In a Federal Register Notice (FRN) published on October 14, 2026, the Bureau of Industry and Security (BIS) provided guidance on how CBP should calculate the U.S. content for certain mobile industrial equipment eligible for preferential treatment under Section 232 tariff provisions.

On June 1, 2026, the White House published Proclamation 11032, which outlined how certain United States-Mexico-Canada Agreement (USMCA)-eligible mobile industrial equipment such as forklifts, bulldozers, backhoes, tractors and mobile cranes, may qualify for a reduced Section 232 tariff rate from 25% to 15% if at least 40% of the equipment’s value is U.S. content.

In reference to Presidential Proclamation 11032, BIS states that U.S. content means:

1. The value of the product attributable to parts wholly obtained, entirely produced, or substantially transformed in the United States, and
2. To the extent not otherwise accounted for in (1), the value of the product attributable to steel that was melted and poured in the United States, aluminum that was smelted and cast in the United States, and/or copper that was smelted and cast in the United States.

This guidance applies to covered mobile industrial equipment entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 14, 2026.

FRN 2026-20938 can be found here:
https://www.federalregister.gov/public-inspection/2026-20938/guidance-to-us-customs-and-border-protection-regarding-the-assessment-of-us-content-for-purposes-of

Presidential Proclamation 11032 can be found here:
https://www.whitehouse.gov/presidential-actions/2026/06/further-adjusting-the-tariff-regimes-for-imports-of-aluminum-steel-and-copper-into-the-united-states/