Commodity: Certain Cotton, Wool and Man-made Fiber textile products from Canada, as provided in the Harmonized Tariff Schedule of the United States (HTSUS), Chapter 98 subchapter 23.
USMCA (United States-Mexico-Canada Agreement) contains quantitative restraints associated with a reduced duty rate for agricultural products that meet the requirements for a “qualifying good." A qualifying good is one that meets the product specific rule of origin; however, U.S. materials or inputs are of a non-party, i.e., U.S. materials are considered non-originating.
Commodity: Certain Cotton, Wool and Man-made Fiber textile products from Mexico, as provided in the Harmonized Tariff Schedule of the United States (HTSUS), Chapter 98 subchapter 23.
USMCA (United States-Mexico-Canada Agreement) contains quantitative restraints associated with a reduced duty rate for agricultural products that meet the requirements for a “qualifying good." A qualifying good is one that meets the product specific rule of origin; however, U.S. materials or inputs are of a non-party, i.e., U.S. materials are considered non-originating.
on January 17, 2025, U.S. Customs and Border Protection published in the Federal Register>
(90 FR 6456) 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.
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.
This notice from CBP is to inform the trade about an interim final rule (IFR), published in the Federal Register (published on January 17, 2025) to add implementing regulations to the existing Title 19 Code of Federal Regulations 182 (19 CFR 182) covering the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA). This IFR adds to the existing 19 CFR 182 implementing regulations and other related 19 CFR regulations to address: (i) automotive goods, (ii) textile and apparel goods, (iii) drawback and duty-deferral program requirements, (iv) recordkeeping and protest requirements, (v) temporary admission of goods requirements, (vi) applicable fee provisions, and (vii) other conforming amendments to fulfill the USMCA related commitments.
This IFR is effective on March 18, 2025. CBP has included a 120-day delayed compliance date for the vehicle certification regulations to allow vehicle producers sufficient time to comply with the additional vehicle certification requirements and procedures. These requirements and procedures to claim USMCA preferential benefits for covered vehicles are included in 19 CFR 182, Subpart I - Automotive Goods.
USMCA Automotive Goods Implementing Regulations The USMCA automotive goods requirements for covered vehicles (i.e., light trucks, heavy trucks, passenger vehicles) set forth in the 19 CFR 182, subpart I, and details that the eligibility for USMCA preferential tariff treatment apply only if the producer of the covered vehicle has certified to CBP that the production of the vehicle by the producer meets the Labor Value Content (LVC) requirement, as described in 19 CFR 182.93, the steel purchasing requirement, as described in 19 CFR 182.94, and the aluminum purchasing requirement, as described in 19 CFR 182.94. In addition, the respective vehicle certification requirements for the covered vehicles are defined at: (i) 19 CFR 182.95, LVC certification, (ii) 19 CFR 182.96, Steel purchasing certification, and (iii) 19 CFR 182.97, Aluminum purchasing certification.
Pursuant to the IFR, starting on May 17, 2025, the producer of the covered vehicle must submit the LVC, steel purchasing, and aluminum purchasing certifications to CBP at least 90 days prior to the beginning of the certification period with the additional data elements specified in the relevant regulations – 19 CFR 182.95, 19 CFR 182.96, and 19 CFR 182.97 using the USMCA Automotive Certification Portal located at https://trade.cbp.gov/USMCA/s/.
Vehicle certifications submitted to CBP prior to May 17, 2025, are not required to comply with the 90-day submission requirement.
Unique Vehicle Certification Identifier CBP is assigning a unique identifier for each USMCA vehicle certification - LVC certification, steel purchasing certification, and aluminum purchasing certification.
This vehicle certification identifier, generated at time of submission, by the USMCA Automotive Portal, must be provided on entry summary documents to claim preferential tariff treatment.
When making a USMCA claim for automotive goods preferential tariff treatment under 19 CFR 182.11(b) or when making a post-importation claim under 19 CFR 182.32, the importer of the covered vehicle must submit the unique identifier assigned by CBP on each of the labor value content (LVC), steel purchasing, and aluminum purchasing certifications that form the basis for the covered vehicle’s USMCA eligibility. 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 USMCA preferential tariff treatment and to allow the importer to demonstrate compliance with the vehicle certification requirements.
USMCA Auto Alternative Staging Regime A covered vehicle may be originating under the USMCA pursuant to an alternative staging regime if it meets the conditions set forth in 19 CFR 182.106 and has been authorized by the Office of the U.S. Trade Representative (USTR).
If the terms of the alternative staging regime specifically exempt the vehicle producer from the LVC, steel purchasing, or aluminum purchasing requirement (including when the producer qualifies for NAFTA 403.6 treatment) or if the terms of the alternative staging regime contain different LVC, steel purchasing, or aluminum purchasing requirements from the USMCA product-specific rules of origin requirements for covered vehicles, the vehicle producer is required to submit a separate vehicle certification that covers only those vehicles subject to the alternative staging regime to CBP. Vehicle producers with vehicle certifications for covered vehicles subject to an exemption or different requirements under an alternative staging regime are required to comply with the requirements set forth in 19 CFR 182.95(b), 182.96(b), or 182.97(b), and 182.106(c). These additional vehicle certifications must meet the general regulatory requirements as set forth in 19 CFR 182.95, 182.96, and 182.97, and the additional data elements, and certifying statement as set forth in 19 CFR 182.106(c).
CBP may deny USMCA preferential tariff treatment for claims where vehicle producers fail to meet: (i) the standard automotive good requirements without an authorized alternative staging regime, (ii) a determination has been made that the producer fails to meet the requirements of the alternative staging regime as outlined by USTR, or (iii) the vehicle producer fails to submit the required separate vehicle certification for covered vehicles subject to an alternative staging regime.
Textile and Apparel Goods Implementing Regulations The IFR covers Subpart H of 19 CFR 182. Subpart H (19 CFR 182.81 – 182.83) and contains the USMCA textile and apparel good provisions, as provided for in USMCA Chapter 6, including the tariff preference levels (TPL) provisions and verification site visit provisions.
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.
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.
Subpart H to 19 CFR part 182 also contains the requirements and procedures for a textile or apparel good verification conducted pursuant to a USMCA Article 6.6 site visit. The USMCA provides CBP with two alternative means of conducting a textile or apparel good verification.
Drawback Implementing Regulations - The IFR covers additional drawback implementing regulations not already covered under 19 CFR 182, Subpart E. Also included are other USMCA drawback and duty-deferral program cross-references to Title 19 of the CFR.
Other Areas Covered The IFR details other areas of the existing 19 CFR covering regulation updates to various commitments under the USMCA, including:
19 CFR Part 10 - Articles Conditionally Free, Subject to A Reduced Rate, Etc.
Temporary Admission of Goods - CBP is updating 19 CFR 10.31(f) regulations to include the USMCA Article 2.7 requirements.
References to NAFTA - The implementing regulations for trade preferential programs 19 CFR Part 10, followed the statutory language which contained numerous references to NAFTA. 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.
CBP amends the various references to NAFTA 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.
Instruments for International Traffic - 19 CFR 10.41a
And other changes
19 CFR 24 Customs Financial and Accounting Procedure – updates 19 CFR 24.23 and 19 CFR 24.36 to cover changes related to the USMCA merchandise processing fee.
19 CFR 123 - CBP Relations with Canada and Mexico – adds the reference to the USMCA.
19 CFR 163 USMCA Recordkeeping
CBP amends 19 CFR 163 to implement the recordkeeping requirements contained in 19 U.S.C. 1508, USMCA Article 5.8, the Uniform Regulations regarding Origin Procedures.
Other USMCA implementing recordkeeping regulation updates can be found in 19 CFR 182.
19 CFR 174 Protest - CBP amends 19 CFR 174 to extend the protest rights under Part 174 to USMCA importers and qualifying exporters or producers and to implement the USMCA commitments under Articles 5.15.1 and Article 7.15.
On April 24, 2024, the Committee for the Implementation of Textile Agreements published in the Federal Register (89 FR 31145) Request for Public Comment on a
Commercial Availability Request Under the United States-Mexico-Canada Agreement
SUMMARY: On February 20, 2024, the Government of the United States received a request from the Government of Canada to initiate consultations under Article 6.4.1 of the United States-Mexico-Canada Agreement. Canada is requesting that the United States and Mexico with Canada, collectively consider changing the rules of origin for certain end-use fabrics used in the production of fire hose based on the lack of commercial availability for certain high-tenacity polyester yarns in the territories of the Parties. The yarns are described as high-tenacity polyester yarn, single or multiple, multifilament, untwisted, untextured, and measuring more than 920 decitex, used in the production of fire hose, with or without lining, armor or accessories of other materials. The President of the United States may proclaim a modification to the USMCA rules of origin for textile and apparel products if the United States reaches an agreement with Canada and Mexico on a modification under Article 6.4.3 of the USMCA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. The President authorized, in Presidential Proclamation 10053 (July 1, 2020), the Committee for the Implementation of Textile Agreements to review requests for modifications to a rule of origin for textile and apparel goods based on a change in the availability of the textile or apparel good in the territory of the Parties, and to make a recommendation as to whether a requested modification is warranted. CITA hereby solicits public comments on this request to modify the USMCA rules of origin, particularly regarding whether certain high-tenacity polyester yarns used in the production of fire hose can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.
DATES: Comments must be submitted by May 24, 2024.
Certain Cotton, Wool and Man-made Fiber textile products, as provided for in Chapter 98, Sub-chapter XXIII, US Note 11 of the Harmonized Tariff Schedule of the United States.
Quota Period:
January 1, 2024, through December 31, 2024
Opening Date:
Tuesday, January 2, 2024
Restraint Limits
TPL Number
Description
Limit
UOM
1
Cotton or Man-made Fiber Apparel
40,000,000
UOM
2
Wool Apparel
200,000
UOM
3
Men’s and Boy’s Wool Suits of Category 443
3,800,000
UOM
4
Aggregate total of TPL 5 & 6
71,765,252
UOM
5
Cotton or man-made Fiber Fabrics and Made-up Textile Goods WOVEN
38,642,828
UOM
6
Cotton or man-made Fiber Fabrics and Made-up Textile Goods KNIT
38,642,828
UOM
7
Non-originating Cotton or Man-made Spun Yarn sub: ACRYLIC
3,000,000
UOM
8
Non-originating Cotton or Man-made Spun Yarn sub: OTHER YARNS
3,000,000
UOM
HTS Numbers
First Tariff Field
Second Tariff Field
98235201
Appropriate Chapter 1- 1-97 HTS Number
98235202
Appropriate Chapter 1- 1-97 HTS Number
98235203
Appropriate Chapter 1- 1-97 HTS Number
98235204
Appropriate Chapter 1- 1-97 HTS Number
98235205
Appropriate Chapter 1- 1-97 HTS Number
98235200
Appropriate Chapter 1- 1-97 HTS Number
98235207
Appropriate Chapter 1- 1-97 HTS Number
98235208
Appropriate Chapter 1- 1-97 HTS Number
Reporting Instructions:
Place the rate of duty in the "special" sub-column of column 1 followed by the symbol "S+" for ALL entries.
Use entry type code 02, 06, 07, 12, 23, 32, 38, or 52.
SQUARE METERS EQUIVALENT (SME) means that unit of measurement that results from the application of the conversion factors set out in Annex 6-B (Conversion Factors) to a primary unit of measure such as unit, dozen, or kilograms.
Special Reporting Instructions:
See Additional U.S. Note 11(a) and (iii) to Subchapter XXIII of the Harmonized Tariff Schedule (HTS).
TPL (1) - See Additional U.S. Note 11 (i)(A) Subchapter XXIII of the HTS.
TPL (2) - See Additional U.S. Note 11 (i)(B) Subchapter XXIII of the HTS.
TPL (3) - See Additional U.S. Note 11 (a)(l) Subchapter XXIII of the HTS.
TPL (4) - See Additional U.S. Note 11 (ll)(C) Subchapter XXIII of the HTS.
TPL (5) - See Additional U.S. Note 11 (ll)(A) Subchapter XXIII of the HTS. For category 222, use NFT
TPL (6) - See Additional U.S. Note 11 (ll)(B)(D)(l)(ll) Subchapter XXIII of the HTS. For category, 222 use NFT
TPL (7) - See Additional U.S. Note 11 (iii)(A) Subchapter XXIII of the HTS.
TPL (8) - See Additional U.S. Note 11 (iii)(B) Subchapter XXIII of the HTS.
This note and subheadings 9823.52.01 through 9823.52.08, inclusive, apply to certain textile and apparel goods of Canada that are not originating goods under the terms of general note 11 to the tariff schedule, however, that are eligible for special tariff treatment as provided for herein, USMCA claims involving non-originating textiles and apparel goods subject to TPL provisions must be accompanied by a valid certificate (or its electronic equivalent) of eligibility. For purposes of obtaining preferential tariff treatment, this document must be completed legibly and in full by the exporter and be in the possession of the importer at the time the declaration is made.
Certificate Numbering:
The first number of the certificate must match the year of presentation. For example, a 2024 certificate, e.g.4CA (XX) 123456, must accompany merchandise entered in 2024. The certificate must be reflected in column 34 on the CBP 7501. ABI filers can transmit the certificates of eligibility in the certificate field of the line information.
A 2023 certificate of eligibility CANNOT be used for merchandise presented in 2024. Likewise, a 2024 certificate cannot be used on entries presented in 2023. Merchandise presented in 2024 will require a 2024 certificate of eligibility and will be charged to the 2024 quota limits. Therefore, 2023 entry summaries for merchandise released on or after December 17, 2023, must be presented by December 31, 2023. If presented after December 31, 2023, liquidated damages may be assessed for late filing.
Post-Importation Claims:
Post-importation claims for TPL must be filed with the certificate of eligibility for the year the entry summary, or equivalent documentation, is accepted by CBP. Post-importation claims will not be granted if the quantitative restraints for the subject TPL are already filled.
Questions from the importing community regarding this electronic message should be referred to the local CBP port. The port may refer questions through email to HQQUOTA@cbp.dhs.gov.
On February 28, 2022, United States Trade Representative Katherine Tai outlined the Biden-Harris Administration’s vision for the United States – Mexico – Canada Agreement (USMCA) in a Brookings report examining key priorities to build a more competitive, inclusive, and sustainable North American economy. Ambassador Tai highlighted the landmark protections for workers and the environment, and emphasized the importance of using the Agreement’s innovative tools to deliver inclusive economic growth and meet the challenges of the 21st century.
On January 4, 2021, United States Trade Representative Katherine Tai announced that the United States has prevailed in the first dispute settlement panel proceeding ever brought under the United States-Mexico-Canada Agreement (USMCA). A USMCA panel agreed with the United States that Canada is breaching its USMCA commitments by reserving most of the in-quota quantity in its dairy tariff-rate quotas (TRQs) for the exclusive use of Canadian processors.
The United States requested that a panel be established on May 25, 2021 under Chapter 31 of the USMCA. The panel issued its final report to the Parties on December 20, 2021. Under USMCA rules, Canada has 45 days from the date of the final report to comply with the Panel’s findings. From January through October 2021, the United States exported $478 million of dairy products to Canada, which is the third largest export destination for U.S. dairy products.
Background
A tariff-rate quota applies a preferential rate of duty to an “in-quota” quantity of imports and a different rate to imports above that in-quota quantity. Under the USMCA, Canada has the right to maintain 14 TRQs on the following dairy products: milk, cream, skim milk powder, butter and cream powder, industrial cheeses, cheeses of all types, milk powders, concentrated or condensed milk, yogurt and buttermilk, powdered buttermilk, whey powder, products consisting of natural milk constituents, ice cream and ice cream mixes, and other dairy.
In notices to importers that Canada published in June and October 2020 and May 2021 for dairy TRQs, Canada set aside and reserved a percentage of the quota for processors and for so-called “further processors”, contrary to Canada’s USMCA commitments. As a result of this restriction, Canada has been undermining the value of its dairy TRQs for U.S. farmers and exporters since entry into force of the USMCA by limiting access to in-quota quantities negotiated under the Agreement.
USTR officials worked closely with staff from the U.S. Department of Agriculture throughout the case. A USMCA panel agreed with the United States that Canada’s allocation of dairy TRQs, specifically the set-aside of a percentage of each dairy TRQ exclusively for Canadian processors, is inconsistent with Canada’s commitment in Article 3.A.2.11(b) of the USMCA not to “limit access to an allocation to processors.” The Panel additionally found that the Agreement makes no distinction between initial processors and “further processors”, and that therefore, the restriction in Article 3.A.2.11(b) applies to all processors, including specific subsets.
On September 30, 2021, U.S. Customs and Border Protection published in the Federal Register (86 FR 54225) Mexico Textile and Apparel Imports Approved for the Electronic Certification System (eCERT).
This document announces that the certification requirement for certain imports of textile and apparel goods from the United Mexican States (Mexico) that are eligible for preferential tariff treatment under a tariff preference level (TPL) will be accomplished through the Electronic Certification System (eCERT). Specified quantities of certain textile and apparel imports from Mexico that are eligible for preferential tariff treatment under a TPL must have a valid certificate of eligibility with a corresponding eCERT transmission in order for an importer to claim the preferential duty rate. As the Agreement Between the United States of America, the United Mexican States and Canada (USMCA) requires the use of an electronic system for the transmission of a certificate of eligibility and other documentation related to TPLs for goods imported into the United States, Mexico has coordinated with the United States Government (USG) to implement the eCERT process. Mexico is now ready to participate in this process and transition from the way the USG currently receives certificates of eligibility from Mexico to eCERT. This transition will not change the TPL filing process or requirements applicable to importers of record, who will continue to provide the certificate numbers from Mexico in the same manner as when currently filing entry summaries with U.S. Customs and Border Protection. The format of the certificate of eligibility numbers will remain the same for the corresponding eCERT transmissions.
On July 6, 2021, U.S. Customs and Border Protection published in the Federal Register
(86 FR 35566)
Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) Implementing Regulations Related to the Marking Rules, Tariff-Ratehttps://www.govinfo.gov/content/pkg/FR-2021-07-06/pdf/2021-14264.pdf Quotas, and Other USMCA Provision.
On May 17 and 18, 2021, Katherine Tai, United States Trade Representative, Tatiana Clouthier Carrillo, Mexico’s Secretary of Economy, and the Honourable Mary Ng, Canadian Minister of Small Business, Export Promotion and International Trade, will participate in the inaugural meeting of the USMCA Free Trade Commission (FTC), hosted by the Office of the United States Trade Representative.
USMCA entered into force on July 1, 2020; it supports economic growth, prosperity, and good jobs in all 3 countries. The FTC meeting presents an opportunity to discuss the progress in the implementation of the new trilateral trade agreement and to engage with the United States and Mexico on ways to strengthen the North American trade partnership.
Minister Ng, Ambassador Tai, and Secretary Clouthier will address important trilateral trade issues, including ensuring the resilience of integrated supply chains, emphasizing the importance of strong labour and environmental protections, and mitigating the economic effects of climate change to ensure that North America emerges from the COVID-19 pandemic stronger, through an inclusive, sustainable recovery that works for everyone.
Effective March 17, 2021, the trade community can begin filing USMCA Drawback Claims in ACE.
As a reminder, claimants with Accelerated Payment (AP) privileges will not be able to obtain AP on USMCA Drawback claims until all of the applicable regulations are implemented (however, claims filed under NAFTA and same condition drawback will remain eligible for AP).
Claimants should submit their USMCA Drawback claims without the AP indicator in ACE, even if they are approved for AP. If the claimant transmits a USMCA Drawback claim through ACE containing the AP indicator, prior to the effective date of the USMCA regulations, the claim will be accepted but AP will be removed from the claim and this informational message will be returned: “I587-NO AP UNTIL USMCA REGS EFFECTIVE.” Please note a future CSMS message will announce when applicable regulations are implemented and AP eligible claims can be resubmitted with the AP indicator for USMCA Drawback.
As USMCA Drawback claims are accepted in ACE, all USMCA Drawback claims processing will be on hold pending the implementation of the USMCA Drawback regulations.
Please note that the Drawback Error Dictionary will be updated to reflect the new error message (I587). A CSMS will be sent when the update is published.
For any questions regarding this deployment, please contact the following:
Katherine Tai, in her first speech since Mr. Biden nominated her for U.S. Trade Representative, said the new administration’s policy priorities also include confronting China over its trade practices and enforcing the U.S.-Mexico-Canada Agreement signed by President Trump last year with bipartisan support. Read more in the Wall Street Journal.
On December 9, 2020, United States Trade Representative Robert E. Lighthizer announced that the United States is exercising its rights under the United States-Mexico-Canada Agreement (USMCA) to address measures adopted by the Government of Canada that are contrary to the provisions of the agreement and harm U.S. dairy farmers. Specifically, the United States is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs). By setting aside and reserving a percentage of each dairy TRQ exclusively for processors, Canada has undermined the ability of American dairy farmers and producers to utilize the agreed-upon TRQs and sell a wide range of dairy products to Canadian consumers.
Ambassador Lighthizer provided official notice to Canada that it was exercising its rights to enforce the USMCA in a letter to Canada’s Minister of Small Business, Export Promotion and International Trade Mary Ng. If the United States and Canada are not able to resolve the United States’ concerns through consultations, the United States may request the establishment of a USMCA dispute settlement panel to examine the matter.
Background
As defined in the USMCA, a TRQ is “a mechanism that provides for the application of a preferential rate of customs duty to imports of a particular originating good up to a specified quantity (in-quota quantity), and at a different rate to imports of that good that exceed that quantity”. Under the USMCA, Canada has the right to maintain 14 TRQs on dairy products, including milk, cream, skim milk powder, butter and cream powder, industrial cheeses, cheeses of all types, milk powders, concentrated or condensed milk, yogurt and buttermilk, powdered buttermilk, whey powder, products consisting of natural milk constituents, ice cream and ice cream mixes, and other dairy.
In notices to importers that Canada published in June and October for dairy TRQs, Canada sets aside and reserves a percentage of the quota for processors and for so-called “further processors”, contrary to Canada’s USMCA commitments. This restriction undermines the value of Canada’s TRQs for U.S. producers and exporters by limiting their access to in-quota quantities negotiated under the USMCA.
A copy of the consultation request can be found here.
On June 29, 2020, President Donald J. Trump signed Proclamation 10053 To Take Certain Actions Under the United States-MexicoCanada Agreement Implementation Act and for Other Purposes.
On July 1, 2020, U.S. Customs and Border Protection published in the Federal Register
(85 FR 39690)
Implementation of the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) Uniform Regulations Regarding Rules of Origin.
This interim final rule is effective on July 1, 2020; comments must be received by August 31, 2020.
Washington, DC – The United States-Mexico-Canada Agreement (USMCA) enters into force today, replacing the job-killing NAFTA failure and fulfilling a core promise President Trump made to the American people.
The USMCA, which President Trump successfully negotiated in 2018, rebalances trade between the three countries and will lead to significant economic and job growth in the United States.
At President Trump's direction, U.S. Trade Representative Robert Lighthizer worked closely with Congress to win overwhelming bipartisan approval of the USMCA.
Ambassador Lighthizer issued the following statement about USMCA’s entry into force:
"Today marks the beginning of a new and better chapter for trade between the United States, Mexico and Canada – just as President Trump promised he would deliver for the American people.
"From day one of his Administration, President Trump has changed the focus of America's trade policy away from what is best for big, multi-national corporations to instead what is best for America's workers, farmers and ranchers. That's a monumental change. His success in creating a bipartisan consensus on this new model for trade policy -- in spite of the establishment critics who said it couldn't be done -- is truly remarkable.
"The USMCA contains significant improvements and modernized approaches that will deliver more jobs, stronger worker protections, expanded market access, and greater opportunities to trade for companies large and small. We have worked closely with the governments of Mexico and Canada to ensure that the obligations and responsibilities of all three nations under the agreement have been met, and we will continue to do so to ensure the USMCA is enforced.
"The recovery from the Covid-19 pandemic demonstrates that now, more than ever, the United States must stop the outsourcing of jobs and increase our manufacturing capacity and investment here at home. With the USMCA's entry into force, we take another giant step forward in reaching this goal and advancing President Trump's vision for pro-worker trade policies."
To help coordinate implementation of the United States-Mexico-Canada Agreement, which enters into force on July 1, U.S. Customs and Border Protection recently opened the USMCA Center.
Staffed with CBP experts from operational, legal, and audit disciplines, as well as with virtual representatives from Canadian and Mexican customs authorities, the USMCA Center is a cornerstone of CBP's USMCA implementation plan and will serve as a central communication hub for CBP and the private sector community, including traders, brokers, freight forwarders and producers, ensuring a smooth and efficient transition from the North American Free Trade Agreement to USMCA.
USMCA is a new trade agreement that modernizes certain NAFTA provisions, reflecting developments in technology and 21st Century supply chains. USMCA calls for new approaches to rules of origin, agricultural market access, digital trade, and financial services while protecting the labor rights of workers in key industries, and strengthening the protection of intellectual property rights.
The USMCA Center staff will be CBP's experts on the trade provisions of USMCA, providing guidance to private and public sector stakeholders. Center staff will facilitate a smooth transition from NAFTA by coordinating and scheduling outreach events, responding to training requests, developing and distributing information resources, and updating CBP regulations on pending USMCA topics/issues, while also providing clear and transparent technical guidance on USMCA's new compliance obligations. Center staff will work closely with Centers of Excellence and Expertise and the ports to ensure CBP’s implementation is uniform and supports U.S. economic security.
Please note: NAFTA rules will continue to apply until July 1 when USMCA enters into force.
On April 3, 2020, the Canada Border Services Agency issued Customs Notice 20-14 Implementation of the Canada-United States-Mexico Agreement (CUSMA)
This notice provides information on the changes to the Customs Tariff that will occur as a result of the implementation of the Canada-United States-Mexico Agreement (CUSMA) and summarizes the requirements in order to benefit from the CUSMA's preferential rates of duty, once the CUSMA enters info force.
Implementation of the Canada-United States-Mexico Agreement (CUSMA)
1. The CUSMA's implementing legislation, Bill C-4, received Royal Assent on . Upon entry into force of the Agreement, with the exception of a few agricultural goods, all qualifying imports into Canada from a CUSMA country will be customs duty free.
2. More information regarding the CUSMA and the text of the agreement can be found on the Global Affairs Canada website.
3. Regulatory amendments and new regulations made under the Customs Act as a result of the CUSMA's implementation will be announced in a separate customs notice.
5. CUSMA's preferential tariff treatments are: the United States Tariff (UST - tariff treatment code 10) and the Mexico Tariff (MXT - tariff treatment code 11).
6. The Mexico-United States Tariff (MUST tariff treatment code 12) used under the North American Free Trade Agreement (NAFTA) cannot be used for the CUSMA, which has a simplified preferential tariff treatment provision without differing start dates for tariff commitments as there were in the NAFTA.
7. All eligible goods imported under the CUSMA are eligible for either the United States Tariff or the Mexico Tariff. The MUST will remain in place in the interim, for adjustments pertaining to importations that occurred while the NAFTA was in effect.
9. The required proof of origin is referred to as a certification of origin and consists of a set of minimum data elements contained in Annex 5-A of Chapter 5 of the CUSMA, that may be placed on an invoice or any other document. The certification of origin may also be completed and submitted electronically including with an electronic or digital signature. Additional information concerning CUSMA's certification of origin is contained in Article 5.2 of Chapter 5 of the CUSMA. Information concerning the electronic submission can be found in Memorandum D11-4-14, Certification of Origin Under Free Trade Agreements.
10. Importers, exporters or producers of CUSMA-eligible goods may complete the certification of origin. Importers are required to have the certification of origin in their possession at the time that the importer makes a claim for preferential tariff treatment.
11. A certification of origin shall include the following minimum data elements:
i. Importer, Exporter, or Producer - Certification of Origin
Indicate whether the certifier is the exporter, producer or importer in accordance with Article 5.2 of Chapter 5 of the CUSMA.
ii. Certifier
Provide the certifier's name, title, address (including country), telephone number and e-mail address.
iii. Exporter
Provide the exporter's name, address (including country), e-mail address, and telephone number if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter. The address of the exporter shall be the place of export of the good in a Party’s territory.
iv. Producer
Provide the producer's name, address (including country), e-mail address, and telephone number, if different from the certifier or exporter or, if there are multiple producers, state "Various" or provide a list of producers. A person that wishes for this information to remain confidential may state "Available upon request by the importing authorities". The address of the producer shall be the place of production of the good of the Party's territory.
v. Importer
Provide, if known, the importer's name, address, e-mail address, and telephone number. The address of the importer shall be in the Party's territory.
vi. Description and Harmonized System (HS) Tariff Classification of the Good
a) Provide a description of the good and the HS tariff classification of the good to the 6-digit level located in the Customs Tariff. The description should be sufficient to relate it to the good covered by the certification;
b) If the certification of origin covers a single shipment of a good, indicate, if known, the invoice number related to the exportation.
vii. Origin Criteria
Specify the origin criterion under which the good qualifies, as set out in Article 4.2 (Originating Goods) of Chapter 4 of the CUSMA.
viii. Blanket Period
Include the period if the certification covers multiple shipments of identical goods for a specified period of up to 12 months as set out in Article 5.2 (Claims for Preferential Tariff Treatment) of Chapter 5 of the CUSMA.
ix. Authorized Signature and Date
The certification must be signed and dated by the certifier and accompanied by the following statement:
"I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification."
Shipment Requirements
12. Goods may be shipped from a CUSMA country, with or without transshipment, to Canada. The transshipment conditions are contained in Article 4.18 of Chapter 4 of the CUSMA and the associated documentation requirements are contained in Article 5.4(3) of Chapter 5 of the CUSMA.
Exemption from the requirements of 35.1 (1) of the Customs Act
13. If the benefit of preferential tariff treatment under CUSMA is claimed for locomotives classified under heading No. 86.01 or 86.02, or railway freight cars classified under heading No. 86.06 of the List of Tariff Provisions set out in the schedule to the Customs Tariff, the importer and owner of the goods are exempt from the requirements of subsection 35.1(1) of the Customs Act with respect to those goods if they are transported overland from the United States into Canada.
Refunds
14. An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), in respect of goods that were imported from the United States or Mexico on or after the date of entry into force of CUSMA.
Additional Information
15. For more information, please call the Border Information Service line from within Canada at 1-800-461-9999 or from abroad at 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 -- 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.
