In an update published in the Federal Register on January 17, 2025, U.S. Customs and Border Protection Announced an Interim Final Rule (IFR) announced new regulations covering the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA).
Under these new regulations, USMCA preferential tariff treatment would only apply for covered vehicles if the producer can certify to CBP that they meet the Labor Value Content (LVC). This certificate and steel and aluminum purchasing certificates must be submitted to CBP at least 90 days before the certification period. These vehicle certifications will be given unique identification numbers that must be provided with the entry summary documents to claim the preferential tariff treatment.
This IFR also revises Subpart H of 19 CFR 182 and USMCA textile and apparel provisions, including the tariff preference levels (TPL) and verification site visit provisions. TPL goods are not originating goods and may require documents issued by an authority of a USMCA country instead of a certificate of origin to qualify for duty-free treatment.
Other notable changes to the USMCA regulations from the IFR include:
- Further regulations covering duty drawback not already covered under 19 CFR 182.
- Updated language pertaining to other preferential trade programs, such as the African Growth and Opportunity Act (AGOA) and the Caribbean Basin Economic Recovery Act (CBERA).
- Amendments to recordkeeping requirements under 19 U.S.C. 1508 and 19 CFR 182.
- Amending 19 CFR 174 to extend protest rights to USMCA importers and qualifying exporters.
This IFR goes into effect on March 18, 2025, with an additional 120-day delay for compliance for vehicle producers to comply with the additional certification requirements.
The IFR can be read in full here:
https://www.federalregister.gov/public-inspection/2025-00550/agreement-between-the-united-states-of-america-the-united-mexican-states-and-canada-implementing