USMCA’s First Anniversary Brings Two Federal Register Notices From CBP Covering Origin And Preference Issues

Jul 12, 2021Market Advisory

NAFTA’s successor, the USMCA, was ratified and began on July 1st of last year as the world grappled with the rising COVID-19 pandemic. One year later, as the shockwaves are still being felt in the automotive and semiconductor industries, CBP has published two of three highly anticipated regulatory changes in the Federal Register. Both have periods during which interested parties may submit comments which will be adjudicated and considered before the promulgation of the final rules.

The following are two of three highly anticipated changes. The third—covering automotive goods—will be published in the Federal Register soon, according to guidance provided to the NCBFAA by CBP.

There were a number of notable changes that were negotiated as part of the final USMCA text, including matters of origin, minimum regional value content, and marking. Importers are reminded that these regulations apply to America’s southern and northern border neighbors. 

As a licensed customs broker, TOC Logistics monitors these regulatory changes on behalf of our customers and relays the changes. Importers should synthesize these details and incorporate them into their internal compliance, monitoring, and audit plans.

The interim final rule, implementing regulations on preferential tariff treatment and related customs provisions, has a sixty-day window that commenced July 1st. As laid out in the summary text, “The interim final rule specifically implements 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.”

The interim final rule also provides amendments to apply the 19 CFR Part 102 non-preferential rules of origin in determining the country of origin for marking purposes.

The second published change is a notice of proposed rulemaking, or NPRM, proposing to apply the rules for all non-preferential origin determinations made by CBP for goods imported from Canada or Mexico. Commenters have only a thirty-day window from July 1st for this notice.

TOC Logistics is capable of helping companies and individuals submit comments to one or both of these published rulings and providing guidance on the changes that should be highlighted. For more information on either of these services, please contact your TOC Logistics account manager.


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