CBP Update on the USMCA

U.S. Customs and Border Protection (CBP) posted two regulatory updates on the U.S.-Mexico-Canada Agreement (USMCA).

CBP issued an interim final rule (IFR), effective July 1, 2021, amending CBP’s regulations. 

This includes:

  • Implements of the provisions in Chapters 1, 2, 5, and 7 of the USMCA related to general definitions, confidentiality, import requirements, export requirements, post-importation duty refund claims, 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.
  • Makes amendments when applying the marking rules of 19 CFR 102 in determining the country of origin for marking purposes for goods imported from Canada or Mexico.
  • Adds sugar-containing products subject to a tariff-rate quota (TRQ) under Appendix 2 to Annex 2-B of Chapter 2 of the USMCA to CBP’s regulations requiring an export certificate.
  • Conforms amendments for the declaration required for goods re-entered after repair or alteration in Canada or Mexico, recordkeeping provisions, and the modernized drawback provisions.

You may file comments on this IFR by September 7, 2021, using docket number USCBP-2021-0026, on the Federal eRulemaking Portal.

CBP also issued a notice of proposed rulemaking (NPRM) on proposed amendments for determining all non-preferential origin determinations used on goods imported from Canada or Mexico under the USMCA. CBP would apply certain tariff-based rules of origin found in the CBP regulations to determine when a good imported from Canada or Mexico has been substantially transformed resulting in an article with a new name, character, or use. CPB proposed to extend the scope under 19 CFR 102 to include 102.1 through 102.18, and 102.20 (similar to NAFTA, but excluding 102.19 NAFTA preference override).

It is hoped to eliminate issues where two different countries of origin are determined, one for marking purposes, and one for declaring country of origin to CBP.

Not affected are country of origin or labeling determinations made by other government agencies, such as scope rulings for antidumping or countervailing duty (AD or CVD).

You may file comments on this NPRM by August 5, 2021, using docket number USCBP-2021-00X25 on the Federal eRulemaking Portal.

CBP is also expected to soon issue a third interim final rule addressing automotive goods.

Questions regarding CBP’s update on the USMCA may be directed to your Livingston account manager.