21 January 2025

US publishes interim final rule addressing additional implementing regulations related to textile and apparel goods, automotive goods and other USMCA provisions

  • The interim final rule provides additional implementing regulations for the USMCA.
  • Specifically, the interim final rule covers regulations related to automotive goods, textile and apparel goods, drawback and duty-deferral program requirements, recordkeeping and protest requirements, temporary admission of goods, fee provisions and other conforming amendments to fulfill USMCA requirements.
 

United States (US) Customs and Border Protection (CBP) issued an Interim Final Rule (IFR) in the Federal Register on 17 January 2025 that is available for public comment to further address implementing regulations in the 19 CFR Section 182 United States-Mexico-Canada Agreement (USMCA) that went into effect in July 2020.1 The IFR, which is effective on 18 March 2025, with a 120-day delayed compliance date for the vehicle certification regulations, addresses the following:

  1. Automotive goods
  2. Textile and apparel goods
  3. Drawback and duty-deferral program requirements
  4. Recordkeeping and protest requirements
  5. Temporary admission of goods requirements
  6. Applicable fee provisions
  7. Other conforming amendments to fulfill the USMCA related commitments.

IFR details

USMCA automotive goods

Beginning on 17 May 2025, producers must use the USMCA Automotive Certification Portal at https://trade.cbp.gov/USMCA/s/ to submit the Labor Value Content (LVC), steel purchasing and aluminum purchasing certifications along with additional data elements for covered vehicles to qualify for preferential tariff treatment. CBP expects the submission at least 90 days before the beginning of the certification period. The agency will assign a unique identifier for each certification at the time of submission that must be provided on entry summary documents when claiming preferential treatment under CFR Section182.11(b) or a post-importation claim under 19 CFR Section182.32. This new requirement will not apply, nor will producers be required to comply with the 90-day submission requirement, for vehicle certifications submitted prior to 17 May 2025.

USMCA auto alternative staging regime

CBP will require vehicle producers to submit a separate vehicle certification for vehicles covered under the alternative staging regime in 19 CFR Section182.106 under two scenarios: (1) if the terms exempt the LVC, steel purchasing or aluminum purchase requirement, including qualifying for the North American Free Trade Agreement (NAFTA) treatment; (2) if there are different LVC, steel purchasing, or aluminum purchasing requirements from product-specific rules of origin requirements in the USMCA. They must also meet general regulatory, additional data elements, and certifying statement requirements.

CBP reserves the right to deny preferential treatment claims if producers:

  1. Do not meet standard automotive good requirements without an authorized alternative staging regime
  2. Do not meet requirements of the alternative staging regime as required by the US Trade Representative
  3. Do not submit the required separate vehicle certification concerning covered vehicles under the alternative staging regime.

Textile and apparel goods

CBP is adding tariff preferential treatment (TPL) requirements, including the certificate of eligibility, to 19 CFR Section 182, Subpart H, which contains the USMCA textile and apparel goods provisions. The certificate of origin does not apply to textile or apparel goods subject to a TPL, but the USMCA country into which the goods are imported may require documentation, such as a certificate of eligibility, from an authorized USMCA country to verify and track the TPL.

Drawback and other areas

The IFR includes additional drawback implementing regulations that are not already housed under 19 CFR Section182, Subpart E as well as other USMCA drawback and duty-deferral program cross-references in Title 19 of the CFR "Other covered areas" are updates to 19 CFR Section10 that include temporary admission of goods, references to NAFTA, and instruments of international traffic; Customs Financial and Accounting Procedure in 19 CFR Section24; CBP Relationship with Canada and Mexico in 19 CFR Section123; USMCA Recordkeeping in 19 CFR Section163; and Protest in 19 CFR Section174.

Action for businesses

In light of the IFR addressing additional implementing regulations for the USMCA, businesses must take proactive steps to ensure compliance with the new requirements. The following actions could help businesses prepare for and adapt to these regulatory changes:

  • Review the IFR to understand the new regulations and requirements, and prepare to use the appropriate certification portals and systems for compliance
  • Review and update current processes to maintain compliance with the current requirements including updated recordkeeping, reporting, and fee provisions
  • Participate in the public comment process to provide feedback on the new regulations and stay informed about effective dates and compliance deadlines to ensure timely adherence.
  • Watch for any further updates or changes to the regulations and adjust processes as needed.
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Endnote

1 United States Customs and Border Protection. "Interim Final Rule Addressing Additional Implementing Regulations Related to Textile and Apparel Goods, Automotive Goods, and Other USMCA Provisions." Federal Register, 17 January 2025, https://public-inspection.federalregister.gov/2025-00550.pdf.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young LLP (United States), Global Trade

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2025-0285