needed.
The USMCA superseded NAFTA and its related provisions on the date
that USMCA entered into force. See Protocol, paragraph 1. Section 601
of the USMCA Implementation Act repealed the NAFTA Implementation Act,
Pub. L. 103-182, 107 Stat. 2057 (19 U.S.C. 3301), as of the date that
the USMCA entered into force. The NAFTA provisions set forth in part
181 of title 19 of the CFR (19 CFR part 181) and in General Note 12,
Harmonized Tariff Schedule of the United States (HTSUS), continue to
apply to goods entered for consumption, or withdrawn from warehouse for
consumption, prior to July 1, 2020.
Claims for preferential treatment under the USMCA may be made as of
July 1, 2020. On July 1, 2020, CBP published an interim final rule
(IFR), entitled ``Implementation of the Agreement Between the United
States of America, the United Mexican States, and Canada (USMCA)
Uniform Regulations Regarding Rules of Origin,'' (CBP Dec. 20-11) in
the Federal Register (85 FR 39690), amending part 181 and adding a new
part 182 containing several USMCA provisions, including the Uniform
Regulations regarding Rules of Origin as Appendix A of part 182 to
title 19 of the CFR (19 CFR part 182), which was trilaterally agreed
upon by the United States, Mexico, and Canada. CBP later published an
IFR on July 6, 2021, entitled, ``Agreement Between the United States of
America, the United Mexican States, and Canada (USMCA) Implementing
Regulations Related to the Marking Rules, Tariff-rate Quotas, and Other
USMCA Provisions,'' (CBP Dec. 21-10) in the Federal Register (86 FR
35566), which was effective on July 1, 2021. The IFR amended part 182
to implement USMCA Chapters 1, 2, 5, and 7 related to general
definitions, confidentiality, import requirements, export requirements,
post-importation duty refund claims, a portion of the drawback and
duty-deferral programs, general verifications and determinations of
origin, commercial samples, goods re-entered after repair or alteration
in Canada or Mexico, and penalties. It also amended several other parts
of title 19 of the CFR necessary to implement the USMCA. In addition to
those regulations and the regulations set forth in this document,
persons intending to make USMCA preference claims may refer to the CBP
website at <a href="https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA">https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA</a> for further guidance. The United States
International Trade Commission has modified the HTSUS to include the
addition of General Note 11, incorporating the USMCA rules of origin
for preference purposes, and the insertion of the special program
indicator ``S'' or ``S+'' for the USMCA in the HTSUS ``special'' rate
of duty subcolumn.\3\
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\3\ The S+ indicator is used for certain agricultural goods and
textile tariff preference levels (TPLs).
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A. The Customs Related USMCA Provisions

The USMCA is composed of 34 chapters along with additional side
letters. CBP is responsible for administering the customs related
provisions contained within Chapters 1 (Initial Provisions and General
Definitions), 2 (National Treatment and Market Access for Goods), 4
(Rules of Origin), 5 (Origin Procedures), 6 (Textile and Apparel Goods)
and 7 (Customs Administration and Trade Facilitation) of the USMCA and,
pursuant to Article 5.16 of the USMCA, the Uniform Regulations
regarding Rules of Origin as well as the Uniform Regulations regarding
Origin Procedures. This IFR amends the CBP regulations to implement
remaining customs related USMCA provisions that CBP is responsible for
administering, as described below.
Chapter 1 of the USMCA contains the general definitions and
country-specific definitions applicable to the USMCA, unless otherwise
provided.
Chapter 2 of the USMCA sets forth the national treatment and market
access provisions. Unless otherwise provided, each USMCA country shall
apply a customs duty on an originating good in accordance with its
Schedule in Annex 2-B (Tariff Commitments) of Chapter 2 of the USMCA.
See Article 2.4 of the USMCA. USMCA Chapter 2 also contains the
drawback and duty-deferral program provisions (Article 2.5) and the
temporary admission of goods provisions (Article 2.7).
USMCA Chapter 4 contains the general rules of origin for
preferential tariff treatment. Annex 4-B contains the product-specific
rules of origin. Specifically, the Appendix to Annex 4-B of Chapter 4
of the USMCA sets forth the provisions related to the product-specific
rules of origin for automotive goods. See USMCA Article 4.10. USMCA
Appendix to Annex 4-B includes the automotive good-specific definitions
(Article 1); the averaging provisions for purposes of calculating the
regional value content of a passenger vehicle, light truck, heavy
truck, or automotive good (Article 5); the steel purchasing and
aluminum purchasing requirements (Article 6); the labor value content
requirements (Article 7); and

[[Page 6458]]

the provisions related to the transition period during which a
qualifying passenger vehicle, light truck, or heavy truck may be
originating under the USMCA pursuant to an alternative staging regime
(Article 8).
Chapter 5 of the USMCA sets forth the origin procedures. This
includes the recordkeeping requirements for importers, exporters, and
producers (Article 5.8); the general origin verification requirements
and procedures (Article 5.9); determinations of origin (Article 5.10);
advance rulings relating to origin (Article 5.14); and the review and
appeal of determinations of origin and advance rulings (Article 5.15).
Chapter 6 includes the product-specific rules of origin specific to
textiles and apparel goods. Except as specifically provided for in
USMCA Chapter 6, USMCA Chapters 4 (Rules of Origin) and 5 (Origin
Procedures) apply to textile and apparel goods as well. See USMCA
Article 6.1. Chapter 6 contains the textile and apparel goods site
visit verification provisions (Article 6.6), and the determination of
origin provisions (Article 6.7). Annex 6-A of Chapter 6 of the USMCA
sets forth the special provisions applicable to certain textile and
apparel goods. See USMCA Article 6.3. Section C of Annex 6-A sets forth
the tariff preference level provisions related to preferential tariff
treatment for non-originating goods of another USMCA country, including
the requirements and applicable procedures. USMCA Annex 6-B contains
the schedule of conversion factors that apply to tariff preference
levels.
USMCA Chapter 7 sets forth provisions related to customs
administration and trade facilitation, specifically provisions on
advance rulings (Article 7.5) and on review and appeal of customs
determinations (Article 7.15).
The Chapters 1, 2, 4, 5, 6, and 7 provisions discussed above are
reflected in this IFR. CBP is soliciting public comments in this
document. CBP will address any public comments received from the IFRs
implementing the USMCA in a final rule published in the Federal
Register. Additionally, future trilateral negotiations on the Uniform
Regulations may result in additional provisions that will be included
in a future rulemaking process at a later date.

B. Textiles and Apparel Goods

Under the USMCA, a textile or apparel good is defined as a good
classified in Harmonized System (HS) subheading 4202.12, 4202.22,
4202.32, or 4202.92 (luggage, handbags and similar articles with an
outer surface of textile materials); headings 50.04 through 50.07,
51.04 through 51.13, 52.04 through 52.12, 53.03 through 53.11; Chapters
54 through 63; heading 66.01 (umbrellas) or heading 70.19 (yarns and
fabrics of glass fiber); subheading 9404.90 (articles of bedding and
similar furnishing); or heading 96.19 (babies diapers and other
sanitary textile articles). See USMCA Article 1.5. Chapter 6 of the
USMCA contains the provisions that apply only to the treatment of
textile and apparel goods. Unless otherwise noted, the provisions in
USMCA Chapter 6 are additional requirements, with the rules of origin
in USMCA Chapter 4 and the origin procedures in USMCA Chapter 5 also
applying to textile and apparel goods.
Tariff Preference Levels (TPLs)
USMCA Chapter 6 contains special provisions in Annex 6-A allowing
specified quantities of certain textile and apparel goods, which do not
meet the rules of origin in General Note 11, HTSUS, or the Uniform
Regulations regarding Rules of Origin, to claim USMCA preferential
tariff treatment because the goods undergo significant processing in
one or more USMCA countries. See USMCA Article 6.3. Specifically,
Section C of Annex 6-A sets the tariff preference levels (TPLs). TPLs
require that each USMCA country apply the preferential tariff treatment
applicable to originating goods (as set out in the goods' schedule in
USMCA Annex 2-B (Tariff Commitments)) for certain non-originating
apparel goods of Chapters 61 and 62, HTSUS, and textile and apparel
goods, other than wadding, of heading 9619, HTSUS; certain non-
originating cotton or man-made fiber fabrics and textile goods, and
certain goods of subheading 9404.90, HTSUS; and certain non-originating
cotton or man-made fiber spun yarn, up to the annual quantities
specified in the appendices to Annex 6-A, in the square meter
equivalent measurement (SME) indicated. The SME is a unit of
measurement that results from the application of the conversion factors
set out in Annex 6-B, to a primary unit of measure such as a unit,
dozen, or kilogram and is used in the appendices to Annex 6-A to
determine the annual quantities of each specified textile and apparel
good that is eligible for USMCA preferential tariff treatment under the
TPLs. See USMCA Annex 6-A, Section A.
A USMCA country will manage each TPL on a first-come, first-served
basis, and will calculate the quantity of goods that enter under a TPL
on the basis of its imports. See USMCA Annex 6-A, Section C. When
imports exceed the established annual quantitative levels, the imported
goods are subject to most-favored nation (MFN) rates of duty. An
importer may make a claim for preferential tariff treatment of a good
under a TPL for at least one year after the good is imported, if the
annual quantitative limit has not been reached and other TPL
requirements are met. Goods imported under TPLs are exempt from
merchandise processing fees.
Pursuant to section 103(c)(1) of the USMCA Implementation Act (19
U.S.C. 4513(c)), which grants the President proclamation authority to
take the actions necessary to apply USMCA Article 6.3 and Annex 6-A,
the special classification provisions in Subchapter XXIII of Chapter 98
of the HTSUS have been modified to insert U.S. Note 11 containing the
Mexican and Canadian textile and apparel goods, with the SME indicated,
that are eligible for special tariff treatment subject to the TPLs.
Additionally, the HTSUS was modified to include the insertion of the
special program indicator ``S+'' in the HTSUS ``special'' rate of duty
subcolumn. The special program indicator ``S+'' is used when the HTSUS
provides different preferential tariff treatment to each of the USMCA
countries such as with TPLs.
As goods subject to TPLs are not originating goods, the
certification of origin requirement does not apply for textile or
apparel goods subject to a TPL claiming USMCA preferential tariff
treatment. Instead, pursuant to USMCA Annex 6-A, Section C, the USMCA
country where the good is being imported 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. Each USMCA country must notify the other USMCA
countries if it requires a certificate of eligibility or other
documentation. CBP has determined that TPLs under the USMCA will be
administered using a certificate of eligibility. Thus, CBP is adding
the TPL requirements, including the requirements for the certificate of
eligibility, to 19 CFR part 182, subpart H.
The USMCA provisions related to claims for preferential tariff
treatment generally apply, with the exception of the certification of
origin requirement, to textile or apparel goods subject to TPLs,
including the general verification requirements under USMCA Article 5.9

[[Page 6459]]

and the textile and apparel goods-specific verification provisions in
USMCA Article 6.6. See USMCA Annex 6-A, Section C.
Textile and Apparel Good Verifications
Pursuant to USMCA Article 5.9, a USMCA country may conduct a
verification to determine whether a good qualifies for preferential
tariff treatment by one or more of the following means: a written
request or questionnaire issued to the importer, exporter, or producer;
a verification visit to the premises of the exporter or producer; for a
textile or apparel good, the procedures set out in USMCA Article 6.6;
or any other procedure as may be decided by the USMCA countries.
Accordingly, the USMCA provides a USMCA country with the discretion
to conduct a textile or apparel good verification either pursuant to
the general verification procedures set forth in USMCA Article 5.9 or
pursuant to a site visit under USMCA Article 6.6. A verification under
USMCA Article 5.9 is conducted to verify whether a good qualifies for
preferential tariff treatment. A site visit under USMCA Article 6.6
(hereinafter referred to as a ``site visit'') may only be conducted to
verify textile and apparel goods. A USMCA country may perform a site
visit of an exporter or producer to verify whether a textile or apparel
good qualifies for USMCA preferential tariff treatment or to verify
whether customs offenses with regard to a textile or apparel good are
occurring or have occurred. Consequently, under USMCA Article 6.6.3,
during a site visit, a USMCA country may request access to records and
facilities relevant to the claim for preferential tariff treatment or
records and facilities relevant to the customs offenses being verified.
USMCA Article 1.5 defines a customs offense to mean any act
committed for the purpose of, or having the effect of, avoiding a USMCA
country's laws or regulations pertaining to the provisions of the USMCA
governing importations or exportations of goods between, or transit of
goods through, the territories of the USMCA countries, specifically
those that violate a customs law or regulation for restrictions or
prohibitions on imports or exports, duty evasion, transshipment,
falsification of documents relating to the importation or exportation
of goods, fraud, or smuggling of goods.
A site visit's procedures and processes differ significantly from a
verification visit under USMCA Article 5.9. Prior to conducting a site
visit in a USMCA country, the USMCA country conducting the site visit
is not required to notify the exporter or producer whose premises are
going to be visited. The USMCA country conducting the site visit,
however, must notify the USMCA country where the site visit will occur
(the ``host USMCA country''). USMCA Article 6.6 sets forth the
requirements and specific information that the USMCA country that is
seeking to conduct the site visit with respect to a textile or apparel
good must provide to the host USMCA country, not later than 20 days
prior to the date of the first visit to an exporter or producer. This
information exchange between the USMCA countries is governed by the
confidentiality provisions in USMCA Article 5.12 to ensure that
information is treated as confidential when it is designated as
confidential or is confidential under the receiving USMCA country's
laws.\4\ See USMCA Articles 5.12 and 6.9. Additionally, in accordance
with USMCA Article 6.6.7(c), the USMCA countries will limit
communication regarding the site visit to relevant government officials
and not inform any person outside the government of the host USMCA
country in advance of the site visit or provide any other information
not publicly available that could undermine the effectiveness of the
site visit.
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\4\ The exchange of information between USMCA countries is
governed by 19 U.S.C. 1628. See also 19 CFR 182.2(b) for the USMCA
confidentiality regulations setting forth the legally permitted
disclosures that allow CBP to share the confidential information it
receives from the public, including the disclosures CBP is
authorized to make to other USMCA countries. Please also refer to
the Agreement Between the United States of America, the United
Mexican States, and Canada (USMCA) Implementing Regulations Related
to the Marking Rules, Tariff-rate Quotas, and Other USMCA Provisions
interim final rule (86 FR 35566), published in the Federal Register
on July 6, 2021, for additional information regarding confidential
information and the USMCA.
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The USMCA country conducting the site visit is required to request
permission in order to access the relevant records or facilities from
the exporter, producer, or a person having capacity to consent on
behalf of the exporter or producer, either prior to the site visit, if
this would not undermine the effectiveness of the site visit, or at the
time of the site visit. See USMCA Article 6.6.7(d). Pursuant to the
Uniform Regulations regarding Origin Procedures, the USMCA country
performing the site visit would inform the person from whom it is
requesting permission, at the time of the request for permission, of
the legal authority for the visit, the specific purpose of the visit,
and the names and titles of the officials performing the visit.
Pursuant to USMCA Article 6.6.7(e), if permission is denied or access
to the records or facilities is denied, the site visit will not occur.
If the exporter, producer, or person having capacity to consent on
behalf of the exporter or producer is not able to receive the USMCA
country officials to carry out the site visit, the site visit will be
conducted on the following business day unless the USMCA country
conducting the site visit agrees otherwise, or there is a valid reason
that the site visit cannot occur at that time. An unsubstantiated
reason or a reason that the USMCA country conducting the site visit
does not deem acceptable may result in the consent for the site visit
to be deemed denied, though the USMCA country conducting the site visit
should give consideration to any reasonable alternative proposed dates.
See USMCA Article 6.6.7(e).
On completion of a site visit, the USMCA country performing the
site visit will, upon request of the host USMCA country or the exporter
or producer, provide its relevant findings of the results of the site
visit. See USMCA Article 6.6.8. Pursuant to USMCA Article 6.7, a USMCA
country may deny a claim for preferential tariff treatment for a
textile or apparel good for the reasons listed in USMCA Article 5.10;
or, if pursuant to a site visit, the USMCA country has not received
sufficient information to determine that the textile or apparel good
qualifies for preferential tariff treatment; or, if the USMCA country
is unable to conduct the site visit as access or permission for a site
visit is denied, the USMCA country officials are prevented from
completing the site visit, or the exporter or producer does not provide
access to the relevant records or facilities during a site visit.
Under USMCA Article 6.6.11, if verifications of identical textile
or apparel goods indicate a pattern of conduct by an exporter or
producer of making false or unsupported representations that a good
imported into the USMCA country qualifies for preferential tariff
treatment, the USMCA country may withhold preferential treatment for
identical textile or apparel goods imported, exported, or produced by
that person until it is demonstrated to the USMCA country that the
identical goods qualify for preferential tariff treatment.
Section 207(a)(2) of the USMCA Implementation Act (19 U.S.C.
4533(a)(2)) provides the Secretary of the Treasury authority to conduct
a USMCA Article 6.6 site visit to verify whether the textile or apparel
good qualifies for preferential tariff treatment under the USMCA or
whether customs offenses are occurring or have occurred with respect to
the good. Section 207(b) of

[[Page 6460]]

the USMCA Implementation Act (19 U.S.C. 4533(b)(1)) sets forth the
basis for issuing a negative determination of origin. Specifically,
section 207(b)(1)(B)(iv) of the USMCA Implementation Act provides that,
for a Chapter 6 site visit, a negative determination is a determination
by the Secretary that access or permission for a site visit is denied;
U.S. officials are prevented from completing a site visit on the
proposed date and the exporter or producer does not provide an
acceptable alternative date for the site visit; or the exporter or
producer does not provide access to relevant documents or facilities
during a site visit. Upon making a negative determination of origin,
the Secretary may deny preferential tariff treatment under the USMCA.
See 19 U.S.C. 4533(c)(1). The Secretary also may withhold preferential
tariff treatment for identical goods based on a pattern of conduct. See
section 207(c)(2) of the USMCA Implementation Act (19 U.S.C.
4533(c)(2)).
To address the specific requirements and procedures for filing a
claim for USMCA preferential tariff treatment for a textile or apparel
good subject to a TPL and to set forth the procedures related to USMCA
Article 6.6 site visits, CBP has included a separate subpart H, Textile
and Apparel Goods, in part 182 of title 19 of the CFR, that applies
only to textile and apparel goods.

C. Automotive Goods

An automotive good is defined as either a covered vehicle (a
passenger vehicle, light truck, or heavy truck), or a part, component,
or material listed in Tables A.1, A.2, B, C, D, E, F, or G of the
Appendix to Annex 4-B of the USMCA (also referred to as the
``Automotive Appendix''). See section 202A(a)(4) and (a)(7) of the
USMCA Implementation Act (19 U.S.C. 4532(a)(4) and (a)(7)). The
definitions of passenger vehicle, light truck, and heavy truck are
contained in the USMCA Automotive Appendix. In addition to the general
rules of origin set forth in USMCA Chapter 4, the USMCA contains
numerous product-specific rules of origin for automotive goods and
additional provisions. These product-specific rules of origin and
additional requirements are contained in the USMCA Automotive Appendix,
including higher regional value content (RVC) thresholds than those in
NAFTA, labor value content (LVC) requirement, steel purchasing
requirement, and aluminum purchasing requirement. See USMCA Article
4.10 and Appendix to Annex 4-B. The importer, exporter, or producer who
completes the certification of origin for a covered vehicle is
certifying that the covered vehicle is an originating good that has
complied with all the product-specific rules of origin, including the
LVC, steel purchasing, and aluminum purchasing requirements.
Section 202A of the USMCA Implementation Act (19 U.S.C. 4532) sets
forth the special rules for automotive goods, including definitions
specific to automotive goods, the vehicle certification requirements
for covered vehicles, the alternative staging regime provisions, the
administration of the high-wage components of the LVC requirement by
the Department of Labor (DOL), and the extra procedures for
verification of the LVC requirement. Covered vehicles imported into the
United States are only eligible for USMCA preferential tariff treatment
if the producer of the covered vehicle (passenger vehicles, light
trucks, and heavy trucks) submits three properly filed vehicle
certifications to CBP. These vehicle certifications are the LVC
certification, steel purchasing certification, and aluminum purchasing
certification.
The product-specific rules of origin for automotive goods are set
forth in General Note 11, HTSUS, Appendix A to part 182 of title 19 of
the CFR (containing the Uniform Regulations regarding Rules of Origin),
and the USMCA Automotive Appendix. To address the specific additional
requirements and procedures applicable to claims for USMCA preferential
tariff treatment for covered vehicles, CBP has included subpart I,
Automotive Goods, in part 182 of title 19 of the CFR.
Steel Purchasing and Aluminum Purchasing Requirements
USMCA Article 6 of the Automotive Appendix sets forth the steel
purchasing and aluminum purchasing requirements. In addition to the
other product-specific rules of origin and requirements in USMCA
Chapter 4, a covered vehicle imported into the United States is
eligible for USMCA preferential tariff treatment only if the producer
of the covered vehicle meets both the steel purchasing and the aluminum
purchasing requirements, as set forth in USMCA Article 6 of the
Automotive Appendix, section 17 of the Uniform Regulations regarding
Rules of Origin, and General Note 11(k)(v), HTSUS, or, if the producer
is subject to an alternative staging regime, as set forth in USMCA
Articles 6 and 8 of the Automotive Appendix, section 19 of the Uniform
Regulations regarding Rules of Origin, and General Note 11(k)(viii),
HTSUS.
Generally, subject to certain exceptions and conditions, the steel
purchasing and aluminum purchasing requirements provide that a
passenger vehicle, light truck, or heavy truck is originating under the
USMCA only if, during the calculation period specified, at least 70
percent, by value, of the vehicle producer's purchases, at the
corporate level in the territories of one or more of the USMCA
countries, of steel are of originating goods, and at least 70 percent,
by value, of the vehicle producer's purchases at the corporate level in
the territories of one or more of the USMCA countries of aluminum are
of originating goods. See USMCA Article 6 of the Automotive Appendix
and section 17(1) of the Uniform Regulations regarding Rules of Origin.
In order to facilitate implementation of the steel and aluminum
purchasing requirements in accordance with USMCA Article 6.3 of the
Automotive Appendix, Table S of the Uniform Regulations regarding Rules
of Origin contains the HS subheadings for the steel and aluminum,
including structural steel or aluminum goods used in the production of
covered vehicles, that are subject to the USMCA steel purchasing and
aluminum purchasing requirements.
For purposes of determining whether the producer of a covered
vehicle has met the steel purchasing and aluminum purchasing
requirements, the producer may calculate the purchases of this steel
and aluminum on the basis of the categories set forth in section 17(9)
of the Uniform Regulations regarding Rules of Origin. The applicable
calculation periods, over which the producer of a covered vehicle may
calculate the purchases of steel or aluminum, are provided for in
sections 16(4), 16(5) and 17(7) of the Uniform Regulations regarding
Rules of Origin. The producer of a covered vehicle may choose different
calculation periods for its steel purchasing calculation and its
aluminum purchasing calculation. See section 17(10) of the Uniform
Regulations regarding Rules of Origin.
A covered vehicle is eligible for USMCA preferential tariff
treatment only if the producer of the covered vehicle provides a
properly filed certification to CBP that the producer meets its steel
purchasing and aluminum purchasing requirements, and the producer has
information on record to support the calculations relied on for the
certification. See section 202A(c)(2)(A) of the USMCA Implementation
Act (19 U.S.C. 4532(c)(2)(A)). The producer of a covered vehicle is
required to provide both a steel purchasing certification and

[[Page 6461]]

an aluminum purchasing certification to CBP. CBP must ensure that both
the steel purchasing certification and the aluminum purchasing
certification do not contain omissions or errors before the
certification is considered properly filed. See 19 U.S.C.
4532(c)(2)(B)(i). Section 202A(c)(2)(C) of the USMCA Implementation Act
(19 U.S.C. 4532(c)(2)(C)) authorizes the Secretary of the Treasury to
prescribe regulations for a producer of a covered vehicle to certify
that it meets the steel purchasing and aluminum purchasing requirements
to qualify for USMCA preferential tariff treatment. Accordingly, CBP is
adding regulations to 19 CFR part 182, subpart I, setting forth the
steel purchasing and aluminum purchasing requirements, and the
requirements and procedures for submission of the steel purchasing
certification and the aluminum purchasing certification.
LVC Requirement
USMCA Article 7 of the Automotive Appendix sets forth the LVC
requirement. In addition to the other product-specific rules of origin
and requirements in USMCA Chapter 4, a covered vehicle imported into
the United States is eligible for USMCA preferential tariff treatment
only if the producer of the covered vehicle meets the LVC requirement,
as set forth in USMCA Article 7 of the Automotive Appendix, section 18
of the Uniform Regulations regarding Rules of Origin, and General Note
11(k)(vi), HTSUS, or, if the producer is subject to an alternative
staging regime, as set forth in USMCA Articles 7 and 8 of the
Automotive Appendix, section 19 of the Uniform Regulations regarding
Rules of Origin, and General Note 11(k)(viii), HTSUS. The applicable
calculation periods, over which the producer of a covered vehicle may
calculate the LVC, are provided for in sections 16(4), 16(5), and
18(19) (note only the calculation periods in section 18(19) are
referenced in the DOL interim regulations at 29 CFR part 810) of the
Uniform Regulations regarding Rules of Origin.
The LVC requirement is administered by both CBP and DOL. Section
202A of the USMCA Implementation Act (19 U.S.C. 4532) prescribes CBP's
and DOL's roles in implementing and administering the LVC requirement.
Each agency has distinct areas of responsibility and CBP will work in
conjunction with DOL to review the LVC certification and to perform
verifications of covered vehicles that involve the LVC requirement.
Pursuant to section 202A of the USMCA Implementation Act (19 U.S.C.
4532), DOL is responsible for implementing and administering the high-
wage components of the LVC requirement, which include the wage
components of the high-wage material and manufacturing expenditures,
the high-wage technology expenditures, and the high-wage assembly
expenditures. CBP is responsible for determining whether a covered
vehicle meets the LVC requirement generally, based on DOL's high-wage
components analysis and CBP's analysis of the valuation and other
components of the LVC calculation. CBP is solely responsible for
determining whether a covered vehicle is an originating good qualifying
for USMCA preferential tariff treatment. The DOL regulations that set
forth the high-wage components of the LVC requirement and the
applicable procedures are contained in 29 CFR part 810. The DOL and CBP
regulations, including the requirements and procedures, are intended to
operate in conjunction with each other in accordance with 19 U.S.C.
4532(c)(1) and (e). CBP's and DOL's roles in the implementation and the
administration of the LVC requirement are described in more detail
below.
A covered vehicle is only eligible for USMCA preferential tariff
treatment if the producer of the covered vehicle provides a properly
filed certification to CBP that the production of covered vehicles by
the producer meets the LVC requirement, and the producer has
information on record to support those calculations. See section
202A(c)(1)(A) of the USMCA Implementation Act (19 U.S.C.
4532(c)(1)(A)). For purposes of determining whether a covered vehicle
meets the LVC requirement, the producer of the covered vehicle must
calculate the LVC requirement pursuant to General Note 11(k)(vi),
HTSUS, section 18 of the Uniform Regulations regarding Rules of Origin,
the requirements for the high-wage components of the LVC requirement
set forth in the DOL regulations at 29 CFR part 810, and these
regulations.
The USMCA Implementation Act also sets forth CBP's and DOL's
responsibilities with respect to the review of the LVC certification.
The Secretary of Labor, in consultation with the Commissioner of CBP,
must ensure that the LVC certification does not contain omissions or
errors before the certification is considered properly filed. See 19
U.S.C. 4532(c)(1)(B)(i). Consistent with the USMCA Implementation Act
and the DOL regulations, DOL's role in the LVC certification is limited
to reviewing the high-wage components of the LVC certification for
omissions or errors. Section 202A(c)(1)(C) of the USMCA Implementation
Act (19 U.S.C. 4532(c)(1)(C)) authorizes the Secretary of the Treasury,
in consultation with the Secretary of Labor, to prescribe regulations
for a producer of a covered vehicle to certify that it meets the LVC
requirement to qualify for USMCA preferential tariff treatment. On July
1, 2020, DOL promulgated its USMCA implementing regulations in an IFR
published in the Federal Register (85 FR 39782), entitled ``High-Wage
Components of the Labor Value Content Requirements Under the United
States-Mexico-Canada Agreement Implementation Act,'' which added a new
part 810 to title 29 of the CFR to address the requirements and
establish procedures for vehicle producers to follow concerning the
high-wage components of the LVC requirement. In this document, CBP is
adding regulations to 19 CFR part 182, subpart I, setting forth the LVC
requirement, and the requirements and procedures for submission of the
LVC certification to CBP.
Alternative Staging Regime
The USMCA includes a standard staging regime for automotive good
requirements to allow for a period of transition to lessen the burden
on vehicle producers and grant them more time to meet the new
requirements. Additionally, the USMCA Automotive Appendix includes
provisions allowing vehicle producers to request an alternative staging
regime to facilitate a longer period of transition to ensure that
future production is able to meet the new requirements of the USMCA.
The alternative staging regime differs from the standard staging regime
by providing the vehicle producer with additional time, different
phase-ins for certain product-specific rules of origin for automotive
goods, and different threshold requirements.
While an alternative staging regime provides an alternative to
certain product-specific rules of origin requirements for covered
vehicles, it does not replace any other USMCA rules of origin or
provisions of general applicability for covered vehicles claiming USMCA
preferential tariff treatment. Specifically, USMCA Article 8 of the
Automotive Appendix states that each USMCA country will provide that,
for a period ending no later than five years after entry into force
(July 1, 2025) or any other period provided for in the producer's
approved alternative staging regime for passenger vehicles or light
trucks and for a period ending no later than seven years after entry
into force (July 1, 2027) for heavy trucks, covered vehicles may be
originating

[[Page 6462]]

under the USMCA pursuant to an alternative staging regime. An
alternative staging regime is the application of the less stringent
requirements of USMCA Article 8 of the Automotive Appendix to the
production of covered vehicles for the duration of the alternative
staging regime period to allow producers of such vehicles to bring
production into full compliance with the more stringent requirements of
USMCA Articles 2 through 7 of the Automotive Appendix. See 19 U.S.C.
4532(a)(1). As provided in USMCA Article 8.6 of the Automotive
Appendix, a rule of origin applicable to a covered vehicle as a result
of an alternative staging regime applies in place of any other rule of
origin for that good.
Pursuant to General Note 11(k)(viii), HTSUS, including as may be
further provided for in subchapter XXIII of chapter 99 of the HTSUS,
and the Uniform Regulations regarding Rules of Origin, a covered
vehicle may be originating pursuant to an alternative staging regime.
Section 202A(d) of the USMCA Implementation Act (19 U.S.C. 4532(d))
sets forth the U.S. alternative staging regime. USTR, in consultation
with the Interagency Committee on Trade in Automotive Goods established
in Executive Order 13908 (February 28, 2020) (``Interagency
Committee''), has the authority to set the alternative staging regime
requirements, procedures, and criteria to submit petitions to use an
alternative staging regime, as well as to review petitions to use an
alternative staging regime, approve an alternative staging regime,
approve requests for modifications of the petitions, as necessary, and
make determinations that a vehicle producer subject to the alternative
staging regime failed to meet the requirements of the alternative
staging regime.
In accordance with 19 U.S.C. 4532(d)(1), on April 21, 2020, USTR
published a notice in the Federal Register (85 FR 22238), entitled
``Procedures for the Submission of Petitions by North American
Producers of Passenger Vehicles or Light Trucks To Use the Alternative
Staging Regime for the USMCA Rules of Origin for Automotive Goods,''
providing guidance to vehicle producers seeking to request an
alternative staging regime for the USMCA rules of origin for automotive
goods. The Federal Register notice specified the vehicle producers that
are eligible to petition for an alternative staging regime and the
requirements that vehicle producers must comply with during and after
the alternative staging regime.
CBP may deny USMCA preferential tariff treatment for claims where
vehicle producers fail to meet the standard automotive good
requirements without an authorized alternative staging regime, or a
determination has been made that the producer fails to meet the
requirements of the alternative staging regime as outlined by USTR in
the Federal Register notice. An alternative staging regime for a
passenger vehicle or light truck is valid for five years (in contrast
to seven years for heavy trucks) after the USMCA's entry into force
unless the vehicle producer requests a longer period and that longer
period is accepted by USTR. In accordance with 19 U.S.C. 4532(d)(3)(B),
USTR will maintain a public list of the names of vehicle producers it
has authorized to use an alternative staging regime. If USTR
subsequently determines pursuant to 19 U.S.C. 4532(d)(5) that a
producer failed to meet the requirements of its alternative staging
regime, USTR may remove the producer's name from the public list. In
that instance, the producer's vehicles will no longer be eligible for
USMCA preferential tariff treatment pursuant to the previously approved
alternative staging regime and notwithstanding the finality of a
liquidation of an entry, the importer of any covered vehicle of that
producer will be liable for the duties, taxes, and fees that would have
been applicable to that vehicle if USMCA preferential tariff treatment
pursuant to the alternative staging regime had not been applied plus
interest assessed on or after the date of entry and before the date of
the USTR determination. See 19 U.S.C. 4532(d)(5)(A). After expiration
of the alternative staging period, all claims for USMCA preferential
tariff treatment for covered vehicles must meet the rules of origin set
forth in USMCA Articles 2 through 7 of the Automotive Appendix.
Recordkeeping
As explained in more detail below in section III.D. of this IFR,
section 206(a) of the USMCA Implementation Act amended 19 U.S.C. 1508
to implement the USMCA recordkeeping requirements. Certain amendments
apply only to covered vehicles. Pursuant to section 206(a) of the USMCA
Implementation Act (19 U.S.C. 1508(b)(4)(B)), any vehicle producer
whose goods are the subject of a claim for USMCA preferential tariff
treatment must make, keep, and pursuant to the rules and regulations
promulgated by the Secretary of the Treasury and Secretary of Labor,
render for examination and inspection records and supporting documents
related to the LVC, steel purchasing, and aluminum purchasing
requirements. The vehicle producer must retain these records and
supporting documents for a period of at least five years after the date
of filing of the vehicle certifications and render them for examination
and inspection upon request. See 19 U.S.C. 1508(b)(5)(C)(ii). The DOL
recordkeeping requirements related to the high-wage components for the
LVC requirement for vehicle producers are located at 29 CFR part 810.
Any importer who claims USMCA preferential tariff treatment for a
good imported into the United States must make, keep, and, pursuant to
the rules and regulations prescribed by the Secretary of the Treasury
and the Secretary of Labor, render for examination and inspection the
records and supporting documentation related to the importation, all
records and supporting documents related to the origin of the good if
the importer completed the certification of origin, and the
transshipment records. See 19 U.S.C. 1508(b)(4)(A). Since the vehicle
certifications and any records and supporting documents related to the
LVC, steel purchasing, and aluminum purchasing certifications are
records related to the origin of the good under 19 U.S.C.
1508(b)(4)(A)(ii), an importer is only required to make, keep, and
render for examination and inspection these records if the importer
completed the certification of origin. The DOL recordkeeping
requirements, related to the high-wage components of the LVC
requirement, for importers making a claim for USMCA preferential tariff
treatment for covered vehicles, are located at 29 CFR part 810.
Verifications
A USMCA country may conduct a verification of a covered vehicle
pursuant to the general verification means, requirements, and
procedures set forth in USMCA Article 5.9. Pursuant to section
202A(e)(1) of the USMCA Implementation Act (19 U.S.C. 4532(e)(1)), as
part of a general verification conducted under USMCA Article 5.9 (19
U.S.C. 4533), the Secretary of the Treasury, in conjunction with the
Secretary of Labor, may conduct a verification of whether a covered
vehicle complies with the LVC requirement. The USMCA Implementation Act
specifies the role of CBP and the role of DOL in a verification of a
covered vehicle. DOL, in cooperation with the Secretary of the
Treasury, will participate in any verification of the LVC requirement
by verifying whether the production of covered vehicles by a producer
meets the high-wage components of the LVC requirement, including the
wage component of the high-wage material

[[Page 6463]]

and manufacturing expenditures, the high-wage technology expenditures,
and the high-wage assembly expenditures. See 19 U.S.C. 4532(e)(2).
During a verification of a covered vehicle involving the LVC
requirement, the Secretary of the Treasury will verify the components
of the LVC requirement not covered by DOL and determine whether the
producer has met the LVC requirement. See 19 U.S.C. 4532(e)(3). The
USMCA Implementation Act also specifies the actions that DOL will take
during a verification and the nature of the information that may be
requested. See 19 U.S.C. 4532(e)(4). In accordance with these
requirements, CBP is adding verification requirements and procedures to
the regulations in 19 CFR part 182, subpart I, addressing verifications
of covered vehicles involving the LVC requirement. These verification
requirements will apply in addition to the general verification
regulations in 19 CFR part 182, subpart G. Furthermore, the DOL
regulations at 29 CFR part 810 set forth the parameters, requirements,
and procedures for DOL's verification of the high-wage component of the
LVC requirement.

III. Amendments to the Regulations

Pursuant to section 210(a) of the USMCA Implementation Act (19
U.S.C. 4535(a)), the Secretary of the Treasury has the authority to
prescribe regulations as needed to implement the USMCA. Pursuant to
this authority, this IFR codifies numerous key USMCA provisions
implementing the USMCA for the United States. This IFR promulgates CBP
regulations to implement the USMCA requirements and procedures
trilaterally agreed to by the USMCA countries under the USMCA, the
Uniform Regulations regarding the Rules of Origin, and the Uniform
Regulations regarding Origin Procedures. Specifically, this IFR amends
existing provisions and adds new provisions to the CBP regulations to
implement the additional USMCA Chapter 1 general definitions; the
remaining USMCA Chapter 2 drawback and duty-deferral program
provisions; the USMCA Article 2.7 temporary admission of goods
provisions; the USMCA Chapter 4 product-specific rules of origin for
automotive goods; the USMCA Article 5.8 recordkeeping requirements for
importers, exporters, and producers; the USMCA general origin
verification requirements and procedures; the USMCA Article 5.10
determination of origin provisions; the USMCA Article 5.14 advance
rulings requirements; the USMCA Article 5.15 review and appeal of
determinations of origin and advance rulings provisions; the USMCA
Chapter 6 product-specific rules of origin for textiles and apparel
goods; and the USMCA Chapter 7 provisions related to customs
administration and trade facilitation.
In order to provide transparency and facilitate their use, the
majority of the USMCA implementing regulations are set forth in part
182 of title 19 of the CFR, entitled the United States-Mexico-Canada
Agreement. Part 182 sets forth the USMCA preferential tariff treatment
and other customs related provisions. This IFR amends part 182 to add
regulations implementing remaining portions of USMCA Chapters 1, 2, 4,
5, and 6, as discussed above, to the existing part 182 regulatory
framework. Additionally, this IFR makes amendments to other parts of
title 19 of the CFR, including parts 10, 24, 113, 123, 141, 144, 163,
and 174, to implement relevant provisions in USMCA Chapters 2, 5, 6,
and 7.
All of the regulatory amendments made in this document implement
the USMCA, the Uniform Regulations regarding Rules of Origin, and the
Uniform Regulations regarding Origin Procedures, as trilaterally agreed
to by the United States, Mexico, and Canada, into the CBP regulations.
These regulatory amendments are also consistent with the USMCA
Implementation Act (19 U.S.C. Chapter 29). The United States adopted
the USMCA through the enactment of the USMCA Implementation Act, which
provides CBP with the statutory authority to promulgate these
additional USMCA implementing regulations appropriate to carry out the
actions required by or authorized under the USMCA Implementation Act or
proposed in the Statement of Administrative Action approved under 19
U.S.C. 4511(a)(2) to implement the USMCA, as required by Section
103(b)(1) of the USMCA Implementation Act (19 U.S.C. 4513(b)(1)).

A. Part 10

1. Section 10.31
Section 10.31 sets forth the temporary importations under bond
(TIB) provisions for articles brought into the United States
temporarily and claimed to be exempt from duty under Chapter 98,
Subchapter XIII, HTSUS. Paragraph (f) of Sec. 10.31 provides
exceptions to the general rule that for temporary importations, a bond
is required in an amount equal to double the duties and fees (or a
larger amount as required by the Center of Excellence and Expertise
(Center) director), which it is estimated the articles would accrue had
all the articles covered by the entry been entered under an ordinary
consumption entry.
USMCA Article 2.7, Temporary Admission of Goods, provides that each
USMCA country must grant duty-free temporary admission for: (a)
professional equipment, including equipment for the press or
television, software, and broadcasting and cinematographic equipment,
that is necessary for carrying out the business activity, trade, or
profession of a person who qualifies for temporary entry; (b) a good
intended for display or demonstration, including its component parts,
ancillary apparatus and accessories; (c) commercial samples and
advertising films and recordings; and (d) a good admitted for sports
purposes, admitted from the territory of another USMCA country,
regardless of its origin. See USMCA Article 2.7.1. Under USMCA Article
2.7.2, a USMCA country may condition the duty-free temporary admission
of the above-mentioned goods on certain requirements. Under Article
2.7.2(d) of the USMCA, a USMCA country may also condition the duty-free
temporary admission of one of the above-mentioned goods on the
requirement that the good be accompanied by security in an amount no
greater than 110 percent of the charges that would otherwise be owed on
entry or importation, and releasable on exportation of the good.
Section 10.31(f) currently provides that ``the bond required to be
given shall be in an amount equal to 110 percent of the estimated
duties, including fees, determined at the time of entry.'' Section
10.31(f) applies this 110 percent limitation to the goods listed in
USMCA Article 2.7.1(a) through (d) when the goods are originating and
applies to the goods listed in USMCA Article 2.7.1(a) and (c) when the
goods are non-originating. Thus, CBP is adding a new last sentence to
19 CFR 10.31(f) to clarify that this 110 percent limitation also
applies to the goods listed in USMCA Article 2.7.1(b) and (d) when the
goods are non-originating. The new last sentence reads: ``In the case
of articles imported for sports purposes and articles intended for
display or demonstration, if brought into the United States by a
national of Canada or Mexico, the bond shall be without surety or cash
deposit in an amount equal to 110 percent of the estimated duties and
fees determined at the time of entry, if the entered article is not
originating, within the meaning of General Notes 11 and 12, HTSUS, in
the country of which the importer is a national.''

[[Page 6464]]

Pursuant to USMCA Article 2.7.2(a), another requirement that a
USMCA country may condition the duty-free temporary admission of a good
on is the good being imported by a national of another USMCA country
who seeks temporary entry. Article 1.5 (Section B) of USMCA Chapter 1
defines ``a national of the United States'' as defined in the
Immigration and Nationality Act. Additionally, a bond for customs
duties must not be required for an originating good. See USMCA Article
2.7.2(d).
In accordance with these requirements, Sec. 10.31(f) allows for
the duty-free temporary importation of the remaining above-mentioned
articles without a bond if the articles qualify as originating. Section
10.31(f) currently states that, in the case of professional equipment
necessary for carrying out the business activity, trade or profession
of a business person, equipment for the press or for sound or
television broadcasting, cinematographic equipment, articles imported
for sports purposes and articles intended for display or demonstration,
if brought into the United States by a resident of Canada or Mexico and
entered under Chapter 98, Subchapter XIII, HTSUS, no bond or other
security will be required if the entered article is an originating
good. For this purpose, an originating good is defined as originating
within the meaning of certain general notes of the HTSUS listed in
Sec. 10.31(f), in the country of which the importer is a resident.
In accordance with USMCA Article 2.7.2(a), CBP is revising the
sixth sentence of 19 CFR 10.31(f) to require that the article being
brought into the United States be brought in by a national of Canada or
Mexico, as opposed to a resident of Canada or Mexico, to qualify as
originating goods. Additionally, CBP is revising the sixth sentence of
19 CFR 10.31(f) to add General Note 11, HTSUS, to the list of
applicable general notes.
Finally, CBP is revising 19 CFR 10.31(f) to clarify the general
rule that, for temporary importations, a bond is required in an amount
equal to double the duties and fees (or a larger amount as required by
the Center of Excellence and Expertise (Center) director), which it is
estimated the articles would accrue had all the articles covered by the
entry been entered under an ordinary consumption entry. Fees and duties
are distinct and are covered by separate articles in the General
Agreement on Tariffs and Trade (GATT). Thus, CBP is revising the
language in 19 CFR 10.31(f) from ``duties, including fees'' in both
instances where it is referenced to ``duties and fees'' to clarify that
fees are not included in duties.
2. Section 10.36a
Section 10.36a sets forth the provisions for the temporary
importation of vehicles, pleasure boats, and aircraft brought into the
United States by an operator for repair or alteration. Specifically,
Sec. 10.36a currently defines the phrase ``for repair or alteration''
with a reference to Sec. Sec. 10.8, 10.490, 10.570, and 181.64 of
title 19 of the CFR. The definition of ``repairs or alterations'' in
Sec. Sec. 10.490, 10.570, and 181.64 of title 19 of the CFR provides
that ``repairs or alterations'' means restoration, addition,
renovation, re-dyeing, cleaning, re-sterilizing, or other treatment
that does not destroy the essential characteristics of, or create a new
or commercially different good from, the good exported from the United
States. This definition of ``repairs or alterations'' is included in 19
CFR 182.112, which contains the rules that apply for purposes of
obtaining duty-free treatment of goods returned after repair or
alteration in Canada or Mexico under the USMCA. CBP has decided that,
rather than adding additional cross-references in Sec. 10.36a to Sec.
182.112 and the other relevant FTA regulations, CBP will add the
definition of ``repair or alteration'' to Sec. 10.36a to make it more
transparent to the public. Thus, CBP is revising Sec. 10.36a to remove
the cross-references and to add the text of the definition of ``repairs
or alterations.''
3. Section 10.41a
Pursuant to section 322(a) of the Tariff Act of 1930, as amended
(19 U.S.C. 1322(a)), vehicles and other instruments of international
traffic, of any class specified by the Secretary of the Treasury, shall
be excepted from the application of the customs laws to the extent that
such terms and conditions are prescribed in regulations or
instructions. Sections 10.41, 10.41a, and 10.41b of title 19 of the CFR
set forth the qualifications for designating instruments of
international traffic (IITs) and the conditions under which they may be
released without entry or the payment of duty. Section 10.41a(a)(1)
designates lift vans, cargo vans, shipping tanks, skids, pallets, caul
boards, and cores for textile fabrics, arriving (whether loaded or
empty) in use or to be used in the shipment of merchandise in
international traffic as ``instruments of international traffic.'' The
Commissioner of CBP is also authorized, under Sec. 10.41a(a)(1), to
designate additional articles or classes of articles as instruments of
international traffic. CBP has repeatedly held that to qualify as an
instrument of international traffic, the article must be a substantial
container or holder.
A container that is designated as an instrument of international
traffic is deemed to remain in international traffic provided that the
container exits the United States within 365 days of the date it was
admitted. See 19 CFR 10.41a(g)(1). When such a container does not exit
the United States within 365 days of the date on which it is admitted,
it shall be considered to have been removed from international traffic
and an entry for consumption must be made. See 19 CFR 10.41a(g)(3).
Currently, Sec. 10.41a(g) does not allow for an extension beyond
the prescribed 365-day time period. Any instrument of international
traffic that remains in the United States for a period exceeding 365
days triggers the entry requirement imposed by Sec. 10.41a(g)(3).
However, USMCA Article 2.7.11 specifically requires that each USMCA
country must extend the timeframe for temporary admission of a shipping
container or other substantial holder beyond the period initially fixed
at the request of the person concerned. Accordingly, CBP is revising 19
CFR 10.41a(g)(1) to allow CBP to grant an extension and permit the IIT
container to remain in international traffic beyond the 365-day time
period, at the request of the person who filed the application for
release under Sec. 10.41a(a)(1), when the container is designated as
an instrument of international traffic and was admitted from Canada or
Mexico. The request for extension should be submitted to CBP in the
Automated Commercial Environment (ACE), prior to the end of the 365-day
time period. The request must contain the container number, last
arrival date, intended departure date, and the reason for delay in
removing the container or holder from the United States. CBP will
notify the individual who filed the application for release of the
details of the extension in ACE.
CBP is also amending paragraph (g)(3) to clarify that a container
that does not exit the United States by the date the extension expires
shall be treated the same as a container, without an extension, that
does not exit the United States within the prescribed 365-day time
period. A container that is designated as an instrument of
international traffic and granted an extension under paragraph (g)(1)
will be considered to have been removed from international traffic and
an entry for consumption must be made if the container does not exit
the United States prior to the date of expiration of the extension
granted.

[[Page 6465]]

4. Section 10.301
Subpart G of part 10 sets forth the provisions related to the
United States-Canada Free Trade Agreement. Specifically, Sec. 10.301
provides the scope and applicability of the United States-Canada Free
Trade Agreement, including that the United States and Canada agreed to
suspend operation of the Agreement from January 1, 1994. This
suspension date was to coincide with the entry into force of NAFTA.
With the simultaneous repeal of NAFTA (see section 601 of the USMCA
Implementation Act) and the entry into force of the USMCA as of July 1,
2020, the United States and Canada have agreed to continue suspending
operation of the United States-Canada Free Agreement.
Section 501(c) of the United States-Canada Free Trade Agreement
Implementation Act of 1988 (Pub. L. 100-449; 19 U.S.C. 2112 note) sets
forth the termination or suspension provisions of the United States-
Canada Free Trade Agreement. In section 602 of the USMCA Implementation
Act, Congress amended section 501(c)(3) of the United States-Canada
Free Trade Agreement Implementation Act of 1988 to state that the
United States and Canada agreed to suspend the operation of the United
States-Canada Free Trade Agreement by reason of the entry into force of
the USMCA until such time as the suspension of the United States-Canada
Free-Trade Agreement may be terminated. Accordingly, CBP is revising 19
CFR 10.301 to add a reference to the USMCA to indicate that the United
States-Canada Free Trade Agreement continues to remain suspended with
the entry into force of the USMCA and to provide the public with the
relevant citation to the USMCA regulations in part 182.
5. Technical Corrections in Part 10
The implementing legislation for the African Growth and Opportunity
Act (AGOA) and the Caribbean Basin Economic Recovery Act (CBERA), as
amended by the United States-Caribbean Basin Trade Partnership Act
(CBTPA), trade preference programs contained the NAFTA rules of origin.
See 19 U.S.C. 3721 and 19 U.S.C. 2702. Accordingly, the implementing
regulations for these programs in part 10 of title 19 of the CFR, which
followed the statutory language, contain numerous references to NAFTA.
Subpart D of part 10 sets forth the textile and apparel articles under
the AGOA provisions (see 19 CFR 10.211-10.217) and subpart E of part 10
contains the textile and apparel articles and the non-textile articles
under the CBTPA provisions (see 19 CFR 10.221-10.237).
As stated above, on July 1, 2020, section 601 of the USMCA
Implementation Act repealed the NAFTA Implementation Act and references
to NAFTA became outdated. On December 27, 2020, section 602 of Title VI
of the Appropriations Act set forth technical corrections to other
laws, including AGOA and CBERA (as amended by CBTPA), which replaced
the outdated references to NAFTA with references to the USMCA. See
section 602(a) and (b) of Title VI of the Appropriations Act. These
technical corrections are retroactively effective on July 1, 2020, the
USMCA's entry into force date. See section 602(g) of Title VI of the
Appropriations Act. Accordingly, CBP is amending Sec. Sec. 10.212(l),
10.213(a)(8), 10.214(b), 10.214(c)(12), 10.222, 10.223(a)(7),
10.224(c)(12), 10.232, 10.233(b), and 10.237(b), which include various
references to NAFTA (e.g., definitions for ``NAFTA'' in Sec. Sec.
10.212, 10.222, and 10.232), to include accurate references to the
USMCA in accordance with the technical corrections made to 19 U.S.C.
3721 and 19 U.S.C. 2702.

B. Part 24

1. Section 24.23
Section 24.23 provides the terms and conditions for merchandise
processing fees. Paragraph (c) contains the exemptions. Specifically,
paragraph (c)(3) states that the ad valorem, surcharge, and specific
fees provided for under paragraphs (b)(1) and (b)(2) will not apply to
goods originating in Canada or Mexico under NAFTA within the meaning of
General Note 12, HTSUS.
The USMCA also provides a merchandise processing fee exemption.
USMCA Article 2.16.3 states that no USMCA country shall adopt or
maintain a customs user fee on an originating good, with footnote 3
further clarifying that this commitment only applies to the United
States with respect to the merchandise processing fee. In accordance
with this commitment, section 203 of the USMCA Implementation Act
amended section 13031(b)(10)(B) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)(B)) to specify that no
fee for the processing of merchandise may be charged for goods that
qualify as originating goods under 19 U.S.C. 4531 or that qualify for
duty-free treatment under USMCA Annex 6-A.
Accordingly, CBP is revising 19 CFR 24.23(c)(3) to clarify that
originating goods and textile or apparel goods subject to a TPL, for
which a claim for preferential tariff treatment under the USMCA is
made, are also exempt from the merchandise processing fees. When the
importer makes a claim for USMCA preferential tariff treatment, the ad
valorem, surcharge, and specific fees provided for under Sec.
24.23(b)(1) and (b)(2) do not apply to goods originating under the
USMCA within the meaning of General Note 11, HTSUS (see also 19 U.S.C.
4531), or to textile or apparel goods subject to a TPL that qualify for
preferential tariff treatment under Sec. 182.82 (see also Annex 6-A of
the USMCA), that are entered for consumption, or withdrawn from
warehouse for consumption, on or after July 1, 2020.
2. Section 24.36
Section 24.36 sets forth the procedures and conditions under which
a refund of excessive duties, taxes, fees, or interest will be due when
discovered upon, or prior to, liquidation or reliquidation of an entry
or reconciliation. Paragraph (a)(1) provides that the refund shall
include interest on the excess money deposited with CBP and the dates
that such interest shall start to accrue, including for proper claims
filed under 19 U.S.C. 1520(d) and subpart D of part 181. Since the
statutory authority for this regulation, 19 U.S.C. 1505, allows for
interest on excess moneys to accrue for claims made under 19 U.S.C.
1520(d), CBP is removing the specific reference to subpart D of part
181. The addition of the cross-reference to subpart D of part 181,
which contains the NAFTA post-importation claim provisions,
unintentionally limited Sec. 24.36 to apply only to NAFTA post-
importation claims when 19 U.S.C. 1505 allows for interest on refunds
on 19 U.S.C. 1520(d) claims.

C. Part 123

Section 123.0
Part 123 contains the 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 sets forth the scope of part 123 and provides the
relevant cross-references to the other applicable parts of title 19 of
the CFR that address CBP procedures for

[[Page 6466]]

Canadian and Mexican goods. Accordingly, CBP is revising Sec. 123.0 to
add the applicable cross-reference to the USMCA regulations in part
182.

D. Part 163

Part 163, Recordkeeping, sets forth the recordkeeping requirements
and procedures governing the maintenance, production, inspection, and
examination of records. Pursuant to section 508 of the Tariff Act of
1930, as amended (19 U.S.C. 1508(a)), any owner, importer, consignee,
importer of record, entry filer, or other party who imports merchandise
into the customs territory of the United States, files a drawback
claim, transports or stores merchandise carried or held under bond, or
knowingly causes the importation or transportation or storage of
merchandise carried or held under bond into or from the customs
territory of the United States, or an agent of any of these parties, or
a person whose activities require the filing of a declaration or entry
or both, must make, keep, and render for examination and inspection
certain records. The USMCA recordkeeping requirements are set forth in
USMCA Article 5.8 and the Uniform Regulations regarding Origin
Procedures. USMCA Article 5.8.1 provides the types of records that
importers must maintain and the retention periods while Article 5.8.2
includes a list of records applicable exporters and producers must
maintain and the retention periods. To implement these USMCA
recordkeeping requirements, section 206 of the USMCA Implementation Act
amended 19 U.S.C. 1508(b) and (e)(1) to add the recordkeeping
requirements and penalty provisions that apply to USMCA exports and
imports.
CBP is amending part 163, as applicable, to include these
recordkeeping requirements. Also, as noted in the scope of part 163,
Sec. 163.0, which was previously amended in a prior rulemaking,
additional provisions concerning records maintenance and examination
applicable to U.S. importers, exporters, and producers under the USMCA
are contained in part 182. If the importer, exporter, or producer who
is required to maintain records pursuant to parts 163 and 182 does not
maintain, or denies access to, the records or documentation required
under 19 U.S.C. 1508, CBP may deny USMCA preferential tariff treatment.
Failure to comply with these recordkeeping requirements by U.S.
importers, exporters, or producers may result in the imposition of
penalties under 19 U.S.C. 1508(e)(1).
1. Exporter and Producer Recordkeeping Responsibilities
In accordance with 19 U.S.C. 1508(a), the part 163 recordkeeping
provisions generally do not apply to exporters and producers, with a
few notable exceptions. These exceptions are set forth in Sec.
163.2(c) and include applicable NAFTA exporters and USMCA exporters and
producers. CBP, in a prior rulemaking, amended Sec. 163.2(c)(2) to add
USMCA exporters and producers who complete a certification of origin,
or USMCA producers who provide a written representation, for a good
exported from the United States to Canada or Mexico, to the list of
persons required to maintain records in accordance with part 163.
Accordingly, U.S. USMCA exporters and producers must maintain the
required records pursuant to the requisite retention periods in part
163 and in the prescribed format as described in Sec. 163.5. An
exporter or producer who completes a certification of origin or a
producer that provides a written representation must maintain all
records necessary to demonstrate that the good is originating,
including the records specified in USMCA Article 5.8.2(a), (b), and
(c), for five years after the date on which the certification of origin
was completed. See also 19 U.S.C. 1508(b)(2). To implement this USMCA
requirement, CBP, in a prior rulemaking, added 19 CFR 182.21(c)
requiring U.S. exporters or producers exporting from the United States
to Canada or Mexico to maintain these records.
Additionally, in accordance with 19 U.S.C. 1508(b), CBP has
promulgated recordkeeping requirements on foreign exporters and
producers whose goods are imported into the United States under the
USMCA. It is important to note that these requirements are set forth in
19 CFR part 182, not part 163, because the requirements are imposed on
foreign exporters and producers whose goods are imported into the
United States, and not on the U.S. exporters and producers covered by
part 163. See 19 CFR 163.2(c)(2). These additional provisions
concerning records maintenance and examination applicable to exporters
and producers under the USMCA include 19 CFR 182.73(a)(2) and
182.74(c), which require exporters and producers subject to a
verification to make the records available for inspection by a CBP
official during the verification, 19 CFR part 182, subpart H, which
requires that exporters and producers subject to a USMCA Article 6.6
site visit make certain records available, and 19 CFR part 182, subpart
I, which establishes additional recordkeeping requirements for
producers of covered vehicles whose vehicles are imported into the
United States in accordance with 19 U.S.C. 1508(b)(4)(B), including the
requirement in Sec. 182.103 for vehicle exporters and producers to
maintain records.
2. Importer Recordkeeping Responsibilities
USMCA Article 5.8.1 requires that an importer making a claim for
USMCA preferential tariff treatment maintain certain records for a
period of no less than five years from the date of importation of the
good. In accordance with USMCA Article 5.8.1, 19 U.S.C. 1508(b)(4)(A)
requires that any importer who claims preferential tariff treatment
under the USMCA for a good imported into the United States must make,
keep, and, pursuant to the regulations prescribed by the Secretary of
the Treasury and the Secretary of Labor, render for examination and
inspection: the records and supporting documentation related to the
importation; all records and supporting documents related to the origin
of the good, if the importer completed the certification of origin; and
records and supporting documents related to transshipment.
To implement this USMCA requirement, CBP, in a prior rulemaking,
added these importer recordkeeping requirements to 19 CFR 182.15. CBP
also added 19 CFR 182.73(a)(2), which requires importers subject to a
verification to make the records available for inspection by a CBP
official during the verification. Importers making a claim for USMCA
preferential tariff treatment for covered vehicles imported into the
United States must meet the additional recordkeeping requirements set
forth in subpart I of part 182, as described in more detail in section
III.F., Subpart I--Automotive Goods, of this IFR, and must maintain any
records related to the high-wage component of the LVC requirement as
required by DOL pursuant to 29 CFR part 810. In accordance with 19
U.S.C. 1508(b)(4)(A)(ii), CBP's additional recordkeeping
responsibilities for importers of covered vehicles are dependent on
whether the importer completed the certification of origin.
Specifically, as provided in Sec. 182.104, importers who complete the
certification of origin must maintain the vehicle certifications and
all the records and supporting documents related to whether the covered
vehicle is originating under the LVC, steel purchasing, and aluminum
purchasing requirements while an importer who

[[Page 6467]]

claims USMCA preferential tariff treatment for a covered vehicle based
on a certification of origin completed by the exporter or producer must
only maintain the records and supporting documents related to the
vehicle certifications that are in the importer's possession.
CBP is amending part 163, as described below, to implement the
recordkeeping requirements contained in 19 U.S.C. 1508(b)(4)(A), USMCA
Article 5.8, the Uniform Regulations regarding Origin Procedures, and
19 CFR part 182.
a. Section 163.1
Pursuant to Sec. 163.2(a), all importers must maintain, produce,
and make the records available for inspection and examination as
required under part 163. Section 163.1(a)(1) defines the terms
``records,'' for purposes of part 163, as any information made or
normally kept in the ordinary course of business that pertains to any
activity listed in Sec. 163.1(a)(2). The term ``records'' includes any
information required for the entry of merchandise (the (a)(1)(A) list)
and other information pertaining to, or from which is derived, any
information element set forth in a collection of information required
by the Tariff Act of 1930, as amended, in connection with any activity
listed in Sec. 163.1(a)(2). Thus, CBP is amending Sec. 163.1(a)(2) to
redesignate paragraph (xviii) as (xix) and add a new paragraph (xviii)
to include USMCA records in the list of activities. Specifically, the
new paragraph (xviii) will provide for the maintenance of any
documentation in support of a claim for preferential tariff treatment
under the USMCA pursuant to part 182, including the certification of
origin. These records must be maintained by the importer pursuant to
Sec. 163.2(a) and the U.S. exporter or producer pursuant to Sec.
163.2(c)(2). Vehicle certifications are not specified in Sec.
163.1(a)(2)(xviii) because, as explained above, the importer is not
required to maintain the vehicle certifications and supporting
documentation in all instances. Instead, the specific requirements for
importers of covered vehicles are addressed by adding 19 CFR 182.104.
b. Section 163.7
Section 163.7 describes the parties to whom CBP may issue a summons
to appear and produce records or to give relevant testimony under oath
or both, during the course of an investigation, audit, or other
inquiry. This includes, among others, importers and any person who
exported merchandise or knowingly caused merchandise to be exported to
a NAFTA country. CBP is revising Sec. 163.7(a)(2) to add any person
who exported merchandise, or knowingly caused merchandise to be
exported, to a USMCA country.
c. Appendix to Part 163--Interim (a)(1)(A) List
Section 509(a)(1)(A) of the Tariff Act of 1930, as amended by title
VI of Public Law 103-182, commonly referred to as the Customs
Modernization Act (19 U.S.C. 1509(a)(1)(A)), requires the production of
records, within a reasonable time after demand by CBP if such record is
required by law or regulation for the entry of the merchandise, whether
or not CBP required its presentation at the time of entry. Pursuant to
19 U.S.C. 1509(e), CBP is required to identify and publish a list of
the records and entry information that is required to be maintained and
produced under subsection (a)(1)(A) of section 509 (19 U.S.C.
1509(a)(1)(A)). This list is commonly referred to as ``the (a)(1)(A)
list.'' CBP is amending section IV of the appendix to part 163 (the
(a)(1)(A) list) to add the USMCA documents to the list of records or
information required for the entry of merchandise. Accordingly, CBP is
adding a reference to 19 CFR 182.13, which sets forth the USMCA
importer's obligations, to the (a)(1)(A) list to indicate that USMCA
records that the importer may have in support of a USMCA claim for
preferential tariff treatment, including the certification of origin,
are required entry documents. Vehicle certifications are not included
in the (a)(1)(A) list because, as explained above, the importer is not
required to maintain the vehicle certifications and supporting
documentation in all instances. CBP is also revising the Sec. 10.307
listing in the (a)(1)(A) list to clarify that the United States-Canada
Free Trade Agreement (CFTA) provisions continue to be suspended while
USMCA remains in effect.

E. Part 174

Part 174, Protests, sets forth the general protest procedures
pursuant to 19 U.S.C. 1514 for the administrative review of decisions
of the port director and Center director. This part contains the
requirements for the filing of protests, amendments of protests, review
of protests, requests for accelerated disposition, and provisions
dealing with further administrative review. Pursuant to 19 U.S.C.
1514(c)(3), a protest of a decision must be filed with CBP within 180
days after the date of liquidation or reliquidation, or if such a date
is inapplicable, the date of the decision as to which protest is made.
In extending the protest rights under part 174 to USMCA importers
and qualifying exporters or producers, CBP is fulfilling its USMCA
commitments under Articles 5.15.1 and 7.15. Article 5.15.1 of the USMCA
requires each USMCA country to grant substantially the same rights of
review and appeal for determinations of origin to exporters and
producers who completed a certification of origin as are granted to
importers in its territory. Accordingly, an importer, or a qualified
exporter or producer, may file a protest to contest a denial of USMCA
preferential tariff treatment of a claim made at entry or a denial of a
USMCA post-importation claim. Pursuant to 19 CFR 174.21, the Center
director generally must review and act on a protest within two years
from the date the protest was filed. If the protest is allowed in whole
or in part, the goods will be eligible for USMCA preferential tariff
treatment and CBP will refund the duties in accordance with Sec.
174.29.
Article 7.15 of the USMCA addresses the review and appeal of
customs determinations. Article 7.15 provides, in part, that the USMCA
country must provide the protesting party its decision in the review or
appeal in writing and include the reasons for the decision. Article
7.15 also requires that each USMCA country ensure that any person to
whom a customs administration issues a determination has access to an
administrative appeal or review by an administrative authority higher
than or independent of the employee or office that issued the
determination, and access to a quasi-judicial or judicial review or
appeal made at the final level of administrative review. In accordance
with Article 7.15, if the protest is denied, CBP will issue a notice of
denial of a protest to any person filing a protest or his/her agent,
with the exception of those in which accelerated disposition was
requested and no action has been taken within 30 days. The notice of
denial will include a statement of the reasons for the denial and a
statement informing the protesting party of the right to file a civil
action contesting the denial of the protest under 19 U.S.C. 1514. See
19 CFR 174.30. Any person whose protest has been denied, in whole or in
part, may contest the denial by filing a civil action with the United
States Court of International Trade in accordance with 28 U.S.C. 2632.
See 19 CFR 174.31.
1. Section 174.12
Section 174.12 sets forth the procedures for filing a protest.

[[Page 6468]]

Specifically, paragraph (a) states who may file a protest, including
the importer, consignee, or their surety, any person paying or
receiving a refund of any charge or exaction, any person seeking entry
or delivery, any person filing for drawback, and any of these persons'
authorized agents. USMCA Article 5.15.1 requires each USMCA country to
grant substantially the same rights of review and appeal of
determinations of origin to USMCA exporters and producers, who have
completed a certification of origin for a good that is the subject of
the determination of origin, as it provides to its importers.
Pursuant to 19 U.S.C. 1514(c)(2)(E), any USMCA exporter or producer
of merchandise subject to a determination of origin as provided for
under 19 U.S.C. 4531 may file a protest, if the exporter or producer
completed and signed the certification of origin. Accordingly, CBP is
amending Sec. 174.12 by redesignating paragraph (a)(6) as paragraph
(a)(7) and by adding a new paragraph (a)(6) stating that, with respect
to a determination of origin under subpart G of part 182, any exporter
or producer of the merchandise subject to the determination, who
completed and signed the USMCA certification of origin, may file a
protest. CBP is also amending the redesignated paragraph (a)(7) to
allow any authorized agent of the exporter or producer described in
paragraph (a)(6) to file a protest on their behalf, subject to the
provisions of Sec. 174.3.
While CBP will issue a determination of origin to USMCA exporters
and producers of textile or apparel goods subject to TPLs, as explained
in more detail in section III.F., Subpart H-Textile and Apparel Goods,
of this IFR, as required under Sec. 182.75(b), these exporters and
producers may not file a protest of this determination of origin under
part 174, unless the exporter or producer is also acting as the
importer of record. As explained above, pursuant to 19 U.S.C.
1514(c)(2)(E), any USMCA exporter or producer of merchandise subject to
a determination of origin as provided for under 19 U.S.C. 4531 may file
a protest if the exporter or producer completed and signed the
certification of origin. Since goods subject to TPLs are not
originating goods, the certification of origin requirement does not
apply to textile or apparel goods subject to a TPL claiming USMCA
preferential tariff treatment. Accordingly, CBP has no statutory
authority to allow these exporters or producers to file a protest under
part 174.
Additionally, it is important to note that while USMCA exporters
and producers may, to the extent described above, file a protest of a
determination of origin, USMCA exporters and producers may not file a
protest of a marking determination under the USMCA, unless the exporter
or producer is also acting as the importer of record. As noted in the
scope of part 174 (19 CFR 174.0), Canadian and Mexican exporters and
producers seeking administrative review and appeal of adverse marking
decisions under NAFTA had the right to appeal and such rights were set
forth in part 181. These specific rights of review and appeal for
marking determinations were explicitly contained in Article 510 of
NAFTA. However, the USMCA does not provide any such rights. Section 209
of the USMCA Implementation Act struck the language from subsection (k)
of section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304(k)), that provided these specific petition rights, such as adverse
marking decisions, for NAFTA exporters and producers. Thus, these
specific rights and procedures are not provided for under the USMCA or
the USMCA Implementation Act, or the relevant statutory or regulatory
authority for protests in 19 U.S.C. 1514 and 19 CFR part 174.
Accordingly, Canadian and Mexican exporters and producers may not
request administrative review of and appeal of marking decisions under
the USMCA.
2. Section 174.13
Section 174.13 sets forth the required contents of a protest.
Paragraph (a)(9) currently requires the protestant to include a
declaration as to whether the entry is the subject of drawback, or
whether the entry has been referenced on a certificate of delivery or
certificate of manufacture and delivery so as to enable a party to make
such entry the subject of drawback. CBP is revising Sec. 174.13(a)(9)
to remove the references to the certificate of delivery and the
certificate of manufacture and delivery because these certificates were
eliminated by the Trade Facilitation and Trade Enforcement Act of 2015
(TFTEA) (Pub. L. 114-125, 130 Stat. 122, February 24, 2016).
Accordingly, paragraph (a)(9) will only require a declaration as to
whether the entry is the subject of drawback or if there is the ability
for a party to make such entry the subject of drawback. CBP is also
updating the list of cross-references in Sec. 174.13(a)(9) to include
the USMCA drawback provision, Sec. 182.50, and the relevant part 190,
Modernized Drawback, provision, Sec. 190.81.
3. Section 174.15
Section 174.15 provides for the consolidation of separate protests
relating to the same category of merchandise covered by an entry filed
by different parties. Pursuant to 19 U.S.C. 1514(c)(1), only one
protest may be filed for each entry of merchandise, except that where
the entry covers merchandise of different categories, a separate
protest may be filed for each category. Separate protests filed by
different parties with respect to any one category of merchandise or
with respect to a USMCA determination of origin under 19 U.S.C. 4531
are deemed to be part of a single protest. See 19 U.S.C. 1514(c)(1).
Section 174.15(b) addresses the consolidation of multiple protests
concerning a determination of origin for NAFTA transactions, if a NAFTA
exporter or producer files one of the protests. In accordance with 19
U.S.C. 1514(c)(1), CBP is revising Sec. 174.15(b) to include
determinations of origin for USMCA transactions, if a USMCA exporter or
producer described in Sec. 174.12(a)(6) files one of the protests.
Paragraph (b)(1) of Sec. 174.15 covers USMCA transactions where all
the interested parties who filed protests specifically submit written
requests for consolidation. In these instances, all the interested
parties are deemed to have waived their rights to confidentiality under
Sec. 182.2. Paragraph (b)(2) covers USMCA transactions where no such
written requests for consolidation are submitted. In these instances,
the interested parties are not deemed to have waived their rights to
confidentiality under Sec. 182.2. A separate notice of the decision
will be issued to each interested party and must adhere to the USMCA
confidentiality provisions set forth in Sec. 182.2.
4. Section 174.22
Pursuant to 19 U.S.C. 1515(a), unless a request for an accelerated
disposition of a protest is filed, CBP must review the protest and
allow or deny the protest in whole or in part within two years from the
date the protest is filed. Subsection (b) of 19 U.S.C. 1515 allows for
a request for accelerated disposition of a protest to be submitted to
CBP at any time concurrent with or following the filing of the protest,
in accordance with 19 U.S.C. 1514. Section 174.22 of title 19 of the
CFR sets forth the procedure for filing a request for an accelerated
disposition of a protest.
Section 202A(e)(6)(A) of the USMCA Implementation Act (19 U.S.C.
4532(e)(6)(A)) provides that when a protest of a decision regarding the
eligibility for USMCA preferential tariff

[[Page 6469]]

treatment of a covered vehicle relates to DOL's analysis of the high-
wage components of the LVC requirement, the Secretary of Labor will
conduct an administrative review of the portion of the decision
relating to such requirements and provide the results of that review to
the CBP Commissioner. The DOL regulations at 29 CFR part 810 contain
the administrative review procedures of DOL's initial analysis when
notified by CBP of a protest involving DOL's analysis of the high-wage
components of the LVC requirement. Pursuant to 29 CFR part 810, DOL
will strive to issue a decision within one year from the date that it
receives the notice of protest from CBP and will provide a
determination containing the results of the administrative review to
CBP.
Section 202A(e)(6)(B) of the USMCA Implementation Act (19 U.S.C.
4532(e)(6)(B)) explicitly states that an importer may not request
accelerated disposition under 19 U.S.C. 1515 of a protest against a
decision related to the DOL's analysis of the high-wage components for
a covered vehicle's LVC requirement. Accordingly, CBP is revising 19
CFR 174.22(a) to limit the availability of the accelerated disposition
of a protest. CBP is adding a sentence to Sec. 174.22(a) stating that
the accelerated disposition of a protest is not available for protests
involving eligibility for USMCA preferential tariff treatment of a
covered vehicle if the protest relates to the DOL's analysis of the
high-wage components of the LVC requirement as described in 19 CFR part
182, subpart I, and 29 CFR part 810.
5. Section 174.29
Section 174.29 provides the conditions under which CBP allows or
denies protests and describes the process through which the Center
director will remit or refund any duties, charge, or exaction found to
be collected in excess if the protest is allowed. Specifically, Sec.
174.29 states that if a protest filed by an exporter or producer
related to a NAFTA determination of origin is allowed in whole or in
part, any monies found to have been collected in excess shall be
refunded to the party who paid the monies even if such party did not
file an appropriate and timely protest. CBP is revising this language
to add a cross-reference to Sec. 174.12(a)(6), which applies to
protests filed by a qualified exporter or producer with respect to a
USMCA determination of origin.

F. Part 182

Part 182, United States-Mexico-Canada Agreement, implements the
duty preference and related customs provisions applicable to goods
imported under the USMCA. CBP is amending part 182 of title 19 of the
CFR (19 CFR part 182) to promulgate additional remaining USMCA
implementing regulations related to USMCA Chapters 1, 2, 4, 5, and 6.
Currently, part 182 contains a significant portion of the USMCA
implementing regulations and a framework for the remaining subparts.
The existing part 182 substantive provisions include Subpart A (General
Provisions), which contains the scope, general definitions, and
confidentiality provisions, Subparts B (Import Requirements), C (Export
Requirements), D (Post-Importation Duty Refund Claims), numerous
substantive provisions related to drawback in subpart E (Restrictions
on Drawback and Duty-Deferral Programs), F (Rules of origin), G (Origin
Verifications and Determinations), J (Commercial Samples and Goods
Returned after Repair or Alteration), K (Penalties), and Appendix A,
which contains the Uniform Regulations regarding Rules of Origin, which
were trilaterally agreed upon by the United States, Mexico, and Canada.
This document amends part 182 to revise Sec. 182.0 (Scope) and
subpart G (Origin Verifications and Determinations), and to add general
definitions in Sec. 182.1, additional drawback and duty-deferral
provisions in Subpart E (Restrictions on Drawback and Duty-Deferral
Programs), and implementing regulations in subparts H (Textile and
Apparel Goods) and I (Automotive Goods).

Subpart A--General Provisions

1. Scope
Section 182.0 contains the scope of part 182. Part 182 implements
the duty preference and related customs provisions applicable to
imported and exported goods under the USMCA. While Sec. 182.0 was
added in a prior rulemaking, CBP is revising the section to provide the
relevant cross-references to the other parts of the CBP regulations
that apply to the USMCA. Accordingly, CBP is adding a new sentence to
Sec. 182.0 to clarify that additional provisions applicable to the
USMCA are contained in parts 10, 24, 163, 174, and 177 of title 19 of
the CFR.
In addition to the CBP regulations in parts 10, 24, 163, and 174
that are being amended in this document, CBP is also including a cross-
reference to part 177. Part 177, Administrative Rulings, allows CBP to
issue rulings to importers and other interested parties. Applying the
advance ruling requirements and procedures in part 177 of title 19 of
the CFR (19 CFR part 177) to all advance rulings related to USMCA
transactions fulfills CBP's commitment under USMCA Article 7.5
requiring each USMCA country to issue written advance rulings, prior to
the importation of a good into its territory, regarding the treatment
the good will receive at the time of importation. While no amendments
to part 177 are necessary to implement USMCA Articles 5.14 and 7.5, CBP
is including the cross-reference to part 177 in Sec. 182.0 to clarify
that part 177 applies to advance rulings related to USMCA transactions.
CBP believes this clarification is needed since Sec. 177.0
specifically excludes advance rulings related to NAFTA transactions
from the scope of part 177. CBP wishes to further clarify that while
producers are not explicitly granted the right to request a ruling
pursuant to Sec. 177.1(c), CBP considers a Canadian or Mexican
producer of a good imported into the United States under the USMCA, a
Canadian or Mexican producer of a material that is used in the
production of a good imported into the United States under the USMCA,
and a Canadian or Mexican exporter of a material used in the production
of a good under the USMCA to be persons with a direct and demonstrable
interest who have the right to request a ruling pursuant to Sec.
177.1(c), in accordance with USMCA Article 7.5.2. Please note that CBP
publishes its advance rulings on the Customs Rulings Online Search
System (CROSS), available on the publicly accessible website, <a href="https://rulings.cbp.gov/home">https://rulings.cbp.gov/home</a>.
2. Definitions
Section 182.1 sets forth the general definitions applicable to part
182. Chapter 1 of the USMCA sets forth the general and country-specific
definitions to be applied throughout the USMCA, unless otherwise noted.
Since Sec. 182.1 contains the definitions of the common terms that are
used in multiple places in part 182, it includes definitions from 19
U.S.C. 4502, several Chapters of the USMCA, and the Uniform Regulations
regarding Rules of Origin set forth in Appendix A to part 182. General
definitions containing references to specific HTSUS subheadings, if
these subheadings were trilaterally negotiated and agreed upon under
the USMCA, contain additional language clarifying that the subheadings
that apply are those HTSUS subheadings that were in effect on July 1,
2020, the date that the USMCA entered into force. Additional
definitions that are not common terms throughout part 182 and are
applicable

[[Page 6470]]

only to the Uniform Regulations regarding Rules of Origin are set forth
in Appendix A to part 182.

Subpart E--Restrictions on Drawback and Duty-Deferral Programs

Subpart E of part 182 (19 CFR 182.41-182.55) sets forth the
provisions regarding drawback claims and duty-deferral programs, as
provided for under Article 2.5 of the USMCA, and applies to any good
that is a ``good subject to USMCA drawback'' within the meaning of 19
U.S.C. 4534. Drawback, as generally provided for in section 313 of the
Tariff Act of 1930, as amended (19 U.S.C. 1313), is the refund or
remission, in whole or in part, of certain duties, taxes, and fees
imposed and paid under Federal law upon entry or importation. Article
1.5 of the USMCA defines a ``duty deferral program'' to include
measures such as those governing foreign trade zones, temporary
importations under bond, bonded warehouses, ``maquiladoras,'' and
inward processing programs.
The requirements and procedures set forth in subpart E for USMCA
drawback are in addition to the general definitions, requirements, and
procedures for drawback claims set forth in part 190 of title 19 of the
CFR, unless otherwise specified. Further, the requirements and
procedures of subpart E are also in addition to those for manipulation,
manufacturing, and smelting and refining warehouses contained in parts
19 and 144, for FTZs under part 146, and for temporary importations
under bond in part 10.
CBP previously promulgated a significant portion of the USMCA
implementing regulations for drawback and duty-deferral programs in
subpart E of part 182 of title 19 of the CFR. Sections 182.41, 182.46,
182.49, 182.51, 182.52, and 182.54 in subpart E are unchanged from the
prior rulemaking. In this document, CBP is revising Sec. 182.42(c) to
provide clarification regarding the USMCA requirements. The other
specific regulatory amendments provided for in this document are, for
the most part, the result of subsequent policy determinations and
supplement the provisions in subpart E that were added in the prior
rulemaking. Accordingly, CBP is also revising Sec. Sec. 182.43,
182.45(c), 182.47, as appropriate, revising Sec. 182.50(b), which was
reserved in the prior rulemaking, and adding a new Sec. 182.44(h) and
(i). CBP is also adding Sec. Sec. 182.48, Person entitled to receive
drawback, and 182.53, Collection and waiver or reduction of duty under
duty-deferral programs, to subpart E, which were not previously
reserved in the prior rulemaking. Sections 182.48 and 182.53 generally
follow the corresponding regulation in part 181, with some conforming
and nomenclature changes made. However, with respect to the FTZ
provisions in Sec. 182.53, it should be noted that the USMCA
Implementation Act did not include an exception to the rules of origin
for goods produced in an FTZ, which was included for NAFTA in section
202 of the NAFTA Implementation Act and prevented a claim of U.S.
origin on non-originating materials used in the production of a good
when those goods are produced in an FTZ. This exception was enacted in
subsequent legislation, the Appropriations Act, which was retroactive
to July 1, 2020. Section 601(b) of Title VI of the Appropriations Act
amended section 202 of the USMCA Implementation Act (19 U.S.C.
4531(c)(3)) to prohibit, under USMCA, producers from using non-
originating materials in an FTZ manufacturing to claim U.S. origin.
Finally, CBP is adding a new section to subpart E, which was also
not previously reserved in the prior rulemaking and for which there is
no corresponding regulation in part 181. Section 182.55, Goods exported
from duty-deferral programs that are not subject to USMCA drawback
within the meaning of 19 U.S.C. 4534, is being added to subpart E to
provide clarity regarding the timing of claims for when the importer or
its agent is claiming that a good is not subject to USMCA drawback
within the meaning of 19 U.S.C. 4534.

Subpart G--Origin Verifications and Determinations

Subpart G of part 182 (19 CFR 182.71-182.76) contains the general
USMCA verification and determination of origin provisions. These
regulations were promulgated during a prior rulemaking. CBP is amending
certain sections of subpart G in this document to add the relevant
cross-references for textile and apparel goods and for automotive
goods.
Section 182.71 contains the applicability provision for subpart G.
CBP is adding two sentences to Sec. 182.71 to clarify that there are
additional verification requirements and procedures applicable to
automotive goods in subpart I and alternative verification means and
procedures for textile and apparel goods in Sec. 182.83 of subpart H.
Section 182.75 sets forth the determination of origin provisions.
Specifically, Sec. 182.75(c) contains the provisions that apply to
negative determinations of origin when CBP intends to deny USMCA
preferential tariff treatment. Paragraph (c)(2) contains the reasons
that CBP may deny USMCA preferential tariff treatment as set forth in
USMCA Article 5.10.2. CBP is amending Sec. 182.75(c)(2) to reflect the
application of the USMCA Article 5.10.2 reasons for denial related to
textile and apparel goods and automotive goods to ensure that paragraph
(c)(2) contains a comprehensive list of the reasons for denial with the
appropriate cross-references.
Section 182.75(c)(4) describes when CBP will issue a negative
determination of origin and the determination of origin contents.
Currently, Sec. 182.75(c)(4) states that, in addition to the contents
of the determination of origin set forth in Sec. 182.75(a), unless CBP
determines that there is a pattern of conduct of false or unsupported
representations pursuant to Sec. 182.76, a negative determination of
origin will provide the exporter or producer with the information
necessary to file a protest as provided for in 19 U.S.C. 1514(e) and
part 174. CBP is revising Sec. 182.75(c)(4) to remove the language
``unless CBP determines that a pattern of conduct of false or
unsupported representations pursuant to Sec. 182.76'' to fulfill our
commitment to USMCA Article 7.15. As stated above, Article 7.15 of the
USMCA addresses the review and appeal of customs determinations.
Article 7.15.2 provides, in part, that the USMCA country must provide
each person to whom it issues an administrative determination with
access to information on how to request reviews and appeals. Thus, to
fulfill this USMCA commitment, CBP must provide all exporters and
producers, who are issued a negative determination of origin, with the
information necessary to file a protest. In practice, CBP has already
been providing all importers, exporters, and producers issued a
negative determination of origin with this information necessary to
file a protest since the USMCA entered into force.
It is important to note that, as discussed above, while CBP will
issue a determination of origin to USMCA exporters and producers of
textile or apparel goods subject to TPLs as required under Sec.
182.75(b), these exporters and producers may not file a protest of this
determination of origin under part 174, in accordance with 19 U.S.C.
1514(c)(2)(E), unless the exporter or producer is also acting as the
importer of record. Accordingly, since 19 U.S.C. 1514(e) only
authorizes CBP to disclose the entry information necessary to file a
protest to the exporters or producers referred to in 19 U.S.C.
1514(c)(2)(E), CBP will not

[[Page 6471]]

provide exporters or producers of textile or apparel goods subject to
TPLs with the information necessary to file a protest when issuing a
negative determination under Sec. 182.75(c)(4).

Subpart H--Textile and Apparel Goods

Subpart H of part 182 (19 CFR 182.81-182.83) contains the USMCA
textile and apparel good provisions, as provided for in USMCA Chapter
6, including the TPL provisions and the site visit provisions. The
applicable definitions, including the definition of a textile or
apparel good, are set forth in Sec. 182.1, which is the general
definitions section of part 182.
1. Tariff Preference Level
A TPL is defined in Sec. 182.1 to mean a quantitative limit for
certain non-originating textile or apparel goods that may be entitled
to preferential tariff treatment based on the goods meeting the
requirements set forth in Sec. 182.82. Section 182.82, Claim for
preferential tariff treatment under tariff preference level, contains
the TPL requirements and procedures. These regulations are in
accordance with USMCA Annex 6-A, which as explained in detail above in
Section II.B. of this IFR, governs the USMCA preferential tariff
treatment of eligible non-originating textile or apparel goods subject
to a TPL. As these goods are non-originating, the rules of origin set
forth in General Note 11, HTSUS, and Appendix A to part 182 do not
apply.
While a claim for USMCA preferential tariff treatment is typically
made pursuant to Sec. 182.11(b), a claim for preferential tariff
treatment for textile or apparel goods subject to a TPL is made
pursuant to Sec. 182.82. Paragraph (a) of Sec. 182.82, Basis of
claim, sets forth the requirements that must be met for an importer to
make a claim for USMCA preferential tariff treatment, including an
exemption from the merchandise processing fee, for textile or apparel
goods subject to a TPL, including that the goods be eligible for a TPL
claim, that the annual quantitative limit has not been reached for the
subject TPL, and that the claim is based on a certificate of
eligibility. Paragraph (b), Goods eligible for TPL claims, lists the
specific types of textile or apparel goods that are eligible for TPLs.
These eligible goods and the quantitative limits that are eligible for
TPLs are contained in U.S. Note 11, Subchapter XXIII, Chapter 98,
HTSUS. Paragraph (c), Making a TPL claim, provides the procedure that
an importer must follow to properly file a claim for USMCA preferential
tariff treatment. A TPL claim must be filed as an entry type ``02'' as
it is subject to quantitative restraints.
As a TPL claim is for non-originating textile or apparel goods, an
importer who makes a claim for preferential tariff treatment, pursuant
to Sec. 182.82(c), is not required to submit a certification of
origin, as otherwise required under Sec. 182.12. Instead, an importer
who makes a claim for preferential tariff treatment subject to a TPL,
pursuant to Sec. 182.82(c), must submit, at the request of CBP, a
certificate of eligibility issued by an authorized official of the
government of Mexico or Canada. The number assigned to the certificate
of eligibility is required to be submitted to CBP when the TPL claim is
filed in accordance with the procedures in paragraph (c). Paragraph
(d), Certificate of eligibility, sets forth the requirements and
procedures for submitting the certificate of eligibility.
Pursuant to USMCA Annex 6-A, Section C, an importer may make a
claim for preferential tariff treatment of a good under a TPL at least
one year after the good is imported, if the annual quantitative limit
has not been reached and the other TPL requirements are met. While
post-importation claims for USMCA preferential tariff treatment are
otherwise filed in accordance with 19 U.S.C. 1520(d) and subpart D of
part 182, post-importation claims for preferential tariff treatment for
textile or apparel goods subject to a TPL are not. Under 19 U.S.C.
1520(d), CBP may reliquidate an entry to refund any excess duties paid
at importation on a good qualifying for preferential tariff treatment
under the rules of origin for certain enumerated trade agreements for
which a claim for preferential tariff treatment was not filed at
importation. Since goods that qualify for preferential tariff treatment
subject to a TPL do not qualify as originating under the rules of
origin, there is no statutory authority to apply 19 U.S.C. 1520(d) to
these claims. Accordingly, paragraph (e), Post-importation claims, sets
forth the right to make a post-importation claim for preferential
tariff treatment within one year after the date of importation of the
good pursuant to the filing procedures created for these post-
importation claims in paragraph (e)(2). The post-importation claim must
be filed with a certificate of eligibility dated the same calendar year
that the textile or apparel goods were imported. Post-importation
claims will not be granted if the quantitative limits for the subject
TPL for the year the entry summary, or equivalent documentation, is
accepted by CBP, have already been reached.
An importer making a TPL claim for USMCA preferential tariff
treatment under Sec. 182.82(c) must adhere to the recordkeeping
requirements in Sec. 182.15 and part 163. Section 182.15, Maintenance
of records, requires an importer claiming USMCA preferential tariff
treatment to maintain all records and documents that demonstrate that
the good qualifies for preferential tariff treatment, for a minimum of
five years from the date of importation of the good. For a TPL claim,
these records and documents would include a copy of the certificate of
eligibility.
Paragraph (f), Denial of preferential tariff treatment, sets forth
the circumstances when CBP may deny preferential tariff treatment that
are only applicable to TPLs. Additional reasons CBP may deny preference
are set forth in Sec. 182.75(c)(2). Paragraph (g), Verifications,
notes that CBP will conduct verifications of goods subject to TPLs
using the same verification means and procedures that CBP has the
discretion to utilize for all textile and apparel goods. Specifically,
CBP has the discretion to choose to conduct a verification of textile
or apparel goods subject to TPLs pursuant to either the general
verification means and procedures set forth in part 182, subpart G, or
pursuant to the site visit procedures in Sec. 182.83 of subpart H.
2. Textile and Apparel Goods Verification Procedures
Section 182.83, Verifications of textile and apparel goods,
contains the requirements and procedures for a textile or apparel good
verification conducted pursuant to a USMCA Article 6.6 site visit. As
described in more detail above in Section II.B. of this IFR, for
textile and apparel goods, CBP has two alternative means of conducting
a verification. CBP may conduct a verification for purposes of
determining whether a textile and apparel good qualifies for
preferential tariff treatment using the USMCA Article 5.9 general
verification means described in Sec. 182.72(a) and the procedures set
forth in subpart G of part 182. Alternatively, as described in Sec.
182.83(a), CBP may conduct a site visit to the premises of the exporter
or producer of textile or apparel goods in Mexico or Canada for the
purpose of determining that a textile or apparel good qualifies for
preferential tariff treatment or that customs offenses with regard to a
textile or apparel good are occurring or have occurred. The term
``customs offenses'' is defined in Sec. 182.1, which provides the
general definitions that are applicable to part 182. Paragraph (b) of
Sec. 182.83, Verification of a material during a site visit, allows
for the verification of a material, that is used in the production

[[Page 6472]]

of a textile or apparel good, during a site visit.
Paragraph (c), Site visit procedures, sets forth the site visit
procedures applicable to the exporter or producer in Mexico or Canada
whose premises CBP is going to visit during the site visit. Pursuant to
USMCA Article 6.6, while CBP must notify the Canadian or Mexican
customs administration of CBP's intention to conduct the visit prior to
conducting a site visit in Canada or Mexico, CBP is not required to
notify the exporter or producer whose premises are going to be visited
prior to conducting the site visit if doing so will undermine the
effectiveness of the verification. Paragraph (c) provides the consent
requirements for the site visit, what happens when the exporter,
producer, or person having the capacity to consent on behalf of the
exporter or producer is not able to receive CBP on the initial date of
the site visit, and the records and facilities that CBP may request
access to during the site visit.
Paragraph (d), Right to request report of the site visit, provides
the circumstances under which the exporter or producer may request that
CBP send its relevant findings from the written report of the results
of the site visit upon completion of the site visit. Paragraph (e),
Denial of preferential tariff treatment, states the reasons that CBP
may deny preferential tariff treatment to any textile or apparel good
imported or produced by the person that is the subject of the
verification.
Paragraph (f), Intent to deny and determination of origin, states
that, after CBP has completed a site visit pursuant to Sec. 182.83,
CBP will issue a determination of origin in accordance with the
requirements and procedures set forth in Sec. 182.75, with the
exception of Sec. 182.75(c)(1). CBP is extending the notification of
the intent to deny to more parties than is required under USMCA Article
6.6.9. Specifically, in accordance with Sec. 182.75(c)(3), CBP will
send an intent to deny to the importer, and the exporter or producer
who is subject to the verification and either completed the
certification of origin or provided information directly to CBP during
the verification, subject to the confidentiality provisions in Sec.
182.2. By cross-referencing the procedures set forth in Sec. 182.75 in
subpart H, including the intent to deny, CBP is ensuring that
consistent determination of origin procedures and notifications are
applied to all textile and apparel good verifications regardless of
whether CBP chooses to conduct the verification pursuant to the USMCA
Article 5.9 general verification procedures in subpart G or the site
visit procedures in Sec. 182.83. Paragraph (g), Pattern of conduct for
textile or apparel goods, provides that CBP may withhold preferential
tariff treatment to identical textile or apparel goods imported or
produced by an exporter or producer when CBP determines that a pattern
of conduct of false or unsupported representations exists.

Subpart I--Automotive Goods

Subpart I of part 182 (19 CFR 182.91-182.107) contains the USMCA
automotive good provisions, as provided for in USMCA Chapter 4 and the
Uniform Regulations regarding Rules of Origin. The applicable
definitions, including the definitions of automotive good, covered
vehicle, passenger vehicle, light truck, and heavy truck, are set forth
in Sec. 182.1, which is the general definitions section of part 182.
Subpart I of part 182 applies to all automotive goods, including new
and used covered vehicles, entered for consumption, or withdrawn from
warehouse for consumption, on or after July 1, 2020. As noted in the
applicability section of subpart I, Sec. 182.91, covered vehicles
claiming USMCA preferential tariff treatment must also meet the
applicable requirements and follow the applicable procedures contained
throughout part 182.
An importer may only make a claim for USMCA preferential tariff
treatment if the covered vehicle complies with the USMCA rules of
origin, including the product-specific rules of origin, and the
additional requirements and procedures set forth in subpart I. Section
182.92, Claim for preferential tariff treatment for covered vehicles,
specifies additional requirements that a covered vehicle must meet to
make a claim for USMCA preferential tariff treatment, including the LVC
requirement in Sec. 182.93, the steel purchasing and aluminum
purchasing requirements in Sec. 182.94, and certifications attesting
that the vehicle producer has complied with the LVC, steel purchasing,
and aluminum purchasing certification requirements under Sec. Sec.
182.95, 182.96, and 182.97. When making a claim for preferential tariff
treatment under Sec. 182.11(b) or Sec. 182.32, an importer must also
submit the unique identifier assigned by CBP for each of the LVC, steel
purchasing, and aluminum purchasing certifications that form the basis
for the covered vehicle's eligibility for preferential tariff
treatment. These unique identifiers provide CBP with the ability to
link the importation of the covered vehicle to the specific vehicle
certifications that form the basis for the covered vehicle's
eligibility for preferential tariff treatment and to demonstrate
compliance with the vehicle certification requirements.
1. LVC, Steel Purchasing, and Aluminum Purchasing Requirements and
Certifications
Sections 182.93, Labor value content (LVC) requirement, and 182.94,
Steel purchasing and aluminum purchasing requirements, specify the
requirements that must be met in General Note 11, HTSUS, and Appendix A
to part 182, the applicable requirements if the producer is subject to
an alternative staging regime, the calculation methods, and the choice
of calculation periods. With respect to the LVC requirement, DOL is
responsible for implementing and administering the high-wage components
of the LVC requirement. The DOL regulations are contained in 29 CFR
part 810. The producer of a covered vehicle must use the rules set
forth in the DOL regulations, including for high-wage material and
manufacturing expenditures, high-wage technology expenditures, and
high-wage assembly expenditures, to properly calculate and determine
the high-wage components of the LVC requirement. CBP determines whether
a covered vehicle meets the LVC requirement generally based on an
analysis of the high-wage components by DOL and CBP's determination of
the components of the LVC requirement not governed by DOL, including
the valuation and other components of the LVC calculation. CBP has sole
authority to determine whether a covered vehicle qualifies for USMCA
preferential tariff treatment.
Sections 182.95, Labor value content (LVC) certification, 182.96,
Steel purchasing certification, and 182.97, Aluminum purchasing
certification, contain the respective vehicle certification provisions.
A covered vehicle is eligible for USMCA preferential tariff treatment
only if the producer of the covered vehicle has certified to CBP that
the production of the vehicle by the producer meets the LVC
requirement, as described in Sec. 182.93, the steel purchasing
requirement, as described in Sec. 182.94, and the aluminum purchasing
requirement, as described in Sec. 182.94. Unless specifically exempt
under an alternative staging regime, all three vehicle certifications
must be submitted to CBP and considered properly filed for a covered
vehicle to qualify for USMCA preferential tariff treatment. The
producer of the covered vehicle must have information in its possession
that proves the accuracy of the calculations relied on for the
certifications.

[[Page 6473]]

Paragraph (c) of Sec. Sec. 182.95, 182.96, and 182.97 contains the
data elements for each of the vehicle certifications. With respect to
Sec. 182.95(c)(1), CBP wishes to clarify that the alternative unique
identification number of the producer's choosing must be a publicly
available identifier, such as the examples provided in Sec.
182.95(c)(1) and may not be an identification number generated
internally by the producer's organization, such as a business partner
ID or supplier code.
CBP has added several data elements in Sec. Sec. 182.95(c),
182.96(c), and 182.97(c), in addition to the list of data elements
contained in the U.S. Implementing Instructions issued on June 30, 2020
(and in the DOL regulations at 29 CFR part 810), for each of the
vehicle certifications to ensure that CBP has all the information
needed to establish that the producer meets the LVC, steel purchasing,
and aluminum purchasing requirements. The data elements that have been
added to the CBP regulations for the steel purchasing and aluminum
purchasing certifications are: any Manufacturers Identification Code
(MID), Federal Employer Identification Number (EIN), or Importer of
Record number (IOR) associated with the producer; the vehicle category
for which the steel or aluminum purchases are calculated, as specified
in section 17(9) of Appendix A to part 182; and the name and address
for each steel or aluminum producer, service center, or distributor
relied upon in calculating the total value of purchases of steel or
aluminum that qualify as originating goods and any MID, EIN, or IOR
numbers associated with those entities. These enumerated data elements
are necessary to clarify information in the certifications and consist
of information that the certifier, who is completing the vehicle
certification, must already have to certify compliance with the steel
purchasing and aluminum purchasing requirements. CBP has also added LVC
certification data elements to further align the LVC certification with
the steel purchasing and aluminum purchasing requirements, to clarify
information in the certification, and to collect information that the
vehicle producer already has when making the underlying LVC
calculation. The added LVC certification data elements are: the name,
title, and contact information of the certifier (the person completing
the LVC certification); the LVC calculation used to determine that the
production of the covered vehicles meets the LVC requirement in General
Note 11(k)(vi), HTSUS, 19 CFR 182.93(c), and Appendix A to part 182
including the resulting LVC percentage; and the authorized certifier's
signature, date signed, and certifying statement. An LVC certification
submitted to CBP must include all the information in Sec. 182.95(c)
and the DOL regulations at 29 CFR part 810.
Any vehicle certification submitted to CBP pursuant to Sec.
182.95(f), 182.96(f), or 182.97(f) on or after the delayed compliance
date of May 19, 2025 must contain the full list of data elements in
Sec. 182.95(c), 182.96(c), or 182.97(c) and the DOL regulations at 29
CFR part 810, with vehicle certifications for covered vehicles subject
to an exemption or different requirements under an alternative staging
regime required to comply with the requirements set forth in Sec.
182.95(b), 182.96(b), or 182.97(b), and Sec. 182.106(c). Revised
vehicle certifications resubmitted to CBP under the procedures set
forth in Sec. 182.95(i), 182.96(i), or 182.97(i), which were initially
submitted to CBP prior to the IFR's delayed compliance date, are not
required to contain the full list of data elements. Furthermore,
vehicle producers are not required to request a modification of a
properly filed certification submitted prior to the IFR's delayed
compliance date, under Sec. 182.95(k), 182.96(k), or 182.97(k), solely
due to the absence of the full list of data elements in Sec.
182.95(c), 182.96(c), or 182.97(c). However, any new, modified vehicle
certification that the producer submits to CBP on or after the IFR's
delayed compliance date, pursuant to Sec. 182.95(k), 182.96(k), or
182.97(k), must include all the data elements in Sec. 182.95(c),
182.96(c), or 182.97(c) for the entirety of the certification period,
with vehicle certifications for covered vehicles subject to an
exemption or different requirements under an alternative staging regime
required to comply with the requirements set forth in Sec. 182.95(b),
182.96(b), or 182.97(b) and Sec. 182.106(c). Please see below for
additional information regarding the resubmission and modification
process.
In order to grant the trade additional time to adjust its business
practices to comply with the new USMCA automotive good requirements,
CBP, in accordance with its USMCA Phase I Implementation Policy,
allowed vehicle producers until December 31, 2020 to submit the
required vehicle certifications needed to receive preferential tariff
treatment beginning July 1, 2020. However, following this initial
submission, the submission date for vehicle certifications is based on
each producer's chosen calculation period(s) under Sec. 182.93(d) and
(e) or Sec. 182.94(c) and (d). Pursuant to Sec. Sec. 182.95(f),
182.96(f), and 182.97(f), for any vehicle certification submitted to
CBP on or after the delayed compliance date of May 19, 2025, the
producer of the covered vehicle must submit the LVC, steel purchasing,
and aluminum purchasing certifications to CBP through an authorized
electronic data interchange system or other specified means at least 90
days prior to the beginning of the certification period. Vehicle
certifications submitted to CBP prior to the IFR's delayed compliance
date are not required to comply with the 90-day submission requirement.
The IFR's delayed compliance date allows vehicle producers sufficient
time to timely submit the vehicle certifications at least 90 days prior
to the beginning of the certification period and to include the
additional required data elements.
It is important to note that the calculation period does not
necessarily align with the certification period. The calculation period
is the period over which the LVC requirement was calculated or the
qualifying steel or aluminum purchases were made for a given vehicle
category. In contrast, the certification period is the period over
which the vehicle certification is effective for the vehicles produced
(or exported, if applicable) within that period for a given vehicle
category. Since the certification period determines which vehicles are
eligible for USMCA preferential tariff treatment, the certification
period is the relevant period for determining when the vehicle producer
must submit the vehicle certification. Different certification periods
are applicable depending on the calculation period that the vehicle
producer selects to calculate the LVC, steel purchasing, and aluminum
purchasing requirements for U.S. imports. The producer may select from
several different calculation periods, such as the previous fiscal year
of the producer, previous calendar year, and the other calculation
periods set forth in Sec. 182.93(d) and (e) or Sec. 182.94(c) and
(d). If the producer relies on a calculation period based on its fiscal
year, the producer must indicate in the vehicle certification that the
calculation period corresponds to its fiscal year. A vehicle producer
may choose different calculation periods for its LVC calculation, its
steel purchasing calculation and its aluminum purchasing calculation.
Paragraph (j) of Sec. Sec. 182.95, 182.96, and 182.97 sets forth the
applicable certification periods based on the calculation period that
the producer chooses.
The producer of the covered vehicle must submit the LVC, steel
purchasing, and aluminum purchasing certifications

[[Page 6474]]

to CBP through an authorized electronic data interchange system or
other specified means. See Sec. Sec. 182.95(f), 182.96(f), and
182.97(f). Details on how to submit the certifications can be found at
the CBP website at <a href="https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA">https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA</a> and <a href="https://trade.cbp.gov/USMCA/s/">https://trade.cbp.gov/USMCA/s/</a>. Currently, vehicle producers can file vehicle certifications
through a portal on the CBP website at <a href="https://trade.cbp.gov/USMCA/s/automotive-certification-request">https://trade.cbp.gov/USMCA/s/automotive-certification-request</a>. If the USMCA portal is down,
certifications can be emailed to <a href="/cdn-cgi/l/email-protection#f6a3a5bbb5b797838299a499b9b6959486d8929e85d8919980">[email&#160;protected]</a>. CBP will
notify the public on our website at <a href="https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA">https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA</a> and <a href="https://trade.cbp.gov/USMCA/s/">https://trade.cbp.gov/USMCA/s/</a>, and update the regulations, as needed, if the
means of submission are updated at a later date.
After the producer submits the LVC, steel purchasing, and aluminum
purchasing certification(s) to CBP, the certification(s) will be
reviewed for omissions and errors. An omission would include, for
example, the vehicle producer failing to include with its vehicle
certification one of the data elements listed in Sec. 182.95(c),
182.96(c), or 182.97(c). An error would include, for example, a vehicle
certification that is based on the wrong type of information, such as
calculating the producer's purchases of steel over a calculation period
not provided for in Sec. 182.94(c) and (d). For the LVC certification,
in accordance with 19 U.S.C. 4532(c)(1)(B)(i), the Secretary of Labor,
in consultation with the Commissioner of CBP, will ensure that the LVC
certification does not contain omissions or errors before the
certification is considered properly filed. CBP is solely responsible
for ensuring that the steel purchasing and aluminum purchasing
certifications do not contain omissions or errors before the
certification is considered properly filed. See 19 U.S.C.
4532(c)(2)(B)(i).
Paragraph (g) of Sec. Sec. 182.95, 182.96, and 182.97 details the
review process for omissions and errors. If the vehicle certification
is determined to be properly filed, the certification is effective for
the certification period specified in paragraph (j). Upon receipt of a
notification that an omission or error was discovered, the producer
will have five business days to submit to CBP a revised vehicle
certification, correcting the error or omission that CBP or DOL
discovered or providing an explanation of why the producer believes
that the certification contains no omissions or errors. The submission
of this revised certification is an opportunity for the producer to
correct the discovered error or omission or provide an explanation
before a determination is made regarding whether the certification is
properly filed. If the revised certification contains an omission or
error or if no revised certification is submitted within the prescribed
timeframe, CBP will provide written or electronic notification to the
producer of the covered vehicle that the certification was not properly
filed.
While the vehicle certification is being reviewed for omissions and
errors, an importer may make a claim for USMCA preferential tariff
treatment under Sec. 182.11(b) or Sec. 182.32 for such covered
vehicles until the producer has received notice from CBP that the
certification that forms the basis for the covered vehicle's
eligibility for preferential tariff treatment has not been properly
filed. As described in the U.S. Implementing Instructions, at this
time, the review process for omissions and errors may take up to 120
days. Consequently, this provision facilitates trade by allowing
importers to make claims for USMCA preferential tariff treatment while
CBP and DOL, if applicable, are still reviewing the vehicle
certification(s). If the producer receives notice that a certification
has not been properly filed, the producer must send a notification,
with a copy to CBP, to any known importers of the covered vehicle, of
that determination within 30 days of receipt of the CBP notice. See 19
CFR 182.95(h), 182.96(h), and 182.97(h). If a vehicle certification is
not properly filed, an importer, upon receipt of notification from the
producer, must promptly and voluntarily correct any claims for covered
vehicles for which that vehicle certification formed the basis for the
vehicle's eligibility for preferential tariff treatment, pay any duties
that may be due, and submit the required statement pursuant to Sec.
182.11(c).
Within 10 business days of receiving the notification from CBP that
the vehicle certification was determined to be not properly filed under
paragraph (g), the producer may resubmit the certification in
accordance with Sec. Sec. 182.95(i), 182.96(i), and 182.97(i). This
resubmission process allows the vehicle producer, after the initial
vehicle certification was determined to be not properly filed, to
submit a new vehicle certification for the same category and same
calculation period. This new certification would undergo the same
review for omissions and errors process that the initial certification
underwent, as described in paragraph (g). The producer may resubmit a
vehicle certification under Sec. Sec. 182.95(i), 182.96(i), and
182.97(i) for the same category and same calculation period up to two
times per certification period. During the resubmission period, after
the vehicle certification has been determined to not be properly filed,
an importer does not have a reasonable basis for claiming that the
covered vehicle meets the product-specific rules of origin, and thus,
an importer should not submit claims for USMCA preferential tariff
treatment under Sec. 182.11(b) or Sec. 182.32. The importer may only
submit a claim for USMCA preferential tariff treatment after the
producer receives notice that the resubmitted certification that forms
the basis for the covered vehicle's eligibility for preferential tariff
treatment has been properly filed. An importer may make a post-
importation claim, if it qualifies, under Sec. 182.32, for covered
vehicles entered for consumption, or withdrawn from warehouse for
consumption, during the vehicle certification resubmission period when
the certifications that form the basis for the covered vehicle's
eligibility for preferential tariff treatment have subsequently been
determined to be properly filed.
During the certification period, if there are any material changes
to the information contained in the vehicle certification that would
affect its validity, for example, changes to the vehicle certification
period, vehicle category chosen, or the calculation period of LVC
requirement and/or steel or aluminum purchases, the producer must
request a modification of the properly filed certification pursuant to
Sec. 182.95(k), 182.96(k), or 182.97(k). This modification process, as
described in paragraph (k), only applies to vehicle certifications that
have been previously considered properly filed. If CBP determines that
the new, modified certification is properly filed under paragraph (g)
or (i), the new certification supersedes the former certification and
the new certification is effective for the certification period
specified in paragraph (j). Accordingly, the new, modified vehicle
certification that the producer submits to CBP must include all the
applicable information in Sec. Sec. 182.95(c), 182.96(c), and
182.97(c) for the entirety of the certification period and should not
be limited to the modification. Additionally, the producer must submit
a list of the material changes to the information contained in the
certification and an explanation as to why the modification is
necessary with respect to the validity

[[Page 6475]]

of the certification. Within 30 days of receiving notice that the new
certification has been properly filed, the producer must send a
notification, with a copy to CBP, to any known importers of that
determination.
Section 182.98, Appeal of the determination that LVC, steel
purchasing, or aluminum purchasing certification is not properly filed,
sets forth the appeals process, following the review of the second
resubmission of the vehicle certification pursuant to Sec. Sec.
182.95(i)(2), 182.96(i)(2), and 182.97(i)(2), for the vehicle producer
to appeal a determination that the LVC, steel purchasing, or aluminum
purchasing certification is not properly filed. While CBP believes that
it is unlikely that a vehicle producer will need to resubmit a vehicle
certification twice and file an appeal, CBP is establishing this
appeals process, pursuant to its general USMCA rulemaking authority in
19 U.S.C. 4535(a), to provide a recourse for appeal and a means for a
vehicle producer to submit arguments to CBP explaining why it believes
the vehicle certification should be considered properly filed. Once it
has been determined that a vehicle certification has not been properly
filed, the covered vehicle is not considered an originating good under
the USMCA, and the importer may not make a claim for USMCA preferential
tariff treatment. Given that the appeal of a determination that a
vehicle certification is not properly filed is not a matter subject to
protest under 19 U.S.C. 1514(a)(1) through (a)(7), neither the vehicle
producer nor the importer may file a protest under 19 U.S.C. 1514 or
part 174, if a claim for USMCA preferential tariff treatment of the
covered vehicle has not yet been made when the determination is made.
Since there is no existing recourse enabling the vehicle producer or
the importer to appeal a determination that the vehicle certification
is not properly filed in this scenario, CBP has established this new
appeals process, which is limited to vehicle certifications. Section
182.98 contains the scope of the appeal, the procedures, and the
applicable timelines. The appeal cannot be filed until both
opportunities for resubmission of a vehicle certification pursuant to
Sec. Sec. 182.95(i)(2), 182.96(i)(2), and 182.97(i)(2) have been
completed. When an appeal involves DOL's review of the LVC
certification for omissions and errors, CBP will coordinate with DOL
regarding the appeal, as necessary. An importer of the covered vehicle
should not submit claims for USMCA preferential tariff treatment under
Sec. 182.11(b) or Sec. 182.32 for covered vehicles until the producer
has received notice that the certification that forms the basis for the
covered vehicle's eligibility for preferential tariff treatment has
been properly filed. At that time, if the vehicle certifications have
been determined to be properly filed, the importer may make a post-
importation claim, if it qualifies, under Sec. 182.32.
2. Motor Vehicle Averaging
For the purpose of calculating the RVC or LVC of a covered vehicle,
the producer of the vehicle may elect to average the RVC or LVC
calculation. These averaging elections are described in Sec. 182.100,
Motor vehicle averaging elections. To elect RVC averaging, the producer
must comply with all the RVC averaging provisions set forth in section
16 of Appendix A of part 182, including the averaging categories and
averaging periods. To elect LVC averaging, the vehicle producer must
comply with all the LVC averaging provisions set forth in section 18 of
Appendix A of part 182, including the averaging categories. The LVC
averaging periods are set forth in Sec. 182.93(d) and (e). A producer
who elects to average its RVC or LVC calculation must separately
average covered vehicles that are subject to an alternative staging
regime. The producer may not average its RVC or LVC across covered
vehicles that are subject to an alternative staging regime and covered
vehicles that are not subject to an alternative staging regime.
When filing an RVC averaging election, the averaging election must
include the required data elements in Sec. 182.100(d). CBP is
discontinuing use of the motor vehicle averaging election form, CBP
Form 447, which was required when filing an RVC averaging election
under NAFTA, and instead allowing the RVC averaging election data
elements to be provided to CBP in a free format. The LVC averaging
election is a new election under USMCA. When filing an LVC averaging
election, the averaging election must include the required data
elements in Sec. 182.100(e). Pursuant to Sec. 182.100(f), a vehicle
producer who files an RVC or LVC averaging election must submit, at the
request of CBP, a cost submission reflecting the actual costs incurred
in the production of the category of motor vehicles for which the
election was made.
A producer of a covered vehicle who elects to average its RVC or
LVC calculation must file an averaging election with CBP pursuant to
Sec. 182.100(c) at least 10 days before the first day of the
producer's fiscal year during which the vehicles will be exported, or
such shorter period as CBP may accept. The producer may request a
shorter period by contacting CBP via email. Details on how to submit
the averaging elections can be found at the CBP website at <a href="https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA">https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA</a> and <a href="https://trade.cbp.gov/USMCA/s/">https://trade.cbp.gov/USMCA/s/</a>. Currently, vehicle
producers can file the RVC or LVC averaging elections through a portal
on the CBP website at <a href="https://trade.cbp.gov/USMCA/s/automotive-certification-request">https://trade.cbp.gov/USMCA/s/automotive-certification-request</a>. If the USMCA portal is down, the averaging
elections can be emailed to <a href="/cdn-cgi/l/email-protection#d782849a9496b6a2a3b885b89897b4b5a7f9b3bfa4f9b0b8a1">[email&#160;protected]</a>. CBP will notify
the public on our website at <a href="https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA">https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA</a>, <a href="https://trade.cbp.gov/USMCA/s/">https://trade.cbp.gov/USMCA/s/</a>, and update the regulations, as needed, if the means of
submission are updated at a later date.
Section 182.101, Averaging for other automotive goods, provides the
applicable provisions in Appendix A of part 182 governing the averaging
of automotive parts and other vehicles. This regulation clarifies that
the producer is not required to file an RVC averaging election when
averaging the RVC of these automotive goods.
3. Required Year-End Reconciliation
Section 16(9) and section 17(11) of the Uniform Regulations
regarding Rules of Origin, contained in Appendix A of part 182, require
a year-end analysis of the actual costs of the RVC if the producer
calculated the RVC based on estimated costs, and a year-end analysis of
the actual purchases of steel or aluminum made over the calculation
period if the producer calculated the steel or aluminum purchases on
the basis of estimates. Depending on the certification period that a
vehicle producer chooses, the vehicle certification may be based in
whole or in part on projected costs or projected purchases. Section
182.102, Required year-end reconciliation to actual costs when
estimated costs or purchases used, requires the producer of a covered
vehicle, who has calculated the RVC or LVC of its vehicles or its steel
or aluminum purchases on the basis of estimates, to conduct a
reconciliation at the end of the producer's fiscal year to the actual
costs incurred or the actual purchases made. CBP has added the LVC
year-end reconciliation requirement to ensure that the producer has met
all the applicable USMCA requirements during that period with actual,
not projected, costs. Therefore, this year-end reconciliation is
required

[[Page 6476]]

irrespective of whether the producer filed an averaging election
pursuant to Sec. 182.100. If, based on the year-end reconciliation
performed, the covered vehicle does not satisfy the RVC or LVC
requirement on the basis of the actual costs, or the steel or aluminum
purchasing requirement on the basis of the actual purchases, the
producer must make the notifications contained in paragraph (b) that
the vehicle is a non-originating good. In addition to the notifications
required pursuant to sections 16(9) and 17(11) of Appendix A of part
182, CBP is also requiring the producer to notify CBP to ensure that
CBP is aware that the producer did not meet the USMCA requirements for
preferential tariff treatment.
4. Recordkeeping Requirements
Pursuant to section 206(a) of the USMCA Implementation Act (19
U.S.C. 1508(b)(4)(B)), any vehicle producer whose goods are the subject
of a claim for USMCA preferential tariff treatment must make, keep, and
pursuant to the rules and regulations promulgated by the Secretary of
the Treasury and Secretary of Labor, render for examination and
inspection records and supporting documents related to the LVC, steel
purchasing, and aluminum purchasing requirements. Section 182.103,
Producer and exporter recordkeeping responsibilities for records
relating to LVC, steel purchasing, and aluminum purchasing
requirements, sets forth the producer of the covered vehicle's
recordkeeping responsibilities and the exporter who completed the
certification of origin's recordkeeping responsibilities. The vehicle
producer must make and keep, for a minimum of five years from the date
that the vehicle certifications were submitted to CBP, the LVC
certification, the steel purchasing certification, the aluminum
purchasing certification, and all records and supporting documents
necessary to demonstrate whether the covered vehicle meets the LVC,
steel purchasing, and aluminum purchasing requirements. CBP encourages
vehicle producers subject to an alternative staging regime to keep
these records and supporting documentation for longer than the minimum
five years required to demonstrate compliance with the LVC, steel
purchasing and aluminum purchasing requirements should USTR later make
a determination that the vehicle producer failed to meet the
requirements for the alternative staging regime under 19 U.S.C.
4532(d)(5). The vehicle producer must also maintain any records related
to the high-wage components of the LVC requirement as required by DOL
pursuant to 29 CFR part 810. The records must be capable of being
retrieved upon lawful request and must be produced to CBP or DOL upon
request.
Pursuant to Sec. 182.103(b), an exporter who completed the
certification of origin for a covered vehicle must keep, for a minimum
of five years from the date that the certification of origin was
completed, the LVC certification, steel purchasing certification,
aluminum purchasing certification, and all records and supporting
documents to demonstrate whether the covered vehicle meets the LVC,
steel purchasing, and aluminum purchasing requirements. The exporter
must also maintain any records related to the high-wage components of
the LVC requirement as required by DOL pursuant to 29 CFR part 810. The
records must be capable of being retrieved upon lawful request and must
be produced to CBP or DOL upon request.
CBP may deny USMCA preferential tariff treatment, as described in
Sec. 182.107, when vehicle producers or exporters do not meet these
recordkeeping requirements.
Section 182.104, Importer's responsibility to maintain records
relating to LVC, steel purchasing, and aluminum purchasing
requirements, contains the importer of a covered vehicle's
recordkeeping responsibilities. All importers claiming USMCA
preferential tariff treatment, including importers of covered vehicles,
are required to comply with the recordkeeping requirements in 19 CFR
parts 163 and 182, and must also maintain any records related to the
high-wage components of the LVC requirement as required by DOL pursuant
to 29 CFR part 810. The extent of the importer's additional
recordkeeping responsibilities for covered vehicles is contingent on
whether the importer completed the certification of origin. If the
claim for USMCA preferential tariff treatment is based on a
certification of origin completed by the exporter or producer, the
importer must maintain, for a minimum of five years from the date of
importation of the covered vehicle, any records and supporting
documents in the importer's possession relating to the vehicle
certifications. If the claim for USMCA preferential tariff treatment is
based on a certification of origin completed by the importer, the
importer must maintain, in accordance with 19 U.S.C. 1508(b)(4)(A), for
a minimum of five years from the date of importation of the covered
vehicle, the vehicle certifications, and all records and supporting
documents necessary to demonstrate whether the covered vehicle meets
the LVC, steel purchasing, and aluminum purchasing requirements. These
records must be maintained by importers as provided in Sec. 163.5 and
produced to CBP or DOL upon request. CBP encourages all importers who
import vehicles subject to an alternative staging regime to keep the
records and supporting documentation for longer than the minimum five
years required to demonstrate compliance with the LVC, steel purchasing
and aluminum purchasing requirements. These records and supporting
documents will be valuable should USTR later make a determination that
the vehicle producer failed to meet the requirements for the
alternative staging regime under 19 U.S.C. 4532(d)(5).
5. Verifications
CBP will initiate and conduct verifications of automotive goods in
accordance with the general verification and determination of origin
provisions in subpart G of part 182. Section 182.105, Verification of
automotive goods, contains additional verification provisions that are
applicable for automotive good verifications, including when a
verification involves the LVC requirement. CBP will conduct a
verification of a covered vehicle involving the high-wage components of
the LVC requirement in conjunction with DOL. Accordingly, the
provisions in Sec. 182.105 set forth DOL's and CBP's roles in the
verification, the additional requirements that the importer, exporter,
or producer must comply with, and any added procedures necessitated by
DOL's involvement in the verification.
CBP will initiate all verifications of covered vehicles pursuant to
the verification means in Sec. 182.72(a), including a request for
information, a questionnaire, and/or a verification visit. When CBP
initiates a verification of a covered vehicle and the verification
involves whether the covered vehicle meets the LVC requirement, CBP
will notify the producer of the covered vehicle that CBP has initiated
a verification of the covered vehicle and advise the producer whether
the verification involves the high-wage components of the LVC
requirement, necessitating DOL's involvement. DOL is responsible,
pursuant to 19 U.S.C. 4532(e) and the DOL requirements and procedures
in 29 CFR part 810, for conducting the verification of the high-wage
components of the LVC requirement and determining whether the covered
vehicle meets the high-wage components of the LVC requirement.

[[Page 6477]]

CBP is responsible for verifying all other aspects of the LVC
requirement, and is ultimately responsible for determining whether the
covered vehicle meets the LVC requirement, the requirements in 19 CFR
part 182, and whether the covered vehicle qualifies for USMCA
preferential treatment.
During a verification of a covered vehicle, the importer, exporter,
and producer must provide all records requested by CBP or DOL and make
these records available for inspection by the appropriate CBP or DOL
official as provided for in Sec. 182.105(c). As stated in Sec.
182.105(b), CBP or DOL also may conduct a verification of a part,
component, or material that is used in the production of a covered
vehicle. During the verification of such a part, component, or
material, the producer of the part, component, or material must provide
CBP or DOL with all the records requested and make these records
available for inspection by the appropriate CBP or DOL official, and
failure to do so may result in a determination that the part,
component, or material is non-originating.
CBP will determine whether the covered vehicle meets the LVC
requirement and qualifies for USMCA preferential tariff treatment based
in part on DOL's determination on whether the covered vehicle complied
with the high-wage components of the LVC requirement, and DOL's
verification findings and analysis. CBP will then issue a determination
of origin to the qualifying parties pursuant to Sec. 182.75. An
importer, exporter, or producer, who has the right to file a protest
pursuant to Sec. 174.12(a)(6), may protest a CBP determination of
origin under 19 U.S.C. 1514 and part 174. When a protest involves DOL's
analysis of the high-wage components of the LVC requirement, CBP will
coordinate with DOL regarding the review of the protest. DOL is
responsible, pursuant to 19 U.S.C. 4532(e)(6)(A), for conducting an
administrative review of its initial analysis pursuant to its
administrative review procedures in the DOL's regulations at 29 CFR
part 810 and providing a determination containing the results of the
administrative review to CBP. As explained in more detail in section
III.E. of this IFR, CBP will review and act on the protest pursuant to
the procedures and requirements set forth in part 174.
6. Alternative Staging Regime
As described in more detail above in section II.C. of this IFR, a
covered vehicle may be originating pursuant to an alternative staging
regime. Section 182.106, Alternative staging regime, sets forth the
conditions under which a covered vehicle is eligible for USMCA
preferential tariff treatment under an alternative staging regime.
Pursuant to paragraph (c) of Sec. 182.106, a producer of a covered
vehicle is required to submit to CBP a separate vehicle certification
that covers only those vehicles subject to the alternative staging
regime under certain circumstances. If the terms of the alternative
staging regime specifically exempt the producer from the LVC, steel
purchasing, or aluminum purchasing requirement (including when the
producer qualifies for NAFTA 403.6 treatment), then the producer must
submit to CBP a vehicle certification for that LVC, steel purchasing,
or aluminum purchasing requirement covering only those vehicles subject
to the alternative staging regime. If the terms of the alternative
staging regime contain different requirements from sections 13 through
18 of Appendix A to 19 CFR part 182, then the producer must submit to
CBP a vehicle certification for that LVC, steel purchasing, or aluminum
purchasing requirement that covers only those vehicles subject the
alternative staging regime. This additional vehicle certification must
meet the requirements set forth in Sec. Sec. 182.95, 182.96, and
182.97, as applicable, with the exception of the certifying statement,
and must contain the additional information, including the certifying
statement, as set forth in paragraph (c) of this section.
7. Reasons for Denial of USMCA Preferential Tariff Treatment of Covered
Vehicles
In addition to the general reasons for denial set forth in Sec.
182.75(c)(2) of subpart G, CBP may deny a claim for USMCA preferential
tariff treatment of covered vehicles for the additional reasons set
forth in Sec. 182.107, Denial of preferential tariff treatment of a
covered vehicle. These reasons for denial relate specifically to the
LVC, steel purchasing, and aluminum purchasing requirements, the
vehicle certifications, and the additional recordkeeping requirements
for covered vehicles. If CBP determines that one of these reasons for
denial set forth in Sec. 182.107 applies to a vehicle certification
that forms the basis for a claim's eligibility for USMCA preferential
tariff treatment, CBP may deny USMCA preferential tariff treatment for
any claim which uses that vehicle certification as a basis for
eligibility for USMCA preferential tariff treatment regardless of
whether the importer lacks prior knowledge of the vehicle producer's
failure to meet the LVC, steel purchasing, or aluminum purchasing
requirements because of the unique nature of the vehicle
certifications.

G. Other Conforming Amendments

CBP is also amending certain sections of title 19 of the CFR,
including Sec. Sec. 10.31(h), 113.62(a), 141.0a(a), 141.0a(f),
141.68(i), and 144.38(b), to add the appropriate cross-references to
the USMCA drawback and duty-deferral program provisions alongside
existing references to NAFTA duty-deferral and drawback provisions.

IV. Statutory and Regulatory Requirements

A. Administrative Procedure Act

Under the Administrative Procedure Act (APA) (5 U.S.C. 553),
agencies generally are required to publish a notice of proposed
rulemaking in the Federal Register that solicits public comment on the
proposed regulatory amendments, considers public comments in deciding
on the content of the final amendments, and publishes the final
amendments at least 30 days prior to their effective date. This rule is
exempt from APA rulemaking requirements pursuant to 5 U.S.C. 553(a)(1)
as a foreign affairs function of the United States because it
implements the preferential tariff treatment and customs related
provisions of the USMCA, which is a specific trilateral agreement
negotiated between the United States, Mexico, and Canada. This IFR
implements trilaterally agreed upon provisions in the USMCA, the
Uniform Regulations regarding the Rules of Origin, and the Uniform
Regulations regarding Origin Procedures. The regulatory amendments
promulgated in this IFR fulfill the United States' USMCA commitments.
This IFR amends 19 CFR part 182 to add regulations implementing
provisions from USMCA Chapters 1, 2, 4, 5, and 6, as well as the USMCA
Uniform Regulations regarding the Rules of Origin and the Uniform
Regulations regarding Origin Procedures. Additionally, this IFR makes
the amendments to 19 CFR parts 10, 24, 113, 123, 141, 144, 163, and 174
to implement provisions from USMCA Chapters 2, 5, 6, and 7 as well as
the USMCA Uniform Regulations regarding Origin Procedures. This IFR
meets the U.S. commitments to the other USMCA countries, as agreed to
in the USMCA, and fulfills our international obligations.

B. Executive Orders 12866 and 13563

Executive Order 12866 (Regulatory Planning and Review), as
reaffirmed by Executive Order 13563 (Improving Regulation and
Regulatory Review) and

[[Page 6478]]

amended by Executive Order 14094 (Modernizing Regulatory Review),
directs agencies to assess the costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasizes the importance
of quantifying costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility.
Rules involving the foreign affairs function of the United States
are exempt from the requirements of Executive Orders 12866, as amended
by Executive Order 14094, and 13563. Because this rule involves a
foreign affairs function of the United States by implementing a
specific trilateral agreement negotiated between the United States,
Mexico, and Canada, the rule is not subject to the provisions of
Executive Orders 12866, as amended by Executive Order 14094, and 13563.

C. Congressional Review Act

Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.),
the Office of Information and Regulatory Affairs (OIRA) designated this
rule as a ``major rule,'' as defined by 5 U.S.C. 804(2).

D. Regulatory Flexibility Act

The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended
by the Small Business Regulatory Enforcement and Fairness Act of 1996,
requires an agency to prepare and make available to the public a
regulatory flexibility analysis that describes the effect of a proposed
rule on small entities (i.e., small businesses, small organizations,
and small governmental jurisdictions) when the agency is required to
publish a general notice of proposed rulemaking for a rule. Since a
notice of proposed rulemaking is not necessary for this rule, CBP is
not required to prepare a regulatory flexibility analysis for this
rule.

E. Paperwork Reduction Act

The collection of information in this document was submitted to OMB
for review in accordance with the requirements of the Paperwork
Reduction Act (44 U.S.C. 3507). Approval and assigned OMB control
number are pending. An agency may not conduct or sponsor, and a person
is not required to respond to, a collection of information unless it
displays a valid control number assigned by OMB. These regulations
provide for a new collection of information for USMCA's automotive
goods requirements. Vehicle producers will be required to submit three
new vehicle certifications to CBP, including the labor value content
(LVC) certification, the aluminum purchasing certification, and the
steel purchasing certification. In addition, vehicle producers may
submit motor vehicle averaging elections, including an averaging
election for labor value content (LVC) and regional value content
(RVC). This information is used by CBP to determine if vehicles
imported from Canada and Mexico are entitled to preferential tariff
treatment under USMCA.
The proposed information collection requirements will result in the
following estimated burden hours:
Aluminum Purchasing Certification
Estimated Number of Annual Respondents: 25.
Estimated Number of Annual Responses per Respondent: 1.5.
Estimated Total Annual Responses: 37.
Estimated Time per Response: 2 hours.
Estimated Total Annual Burden Hours: 74.
Labor Value Content Certification
Estimated Number of Annual Respondents: 25.
Estimated Number of Annual Responses per Respondent: 1.5.
Estimated Total Annual Responses: 37.
Estimated Time per Response: 2 hours.
Estimated Total Annual Burden Hours: 74.
Steel Purchasing Certification
Estimated Number of Annual Respondents: 25.
Estimated Number of Annual Responses per Respondent: 1.5.
Estimated Total Annual Responses: 37.
Estimated Time per Response: 2 hours.
Estimated Total Annual Burden Hours: 74.
Labor Value Content Averaging Election
Estimated Number of Annual Respondents: 25.
Estimated Number of Annual Responses per Respondent: 1.
Estimated Total Annual Responses: 25.
Estimated Time per Response: 1 hour.
Estimated Total Annual Burden Hours: 25.
Regional Value Content Averaging Election
Estimated Number of Annual Respondents: 25.
Estimated Number of Annual Responses per Respondent: 1.
Estimated Total Annual Responses: 25.
Estimated Time per Response: 1 hour.
Estimated Total Annual Burden Hours: 25.
Comments concerning the collection of information and the accuracy
of the estimated annual burden, and suggestions for reducing that
burden, should be posted to the docket of this rulemaking or to
<a href="http://reginfo.gov">reginfo.gov</a>. Comments are specifically welcome on (a) whether the
proposed collection of information is necessary for the proper
performance of the mission of the agencies, and whether the information
will have practical utility; (b) the accuracy of the estimate of the
burden of the collections of information; (c) ways to enhance the
quality, utility, and clarity of the information collection; (d) ways
to minimize the burden of the information collection, including through
the use of automated collection techniques or other forms of
information technology; and (e) estimates of capital or start-up costs
and costs of operation, maintenance, and purchase of services to
maintain the information. Comments should be received on or before
March 18, 2025.

Signing Authority

In accordance with Treasury Order 100-20, the Secretary of the
Treasury delegated to the Secretary of Homeland Security the authority
related to the customs revenue functions vested in the Secretary of the
Treasury as set forth in 6 U.S.C. 212 and 215, subject to certain
exceptions. This regulation is being issued in accordance with DHS
Directive 07010.3, Revision 03, which delegates to the Commissioner of
CBP the authority to prescribe and approve/sign regulations related to
customs revenue functions.
Pete Flores, Senior Official Performing the Duties of the
Commissioner, having reviewed and approved this document, has delegated
the authority to electronically sign the document to the Director (or
Acting Director, if applicable) of the Regulations and Disclosure Law
Division of CBP, for purposes of publication in the Federal Register.

[[Page 6479]]

List of Subjects

19 CFR Part 10

Bonds, Exports, Imports, Reporting and recordkeeping requirements,
Trade agreements.

19 CFR Part 24

Accounting, Claims, Exports, Freight, Harbors, Reporting and
recordkeeping requirements, Taxes.

19 CFR Part 113

Common carriers, Exports, Freight, Laboratories, Reporting and
recordkeeping requirements, Surety bonds.

19 CFR Part 123

Canada, Freight, International boundaries, Mexico, Motor carriers,
Railroads, Reporting and recordkeeping requirements, Vessels.

19 CFR Part 141

Reporting and recordkeeping requirements.

19 CFR Part 144

Reporting and recordkeeping requirements, Warehouses.

19 CFR Part 163

Administrative practice and procedure, Exports, Imports, Penalties,
Reporting and recordkeeping requirements.

CFR Part 174

Administrative practice and procedure.

19 CFR Part 182

Administrative practice and procedure, Canada, Exports, Mexico,
Reporting and recordkeeping requirements, Trade agreements.

Amendments to the CBP Regulations

For the reasons stated above, U.S. Customs and Border Protection
and the Department of the Treasury amend 19 CFR parts 10, 24, 113, 123,
141, 144, 163, 174, and 182 of title 19 of the Code of Federal
Regulations as set forth below:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.

0
1. The general and specific authority citations for part 10 continue to
read as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484,
1498, 1508, 1623, 1624, 4513.
* * * * *
Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322;
Sections 10.211 through 10.217 also issued under 19 U.S.C. 3721;
Sections 10.221 through 10.228 and Sec. Sec. 10.231 through
10.237 also issued under 19 U.S.C. 2701 et seq.
* * * * *

0
2. In Sec. 10.31, paragraphs (f) and (h) are revised to read as
follows:

Sec. 10.31 Entry; bond.

* * * * *
(f) With the exceptions stated herein, a bond shall be given on CBP
Form 301, containing the bond conditions set forth in Sec. 113.62 of
this chapter, in an amount equal to double the duties and fees, which
it is estimated would accrue (or such larger amount as the Center
director shall state in writing or by the electronic equivalent to the
entrant is necessary to protect the revenue) had all the articles
covered by the entry been entered under an ordinary consumption entry.
In the case of samples solely for use in taking orders entered under
subheading 9813.00.20, HTSUS, motion-picture advertising films entered
under subheading 9813.00.25, HTSUS, and professional equipment, tools
of trade and repair components for such equipment or tools entered
under subheading 9813.00.50, HTSUS, the bond required to be given shall
be in an amount equal to 110 percent of the estimated duties and fees,
determined at the time of entry. If appropriate, a carnet, under the
provisions of part 114 of this chapter, may be filed in lieu of a bond
on CBP Form 301 (containing the bond conditions set forth in Sec.
113.62 of this chapter). Cash deposits in the amount of the bond may be
accepted in lieu of sureties. When the articles are entered under
subheading 9813.00.05, 9813.00.20, or 9813.00.50, HTSUS without formal
entry, as provided for in Sec. Sec. 10.36 and 10.36a, or the amount of
the bond taken under any subheading of Chapter 98, Subchapter XIII,
HTSUS, is less than $25, the bond shall be without surety or cash
deposit, and the bond shall be modified to so indicate. In addition,
notwithstanding any other provision of this paragraph, in the case of
professional equipment necessary for carrying out the business
activity, trade or profession of a business person, equipment for the
press or for sound or television broadcasting, cinematographic
equipment, articles imported for sports purposes and articles intended
for display or demonstration, if brought into the United States by a
national of Canada or Mexico, or by a resident of Singapore, Chile,
Morocco, Australia, El Salvador, Guatemala, Honduras, Nicaragua, the
Dominican Republic, Costa Rica, Bahrain, Oman, Peru, the Republic of
Korea, Colombia, or Panama and entered under Chapter 98, Subchapter
XIII, HTSUS, no bond or other security will be required if the entered
article is a good originating, within the meaning of General Notes 11,
12, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, and 35, HTSUS, in the
country of which the importer is a national or resident, as applicable.
In the case of articles imported for sports purposes and articles
intended for display or demonstration, if brought into the United
States by a national of Canada or Mexico, the bond shall be without
surety or cash deposit in an amount equal to 110 percent of the
estimated duties and fees determined at the time of entry, if the
entered article is not originating, within the meaning of General Notes
11 and 12, HTSUS, in the country of which the importer is a national.
* * * * *
(h) After the entry and bond have been accepted, the articles may
be released to the importer. The entry shall not be liquidated as the
transaction does not involve liquidated duties. However, a TIB importer
may be required to file an entry for consumption and pay duties, or pay
liquidated damages under its bond for a failure to do so, in the case
of merchandise imported under subheading 9813.00.05, HTSUS, and
subsequently exported to Canada or Mexico (see Sec. 181.53 or 182.53
of this chapter).

0
3. In Sec. 10.36a, paragraph (a) is revised to read as follows:

Sec. 10.36a Vehicles, pleasure boats and aircraft brought in for
repair or alteration.

(a) A vehicle (such as an automobile, truck, bus, motorcycle,
tractor, trailer), pleasure boat, or aircraft brought into the United
States by an operator of such vehicle, pleasure boat, or aircraft for
repair or alteration (with repair or alteration defined as restoration,
addition, renovation, re-dyeing, cleaning, re-sterilizing, or other
treatment that does not destroy the essential characteristics of, or
create a new or commercially different good from, the good imported
into the United States) may be entered on the operator's baggage
declaration, in lieu of formal entry and examination, and may be passed
under subheading 9813.00.05, Harmonized Tariff Schedule of the United
States (HTSUS), at the place of arrival in the same manner as
passengers' baggage. When the vehicle, aircraft, or pleasure boat to be
entered is being towed by or transported on another vehicle, the
operator of the towing or transporting vehicle may make entry for the
vehicle, aircraft or pleasure boat to be repaired or altered.

[[Page 6480]]

The bond, prescribed by Sec. 10.31(f), filed to support entry under
this section, shall be without surety or cash deposit except as
provided by this paragraph and paragraph (d) of this section. The
examination may be made by an inspector who is qualified to determine
the amount of such bond to be filed in support of the entry. The
privilege accorded by this paragraph shall not apply when two or more
vehicles, pleasure boats, or aircraft are to be entered by the same
importer under subheading 9813.00.05, HTSUS, at the same time. In that
event, the importer must file a formal entry supported by bond with
surety or cash deposit in lieu of surety.
* * * * *

0
4. In Sec. 10.41a, paragraphs (g)(1) and (3) are revised to read as
follows:

Sec. 10.41a Lift vans, cargo vans, shipping tanks, skids, pallets,
and similar instruments of international traffic; repair components.

* * * * *
(g)(1) Except as provided in paragraph (j) of this section, a
container (as defined in Article 1 of the Customs Convention on
Containers) that is designated as an instrument of international
traffic is deemed to remain in international traffic provided that the
container exits the United States within 365 days of the date on which
it was admitted under this section. A container that is designated as
an instrument of international traffic and admitted from Canada or
Mexico is deemed to remain in international traffic beyond this 365-day
time limit when CBP grants an extension, at the request of the person
who filed the application for release under paragraph (a)(1) of this
section, provided that the container exits the United States prior to
the date of expiration of the extension granted. An exit from the
United States in this context means a movement across the border of the
United States into a foreign country where either:
(i) All merchandise is unladen from the container; or
(ii) Merchandise is laden aboard the container (if the container is
empty).
* * * * *
(3) If the container does not exit the United States within 365
days of the date on which it is admitted under this section, or, by the
date on which an extension granted under paragraph (g)(1) of this
section expires, such container shall be considered to have been
removed from international traffic, and entry for consumption must be
made within 10 business days after the end of the month in which the
container is deemed removed from international traffic. When entry is
required under this section, any containers considered removed from
international traffic in the same month may be listed on one entry.
Such entry may be made at any port of entry. Under 19 U.S.C.
1484(a)(1)(B), the importer of record is required, using reasonable
care, to complete the entry by filing with CBP the declared value,
classification and rate of duty applicable to the merchandise. The
importer of record must use the value of the container as determined in
accordance with section 402, Tariff Act of 1930 (19 U.S.C. 1401a), as
amended by the Trade Agreements Act of 1979 (TAA).

0
5. In Sec. 10.212, paragraph (l) is revised to read as follows:

Sec. 10.212 Definitions.

* * * * *
(l) USMCA. ``USMCA'' means the Agreement between the United States
of America, the United Mexican States, and Canada, entered into force
by the United States, Canada and Mexico on July 1, 2020.
* * * * *

Sec. 10.213 [Amended]

0
6. In Sec. 10.213(a)(8), remove the words ``General Note 12(t)'' and
add, in their place, the words ``General Note 11''.

Sec. 10.214 [Amended]

0
7. Amend Sec. 10.214 as follows:
0
a. In paragraph (b), remove the word ``NAFTA'' from the table and add,
in its place, the word ``USMCA''; and
0
b. In paragraph (c)(12), remove the word ``NAFTA'' and add, in its
place, the word ``USMCA''.

0
8. In Sec. 10.222, remove the definition for ``NAFTA'' and add, in
alphabetical order, the definition for ``USMCA''.
The addition reads as follows:

Sec. 10.222 Definitions.

* * * * *
USMCA. ``USMCA'' means the Agreement between the United States of
America, the United Mexican States, and Canada, entered into force by
the United States, Canada and Mexico on July 1, 2020.
* * * * *

Sec. 10.223 [Amended]

0
9. In Sec. 10.223(a)(7), remove the words ``Annex 401 of the NAFTA''
and add, in their place, the words ``Annex 4-B of the USMCA''.

Sec. 10.224 [Amended]

0
10. In Sec. 10.224(c)(12), remove the word ``NAFTA'' and add, in its
place, the word ``USMCA''.

0
11. Amend Sec. 10.232 as follows:
0
a. Remove the definition for ``NAFTA'';
0
b. Amend the definition of ``Preferential tariff treatment'' by
removing the words ``Annex 302.2 of the NAFTA'' and adding, in their
place, the words ``Annex 2-B of the USMCA''; and
0
c. Add, in alphabetical order, the definition for ``USMCA''.
The addition reads as follows:

Sec. 10.232 Definitions.

* * * * *
USMCA. ``USMCA'' means the Agreement between the United States of
America, the United Mexican States, and Canada, entered into force by
the United States, Canada and Mexico on July 1, 2020.

0
12. In Sec. 10.233, revise paragraphs(b) introductory text and (b)(1)
to read as follows:

Sec. 10.233 Articles eligible for preferential treatment.

* * * * *
(b) Application of the USMCA rules of origin. In determining
whether an article is a CBTPA originating good for purposes of
paragraph (a) of this section, application of the provisions of General
Note 11 of the HTSUS, and part 182, appendix A of this chapter, will be
subject to the following rules:
(1) No country other than the United States and a CBTPA beneficiary
country may be treated as being a party to the USMCA;
* * * * *

0
13. In Sec. 10.237, revise paragraph (b) to read as follows:

Sec. 10.237 Verification and justification of claim for preferential
tariff treatment.

* * * * *
(b) Importer requirements. In order to make a claim for
preferential tariff treatment under Sec. 10.235, the importer:
(1) Must have records that explain how the importer came to the
conclusion that the article qualifies for preferential tariff
treatment. Those records must include documents that support a claim
that the article in question qualifies for preferential tariff
treatment because it meets the applicable rule of origin set forth in
General Note 11, HTSUS, and in part 182, appendix A of this chapter. A
properly completed Certificate of Origin in the form prescribed in
Sec. 10.236(b) is a record that would serve this purpose;
* * * * *

0
14. Revise Sec. 10.301 to read as follows:

Sec. 10.301 Scope and applicability.

The provisions of Sec. Sec. 10.302 through 10.311 of this part
relate to the

[[Page 6481]]

procedures for obtaining duty preferences on imported goods under the
United States-Canada Free-Trade Agreement (the Agreement) entered into
on January 2, 1988, and the United States-Canada Free-Trade Agreement
Implementation Act of 1988 (102 Stat. 1851). The United States and
Canada agreed to suspend operation of the Agreement with effect from
January 1, 1994, to coincide with the entry into force of the North
American Free Trade Agreement (see part 181 of this chapter) and to
continue suspending operation of the Agreement with the entry into
force of the Agreement Between the United States of America, the United
Mexican States, and Canada (USMCA) (see part 182 of this chapter) and,
accordingly, the provisions of Sec. Sec. 10.302 through 10.311 of this
part apply only to goods imported from Canada that were entered for
consumption, or withdrawn from warehouse for consumption, during the
period January 1, 1989, through December 31, 1993. In situations
involving goods subject to bilateral restrictions or prohibitions, or
country of origin marking, other criteria for determining origin may be
applicable pursuant to Article 407 of the Agreement.

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
15. The general and specific authority citation for part 24 is revised
to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 3(i), Harmonized Tariff Schedule of the United States), 1505,
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
Section 24.23 also issued under 19 U.S.C. 4531; Sec. 892, Public
Law 108-357, 118 Stat. 1418 (19 U.S.C. 58c); Sec. 32201, Public Law
114-94, 129 Stat. 1312 (19 U.S.C. 58c); Public Law 115-271, 132
Stat. 3895 (19 U.S.C. 58c).
* * * * *
Section 24.36 also issued under 26 U.S.C. 5001(c)(4),
5041(c)(7), 5051(a)(6), 6423; Public Law 115-97; Public Law 116-260;
134 Stat. 3046.

0
16. In Sec. 24.23, paragraph (c)(3) is revised to read as follows:

Sec. 24.23 Fees for processing merchandise.

* * * * *
(c) * * *
(3) The ad valorem, surcharge, and specific fees provided for under
paragraphs (b)(1) and (2) of this section will not apply to goods
originating within the meaning of General Note 11, HTSUS (see also 19
U.S.C. 4531), or to goods that qualify for preferential tariff
treatment under Sec. 182.82 of this chapter (see also Annex 6-A of the
USMCA), that are entered for consumption, or withdrawn from warehouse
for consumption, on or after July 1, 2020. The ad valorem, surcharge,
and specific fees will also not apply to goods originating in Canada or
Mexico within the meaning of General Note 12, HTSUS, that are entered
for consumption, or withdrawn from warehouse for consumption, prior to
July 1, 2020 where such goods qualify to be marked, respectively, as
goods of Canada or Mexico pursuant to Annex 311 of the North American
Free Trade Agreement and without regard to whether the goods are
marked. For qualifying goods originating in Mexico, the exemption
applies to goods entered or released (as defined in this section) after
June 29, 1999. Where originating goods or goods that qualify for
preferential tariff treatment under Sec. 182.82 of this chapter are
entered or released with other goods that are not originating goods or
are goods that do not qualify for preferential tariff treatment, the ad
valorem, surcharge, and specific fees will apply only to those goods
which are not originating goods or are goods that do not qualify for
preferential tariff treatment.
* * * * *

0
17. In Sec. 24.36, paragraph (a)(1) introductory text is revised to
read as follows:

Sec. 24.36 Refunds of excessive duties, taxes, etc.

(a) * * *
(1) Except as otherwise provided in paragraphs (a)(1)(i) through
(iii) of this section, the refund shall include interest on the excess
moneys deposited with Customs, and such interest shall accrue from the
date the duties, taxes, fees or interest were deposited or, in a case
in which a proper claim is filed under 19 U.S.C. 1520(d), from the date
such claim is filed, to the date of liquidation or reliquidation of the
applicable entry or reconciliation. An example follows:
* * * * *

PART 113--CBP BONDS

0
18. The general authority citation for part 113 continues to read as
follows:

Authority: 19 U.S.C. 66, 1623, 1624.
* * * * *

0
19. In Sec. 113.62, revise paragraph (a)(1) to read as follows:

Sec. 113.62 Basic importation and entry bond conditions.

* * * * *
(a) Agreement to pay duties, taxes, and charges. (1) If merchandise
is imported and released from CBP custody or withdrawn from a CBP
bonded warehouse into the commerce of, or for consumption in, the
United States, or under Sec. 181.53 or 182.53 of this chapter is
withdrawn from a duty-deferral program for exportation to Canada or
Mexico or for entry into a duty-deferral program in Canada or Mexico,
the obligors (principal and surety, jointly and severally) agree to:
* * * * *

PART 123--CBP RELATIONS WITH CANADA AND MEXICO

0
20. The general authority citation for part 123 continues to read as
follows:

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized
Tariff Schedule of the United States (HTSUS)), 1415, 1431, 1433,
1436, 1448, 1624, 2071 note.
* * * * *

0
21. Revise Sec. 123.0 to read as follows:

Sec. 123.0 Scope.

This part contains special regulations pertaining to CBP procedures
at the Canadian and Mexican borders. Included are provisions governing
report of arrival, manifesting, unlading and lading, instruments of
international traffic, shipments in transit through Canada or Mexico or
through the United States, commercial traveler's samples transiting the
United States or Canada, baggage arriving from Canada or Mexico
including baggage transiting the United States or Canada or Mexico, and
electronic information for rail and truck cargo in advance of arrival.
Aircraft arriving from or departing for Canada or Mexico are governed
by the provisions of part 122 of this chapter. The arrival of all
vessels from, and clearance of all vessels departing for, Canada or
Mexico are governed by the provisions of part 4 of this chapter. Fees
for services provided in connection with the arrival of aircraft,
vessels, vehicles and other conveyances from Canada or Mexico are set
forth in Sec. 24.22 of this chapter. Regulations pertaining to the
treatment of goods from Canada or Mexico under the North American Free
Trade Agreement are contained in part 181 of this chapter. Regulations
pertaining to the treatment of goods from Canada or Mexico under the
Agreement Between the United States of America, the United Mexican
States, and Canada (USMCA) are contained in part 182 of this chapter.
The requirements for the United States Postal Service to transmit
advance electronic information for inbound international mail shipments
are set forth in Sec. 145.74 of this chapter.

[[Page 6482]]

PART 141--ENTRY OF MERCHANDISE

0
22. The general and specific authority citations for part 141 continue
to read as follows:

Authority: 19 U.S.C. 66, 1448, 1484, 1498, 1624.
* * * * *
Section 141.68 also issued under 19 U.S.C. 1315;
* * * * *

0
23. In Sec. 141.0a, paragraphs (a) and (f) are revised to read as
follows:

Sec. 141.0a Definitions.

* * * * *
(a) Entry. ``Entry'' means that documentation or data required by
Sec. 142.3 of this chapter to be filed with the appropriate CBP
officer or submitted electronically to the Automated Commercial
Environment (ACE) or any other CBP-authorized electronic data
interchange system to secure the release of imported merchandise from
CBP custody, or the act of filing that documentation. ``Entry'' also
means that documentation or data required by Sec. 181.53 or 182.53 of
this chapter to be filed with CBP to withdraw merchandise from a duty-
deferral program in the United States for exportation to Canada or
Mexico or for entry into a duty-deferral program in Canada or Mexico.
* * * * *
(f) Entered for consumption. ``Entered for consumption'' means that
an entry summary for consumption has been filed with CBP in proper
form, including electronic submission to the Automated Commercial
Environment (ACE) or any other CBP-authorized electronic data
interchange system, with estimated duties attached. ``Entered for
consumption'' also means the necessary documentation has been filed
with CBP to withdraw merchandise from a duty-deferral program in the
United States for exportation to Canada or Mexico or for entry into a
duty-deferral program in Canada or Mexico (see Sec. 181.53 or 182.53
of this chapter).
* * * * *

0
24. In Sec. 141.68, paragraph (i) is revised to read as follows:

Sec. 141.68 Time of entry.

* * * * *
(i) Exportation to Canada or Mexico of goods imported into the
United States under a duty-deferral program defined in Sec. 181.53 or
182.53 of this chapter. When merchandise in a U.S. duty-deferral
program is withdrawn for exportation to Canada or Mexico or for entry
into a duty-deferral program in Canada or Mexico, the date of entry is
the date that the entry is required to be filed under Sec.
181.53(a)(2)(iii) or 182.53(a)(2)(iii) of this chapter.
* * * * *

PART 144--WAREHOUSE AND REWAREHOUSE ENTRIES AND WITHDRAWALS

0
25. The general authority citation for part 144 continues to read as
follows:

Authority: 19 U.S.C. 66, 1484, 1557, 1559, 1624.
* * * * *

0
26. In Sec. 144.38, paragraph (b) is revised to read as follows:

Sec. 144.38 Withdrawal for consumption.

[…truncated; see source link]

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Indexed from Federal Register on January 17, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.