`[Federal Register Volume 90, Number 11 (Friday, January 17, 2025)]
[Rules and Regulations]
[Pages 6456-6502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00550]



[[Page 6455]]

Vol. 90

Friday,

No. 11

January 17, 2025

Part V





Commodity Futures Trading Commission





-----------------------------------------------------------------------





Internal Revenue Service





Department of the Treasury





-----------------------------------------------------------------------





19 CFR Parts 10, 24, 113, et al.





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; Final 
Rule

  Federal Register / Vol. 90 , No. 11 / Friday, January 17, 2025 / 
Rules and Regulations  

[[Page 6456]]


-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 24, 113, 123, 141, 144, 163, 174, and 182

[USCBP-2024-0017; CBP Dec. 24-18]
RIN 1685-AA00 (Formerly RIN 1515-AE65)


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

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Interim final rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: 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.

DATES: This interim final rule is effective on March 18, 2025. However, 
compliance with the labor value content certification, steel purchasing 
certification, and aluminum purchasing certification provisions in 
Sec. Sec.  182.95, 182.96, and 182.97 will only be required for those 
vehicle certifications submitted to CBP on or after May 19, 2025. 
Comments regarding this interim final rule must be received by March 
18, 2025.

ADDRESSES: Please submit comments, identified by docket number USCBP-
2024-0017, by the following method:
    Federal eRulemaking Portal at http://www.regulations.gov. Follow 
the instructions for submitting comments.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Operational Aspects and Audit Aspects: 
Raymond J. Irizarry, Director, Textiles and Trade Agreements Division, 
Trade Policy and Programs, Office of Trade, U.S. Customs and Border 
Protection, (202) 945-7236 or [email protected].
    Legal Aspects: Yuliya A. Gulis, Director, Commercial and Trade 
Facilitation Division, Regulations and Rulings, Office of Trade, U.S. 
Customs and Border Protection, (202) 325-0042 or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of this 
interim final rule. U.S. Customs and Border Protection (CBP) also 
invites comments that relate to the economic, environmental, or 
federalism effects that might result from this interim final rule. 
Comments that will provide the most assistance to CBP will reference a 
specific portion of the interim final rule, explain the reason for any 
recommended change, and include data, information or authority that 
support such recommended change.

II. Background

    On November 30, 2018, the ``Protocol Replacing the North American 
Free Trade Agreement with the Agreement Between the United States of 
America, the United Mexican States, and Canada'' (the Protocol) was 
signed to replace the North American Free Trade Agreement (NAFTA). The 
Agreement Between the United States of America, the United Mexican 
States (Mexico), and Canada (the USMCA) \1\ is attached as an annex to 
the Protocol and was subsequently amended to reflect certain 
modifications and technical corrections in the ``Protocol of Amendment 
to the Agreement Between the United States of America, the United 
Mexican States, and Canada'' (the Amended Protocol), which the Office 
of the United States Trade Representative (USTR) signed on December 10, 
2019.
---------------------------------------------------------------------------

    \1\ The Agreement Between the United States of America, the 
United Mexican States, and Canada is the official name of the USMCA 
treaty. Please be aware that, in other contexts, the same document 
is also referred to as the United States-Mexico-Canada Agreement.
---------------------------------------------------------------------------

    Pursuant to section 106 of the Bipartisan Congressional Trade 
Priorities and Accountability Act of 2015 (19 U.S.C. 4205) and section 
151 of the Trade Act of 1974 (19 U.S.C. 2191), the United States 
approved and implemented the USMCA through the enactment of the United 
States--Mexico--Canada Agreement Implementation Act (USMCA 
Implementation Act), Pub. L. 116-113, 134 Stat. 11 (19 U.S.C. Chapter 
29), on January 29, 2020. Section 103(a)(1)(B) of the USMCA 
Implementation Act (19 U.S.C. 4513(b)(1)) provides the authority for 
new or amended regulations to be issued to implement the USMCA, as of 
the date of its entry into force.
    Mexico, Canada, and the United States certified their preparedness 
to implement the USMCA on December 12, 2019, March 13, 2020, and April 
24, 2020, respectively. As a result, pursuant to paragraph 2 of the 
Protocol, which provides that the USMCA will take effect on the first 
day of the third month after the last signatory party provides written 
notification of the completion of its domestic procedures required for 
entry into force, the USMCA entered into force on July 1, 2020.
    Subsequent to the USMCA's entry into force date, on December 27, 
2020, the Consolidated Appropriations Act, 2021 (Appropriations Act), 
Pub. L. 116-260, was enacted with Title VI of the Act containing 
technical corrections to the USMCA Implementation Act. All of the 
changes contained within Title VI of the Appropriations Act are 
retroactively effective on July 1, 2020, the USMCA's entry into force 
date. See sections 601(h) and 602(g) of Title VI of the Appropriations 
Act. These changes included amending section 202 of the USMCA 
Implementation Act (19 U.S.C. 4531) to prohibit non-originating goods 
used in production processes within foreign trade zones (FTZs) from 
qualifying as originating goods under the USMCA. See section 601(b) of 
Title VI of the Appropriations Act. Additionally, section 601(e) of 
Title VI of the Appropriations Act amended 19 U.S.C. 1520(d) to allow 
the refund of merchandise processing fees for USMCA post-importation 
claims. The Appropriations Act also included technical corrections to 
other laws. These other laws, such as the African Growth and 
Opportunity Act and the Caribbean Basin Economic Recovery Act, 
implemented the relevant trade preference programs using the NAFTA

[[Page 6457]]

rules of origin. With the repeal of the North American Free Trade 
Agreement Implementation Act (NAFTA Implementation Act), section 602(a) 
and (b) of Title VI of the Appropriations Act amended these other laws 
to include the USMCA rules of origin.
    Pursuant to USMCA Article 5.16, the United States, Mexico, and 
Canada trilaterally negotiated and agreed to Uniform Regulations. The 
USMCA Free Trade Commission adopted the Uniform Regulations in its 
Decision No.1, effective as of the date of entry into force of the 
USMCA. Annex I to that decision includes: \2\
---------------------------------------------------------------------------

    \2\ Available at: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/free-trade-commission-decisions/usmca-free-trade-commission-decision-no-1.
---------------------------------------------------------------------------

     The Uniform Regulations Regarding the Interpretation, 
Application, and Administration of Chapter 4 (Rules of Origin) and 
Related Provisions in Chapter 6 (Textile and Apparel Goods) of the 
Agreement Between the United States of America, the United Mexican 
States, and Canada (Uniform Regulations regarding Rules of Origin), and
     The Uniform Regulations Regarding the Interpretation, 
Application, and Administration of Chapters 5 (Origin Procedures), 6 
(Textile and Apparel Goods), and 7 (Customs Administration and Trade 
Facilitation) of the Agreement Between the United States of America, 
the United Mexican States, and Canada (Uniform Regulations regarding 
Origin Procedures).

In accordance with USMCA Article 5.16, modifications or additions to 
the Uniform Regulations shall be considered regularly by the USMCA 
Parties to reduce their complexity and to ensure better compliance. To 
this end, further iterations of the Uniform Regulations may be 
negotiated. Part 182 of title 19 of the Code of Federal Regulations 
(CFR) (19 CFR part 182) contains the Uniform Regulations regarding 
Chapter 4 Rules of Origin and related provisions of Chapter 6 in 
Appendix A. The Uniform Regulations for Chapter 5, remaining provisions 
of Chapter 6, and Chapter 7 regarding Origin Procedures are 
incorporated in title 19 of the CFR, including 19 CFR part 182, as 
appropriate for U.S. administrative processes and procedures. Part 182 
of title 19 of the CFR will be amended through subsequent rulemaking to 
reflect future changes to both sets of the Uniform Regulations, as 
needed.
    The USMCA superseded NAFTA and its related provisions on the date 
that USMCA entered into force. See Protocol, paragraph 1. Section 601 
of the USMCA Implementation Act repealed the NAFTA Implementation Act, 
Pub. L. 103-182, 107 Stat. 2057 (19 U.S.C. 3301), as of the date that 
the USMCA entered into force. The NAFTA provisions set forth in part 
181 of title 19 of the CFR (19 CFR part 181) and in General Note 12, 
Harmonized Tariff Schedule of the United States (HTSUS), continue to 
apply to goods entered for consumption, or withdrawn from warehouse for 
consumption, prior to July 1, 2020.
    Claims for preferential treatment under the USMCA may be made as of 
July 1, 2020. On July 1, 2020, CBP published an interim final rule 
(IFR), entitled ``Implementation of the Agreement Between the United 
States of America, the United Mexican States, and Canada (USMCA) 
Uniform Regulations Regarding Rules of Origin,'' (CBP Dec. 20-11) in 
the Federal Register (85 FR 39690), amending part 181 and adding a new 
part 182 containing several USMCA provisions, including the Uniform 
Regulations regarding Rules of Origin as Appendix A of part 182 to 
title 19 of the CFR (19 CFR part 182), which was trilaterally agreed 
upon by the United States, Mexico, and Canada. CBP later published an 
IFR on July 6, 2021, entitled, ``Agreement Between the United States of 
America, the United Mexican States, and Canada (USMCA) Implementing 
Regulations Related to the Marking Rules, Tariff-rate Quotas, and Other 
USMCA Provisions,'' (CBP Dec. 21-10) in the Federal Register (86 FR 
35566), which was effective on July 1, 2021. The IFR amended part 182 
to implement USMCA Chapters 1, 2, 5, and 7 related to general 
definitions, confidentiality, import requirements, export requirements, 
post-importation duty refund claims, a portion of the 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. It also amended several other parts 
of title 19 of the CFR necessary to implement the USMCA. In addition to 
those regulations and the regulations set forth in this document, 
persons intending to make USMCA preference claims may refer to the CBP 
website at https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA for further guidance. The United States 
International Trade Commission has modified the HTSUS to include the 
addition of General Note 11, incorporating the USMCA rules of origin 
for preference purposes, and the insertion of the special program 
indicator ``S'' or ``S+'' for the USMCA in the HTSUS ``special'' rate 
of duty subcolumn.\3\
---------------------------------------------------------------------------

    \3\ The S+ indicator is used for certain agricultural goods and 
textile tariff preference levels (TPLs).
---------------------------------------------------------------------------

A. The Customs Related USMCA Provisions

    The USMCA is composed of 34 chapters along with additional side 
letters. CBP is responsible for administering the customs related 
provisions contained within Chapters 1 (Initial Provisions and General 
Definitions), 2 (National Treatment and Market Access for Goods), 4 
(Rules of Origin), 5 (Origin Procedures), 6 (Textile and Apparel Goods) 
and 7 (Customs Administration and Trade Facilitation) of the USMCA and, 
pursuant to Article 5.16 of the USMCA, the Uniform Regulations 
regarding Rules of Origin as well as the Uniform Regulations regarding 
Origin Procedures. This IFR amends the CBP regulations to implement 
remaining customs related USMCA provisions that CBP is responsible for 
administering, as described below.
    Chapter 1 of the USMCA contains the general definitions and 
country-specific definitions applicable to the USMCA, unless otherwise 
provided.
    Chapter 2 of the USMCA sets forth the national treatment and market 
access provisions. Unless otherwise provided, each USMCA country shall 
apply a customs duty on an originating good in accordance with its 
Schedule in Annex 2-B (Tariff Commitments) of Chapter 2 of the USMCA. 
See Article 2.4 of the USMCA. USMCA Chapter 2 also contains the 
drawback and duty-deferral program provisions (Article 2.5) and the 
temporary admission of goods provisions (Article 2.7).
    USMCA Chapter 4 contains the general rules of origin for 
preferential tariff treatment. Annex 4-B contains the product-specific 
rules of origin. Specifically, the Appendix to Annex 4-B of Chapter 4 
of the USMCA sets forth the provisions related to the product-specific 
rules of origin for automotive goods. See USMCA Article 4.10. USMCA 
Appendix to Annex 4-B includes the automotive good-specific definitions 
(Article 1); the averaging provisions for purposes of calculating the 
regional value content of a passenger vehicle, light truck, heavy 
truck, or automotive good (Article 5); the steel purchasing and 
aluminum purchasing requirements (Article 6); the labor value content 
requirements (Article 7); and

[[Page 6458]]

the provisions related to the transition period during which a 
qualifying passenger vehicle, light truck, or heavy truck may be 
originating under the USMCA pursuant to an alternative staging regime 
(Article 8).
    Chapter 5 of the USMCA sets forth the origin procedures. This 
includes the recordkeeping requirements for importers, exporters, and 
producers (Article 5.8); the general origin verification requirements 
and procedures (Article 5.9); determinations of origin (Article 5.10); 
advance rulings relating to origin (Article 5.14); and the review and 
appeal of determinations of origin and advance rulings (Article 5.15).
    Chapter 6 includes the product-specific rules of origin specific to 
textiles and apparel goods. Except as specifically provided for in 
USMCA Chapter 6, USMCA Chapters 4 (Rules of Origin) and 5 (Origin 
Procedures) apply to textile and apparel goods as well. See USMCA 
Article 6.1. Chapter 6 contains the textile and apparel goods site 
visit verification provisions (Article 6.6), and the determination of 
origin provisions (Article 6.7). Annex 6-A of Chapter 6 of the USMCA 
sets forth the special provisions applicable to certain textile and 
apparel goods. See USMCA Article 6.3. Section C of Annex 6-A sets forth 
the tariff preference level provisions related to preferential tariff 
treatment for non-originating goods of another USMCA country, including 
the requirements and applicable procedures. USMCA Annex 6-B contains 
the schedule of conversion factors that apply to tariff preference 
levels.
    USMCA Chapter 7 sets forth provisions related to customs 
administration and trade facilitation, specifically provisions on 
advance rulings (Article 7.5) and on review and appeal of customs 
determinations (Article 7.15).
    The Chapters 1, 2, 4, 5, 6, and 7 provisions discussed above are 
reflected in this IFR. CBP is soliciting public comments in this 
document. CBP will address any public comments received from the IFRs 
implementing the USMCA in a final rule published in the Federal 
Register. Additionally, future trilateral negotiations on the Uniform 
Regulations may result in additional provisions that will be included 
in a future rulemaking process at a later date.

B. Textiles and Apparel Goods

    Under the USMCA, a textile or apparel good is defined as a good 
classified in Harmonized System (HS) subheading 4202.12, 4202.22, 
4202.32, or 4202.92 (luggage, handbags and similar articles with an 
outer surface of textile materials); headings 50.04 through 50.07, 
51.04 through 51.13, 52.04 through 52.12, 53.03 through 53.11; Chapters 
54 through 63; heading 66.01 (umbrellas) or heading 70.19 (yarns and 
fabrics of glass fiber); subheading 9404.90 (articles of bedding and 
similar furnishing); or heading 96.19 (babies diapers and other 
sanitary textile articles). See USMCA Article 1.5. Chapter 6 of the 
USMCA contains the provisions that apply only to the treatment of 
textile and apparel goods. Unless otherwise noted, the provisions in 
USMCA Chapter 6 are additional requirements, with the rules of origin 
in USMCA Chapter 4 and the origin procedures in USMCA Chapter 5 also 
applying to textile and apparel goods.
Tariff Preference Levels (TPLs)
    USMCA Chapter 6 contains special provisions in Annex 6-A allowing 
specified quantities of certain textile and apparel goods, which do not 
meet the rules of origin in General Note 11, HTSUS, or the Uniform 
Regulations regarding Rules of Origin, to claim USMCA preferential 
tariff treatment because the goods undergo significant processing in 
one or more USMCA countries. See USMCA Article 6.3. Specifically, 
Section C of Annex 6-A sets the tariff preference levels (TPLs). TPLs 
require that each USMCA country apply the preferential tariff treatment 
applicable to originating goods (as set out in the goods' schedule in 
USMCA Annex 2-B (Tariff Commitments)) for certain non-originating 
apparel goods of Chapters 61 and 62, HTSUS, and textile and apparel 
goods, other than wadding, of heading 9619, HTSUS; certain non-
originating cotton or man-made fiber fabrics and textile goods, and 
certain goods of subheading 9404.90, HTSUS; and certain non-originating 
cotton or man-made fiber spun yarn, up to the annual quantities 
specified in the appendices to Annex 6-A, in the square meter 
equivalent measurement (SME) indicated. The SME is a unit of 
measurement that results from the application of the conversion factors 
set out in Annex 6-B, to a primary unit of measure such as a unit, 
dozen, or kilogram and is used in the appendices to Annex 6-A to 
determine the annual quantities of each specified textile and apparel 
good that is eligible for USMCA preferential tariff treatment under the 
TPLs. See USMCA Annex 6-A, Section A.
    A USMCA country will manage each TPL on a first-come, first-served 
basis, and will calculate the quantity of goods that enter under a TPL 
on the basis of its imports. See USMCA Annex 6-A, Section C. When 
imports exceed the established annual quantitative levels, the imported 
goods are subject to most-favored nation (MFN) rates of duty. An 
importer may make a claim for preferential tariff treatment of a good 
under a TPL for at least one year after the good is imported, if the 
annual quantitative limit has not been reached and other TPL 
requirements are met. Goods imported under TPLs are exempt from 
merchandise processing fees.
    Pursuant to section 103(c)(1) of the USMCA Implementation Act (19 
U.S.C. 4513(c)), which grants the President proclamation authority to 
take the actions necessary to apply USMCA Article 6.3 and Annex 6-A, 
the special classification provisions in Subchapter XXIII of Chapter 98 
of the HTSUS have been modified to insert U.S. Note 11 containing the 
Mexican and Canadian textile and apparel goods, with the SME indicated, 
that are eligible for special tariff treatment subject to the TPLs. 
Additionally, the HTSUS was modified to include the insertion of the 
special program indicator ``S+'' in the HTSUS ``special'' rate of duty 
subcolumn. The special program indicator ``S+'' is used when the HTSUS 
provides different preferential tariff treatment to each of the USMCA 
countries such as with TPLs.
    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. Each USMCA country must notify the other USMCA 
countries if it requires a certificate of eligibility or other 
documentation. 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.
    The USMCA provisions related to claims for preferential tariff 
treatment generally apply, with the exception of the certification of 
origin requirement, to textile or apparel goods subject to TPLs, 
including the general verification requirements under USMCA Article 5.9

[[Page 6459]]

and the textile and apparel goods-specific verification provisions in 
USMCA Article 6.6. See USMCA Annex 6-A, Section C.
Textile and Apparel Good Verifications
    Pursuant to USMCA Article 5.9, a USMCA country may conduct a 
verification to determine whether a good qualifies for preferential 
tariff treatment by one or more of the following means: a written 
request or questionnaire issued to the importer, exporter, or producer; 
a verification visit to the premises of the exporter or producer; for a 
textile or apparel good, the procedures set out in USMCA Article 6.6; 
or any other procedure as may be decided by the USMCA countries.
    Accordingly, the USMCA provides a USMCA country with the discretion 
to conduct a textile or apparel good verification either pursuant to 
the general verification procedures set forth in USMCA Article 5.9 or 
pursuant to a site visit under USMCA Article 6.6. A verification under 
USMCA Article 5.9 is conducted to verify whether a good qualifies for 
preferential tariff treatment. A site visit under USMCA Article 6.6 
(hereinafter referred to as a ``site visit'') may only be conducted to 
verify textile and apparel goods. A USMCA country may perform a site 
visit of an exporter or producer to verify whether a textile or apparel 
good qualifies for USMCA preferential tariff treatment or to verify 
whether customs offenses with regard to a textile or apparel good are 
occurring or have occurred. Consequently, under USMCA Article 6.6.3, 
during a site visit, a USMCA country may request access to records and 
facilities relevant to the claim for preferential tariff treatment or 
records and facilities relevant to the customs offenses being verified.
    USMCA Article 1.5 defines a customs offense to mean any act 
committed for the purpose of, or having the effect of, avoiding a USMCA 
country's laws or regulations pertaining to the provisions of the USMCA 
governing importations or exportations of goods between, or transit of 
goods through, the territories of the USMCA countries, specifically 
those that violate a customs law or regulation for restrictions or 
prohibitions on imports or exports, duty evasion, transshipment, 
falsification of documents relating to the importation or exportation 
of goods, fraud, or smuggling of goods.
    A site visit's procedures and processes differ significantly from a 
verification visit under USMCA Article 5.9. Prior to conducting a site 
visit in a USMCA country, the USMCA country conducting the site visit 
is not required to notify the exporter or producer whose premises are 
going to be visited. The USMCA country conducting the site visit, 
however, must notify the USMCA country where the site visit will occur 
(the ``host USMCA country''). USMCA Article 6.6 sets forth the 
requirements and specific information that the USMCA country that is 
seeking to conduct the site visit with respect to a textile or apparel 
good must provide to the host USMCA country, not later than 20 days 
prior to the date of the first visit to an exporter or producer. This 
information exchange between the USMCA countries is governed by the 
confidentiality provisions in USMCA Article 5.12 to ensure that 
information is treated as confidential when it is designated as 
confidential or is confidential under the receiving USMCA country's 
laws.\4\ See USMCA Articles 5.12 and 6.9. Additionally, in accordance 
with USMCA Article 6.6.7(c), the USMCA countries will limit 
communication regarding the site visit to relevant government officials 
and not inform any person outside the government of the host USMCA 
country in advance of the site visit or provide any other information 
not publicly available that could undermine the effectiveness of the 
site visit.
---------------------------------------------------------------------------

    \4\ The exchange of information between USMCA countries is 
governed by 19 U.S.C. 1628. See also 19 CFR 182.2(b) for the USMCA 
confidentiality regulations setting forth the legally permitted 
disclosures that allow CBP to share the confidential information it 
receives from the public, including the disclosures CBP is 
authorized to make to other USMCA countries. Please also refer to 
the Agreement Between the United States of America, the United 
Mexican States, and Canada (USMCA) Implementing Regulations Related 
to the Marking Rules, Tariff-rate Quotas, and Other USMCA Provisions 
interim final rule (86 FR 35566), published in the Federal Register 
on July 6, 2021, for additional information regarding confidential 
information and the USMCA.
---------------------------------------------------------------------------

    The USMCA country conducting the site visit is required to request 
permission in order to access the relevant records or facilities from 
the exporter, producer, or a person having capacity to consent on 
behalf of the exporter or producer, either prior to the site visit, if 
this would not undermine the effectiveness of the site visit, or at the 
time of the site visit. See USMCA Article 6.6.7(d). Pursuant to the 
Uniform Regulations regarding Origin Procedures, the USMCA country 
performing the site visit would inform the person from whom it is 
requesting permission, at the time of the request for permission, of 
the legal authority for the visit, the specific purpose of the visit, 
and the names and titles of the officials performing the visit. 
Pursuant to USMCA Article 6.6.7(e), if permission is denied or access 
to the records or facilities is denied, the site visit will not occur. 
If the exporter, producer, or person having capacity to consent on 
behalf of the exporter or producer is not able to receive the USMCA 
country officials to carry out the site visit, the site visit will be 
conducted on the following business day unless the USMCA country 
conducting the site visit agrees otherwise, or there is a valid reason 
that the site visit cannot occur at that time. An unsubstantiated 
reason or a reason that the USMCA country conducting the site visit 
does not deem acceptable may result in the consent for the site visit 
to be deemed denied, though the USMCA country conducting the site visit 
should give consideration to any reasonable alternative proposed dates. 
See USMCA Article 6.6.7(e).
    On completion of a site visit, the USMCA country performing the 
site visit will, upon request of the host USMCA country or the exporter 
or producer, provide its relevant findings of the results of the site 
visit. See USMCA Article 6.6.8. Pursuant to USMCA Article 6.7, a USMCA 
country may deny a claim for preferential tariff treatment for a 
textile or apparel good for the reasons listed in USMCA Article 5.10; 
or, if pursuant to a site visit, the USMCA country has not received 
sufficient information to determine that the textile or apparel good 
qualifies for preferential tariff treatment; or, if the USMCA country 
is unable to conduct the site visit as access or permission for a site 
visit is denied, the USMCA country officials are prevented from 
completing the site visit, or the exporter or producer does not provide 
access to the relevant records or facilities during a site visit.
    Under USMCA Article 6.6.11, if verifications of identical textile 
or apparel goods indicate a pattern of conduct by an exporter or 
producer of making false or unsupported representations that a good 
imported into the USMCA country qualifies for preferential tariff 
treatment, the USMCA country may withhold preferential treatment for 
identical textile or apparel goods imported, exported, or produced by 
that person until it is demonstrated to the USMCA country that the 
identical goods qualify for preferential tariff treatment.
    Section 207(a)(2) of the USMCA Implementation Act (19 U.S.C. 
4533(a)(2)) provides the Secretary of the Treasury authority to conduct 
a USMCA Article 6.6 site visit to verify whether the textile or apparel 
good qualifies for preferential tariff treatment under the USMCA or 
whether customs offenses are occurring or have occurred with respect to 
the good. Section 207(b) of

[[Page 6460]]

the USMCA Implementation Act (19 U.S.C. 4533(b)(1)) sets forth the 
basis for issuing a negative determination of origin. Specifically, 
section 207(b)(1)(B)(iv) of the USMCA Implementation Act provides that, 
for a Chapter 6 site visit, a negative determination is a determination 
by the Secretary that access or permission for a site visit is denied; 
U.S. officials are prevented from completing a site visit on the 
proposed date and the exporter or producer does not provide an 
acceptable alternative date for the site visit; or the exporter or 
producer does not provide access to relevant documents or facilities 
during a site visit. Upon making a negative determination of origin, 
the Secretary may deny preferential tariff treatment under the USMCA. 
See 19 U.S.C. 4533(c)(1). The Secretary also may withhold preferential 
tariff treatment for identical goods based on a pattern of conduct. See 
section 207(c)(2) of the USMCA Implementation Act (19 U.S.C. 
4533(c)(2)).
    To address the specific requirements and procedures for filing a 
claim for USMCA preferential tariff treatment for a textile or apparel 
good subject to a TPL and to set forth the procedures related to USMCA 
Article 6.6 site visits, CBP has included a separate subpart H, Textile 
and Apparel Goods, in part 182 of title 19 of the CFR, that applies 
only to textile and apparel goods.

C. Automotive Goods

    An automotive good is defined as either a covered vehicle (a 
passenger vehicle, light truck, or heavy truck), or a part, component, 
or material listed in Tables A.1, A.2, B, C, D, E, F, or G of the 
Appendix to Annex 4-B of the USMCA (also referred to as the 
``Automotive Appendix''). See section 202A(a)(4) and (a)(7) of the 
USMCA Implementation Act (19 U.S.C. 4532(a)(4) and (a)(7)). The 
definitions of passenger vehicle, light truck, and heavy truck are 
contained in the USMCA Automotive Appendix. In addition to the general 
rules of origin set forth in USMCA Chapter 4, the USMCA contains 
numerous product-specific rules of origin for automotive goods and 
additional provisions. These product-specific rules of origin and 
additional requirements are contained in the USMCA Automotive Appendix, 
including higher regional value content (RVC) thresholds than those in 
NAFTA, labor value content (LVC) requirement, steel purchasing 
requirement, and aluminum purchasing requirement. See USMCA Article 
4.10 and Appendix to Annex 4-B. The importer, exporter, or producer who 
completes the certification of origin for a covered vehicle is 
certifying that the covered vehicle is an originating good that has 
complied with all the product-specific rules of origin, including the 
LVC, steel purchasing, and aluminum purchasing requirements.
    Section 202A of the USMCA Implementation Act (19 U.S.C. 4532) sets 
forth the special rules for automotive goods, including definitions 
specific to automotive goods, the vehicle certification requirements 
for covered vehicles, the alternative staging regime provisions, the 
administration of the high-wage components of the LVC requirement by 
the Department of Labor (DOL), and the extra procedures for 
verification of the LVC requirement. Covered vehicles imported into the 
United States are only eligible for USMCA preferential tariff treatment 
if the producer of the covered vehicle (passenger vehicles, light 
trucks, and heavy trucks) submits three properly filed vehicle 
certifications to CBP. These vehicle certifications are the LVC 
certification, steel purchasing certification, and aluminum purchasing 
certification.
    The product-specific rules of origin for automotive goods are set 
forth in General Note 11, HTSUS, Appendix A to part 182 of title 19 of 
the CFR (containing the Uniform Regulations regarding Rules of Origin), 
and the USMCA Automotive Appendix. To address the specific additional 
requirements and procedures applicable to claims for USMCA preferential 
tariff treatment for covered vehicles, CBP has included subpart I, 
Automotive Goods, in part 182 of title 19 of the CFR.
Steel Purchasing and Aluminum Purchasing Requirements
    USMCA Article 6 of the Automotive Appendix sets forth the steel 
purchasing and aluminum purchasing requirements. In addition to the 
other product-specific rules of origin and requirements in USMCA 
Chapter 4, a covered vehicle imported into the United States is 
eligible for USMCA preferential tariff treatment only if the producer 
of the covered vehicle meets both the steel purchasing and the aluminum 
purchasing requirements, as set forth in USMCA Article 6 of the 
Automotive Appendix, section 17 of the Uniform Regulations regarding 
Rules of Origin, and General Note 11(k)(v), HTSUS, or, if the producer 
is subject to an alternative staging regime, as set forth in USMCA 
Articles 6 and 8 of the Automotive Appendix, section 19 of the Uniform 
Regulations regarding Rules of Origin, and General Note 11(k)(viii), 
HTSUS.
    Generally, subject to certain exceptions and conditions, the steel 
purchasing and aluminum purchasing requirements provide that a 
passenger vehicle, light truck, or heavy truck is originating under the 
USMCA only if, during the calculation period specified, at least 70 
percent, by value, of the vehicle producer's purchases, at the 
corporate level in the territories of one or more of the USMCA 
countries, of steel are of originating goods, and at least 70 percent, 
by value, of the vehicle producer's purchases at the corporate level in 
the territories of one or more of the USMCA countries of aluminum are 
of originating goods. See USMCA Article 6 of the Automotive Appendix 
and section 17(1) of the Uniform Regulations regarding Rules of Origin. 
In order to facilitate implementation of the steel and aluminum 
purchasing requirements in accordance with USMCA Article 6.3 of the 
Automotive Appendix, Table S of the Uniform Regulations regarding Rules 
of Origin contains the HS subheadings for the steel and aluminum, 
including structural steel or aluminum goods used in the production of 
covered vehicles, that are subject to the USMCA steel purchasing and 
aluminum purchasing requirements.
    For purposes of determining whether the producer of a covered 
vehicle has met the steel purchasing and aluminum purchasing 
requirements, the producer may calculate the purchases of this steel 
and aluminum on the basis of the categories set forth in section 17(9) 
of the Uniform Regulations regarding Rules of Origin. The applicable 
calculation periods, over which the producer of a covered vehicle may 
calculate the purchases of steel or aluminum, are provided for in 
sections 16(4), 16(5) and 17(7) of the Uniform Regulations regarding 
Rules of Origin. The producer of a covered vehicle may choose different 
calculation periods for its steel purchasing calculation and its 
aluminum purchasing calculation. See section 17(10) of the Uniform 
Regulations regarding Rules of Origin.
    A covered vehicle is eligible for USMCA preferential tariff 
treatment only if the producer of the covered vehicle provides a 
properly filed certification to CBP that the producer meets its steel 
purchasing and aluminum purchasing requirements, and the producer has 
information on record to support the calculations relied on for the 
certification. See section 202A(c)(2)(A) of the USMCA Implementation 
Act (19 U.S.C. 4532(c)(2)(A)). The producer of a covered vehicle is 
required to provide both a steel purchasing certification and

[[Page 6461]]

an aluminum purchasing certification to CBP. CBP must ensure that both 
the steel purchasing certification and the aluminum purchasing 
certification do not contain omissions or errors before the 
certification is considered properly filed. See 19 U.S.C. 
4532(c)(2)(B)(i). Section 202A(c)(2)(C) of the USMCA Implementation Act 
(19 U.S.C. 4532(c)(2)(C)) authorizes the Secretary of the Treasury to 
prescribe regulations for a producer of a covered vehicle to certify 
that it meets the steel purchasing and aluminum purchasing requirements 
to qualify for USMCA preferential tariff treatment. Accordingly, CBP is 
adding regulations to 19 CFR part 182, subpart I, setting forth the 
steel purchasing and aluminum purchasing requirements, and the 
requirements and procedures for submission of the steel purchasing 
certification and the aluminum purchasing certification.
LVC Requirement
    USMCA Article 7 of the Automotive Appendix sets forth the LVC 
requirement. In addition to the other product-specific rules of origin 
and requirements in USMCA Chapter 4, a covered vehicle imported into 
the United States is eligible for USMCA preferential tariff treatment 
only if the producer of the covered vehicle meets the LVC requirement, 
as set forth in USMCA Article 7 of the Automotive Appendix, section 18 
of the Uniform Regulations regarding Rules of Origin, and General Note 
11(k)(vi), HTSUS, or, if the producer is subject to an alternative 
staging regime, as set forth in USMCA Articles 7 and 8 of the 
Automotive Appendix, section 19 of the Uniform Regulations regarding 
Rules of Origin, and General Note 11(k)(viii), HTSUS. The applicable 
calculation periods, over which the producer of a covered vehicle may 
calculate the LVC, are provided for in sections 16(4), 16(5), and 
18(19) (note only the calculation periods in section 18(19) are 
referenced in the DOL interim regulations at 29 CFR part 810) of the 
Uniform Regulations regarding Rules of Origin.
    The LVC requirement is administered by both CBP and DOL. Section 
202A of the USMCA Implementation Act (19 U.S.C. 4532) prescribes CBP's 
and DOL's roles in implementing and administering the LVC requirement. 
Each agency has distinct areas of responsibility and CBP will work in 
conjunction with DOL to review the LVC certification and to perform 
verifications of covered vehicles that involve the LVC requirement. 
Pursuant to section 202A of the USMCA Implementation Act (19 U.S.C. 
4532), DOL is responsible for implementing and administering the high-
wage components of the LVC requirement, which include the wage 
components of the high-wage material and manufacturing expenditures, 
the high-wage technology expenditures, and the high-wage assembly 
expenditures. CBP is responsible for determining whether a covered 
vehicle meets the LVC requirement generally, based on DOL's high-wage 
components analysis and CBP's analysis of the valuation and other 
components of the LVC calculation. CBP is solely responsible for 
determining whether a covered vehicle is an originating good qualifying 
for USMCA preferential tariff treatment. The DOL regulations that set 
forth the high-wage components of the LVC requirement and the 
applicable procedures are contained in 29 CFR part 810. The DOL and CBP 
regulations, including the requirements and procedures, are intended to 
operate in conjunction with each other in accordance with 19 U.S.C. 
4532(c)(1) and (e). CBP's and DOL's roles in the implementation and the 
administration of the LVC requirement are described in more detail 
below.
    A covered vehicle is only eligible for USMCA preferential tariff 
treatment if the producer of the covered vehicle provides a properly 
filed certification to CBP that the production of covered vehicles by 
the producer meets the LVC requirement, and the producer has 
information on record to support those calculations. See section 
202A(c)(1)(A) of the USMCA Implementation Act (19 U.S.C. 
4532(c)(1)(A)). For purposes of determining whether a covered vehicle 
meets the LVC requirement, the producer of the covered vehicle must 
calculate the LVC requirement pursuant to General Note 11(k)(vi), 
HTSUS, section 18 of the Uniform Regulations regarding Rules of Origin, 
the requirements for the high-wage components of the LVC requirement 
set forth in the DOL regulations at 29 CFR part 810, and these 
regulations.
    The USMCA Implementation Act also sets forth CBP's and DOL's 
responsibilities with respect to the review of the LVC certification. 
The Secretary of Labor, in consultation with the Commissioner of CBP, 
must ensure that the LVC certification does not contain omissions or 
errors before the certification is considered properly filed. See 19 
U.S.C. 4532(c)(1)(B)(i). Consistent with the USMCA Implementation Act 
and the DOL regulations, DOL's role in the LVC certification is limited 
to reviewing the high-wage components of the LVC certification for 
omissions or errors. Section 202A(c)(1)(C) of the USMCA Implementation 
Act (19 U.S.C. 4532(c)(1)(C)) authorizes the Secretary of the Treasury, 
in consultation with the Secretary of Labor, to prescribe regulations 
for a producer of a covered vehicle to certify that it meets the LVC 
requirement to qualify for USMCA preferential tariff treatment. On July 
1, 2020, DOL promulgated its USMCA implementing regulations in an IFR 
published in the Federal Register (85 FR 39782), entitled ``High-Wage 
Components of the Labor Value Content Requirements Under the United 
States-Mexico-Canada Agreement Implementation Act,'' which added a new 
part 810 to title 29 of the CFR to address the requirements and 
establish procedures for vehicle producers to follow concerning the 
high-wage components of the LVC requirement. In this document, CBP is 
adding regulations to 19 CFR part 182, subpart I, setting forth the LVC 
requirement, and the requirements and procedures for submission of the 
LVC certification to CBP.
Alternative Staging Regime
    The USMCA includes a standard staging regime for automotive good 
requirements to allow for a period of transition to lessen the burden 
on vehicle producers and grant them more time to meet the new 
requirements. Additionally, the USMCA Automotive Appendix includes 
provisions allowing vehicle producers to request an alternative staging 
regime to facilitate a longer period of transition to ensure that 
future production is able to meet the new requirements of the USMCA. 
The alternative staging regime differs from the standard staging regime 
by providing the vehicle producer with additional time, different 
phase-ins for certain product-specific rules of origin for automotive 
goods, and different threshold requirements.
    While an alternative staging regime provides an alternative to 
certain product-specific rules of origin requirements for covered 
vehicles, it does not replace any other USMCA rules of origin or 
provisions of general applicability for covered vehicles claiming USMCA 
preferential tariff treatment. Specifically, USMCA Article 8 of the 
Automotive Appendix states that each USMCA country will provide that, 
for a period ending no later than five years after entry into force 
(July 1, 2025) or any other period provided for in the producer's 
approved alternative staging regime for passenger vehicles or light 
trucks and for a period ending no later than seven years after entry 
into force (July 1, 2027) for heavy trucks, covered vehicles may be 
originating

[[Page 6462]]

under the USMCA pursuant to an alternative staging regime. An 
alternative staging regime is the application of the less stringent 
requirements of USMCA Article 8 of the Automotive Appendix to the 
production of covered vehicles for the duration of the alternative 
staging regime period to allow producers of such vehicles to bring 
production into full compliance with the more stringent requirements of 
USMCA Articles 2 through 7 of the Automotive Appendix. See 19 U.S.C. 
4532(a)(1). As provided in USMCA Article 8.6 of the Automotive 
Appendix, a rule of origin applicable to a covered vehicle as a result 
of an alternative staging regime applies in place of any other rule of 
origin for that good.
    Pursuant to General Note 11(k)(viii), HTSUS, including as may be 
further provided for in subchapter XXIII of chapter 99 of the HTSUS, 
and the Uniform Regulations regarding Rules of Origin, a covered 
vehicle may be originating pursuant to an alternative staging regime. 
Section 202A(d) of the USMCA Implementation Act (19 U.S.C. 4532(d)) 
sets forth the U.S. alternative staging regime. USTR, in consultation 
with the Interagency Committee on Trade in Automotive Goods established 
in Executive Order 13908 (February 28, 2020) (``Interagency 
Committee''), has the authority to set the alternative staging regime 
requirements, procedures, and criteria to submit petitions to use an 
alternative staging regime, as well as to review petitions to use an 
alternative staging regime, approve an alternative staging regime, 
approve requests for modifications of the petitions, as necessary, and 
make determinations that a vehicle producer subject to the alternative 
staging regime failed to meet the requirements of the alternative 
staging regime.
    In accordance with 19 U.S.C. 4532(d)(1), on April 21, 2020, USTR 
published a notice in the Federal Register (85 FR 22238), entitled 
``Procedures for the Submission of Petitions by North American 
Producers of Passenger Vehicles or Light Trucks To Use the Alternative 
Staging Regime for the USMCA Rules of Origin for Automotive Goods,'' 
providing guidance to vehicle producers seeking to request an 
alternative staging regime for the USMCA rules of origin for automotive 
goods. The Federal Register notice specified the vehicle producers that 
are eligible to petition for an alternative staging regime and the 
requirements that vehicle producers must comply with during and after 
the alternative staging regime.
    CBP may deny USMCA preferential tariff treatment for claims where 
vehicle producers fail to meet the standard automotive good 
requirements without an authorized alternative staging regime, or a 
determination has been made that the producer fails to meet the 
requirements of the alternative staging regime as outlined by USTR in 
the Federal Register notice. An alternative staging regime for a 
passenger vehicle or light truck is valid for five years (in contrast 
to seven years for heavy trucks) after the USMCA's entry into force 
unless the vehicle producer requests a longer period and that longer 
period is accepted by USTR. In accordance with 19 U.S.C. 4532(d)(3)(B), 
USTR will maintain a public list of the names of vehicle producers it 
has authorized to use an alternative staging regime. If USTR 
subsequently determines pursuant to 19 U.S.C. 4532(d)(5) that a 
producer failed to meet the requirements of its alternative staging 
regime, USTR may remove the producer's name from the public list. In 
that instance, the producer's vehicles will no longer be eligible for 
USMCA preferential tariff treatment pursuant to the previously approved 
alternative staging regime and notwithstanding the finality of a 
liquidation of an entry, the importer of any covered vehicle of that 
producer will be liable for the duties, taxes, and fees that would have 
been applicable to that vehicle if USMCA preferential tariff treatment 
pursuant to the alternative staging regime had not been applied plus 
interest assessed on or after the date of entry and before the date of 
the USTR determination. See 19 U.S.C. 4532(d)(5)(A). After expiration 
of the alternative staging period, all claims for USMCA preferential 
tariff treatment for covered vehicles must meet the rules of origin set 
forth in USMCA Articles 2 through 7 of the Automotive Appendix.
Recordkeeping
    As explained in more detail below in section III.D. of this IFR, 
section 206(a) of the USMCA Implementation Act amended 19 U.S.C. 1508 
to implement the USMCA recordkeeping requirements. Certain amendments 
apply only to covered vehicles. Pursuant to section 206(a) of the USMCA 
Implementation Act (19 U.S.C. 1508(b)(4)(B)), any vehicle producer 
whose goods are the subject of a claim for USMCA preferential tariff 
treatment must make, keep, and pursuant to the rules and regulations 
promulgated by the Secretary of the Treasury and Secretary of Labor, 
render for examination and inspection records and supporting documents 
related to the LVC, steel purchasing, and aluminum purchasing 
requirements. The vehicle producer must retain these records and 
supporting documents for a period of at least five years after the date 
of filing of the vehicle certifications and render them for examination 
and inspection upon request. See 19 U.S.C. 1508(b)(5)(C)(ii). The DOL 
recordkeeping requirements related to the high-wage components for the 
LVC requirement for vehicle producers are located at 29 CFR part 810.
    Any importer who claims USMCA preferential tariff treatment for a 
good imported into the United States must make, keep, and, pursuant to 
the rules and regulations prescribed by the Secretary of the Treasury 
and the Secretary of Labor, render for examination and inspection the 
records and supporting documentation related to the importation, all 
records and supporting documents related to the origin of the good if 
the importer completed the certification of origin, and the 
transshipment records. See 19 U.S.C. 1508(b)(4)(A). Since the vehicle 
certifications and any records and supporting documents related to the 
LVC, steel purchasing, and aluminum purchasing certifications are 
records related to the origin of the good under 19 U.S.C. 
1508(b)(4)(A)(ii), an importer is only required to make, keep, and 
render for examination and inspection these records if the importer 
completed the certification of origin. The DOL recordkeeping 
requirements, related to the high-wage components of the LVC 
requirement, for importers making a claim for USMCA preferential tariff 
treatment for covered vehicles, are located at 29 CFR part 810.
Verifications
    A USMCA country may conduct a verification of a covered vehicle 
pursuant to the general verification means, requirements, and 
procedures set forth in USMCA Article 5.9. Pursuant to section 
202A(e)(1) of the USMCA Implementation Act (19 U.S.C. 4532(e)(1)), as 
part of a general verification conducted under USMCA Article 5.9 (19 
U.S.C. 4533), the Secretary of the Treasury, in conjunction with the 
Secretary of Labor, may conduct a verification of whether a covered 
vehicle complies with the LVC requirement. The USMCA Implementation Act 
specifies the role of CBP and the role of DOL in a verification of a 
covered vehicle. DOL, in cooperation with the Secretary of the 
Treasury, will participate in any verification of the LVC requirement 
by verifying whether the production of covered vehicles by a producer 
meets the high-wage components of the LVC requirement, including the 
wage component of the high-wage material

[[Page 6463]]

and manufacturing expenditures, the high-wage technology expenditures, 
and the high-wage assembly expenditures. See 19 U.S.C. 4532(e)(2). 
During a verification of a covered vehicle involving the LVC 
requirement, the Secretary of the Treasury will verify the components 
of the LVC requirement not covered by DOL and determine whether the 
producer has met the LVC requirement. See 19 U.S.C. 4532(e)(3). The 
USMCA Implementation Act also specifies the actions that DOL will take 
during a verification and the nature of the information that may be 
requested. See 19 U.S.C. 4532(e)(4). In accordance with these 
requirements, CBP is adding verification requirements and procedures to 
the regulations in 19 CFR part 182, subpart I, addressing verifications 
of covered vehicles involving the LVC requirement. These verification 
requirements will apply in addition to the general verification 
regulations in 19 CFR part 182, subpart G. Furthermore, the DOL 
regulations at 29 CFR part 810 set forth the parameters, requirements, 
and procedures for DOL's verification of the high-wage component of the 
LVC requirement.

III. Amendments to the Regulations

    Pursuant to section 210(a) of the USMCA Implementation Act (19 
U.S.C. 4535(a)), the Secretary of the Treasury has the authority to 
prescribe regulations as needed to implement the USMCA. Pursuant to 
this authority, this IFR codifies numerous key USMCA provisions 
implementing the USMCA for the United States. This IFR promulgates CBP 
regulations to implement the USMCA requirements and procedures 
trilaterally agreed to by the USMCA countries under the USMCA, the 
Uniform Regulations regarding the Rules of Origin, and the Uniform 
Regulations regarding Origin Procedures. Specifically, this IFR amends 
existing provisions and adds new provisions to the CBP regulations to 
implement the additional USMCA Chapter 1 general definitions; the 
remaining USMCA Chapter 2 drawback and duty-deferral program 
provisions; the USMCA Article 2.7 temporary admission of goods 
provisions; the USMCA Chapter 4 product-specific rules of origin for 
automotive goods; the USMCA Article 5.8 recordkeeping requirements for 
importers, exporters, and producers; the USMCA general origin 
verification requirements and procedures; the USMCA Article 5.10 
determination of origin provisions; the USMCA Article 5.14 advance 
rulings requirements; the USMCA Article 5.15 review and appeal of 
determinations of origin and advance rulings provisions; the USMCA 
Chapter 6 product-specific rules of origin for textiles and apparel 
goods; and the USMCA Chapter 7 provisions related to customs 
administration and trade facilitation.
    In order to provide transparency and facilitate their use, the 
majority of the USMCA implementing regulations are set forth in part 
182 of title 19 of the CFR, entitled the United States-Mexico-Canada 
Agreement. Part 182 sets forth the USMCA preferential tariff treatment 
and other customs related provisions. This IFR amends part 182 to add 
regulations implementing remaining portions of USMCA Chapters 1, 2, 4, 
5, and 6, as discussed above, to the existing part 182 regulatory 
framework. Additionally, this IFR makes amendments to other parts of 
title 19 of the CFR, including parts 10, 24, 113, 123, 141, 144, 163, 
and 174, to implement relevant provisions in USMCA Chapters 2, 5, 6, 
and 7.
    All of the regulatory amendments made in this document implement 
the USMCA, the Uniform Regulations regarding Rules of Origin, and the 
Uniform Regulations regarding Origin Procedures, as trilaterally agreed 
to by the United States, Mexico, and Canada, into the CBP regulations. 
These regulatory amendments are also consistent with the USMCA 
Implementation Act (19 U.S.C. Chapter 29). The United States adopted 
the USMCA through the enactment of the USMCA Implementation Act, which 
provides CBP with the statutory authority to promulgate these 
additional USMCA implementing regulations appropriate to carry out the 
actions required by or authorized under the USMCA Implementation Act or 
proposed in the Statement of Administrative Action approved under 19 
U.S.C. 4511(a)(2) to implement the USMCA, as required by Section 
103(b)(1) of the USMCA Implementation Act (19 U.S.C. 4513(b)(1)).

A. Part 10

1. Section 10.31
    Section 10.31 sets forth the temporary importations under bond 
(TIB) provisions for articles brought into the United States 
temporarily and claimed to be exempt from duty under Chapter 98, 
Subchapter XIII, HTSUS. Paragraph (f) of Sec.  10.31 provides 
exceptions to the general rule that for temporary importations, a bond 
is required in an amount equal to double the duties and fees (or a 
larger amount as required by the Center of Excellence and Expertise 
(Center) director), which it is estimated the articles would accrue had 
all the articles covered by the entry been entered under an ordinary 
consumption entry.
    USMCA Article 2.7, Temporary Admission of Goods, provides that each 
USMCA country must grant duty-free temporary admission for: (a) 
professional equipment, including equipment for the press or 
television, software, and broadcasting and cinematographic equipment, 
that is necessary for carrying out the business activity, trade, or 
profession of a person who qualifies for temporary entry; (b) a good 
intended for display or demonstration, including its component parts, 
ancillary apparatus and accessories; (c) commercial samples and 
advertising films and recordings; and (d) a good admitted for sports 
purposes, admitted from the territory of another USMCA country, 
regardless of its origin. See USMCA Article 2.7.1. Under USMCA Article 
2.7.2, a USMCA country may condition the duty-free temporary admission 
of the above-mentioned goods on certain requirements. Under Article 
2.7.2(d) of the USMCA, a USMCA country may also condition the duty-free 
temporary admission of one of the above-mentioned goods on the 
requirement that the good be accompanied by security in an amount no 
greater than 110 percent of the charges that would otherwise be owed on 
entry or importation, and releasable on exportation of the good. 
Section 10.31(f) currently provides that ``the bond required to be 
given shall be in an amount equal to 110 percent of the estimated 
duties, including fees, determined at the time of entry.'' Section 
10.31(f) applies this 110 percent limitation to the goods listed in 
USMCA Article 2.7.1(a) through (d) when the goods are originating and 
applies to the goods listed in USMCA Article 2.7.1(a) and (c) when the 
goods are non-originating. Thus, CBP is adding a new last sentence to 
19 CFR 10.31(f) to clarify that this 110 percent limitation also 
applies to the goods listed in USMCA Article 2.7.1(b) and (d) when the 
goods are non-originating. The new last sentence reads: ``In the case 
of articles imported for sports purposes and articles intended for 
display or demonstration, if brought into the United States by a 
national of Canada or Mexico, the bond shall be without surety or cash 
deposit in an amount equal to 110 percent of the estimated duties and 
fees determined at the time of entry, if the entered article is not 
originating, within the meaning of General Notes 11 and 12, HTSUS, in 
the country of which the importer is a national.''

[[Page 6464]]

    Pursuant to USMCA Article 2.7.2(a), another requirement that a 
USMCA country may condition the duty-free temporary admission of a good 
on is the good being imported by a national of another USMCA country 
who seeks temporary entry. Article 1.5 (Section B) of USMCA Chapter 1 
defines ``a national of the United States'' as defined in the 
Immigration and Nationality Act. Additionally, a bond for customs 
duties must not be required for an originating good. See USMCA Article 
2.7.2(d).
    In accordance with these requirements, Sec.  10.31(f) allows for 
the duty-free temporary importation of the remaining above-mentioned 
articles without a bond if the articles qualify as originating. Section 
10.31(f) currently states that, in the case of professional equipment 
necessary for carrying out the business activity, trade or profession 
of a business person, equipment for the press or for sound or 
television broadcasting, cinematographic equipment, articles imported 
for sports purposes and articles intended for display or demonstration, 
if brought into the United States by a resident of Canada or Mexico and 
entered under Chapter 98, Subchapter XIII, HTSUS, no bond or other 
security will be required if the entered article is an originating 
good. For this purpose, an originating good is defined as originating 
within the meaning of certain general notes of the HTSUS listed in 
Sec.  10.31(f), in the country of which the importer is a resident.
    In accordance with USMCA Article 2.7.2(a), CBP is revising the 
sixth sentence of 19 CFR 10.31(f) to require that the article being 
brought into the United States be brought in by a national of Canada or 
Mexico, as opposed to a resident of Canada or Mexico, to qualify as 
originating goods. Additionally, CBP is revising the sixth sentence of 
19 CFR 10.31(f) to add General Note 11, HTSUS, to the list of 
applicable general notes.
    Finally, CBP is revising 19 CFR 10.31(f) to clarify the general 
rule that, for temporary importations, a bond is required in an amount 
equal to double the duties and fees (or a larger amount as required by 
the Center of Excellence and Expertise (Center) director), which it is 
estimated the articles would accrue had all the articles covered by the 
entry been entered under an ordinary consumption entry. Fees and duties 
are distinct and are covered by separate articles in the General 
Agreement on Tariffs and Trade (GATT). Thus, CBP is revising the 
language in 19 CFR 10.31(f) from ``duties, including fees'' in both 
instances where it is referenced to ``duties and fees'' to clarify that 
fees are not included in duties.
2. Section 10.36a
    Section 10.36a sets forth the provisions for the temporary 
importation of vehicles, pleasure boats, and aircraft brought into the 
United States by an operator for repair or alteration. Specifically, 
Sec.  10.36a currently defines the phrase ``for repair or alteration'' 
with a reference to Sec. Sec.  10.8, 10.490, 10.570, and 181.64 of 
title 19 of the CFR. The definition of ``repairs or alterations'' in 
Sec. Sec.  10.490, 10.570, and 181.64 of title 19 of the CFR provides 
that ``repairs or alterations'' means restoration, addition, 
renovation, re-dyeing, cleaning, re-sterilizing, or other treatment 
that does not destroy the essential characteristics of, or create a new 
or commercially different good from, the good exported from the United 
States. This definition of ``repairs or alterations'' is included in 19 
CFR 182.112, which contains the rules that apply for purposes of 
obtaining duty-free treatment of goods returned after repair or 
alteration in Canada or Mexico under the USMCA. CBP has decided that, 
rather than adding additional cross-references in Sec.  10.36a to Sec.  
182.112 and the other relevant FTA regulations, CBP will add the 
definition of ``repair or alteration'' to Sec.  10.36a to make it more 
transparent to the public. Thus, CBP is revising Sec.  10.36a to remove 
the cross-references and to add the text of the definition of ``repairs 
or alterations.''
3. Section 10.41a
    Pursuant to section 322(a) of the Tariff Act of 1930, as amended 
(19 U.S.C. 1322(a)), vehicles and other instruments of international 
traffic, of any class specified by the Secretary of the Treasury, shall 
be excepted from the application of the customs laws to the extent that 
such terms and conditions are prescribed in regulations or 
instructions. Sections 10.41, 10.41a, and 10.41b of title 19 of the CFR 
set forth the qualifications for designating instruments of 
international traffic (IITs) and the conditions under which they may be 
released without entry or the payment of duty. Section 10.41a(a)(1) 
designates lift vans, cargo vans, shipping tanks, skids, pallets, caul 
boards, and cores for textile fabrics, arriving (whether loaded or 
empty) in use or to be used in the shipment of merchandise in 
international traffic as ``instruments of international traffic.'' The 
Commissioner of CBP is also authorized, under Sec.  10.41a(a)(1), to 
designate additional articles or classes of articles as instruments of 
international traffic. CBP has repeatedly held that to qualify as an 
instrument of international traffic, the article must be a substantial 
container or holder.
    A container that is designated as an instrument of international 
traffic is deemed to remain in international traffic provided that the 
container exits the United States within 365 days of the date it was 
admitted. See 19 CFR 10.41a(g)(1). When such a container does not exit 
the United States within 365 days of the date on which it is admitted, 
it shall be considered to have been removed from international traffic 
and an entry for consumption must be made. See 19 CFR 10.41a(g)(3).
    Currently, Sec.  10.41a(g) does not allow for an extension beyond 
the prescribed 365-day time period. Any instrument of international 
traffic that remains in the United States for a period exceeding 365 
days triggers the entry requirement imposed by Sec.  10.41a(g)(3). 
However, USMCA Article 2.7.11 specifically requires that each USMCA 
country must extend the timeframe for temporary admission of a shipping 
container or other substantial holder beyond the period initially fixed 
at the request of the person concerned. Accordingly, CBP is revising 19 
CFR 10.41a(g)(1) to allow CBP to grant an extension and permit the IIT 
container to remain in international traffic beyond the 365-day time 
period, at the request of the person who filed the application for 
release under Sec.  10.41a(a)(1), when the container is designated as 
an instrument of international traffic and was admitted from Canada or 
Mexico. The request for extension should be submitted to CBP in the 
Automated Commercial Environment (ACE), prior to the end of the 365-day 
time period. The request must contain the container number, last 
arrival date, intended departure date, and the reason for delay in 
removing the container or holder from the United States. CBP will 
notify the individual who filed the application for release of the 
details of the extension in ACE.
    CBP is also amending paragraph (g)(3) to clarify that a container 
that does not exit the United States by the date the extension expires 
shall be treated the same as a container, without an extension, that 
does not exit the United States within the prescribed 365-day time 
period. A container that is designated as an instrument of 
international traffic and granted an extension under paragraph (g)(1) 
will be considered to have been removed from international traffic and 
an entry for consumption must be made if the container does not exit 
the United States prior to the date of expiration of the extension 
granted.

[[Page 6465]]

4. Section 10.301
    Subpart G of part 10 sets forth the provisions related to the 
United States-Canada Free Trade Agreement. Specifically, Sec.  10.301 
provides the scope and applicability of the United States-Canada Free 
Trade Agreement, including that the United States and Canada agreed to 
suspend operation of the Agreement from January 1, 1994. This 
suspension date was to coincide with the entry into force of NAFTA. 
With the simultaneous repeal of NAFTA (see section 601 of the USMCA 
Implementation Act) and the entry into force of the USMCA as of July 1, 
2020, the United States and Canada have agreed to continue suspending 
operation of the United States-Canada Free Agreement.
    Section 501(c) of the United States-Canada Free Trade Agreement 
Implementation Act of 1988 (Pub. L. 100-449; 19 U.S.C. 2112 note) sets 
forth the termination or suspension provisions of the United States-
Canada Free Trade Agreement. In section 602 of the USMCA Implementation 
Act, Congress amended section 501(c)(3) of the United States-Canada 
Free Trade Agreement Implementation Act of 1988 to state that the 
United States and Canada agreed to suspend the operation of the United 
States-Canada Free Trade Agreement by reason of the entry into force of 
the USMCA until such time as the suspension of the United States-Canada 
Free-Trade Agreement may be terminated. Accordingly, CBP is revising 19 
CFR 10.301 to add a reference to the USMCA to indicate that the United 
States-Canada Free Trade Agreement continues to remain suspended with 
the entry into force of the USMCA and to provide the public with the 
relevant citation to the USMCA regulations in part 182.
5. Technical Corrections in Part 10
    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. 
See 19 U.S.C. 3721 and 19 U.S.C. 2702. Accordingly, the implementing 
regulations for these programs in part 10 of title 19 of the CFR, which 
followed the statutory language, contain numerous references to NAFTA. 
Subpart D of part 10 sets forth the textile and apparel articles under 
the AGOA provisions (see 19 CFR 10.211-10.217) and subpart E of part 10 
contains the textile and apparel articles and the non-textile articles 
under the CBTPA provisions (see 19 CFR 10.221-10.237).
    As stated above, on July 1, 2020, section 601 of the USMCA 
Implementation Act repealed the NAFTA Implementation Act and references 
to NAFTA became outdated. On December 27, 2020, section 602 of Title VI 
of the Appropriations Act set forth technical corrections to other 
laws, including AGOA and CBERA (as amended by CBTPA), which replaced 
the outdated references to NAFTA with references to the USMCA. See 
section 602(a) and (b) of Title VI of the Appropriations Act. These 
technical corrections are retroactively effective on July 1, 2020, the 
USMCA's entry into force date. See section 602(g) of Title VI of the 
Appropriations Act. Accordingly, CBP is amending Sec. Sec.  10.212(l), 
10.213(a)(8), 10.214(b), 10.214(c)(12), 10.222, 10.223(a)(7), 
10.224(c)(12), 10.232, 10.233(b), and 10.237(b), which include various 
references to NAFTA (e.g., definitions for ``NAFTA'' in Sec. Sec.  
10.212, 10.222, and 10.232), 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.

B. Part 24

1. Section 24.23
    Section 24.23 provides the terms and conditions for merchandise 
processing fees. Paragraph (c) contains the exemptions. Specifically, 
paragraph (c)(3) states that the ad valorem, surcharge, and specific 
fees provided for under paragraphs (b)(1) and (b)(2) will not apply to 
goods originating in Canada or Mexico under NAFTA within the meaning of 
General Note 12, HTSUS.
    The USMCA also provides a merchandise processing fee exemption. 
USMCA Article 2.16.3 states that no USMCA country shall adopt or 
maintain a customs user fee on an originating good, with footnote 3 
further clarifying that this commitment only applies to the United 
States with respect to the merchandise processing fee. In accordance 
with this commitment, section 203 of the USMCA Implementation Act 
amended section 13031(b)(10)(B) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)(B)) to specify that no 
fee for the processing of merchandise may be charged for goods that 
qualify as originating goods under 19 U.S.C. 4531 or that qualify for 
duty-free treatment under USMCA Annex 6-A.
    Accordingly, CBP is revising 19 CFR 24.23(c)(3) to clarify that 
originating goods and textile or apparel goods subject to a TPL, for 
which a claim for preferential tariff treatment under the USMCA is 
made, are also exempt from the merchandise processing fees. When the 
importer makes a claim for USMCA preferential tariff treatment, the ad 
valorem, surcharge, and specific fees provided for under Sec.  
24.23(b)(1) and (b)(2) do not apply to goods originating under the 
USMCA within the meaning of General Note 11, HTSUS (see also 19 U.S.C. 
4531), or to textile or apparel goods subject to a TPL that qualify for 
preferential tariff treatment under Sec.  182.82 (see also Annex 6-A of 
the USMCA), that are entered for consumption, or withdrawn from 
warehouse for consumption, on or after July 1, 2020.
2. Section 24.36
    Section 24.36 sets forth the procedures and conditions under which 
a refund of excessive duties, taxes, fees, or interest will be due when 
discovered upon, or prior to, liquidation or reliquidation of an entry 
or reconciliation. Paragraph (a)(1) provides that the refund shall 
include interest on the excess money deposited with CBP and the dates 
that such interest shall start to accrue, including for proper claims 
filed under 19 U.S.C. 1520(d) and subpart D of part 181. Since the 
statutory authority for this regulation, 19 U.S.C. 1505, allows for 
interest on excess moneys to accrue for claims made under 19 U.S.C. 
1520(d), CBP is removing the specific reference to subpart D of part 
181. The addition of the cross-reference to subpart D of part 181, 
which contains the NAFTA post-importation claim provisions, 
unintentionally limited Sec.  24.36 to apply only to NAFTA post-
importation claims when 19 U.S.C. 1505 allows for interest on refunds 
on 19 U.S.C. 1520(d) claims.

C. Part 123

Section 123.0
    Part 123 contains the special regulations pertaining to CBP 
procedures at the Canadian and Mexican borders including provisions 
governing reports of arrival, manifesting, unlading and lading, 
instruments of international traffic, shipments in transit through 
Canada or Mexico, commercial traveler's samples transiting the United 
States or Canada, baggage arriving from Canada or Mexico, and 
electronic information for rail and truck cargo in advance of arrival. 
Section 123.0 sets forth the scope of part 123 and provides the 
relevant cross-references to the other applicable parts of title 19 of 
the CFR that address CBP procedures for

[[Page 6466]]

Canadian and Mexican goods. Accordingly, CBP is revising Sec.  123.0 to 
add the applicable cross-reference to the USMCA regulations in part 
182.

D. Part 163

    Part 163, Recordkeeping, sets forth the recordkeeping requirements 
and procedures governing the maintenance, production, inspection, and 
examination of records. Pursuant to section 508 of the Tariff Act of 
1930, as amended (19 U.S.C. 1508(a)), any owner, importer, consignee, 
importer of record, entry filer, or other party who imports merchandise 
into the customs territory of the United States, files a drawback 
claim, transports or stores merchandise carried or held under bond, or 
knowingly causes the importation or transportation or storage of 
merchandise carried or held under bond into or from the customs 
territory of the United States, or an agent of any of these parties, or 
a person whose activities require the filing of a declaration or entry 
or both, must make, keep, and render for examination and inspection 
certain records. The USMCA recordkeeping requirements are set forth in 
USMCA Article 5.8 and the Uniform Regulations regarding Origin 
Procedures. USMCA Article 5.8.1 provides the types of records that 
importers must maintain and the retention periods while Article 5.8.2 
includes a list of records applicable exporters and producers must 
maintain and the retention periods. To implement these USMCA 
recordkeeping requirements, section 206 of the USMCA Implementation Act 
amended 19 U.S.C. 1508(b) and (e)(1) to add the recordkeeping 
requirements and penalty provisions that apply to USMCA exports and 
imports.
    CBP is amending part 163, as applicable, to include these 
recordkeeping requirements. Also, as noted in the scope of part 163, 
Sec.  163.0, which was previously amended in a prior rulemaking, 
additional provisions concerning records maintenance and examination 
applicable to U.S. importers, exporters, and producers under the USMCA 
are contained in part 182. If the importer, exporter, or producer who 
is required to maintain records pursuant to parts 163 and 182 does not 
maintain, or denies access to, the records or documentation required 
under 19 U.S.C. 1508, CBP may deny USMCA preferential tariff treatment. 
Failure to comply with these recordkeeping requirements by U.S. 
importers, exporters, or producers may result in the imposition of 
penalties under 19 U.S.C. 1508(e)(1).
1. Exporter and Producer Recordkeeping Responsibilities
    In accordance with 19 U.S.C. 1508(a), the part 163 recordkeeping 
provisions generally do not apply to exporters and producers, with a 
few notable exceptions. These exceptions are set forth in Sec.  
163.2(c) and include applicable NAFTA exporters and USMCA exporters and 
producers. CBP, in a prior rulemaking, amended Sec.  163.2(c)(2) to add 
USMCA exporters and producers who complete a certification of origin, 
or USMCA producers who provide a written representation, for a good 
exported from the United States to Canada or Mexico, to the list of 
persons required to maintain records in accordance with part 163. 
Accordingly, U.S. USMCA exporters and producers must maintain the 
required records pursuant to the requisite retention periods in part 
163 and in the prescribed format as described in Sec.  163.5. An 
exporter or producer who completes a certification of origin or a 
producer that provides a written representation must maintain all 
records necessary to demonstrate that the good is originating, 
including the records specified in USMCA Article 5.8.2(a), (b), and 
(c), for five years after the date on which the certification of origin 
was completed. See also 19 U.S.C. 1508(b)(2). To implement this USMCA 
requirement, CBP, in a prior rulemaking, added 19 CFR 182.21(c) 
requiring U.S. exporters or producers exporting from the United States 
to Canada or Mexico to maintain these records.
    Additionally, in accordance with 19 U.S.C. 1508(b), CBP has 
promulgated recordkeeping requirements on foreign exporters and 
producers whose goods are imported into the United States under the 
USMCA. It is important to note that these requirements are set forth in 
19 CFR part 182, not part 163, because the requirements are imposed on 
foreign exporters and producers whose goods are imported into the 
United States, and not on the U.S. exporters and producers covered by 
part 163. See 19 CFR 163.2(c)(2). These additional provisions 
concerning records maintenance and examination applicable to exporters 
and producers under the USMCA include 19 CFR 182.73(a)(2) and 
182.74(c), which require exporters and producers subject to a 
verification to make the records available for inspection by a CBP 
official during the verification, 19 CFR part 182, subpart H, which 
requires that exporters and producers subject to a USMCA Article 6.6 
site visit make certain records available, and 19 CFR part 182, subpart 
I, which establishes additional recordkeeping requirements for 
producers of covered vehicles whose vehicles are imported into the 
United States in accordance with 19 U.S.C. 1508(b)(4)(B), including the 
requirement in Sec.  182.103 for vehicle exporters and producers to 
maintain records.
2. Importer Recordkeeping Responsibilities
    USMCA Article 5.8.1 requires that an importer making a claim for 
USMCA preferential tariff treatment maintain certain records for a 
period of no less than five years from the date of importation of the 
good. In accordance with USMCA Article 5.8.1, 19 U.S.C. 1508(b)(4)(A) 
requires that any importer who claims preferential tariff treatment 
under the USMCA for a good imported into the United States must make, 
keep, and, pursuant to the regulations prescribed by the Secretary of 
the Treasury and the Secretary of Labor, render for examination and 
inspection: the records and supporting documentation related to the 
importation; all records and supporting documents related to the origin 
of the good, if the importer completed the certification of origin; and 
records and supporting documents related to transshipment.
    To implement this USMCA requirement, CBP, in a prior rulemaking, 
added these importer recordkeeping requirements to 19 CFR 182.15. CBP 
also added 19 CFR 182.73(a)(2), which requires importers subject to a 
verification to make the records available for inspection by a CBP 
official during the verification. Importers making a claim for USMCA 
preferential tariff treatment for covered vehicles imported into the 
United States must meet the additional recordkeeping requirements set 
forth in subpart I of part 182, as described in more detail in section 
III.F., Subpart I--Automotive Goods, of this IFR, and must maintain any 
records related to the high-wage component of the LVC requirement as 
required by DOL pursuant to 29 CFR part 810. In accordance with 19 
U.S.C. 1508(b)(4)(A)(ii), CBP's additional recordkeeping 
responsibilities for importers of covered vehicles are dependent on 
whether the importer completed the certification of origin. 
Specifically, as provided in Sec.  182.104, importers who complete the 
certification of origin must maintain the vehicle certifications and 
all the records and supporting documents related to whether the covered 
vehicle is originating under the LVC, steel purchasing, and aluminum 
purchasing requirements while an importer who

[[Page 6467]]

claims USMCA preferential tariff treatment for a covered vehicle based 
on a certification of origin completed by the exporter or producer must 
only maintain the records and supporting documents related to the 
vehicle certifications that are in the importer's possession.
    CBP is amending part 163, as described below, to implement the 
recordkeeping requirements contained in 19 U.S.C. 1508(b)(4)(A), USMCA 
Article 5.8, the Uniform Regulations regarding Origin Procedures, and 
19 CFR part 182.
a. Section 163.1
    Pursuant to Sec.  163.2(a), all importers must maintain, produce, 
and make the records available for inspection and examination as 
required under part 163. Section 163.1(a)(1) defines the terms 
``records,'' for purposes of part 163, as any information made or 
normally kept in the ordinary course of business that pertains to any 
activity listed in Sec.  163.1(a)(2). The term ``records'' includes any 
information required for the entry of merchandise (the (a)(1)(A) list) 
and other information pertaining to, or from which is derived, any 
information element set forth in a collection of information required 
by the Tariff Act of 1930, as amended, in connection with any activity 
listed in Sec.  163.1(a)(2). Thus, CBP is amending Sec.  163.1(a)(2) to 
redesignate paragraph (xviii) as (xix) and add a new paragraph (xviii) 
to include USMCA records in the list of activities. Specifically, the 
new paragraph (xviii) will provide for the maintenance of any 
documentation in support of a claim for preferential tariff treatment 
under the USMCA pursuant to part 182, including the certification of 
origin. These records must be maintained by the importer pursuant to 
Sec.  163.2(a) and the U.S. exporter or producer pursuant to Sec.  
163.2(c)(2). Vehicle certifications are not specified in Sec.  
163.1(a)(2)(xviii) because, as explained above, the importer is not 
required to maintain the vehicle certifications and supporting 
documentation in all instances. Instead, the specific requirements for 
importers of covered vehicles are addressed by adding 19 CFR 182.104.
b. Section 163.7
    Section 163.7 describes the parties to whom CBP may issue a summons 
to appear and produce records or to give relevant testimony under oath 
or both, during the course of an investigation, audit, or other 
inquiry. This includes, among others, importers and any person who 
exported merchandise or knowingly caused merchandise to be exported to 
a NAFTA country. CBP is revising Sec.  163.7(a)(2) to add any person 
who exported merchandise, or knowingly caused merchandise to be 
exported, to a USMCA country.
c. Appendix to Part 163--Interim (a)(1)(A) List
    Section 509(a)(1)(A) of the Tariff Act of 1930, as amended by title 
VI of Public Law 103-182, commonly referred to as the Customs 
Modernization Act (19 U.S.C. 1509(a)(1)(A)), requires the production of 
records, within a reasonable time after demand by CBP if such record is 
required by law or regulation for the entry of the merchandise, whether 
or not CBP required its presentation at the time of entry. Pursuant to 
19 U.S.C. 1509(e), CBP is required to identify and publish a list of 
the records and entry information that is required to be maintained and 
produced under subsection (a)(1)(A) of section 509 (19 U.S.C. 
1509(a)(1)(A)). This list is commonly referred to as ``the (a)(1)(A) 
list.'' CBP is amending section IV of the appendix to part 163 (the 
(a)(1)(A) list) to add the USMCA documents to the list of records or 
information required for the entry of merchandise. Accordingly, CBP is 
adding a reference to 19 CFR 182.13, which sets forth the USMCA 
importer's obligations, to the (a)(1)(A) list to indicate that USMCA 
records that the importer may have in support of a USMCA claim for 
preferential tariff treatment, including the certification of origin, 
are required entry documents. Vehicle certifications are not included 
in the (a)(1)(A) list because, as explained above, the importer is not 
required to maintain the vehicle certifications and supporting 
documentation in all instances. CBP is also revising the Sec.  10.307 
listing in the (a)(1)(A) list to clarify that the United States-Canada 
Free Trade Agreement (CFTA) provisions continue to be suspended while 
USMCA remains in effect.

E. Part 174

    Part 174, Protests, sets forth the general protest procedures 
pursuant to 19 U.S.C. 1514 for the administrative review of decisions 
of the port director and Center director. This part contains the 
requirements for the filing of protests, amendments of protests, review 
of protests, requests for accelerated disposition, and provisions 
dealing with further administrative review. Pursuant to 19 U.S.C. 
1514(c)(3), a protest of a decision must be filed with CBP within 180 
days after the date of liquidation or reliquidation, or if such a date 
is inapplicable, the date of the decision as to which protest is made.
    In extending the protest rights under part 174 to USMCA importers 
and qualifying exporters or producers, CBP is fulfilling its USMCA 
commitments under Articles 5.15.1 and 7.15. Article 5.15.1 of the USMCA 
requires each USMCA country to grant substantially the same rights of 
review and appeal for determinations of origin to exporters and 
producers who completed a certification of origin as are granted to 
importers in its territory. Accordingly, an importer, or a qualified 
exporter or producer, may file a protest to contest a denial of USMCA 
preferential tariff treatment of a claim made at entry or a denial of a 
USMCA post-importation claim. Pursuant to 19 CFR 174.21, the Center 
director generally must review and act on a protest within two years 
from the date the protest was filed. If the protest is allowed in whole 
or in part, the goods will be eligible for USMCA preferential tariff 
treatment and CBP will refund the duties in accordance with Sec.  
174.29.
    Article 7.15 of the USMCA addresses the review and appeal of 
customs determinations. Article 7.15 provides, in part, that the USMCA 
country must provide the protesting party its decision in the review or 
appeal in writing and include the reasons for the decision. Article 
7.15 also requires that each USMCA country ensure that any person to 
whom a customs administration issues a determination has access to an 
administrative appeal or review by an administrative authority higher 
than or independent of the employee or office that issued the 
determination, and access to a quasi-judicial or judicial review or 
appeal made at the final level of administrative review. In accordance 
with Article 7.15, if the protest is denied, CBP will issue a notice of 
denial of a protest to any person filing a protest or his/her agent, 
with the exception of those in which accelerated disposition was 
requested and no action has been taken within 30 days. The notice of 
denial will include a statement of the reasons for the denial and a 
statement informing the protesting party of the right to file a civil 
action contesting the denial of the protest under 19 U.S.C. 1514. See 
19 CFR 174.30. Any person whose protest has been denied, in whole or in 
part, may contest the denial by filing a civil action with the United 
States Court of International Trade in accordance with 28 U.S.C. 2632. 
See 19 CFR 174.31.
1. Section 174.12
    Section 174.12 sets forth the procedures for filing a protest.

[[Page 6468]]

Specifically, paragraph (a) states who may file a protest, including 
the importer, consignee, or their surety, any person paying or 
receiving a refund of any charge or exaction, any person seeking entry 
or delivery, any person filing for drawback, and any of these persons' 
authorized agents. USMCA Article 5.15.1 requires each USMCA country to 
grant substantially the same rights of review and appeal of 
determinations of origin to USMCA exporters and producers, who have 
completed a certification of origin for a good that is the subject of 
the determination of origin, as it provides to its importers.
    Pursuant to 19 U.S.C. 1514(c)(2)(E), any USMCA exporter or producer 
of merchandise subject to a determination of origin as provided for 
under 19 U.S.C. 4531 may file a protest, if the exporter or producer 
completed and signed the certification of origin. Accordingly, CBP is 
amending Sec.  174.12 by redesignating paragraph (a)(6) as paragraph 
(a)(7) and by adding a new paragraph (a)(6) stating that, with respect 
to a determination of origin under subpart G of part 182, any exporter 
or producer of the merchandise subject to the determination, who 
completed and signed the USMCA certification of origin, may file a 
protest. CBP is also amending the redesignated paragraph (a)(7) to 
allow any authorized agent of the exporter or producer described in 
paragraph (a)(6) to file a protest on their behalf, subject to the 
provisions of Sec.  174.3.
    While CBP will issue a determination of origin to USMCA exporters 
and producers of textile or apparel goods subject to TPLs, as explained 
in more detail in section III.F., Subpart H-Textile and Apparel Goods, 
of this IFR, as required under Sec.  182.75(b), these exporters and 
producers may not file a protest of this determination of origin under 
part 174, unless the exporter or producer is also acting as the 
importer of record. As explained above, pursuant to 19 U.S.C. 
1514(c)(2)(E), any USMCA exporter or producer of merchandise subject to 
a determination of origin as provided for under 19 U.S.C. 4531 may file 
a protest if the exporter or producer completed and signed the 
certification of origin. Since goods subject to TPLs are not 
originating goods, the certification of origin requirement does not 
apply to textile or apparel goods subject to a TPL claiming USMCA 
preferential tariff treatment. Accordingly, CBP has no statutory 
authority to allow these exporters or producers to file a protest under 
part 174.
    Additionally, it is important to note that while USMCA exporters 
and producers may, to the extent described above, file a protest of a 
determination of origin, USMCA exporters and producers may not file a 
protest of a marking determination under the USMCA, unless the exporter 
or producer is also acting as the importer of record. As noted in the 
scope of part 174 (19 CFR 174.0), Canadian and Mexican exporters and 
producers seeking administrative review and appeal of adverse marking 
decisions under NAFTA had the right to appeal and such rights were set 
forth in part 181. These specific rights of review and appeal for 
marking determinations were explicitly contained in Article 510 of 
NAFTA. However, the USMCA does not provide any such rights. Section 209 
of the USMCA Implementation Act struck the language from subsection (k) 
of section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 
1304(k)), that provided these specific petition rights, such as adverse 
marking decisions, for NAFTA exporters and producers. Thus, these 
specific rights and procedures are not provided for under the USMCA or 
the USMCA Implementation Act, or the relevant statutory or regulatory 
authority for protests in 19 U.S.C. 1514 and 19 CFR part 174. 
Accordingly, Canadian and Mexican exporters and producers may not 
request administrative review of and appeal of marking decisions under 
the USMCA.
2. Section 174.13
    Section 174.13 sets forth the required contents of a protest. 
Paragraph (a)(9) currently requires the protestant to include a 
declaration as to whether the entry is the subject of drawback, or 
whether the entry has been referenced on a certificate of delivery or 
certificate of manufacture and delivery so as to enable a party to make 
such entry the subject of drawback. CBP is revising Sec.  174.13(a)(9) 
to remove the references to the certificate of delivery and the 
certificate of manufacture and delivery because these certificates were 
eliminated by the Trade Facilitation and Trade Enforcement Act of 2015 
(TFTEA) (Pub. L. 114-125, 130 Stat. 122, February 24, 2016). 
Accordingly, paragraph (a)(9) will only require a declaration as to 
whether the entry is the subject of drawback or if there is the ability 
for a party to make such entry the subject of drawback. CBP is also 
updating the list of cross-references in Sec.  174.13(a)(9) to include 
the USMCA drawback provision, Sec.  182.50, and the relevant part 190, 
Modernized Drawback, provision, Sec.  190.81.
3. Section 174.15
    Section 174.15 provides for the consolidation of separate protests 
relating to the same category of merchandise covered by an entry filed 
by different parties. Pursuant to 19 U.S.C. 1514(c)(1), only one 
protest may be filed for each entry of merchandise, except that where 
the entry covers merchandise of different categories, a separate 
protest may be filed for each category. Separate protests filed by 
different parties with respect to any one category of merchandise or 
with respect to a USMCA determination of origin under 19 U.S.C. 4531 
are deemed to be part of a single protest. See 19 U.S.C. 1514(c)(1). 
Section 174.15(b) addresses the consolidation of multiple protests 
concerning a determination of origin for NAFTA transactions, if a NAFTA 
exporter or producer files one of the protests. In accordance with 19 
U.S.C. 1514(c)(1), CBP is revising Sec.  174.15(b) to include 
determinations of origin for USMCA transactions, if a USMCA exporter or 
producer described in Sec.  174.12(a)(6) files one of the protests. 
Paragraph (b)(1) of Sec.  174.15 covers USMCA transactions where all 
the interested parties who filed protests specifically submit written 
requests for consolidation. In these instances, all the interested 
parties are deemed to have waived their rights to confidentiality under 
Sec.  182.2. Paragraph (b)(2) covers USMCA transactions where no such 
written requests for consolidation are submitted. In these instances, 
the interested parties are not deemed to have waived their rights to 
confidentiality under Sec.  182.2. A separate notice of the decision 
will be issued to each interested party and must adhere to the USMCA 
confidentiality provisions set forth in Sec.  182.2.
4. Section 174.22
    Pursuant to 19 U.S.C. 1515(a), unless a request for an accelerated 
disposition of a protest is filed, CBP must review the protest and 
allow or deny the protest in whole or in part within two years from the 
date the protest is filed. Subsection (b) of 19 U.S.C. 1515 allows for 
a request for accelerated disposition of a protest to be submitted to 
CBP at any time concurrent with or following the filing of the protest, 
in accordance with 19 U.S.C. 1514. Section 174.22 of title 19 of the 
CFR sets forth the procedure for filing a request for an accelerated 
disposition of a protest.
    Section 202A(e)(6)(A) of the USMCA Implementation Act (19 U.S.C. 
4532(e)(6)(A)) provides that when a protest of a decision regarding the 
eligibility for USMCA preferential tariff

[[Page 6469]]

treatment of a covered vehicle relates to DOL's analysis of the high-
wage components of the LVC requirement, the Secretary of Labor will 
conduct an administrative review of the portion of the decision 
relating to such requirements and provide the results of that review to 
the CBP Commissioner. The DOL regulations at 29 CFR part 810 contain 
the administrative review procedures of DOL's initial analysis when 
notified by CBP of a protest involving DOL's analysis of the high-wage 
components of the LVC requirement. Pursuant to 29 CFR part 810, DOL 
will strive to issue a decision within one year from the date that it 
receives the notice of protest from CBP and will provide a 
determination containing the results of the administrative review to 
CBP.
    Section 202A(e)(6)(B) of the USMCA Implementation Act (19 U.S.C. 
4532(e)(6)(B)) explicitly states that an importer may not request 
accelerated disposition under 19 U.S.C. 1515 of a protest against a 
decision related to the DOL's analysis of the high-wage components for 
a covered vehicle's LVC requirement. Accordingly, CBP is revising 19 
CFR 174.22(a) to limit the availability of the accelerated disposition 
of a protest. CBP is adding a sentence to Sec.  174.22(a) stating that 
the accelerated disposition of a protest is not available for protests 
involving eligibility for USMCA preferential tariff treatment of a 
covered vehicle if the protest relates to the DOL's analysis of the 
high-wage components of the LVC requirement as described in 19 CFR part 
182, subpart I, and 29 CFR part 810.
5. Section 174.29
    Section 174.29 provides the conditions under which CBP allows or 
denies protests and describes the process through which the Center 
director will remit or refund any duties, charge, or exaction found to 
be collected in excess if the protest is allowed. Specifically, Sec.  
174.29 states that if a protest filed by an exporter or producer 
related to a NAFTA determination of origin is allowed in whole or in 
part, any monies found to have been collected in excess shall be 
refunded to the party who paid the monies even if such party did not 
file an appropriate and timely protest. CBP is revising this language 
to add a cross-reference to Sec.  174.12(a)(6), which applies to 
protests filed by a qualified exporter or producer with respect to a 
USMCA determination of origin.

F. Part 182

    Part 182, United States-Mexico-Canada Agreement, implements the 
duty preference and related customs provisions applicable to goods 
imported under the USMCA. CBP is amending part 182 of title 19 of the 
CFR (19 CFR part 182) to promulgate additional remaining USMCA 
implementing regulations related to USMCA Chapters 1, 2, 4, 5, and 6. 
Currently, part 182 contains a significant portion of the USMCA 
implementing regulations and a framework for the remaining subparts. 
The existing part 182 substantive provisions include Subpart A (General 
Provisions), which contains the scope, general definitions, and 
confidentiality provisions, Subparts B (Import Requirements), C (Export 
Requirements), D (Post-Importation Duty Refund Claims), numerous 
substantive provisions related to drawback in subpart E (Restrictions 
on Drawback and Duty-Deferral Programs), F (Rules of origin), G (Origin 
Verifications and Determinations), J (Commercial Samples and Goods 
Returned after Repair or Alteration), K (Penalties), and Appendix A, 
which contains the Uniform Regulations regarding Rules of Origin, which 
were trilaterally agreed upon by the United States, Mexico, and Canada.
    This document amends part 182 to revise Sec.  182.0 (Scope) and 
subpart G (Origin Verifications and Determinations), and to add general 
definitions in Sec.  182.1, additional drawback and duty-deferral 
provisions in Subpart E (Restrictions on Drawback and Duty-Deferral 
Programs), and implementing regulations in subparts H (Textile and 
Apparel Goods) and I (Automotive Goods).

Subpart A--General Provisions

1. Scope
    Section 182.0 contains the scope of part 182. Part 182 implements 
the duty preference and related customs provisions applicable to 
imported and exported goods under the USMCA. While Sec.  182.0 was 
added in a prior rulemaking, CBP is revising the section to provide the 
relevant cross-references to the other parts of the CBP regulations 
that apply to the USMCA. Accordingly, CBP is adding a new sentence to 
Sec.  182.0 to clarify that additional provisions applicable to the 
USMCA are contained in parts 10, 24, 163, 174, and 177 of title 19 of 
the CFR.
    In addition to the CBP regulations in parts 10, 24, 163, and 174 
that are being amended in this document, CBP is also including a cross-
reference to part 177. Part 177, Administrative Rulings, allows CBP to 
issue rulings to importers and other interested parties. Applying the 
advance ruling requirements and procedures in part 177 of title 19 of 
the CFR (19 CFR part 177) to all advance rulings related to USMCA 
transactions fulfills CBP's commitment under USMCA Article 7.5 
requiring each USMCA country to issue written advance rulings, prior to 
the importation of a good into its territory, regarding the treatment 
the good will receive at the time of importation. While no amendments 
to part 177 are necessary to implement USMCA Articles 5.14 and 7.5, CBP 
is including the cross-reference to part 177 in Sec.  182.0 to clarify 
that part 177 applies to advance rulings related to USMCA transactions. 
CBP believes this clarification is needed since Sec.  177.0 
specifically excludes advance rulings related to NAFTA transactions 
from the scope of part 177. CBP wishes to further clarify that while 
producers are not explicitly granted the right to request a ruling 
pursuant to Sec.  177.1(c), CBP considers a Canadian or Mexican 
producer of a good imported into the United States under the USMCA, a 
Canadian or Mexican producer of a material that is used in the 
production of a good imported into the United States under the USMCA, 
and a Canadian or Mexican exporter of a material used in the production 
of a good under the USMCA to be persons with a direct and demonstrable 
interest who have the right to request a ruling pursuant to Sec.  
177.1(c), in accordance with USMCA Article 7.5.2. Please note that CBP 
publishes its advance rulings on the Customs Rulings Online Search 
System (CROSS), available on the publicly accessible website, https://rulings.cbp.gov/home.
2. Definitions
    Section 182.1 sets forth the general definitions applicable to part 
182. Chapter 1 of the USMCA sets forth the general and country-specific 
definitions to be applied throughout the USMCA, unless otherwise noted. 
Since Sec.  182.1 contains the definitions of the common terms that are 
used in multiple places in part 182, it includes definitions from 19 
U.S.C. 4502, several Chapters of the USMCA, and the Uniform Regulations 
regarding Rules of Origin set forth in Appendix A to part 182. General 
definitions containing references to specific HTSUS subheadings, if 
these subheadings were trilaterally negotiated and agreed upon under 
the USMCA, contain additional language clarifying that the subheadings 
that apply are those HTSUS subheadings that were in effect on July 1, 
2020, the date that the USMCA entered into force. Additional 
definitions that are not common terms throughout part 182 and are 
applicable

[[Page 6470]]

only to the Uniform Regulations regarding Rules of Origin are set forth 
in Appendix A to part 182.

Subpart E--Restrictions on Drawback and Duty-Deferral Programs

    Subpart E of part 182 (19 CFR 182.41-182.55) sets forth the 
provisions regarding drawback claims and duty-deferral programs, as 
provided for under Article 2.5 of the USMCA, and applies to any good 
that is a ``good subject to USMCA drawback'' within the meaning of 19 
U.S.C. 4534. Drawback, as generally provided for in section 313 of the 
Tariff Act of 1930, as amended (19 U.S.C. 1313), is the refund or 
remission, in whole or in part, of certain duties, taxes, and fees 
imposed and paid under Federal law upon entry or importation. Article 
1.5 of the USMCA defines a ``duty deferral program'' to include 
measures such as those governing foreign trade zones, temporary 
importations under bond, bonded warehouses, ``maquiladoras,'' and 
inward processing programs.
    The requirements and procedures set forth in subpart E for USMCA 
drawback are in addition to the general definitions, requirements, and 
procedures for drawback claims set forth in part 190 of title 19 of the 
CFR, unless otherwise specified. Further, the requirements and 
procedures of subpart E are also in addition to those for manipulation, 
manufacturing, and smelting and refining warehouses contained in parts 
19 and 144, for FTZs under part 146, and for temporary importations 
under bond in part 10.
    CBP previously promulgated a significant portion of the USMCA 
implementing regulations for drawback and duty-deferral programs in 
subpart E of part 182 of title 19 of the CFR. Sections 182.41, 182.46, 
182.49, 182.51, 182.52, and 182.54 in subpart E are unchanged from the 
prior rulemaking. In this document, CBP is revising Sec.  182.42(c) to 
provide clarification regarding the USMCA requirements. The other 
specific regulatory amendments provided for in this document are, for 
the most part, the result of subsequent policy determinations and 
supplement the provisions in subpart E that were added in the prior 
rulemaking. Accordingly, CBP is also revising Sec. Sec.  182.43, 
182.45(c), 182.47, as appropriate, revising Sec.  182.50(b), which was 
reserved in the prior rulemaking, and adding a new Sec.  182.44(h) and 
(i). CBP is also adding Sec. Sec.  182.48, Person entitled to receive 
drawback, and 182.53, Collection and waiver or reduction of duty under 
duty-deferral programs, to subpart E, which were not previously 
reserved in the prior rulemaking. Sections 182.48 and 182.53 generally 
follow the corresponding regulation in part 181, with some conforming 
and nomenclature changes made. However, with respect to the FTZ 
provisions in Sec.  182.53, it should be noted that the USMCA 
Implementation Act did not include an exception to the rules of origin 
for goods produced in an FTZ, which was included for NAFTA in section 
202 of the NAFTA Implementation Act and prevented a claim of U.S. 
origin on non-originating materials used in the production of a good 
when those goods are produced in an FTZ. This exception was enacted in 
subsequent legislation, the Appropriations Act, which was retroactive 
to July 1, 2020. Section 601(b) of Title VI of the Appropriations Act 
amended section 202 of the USMCA Implementation Act (19 U.S.C. 
4531(c)(3)) to prohibit, under USMCA, producers from using non-
originating materials in an FTZ manufacturing to claim U.S. origin.
    Finally, CBP is adding a new section to subpart E, which was also 
not previously reserved in the prior rulemaking and for which there is 
no corresponding regulation in part 181. Section 182.55, Goods exported 
from duty-deferral programs that are not subject to USMCA drawback 
within the meaning of 19 U.S.C. 4534, is being added to subpart E to 
provide clarity regarding the timing of claims for when the importer or 
its agent is claiming that a good is not subject to USMCA drawback 
within the meaning of 19 U.S.C. 4534.

Subpart G--Origin Verifications and Determinations

    Subpart G of part 182 (19 CFR 182.71-182.76) contains the general 
USMCA verification and determination of origin provisions. These 
regulations were promulgated during a prior rulemaking. CBP is amending 
certain sections of subpart G in this document to add the relevant 
cross-references for textile and apparel goods and for automotive 
goods.
    Section 182.71 contains the applicability provision for subpart G. 
CBP is adding two sentences to Sec.  182.71 to clarify that there are 
additional verification requirements and procedures applicable to 
automotive goods in subpart I and alternative verification means and 
procedures for textile and apparel goods in Sec.  182.83 of subpart H.
    Section 182.75 sets forth the determination of origin provisions. 
Specifically, Sec.  182.75(c) contains the provisions that apply to 
negative determinations of origin when CBP intends to deny USMCA 
preferential tariff treatment. Paragraph (c)(2) contains the reasons 
that CBP may deny USMCA preferential tariff treatment as set forth in 
USMCA Article 5.10.2. CBP is amending Sec.  182.75(c)(2) to reflect the 
application of the USMCA Article 5.10.2 reasons for denial related to 
textile and apparel goods and automotive goods to ensure that paragraph 
(c)(2) contains a comprehensive list of the reasons for denial with the 
appropriate cross-references.
    Section 182.75(c)(4) describes when CBP will issue a negative 
determination of origin and the determination of origin contents. 
Currently, Sec.  182.75(c)(4) states that, in addition to the contents 
of the determination of origin set forth in Sec.  182.75(a), unless CBP 
determines that there is a pattern of conduct of false or unsupported 
representations pursuant to Sec.  182.76, a negative determination of 
origin will provide the exporter or producer with the information 
necessary to file a protest as provided for in 19 U.S.C. 1514(e) and 
part 174. CBP is revising Sec.  182.75(c)(4) to remove the language 
``unless CBP determines that a pattern of conduct of false or 
unsupported representations pursuant to Sec.  182.76'' to fulfill our 
commitment to USMCA Article 7.15. As stated above, Article 7.15 of the 
USMCA addresses the review and appeal of customs determinations. 
Article 7.15.2 provides, in part, that the USMCA country must provide 
each person to whom it issues an administrative determination with 
access to information on how to request reviews and appeals. Thus, to 
fulfill this USMCA commitment, CBP must provide all exporters and 
producers, who are issued a negative determination of origin, with the 
information necessary to file a protest. In practice, CBP has already 
been providing all importers, exporters, and producers issued a 
negative determination of origin with this information necessary to 
file a protest since the USMCA entered into force.
    It is important to note that, as discussed above, while CBP will 
issue a determination of origin to USMCA exporters and producers of 
textile or apparel goods subject to TPLs as required under Sec.  
182.75(b), these exporters and producers may not file a protest of this 
determination of origin under part 174, in accordance with 19 U.S.C. 
1514(c)(2)(E), unless the exporter or producer is also acting as the 
importer of record. Accordingly, since 19 U.S.C. 1514(e) only 
authorizes CBP to disclose the entry information necessary to file a 
protest to the exporters or producers referred to in 19 U.S.C. 
1514(c)(2)(E), CBP will not

[[Page 6471]]

provide exporters or producers of textile or apparel goods subject to 
TPLs with the information necessary to file a protest when issuing a 
negative determination under Sec.  182.75(c)(4).

Subpart H--Textile and Apparel Goods

    Subpart H of part 182 (19 CFR 182.81-182.83) contains the USMCA 
textile and apparel good provisions, as provided for in USMCA Chapter 
6, including the TPL provisions and the site visit provisions. The 
applicable definitions, including the definition of a textile or 
apparel good, are set forth in Sec.  182.1, which is the general 
definitions section of part 182.
1. Tariff Preference Level
    A TPL is defined in Sec.  182.1 to mean a quantitative limit for 
certain non-originating textile or apparel goods that may be entitled 
to preferential tariff treatment based on the goods meeting the 
requirements set forth in Sec.  182.82. Section 182.82, Claim for 
preferential tariff treatment under tariff preference level, contains 
the TPL requirements and procedures. These regulations are in 
accordance with USMCA Annex 6-A, which as explained in detail above in 
Section II.B. of this IFR, governs the USMCA preferential tariff 
treatment of eligible non-originating textile or apparel goods subject 
to a TPL. As these goods are non-originating, the rules of origin set 
forth in General Note 11, HTSUS, and Appendix A to part 182 do not 
apply.
    While a claim for USMCA preferential tariff treatment is typically 
made pursuant to Sec.  182.11(b), a claim for preferential tariff 
treatment for textile or apparel goods subject to a TPL is made 
pursuant to Sec.  182.82. Paragraph (a) of Sec.  182.82, Basis of 
claim, sets forth the requirements that must be met for an importer to 
make a claim for USMCA preferential tariff treatment, including an 
exemption from the merchandise processing fee, for textile or apparel 
goods subject to a TPL, including that the goods be eligible for a TPL 
claim, that the annual quantitative limit has not been reached for the 
subject TPL, and that the claim is based on a certificate of 
eligibility. Paragraph (b), Goods eligible for TPL claims, lists the 
specific types of textile or apparel goods that are eligible for TPLs. 
These eligible goods and the quantitative limits that are eligible for 
TPLs are contained in U.S. Note 11, Subchapter XXIII, Chapter 98, 
HTSUS. Paragraph (c), Making a TPL claim, provides the procedure that 
an importer must follow to properly file a claim for USMCA preferential 
tariff treatment. A TPL claim must be filed as an entry type ``02'' as 
it is subject to quantitative restraints.
    As a TPL claim is for non-originating textile or apparel goods, an 
importer who makes a claim for preferential tariff treatment, pursuant 
to Sec.  182.82(c), is not required to submit a certification of 
origin, as otherwise required under Sec.  182.12. Instead, an importer 
who makes a claim for preferential tariff treatment subject to a TPL, 
pursuant to Sec.  182.82(c), must submit, at the request of CBP, a 
certificate of eligibility issued by an authorized official of the 
government of Mexico or Canada. The number assigned to the certificate 
of eligibility is required to be submitted to CBP when the TPL claim is 
filed in accordance with the procedures in paragraph (c). Paragraph 
(d), Certificate of eligibility, sets forth the requirements and 
procedures for submitting the certificate of eligibility.
    Pursuant to USMCA Annex 6-A, Section C, an importer may make a 
claim for preferential tariff treatment of a good under a TPL at least 
one year after the good is imported, if the annual quantitative limit 
has not been reached and the other TPL requirements are met. While 
post-importation claims for USMCA preferential tariff treatment are 
otherwise filed in accordance with 19 U.S.C. 1520(d) and subpart D of 
part 182, post-importation claims for preferential tariff treatment for 
textile or apparel goods subject to a TPL are not. Under 19 U.S.C. 
1520(d), CBP may reliquidate an entry to refund any excess duties paid 
at importation on a good qualifying for preferential tariff treatment 
under the rules of origin for certain enumerated trade agreements for 
which a claim for preferential tariff treatment was not filed at 
importation. Since goods that qualify for preferential tariff treatment 
subject to a TPL do not qualify as originating under the rules of 
origin, there is no statutory authority to apply 19 U.S.C. 1520(d) to 
these claims. Accordingly, paragraph (e), Post-importation claims, sets 
forth the right to make a post-importation claim for preferential 
tariff treatment within one year after the date of importation of the 
good pursuant to the filing procedures created for these post-
importation claims in paragraph (e)(2). The post-importation claim must 
be filed with a certificate of eligibility dated the same calendar year 
that the textile or apparel goods were imported. Post-importation 
claims will not be granted if the quantitative limits for the subject 
TPL for the year the entry summary, or equivalent documentation, is 
accepted by CBP, have already been reached.
    An importer making a TPL claim for USMCA preferential tariff 
treatment under Sec.  182.82(c) must adhere to the recordkeeping 
requirements in Sec.  182.15 and part 163. Section 182.15, Maintenance 
of records, requires an importer claiming USMCA preferential tariff 
treatment to maintain all records and documents that demonstrate that 
the good qualifies for preferential tariff treatment, for a minimum of 
five years from the date of importation of the good. For a TPL claim, 
these records and documents would include a copy of the certificate of 
eligibility.
    Paragraph (f), Denial of preferential tariff treatment, sets forth 
the circumstances when CBP may deny preferential tariff treatment that 
are only applicable to TPLs. Additional reasons CBP may deny preference 
are set forth in Sec.  182.75(c)(2). Paragraph (g), Verifications, 
notes that CBP will conduct verifications of goods subject to TPLs 
using the same verification means and procedures that CBP has the 
discretion to utilize for all textile and apparel goods. Specifically, 
CBP has the discretion to choose to conduct a verification of textile 
or apparel goods subject to TPLs pursuant to either the general 
verification means and procedures set forth in part 182, subpart G, or 
pursuant to the site visit procedures in Sec.  182.83 of subpart H.
2. Textile and Apparel Goods Verification Procedures
    Section 182.83, Verifications of textile and apparel goods, 
contains the requirements and procedures for a textile or apparel good 
verification conducted pursuant to a USMCA Article 6.6 site visit. As 
described in more detail above in Section II.B. of this IFR, for 
textile and apparel goods, CBP has two alternative means of conducting 
a verification. CBP may conduct a verification for purposes of 
determining whether a textile and apparel good qualifies for 
preferential tariff treatment using the USMCA Article 5.9 general 
verification means described in Sec.  182.72(a) and the procedures set 
forth in subpart G of part 182. Alternatively, as described in Sec.  
182.83(a), CBP may conduct a site visit to the premises of the exporter 
or producer of textile or apparel goods in Mexico or Canada for the 
purpose of determining that a textile or apparel good qualifies for 
preferential tariff treatment or that customs offenses with regard to a 
textile or apparel good are occurring or have occurred. The term 
``customs offenses'' is defined in Sec.  182.1, which provides the 
general definitions that are applicable to part 182. Paragraph (b) of 
Sec.  182.83, Verification of a material during a site visit, allows 
for the verification of a material, that is used in the production

[[Page 6472]]

of a textile or apparel good, during a site visit.
    Paragraph (c), Site visit procedures, sets forth the site visit 
procedures applicable to the exporter or producer in Mexico or Canada 
whose premises CBP is going to visit during the site visit. Pursuant to 
USMCA Article 6.6, while CBP must notify the Canadian or Mexican 
customs administration of CBP's intention to conduct the visit prior to 
conducting a site visit in Canada or Mexico, CBP is not required to 
notify the exporter or producer whose premises are going to be visited 
prior to conducting the site visit if doing so will undermine the 
effectiveness of the verification. Paragraph (c) provides the consent 
requirements for the site visit, what happens when the exporter, 
producer, or person having the capacity to consent on behalf of the 
exporter or producer is not able to receive CBP on the initial date of 
the site visit, and the records and facilities that CBP may request 
access to during the site visit.
    Paragraph (d), Right to request report of the site visit, provides 
the circumstances under which the exporter or producer may request that 
CBP send its relevant findings from the written report of the results 
of the site visit upon completion of the site visit. Paragraph (e), 
Denial of preferential tariff treatment, states the reasons that CBP 
may deny preferential tariff treatment to any textile or apparel good 
imported or produced by the person that is the subject of the 
verification.
    Paragraph (f), Intent to deny and determination of origin, states 
that, after CBP has completed a site visit pursuant to Sec.  182.83, 
CBP will issue a determination of origin in accordance with the 
requirements and procedures set forth in Sec.  182.75, with the 
exception of Sec.  182.75(c)(1). CBP is extending the notification of 
the intent to deny to more parties than is required under USMCA Article 
6.6.9. Specifically, in accordance with Sec.  182.75(c)(3), CBP will 
send an intent to deny to the importer, and the exporter or producer 
who is subject to the verification and either completed the 
certification of origin or provided information directly to CBP during 
the verification, subject to the confidentiality provisions in Sec.  
182.2. By cross-referencing the procedures set forth in Sec.  182.75 in 
subpart H, including the intent to deny, CBP is ensuring that 
consistent determination of origin procedures and notifications are 
applied to all textile and apparel good verifications regardless of 
whether CBP chooses to conduct the verification pursuant to the USMCA 
Article 5.9 general verification procedures in subpart G or the site 
visit procedures in Sec.  182.83. Paragraph (g), Pattern of conduct for 
textile or apparel goods, provides that CBP may withhold preferential 
tariff treatment to identical textile or apparel goods imported or 
produced by an exporter or producer when CBP determines that a pattern 
of conduct of false or unsupported representations exists.

Subpart I--Automotive Goods

    Subpart I of part 182 (19 CFR 182.91-182.107) contains the USMCA 
automotive good provisions, as provided for in USMCA Chapter 4 and the 
Uniform Regulations regarding Rules of Origin. The applicable 
definitions, including the definitions of automotive good, covered 
vehicle, passenger vehicle, light truck, and heavy truck, are set forth 
in Sec.  182.1, which is the general definitions section of part 182. 
Subpart I of part 182 applies to all automotive goods, including new 
and used covered vehicles, entered for consumption, or withdrawn from 
warehouse for consumption, on or after July 1, 2020. As noted in the 
applicability section of subpart I, Sec.  182.91, covered vehicles 
claiming USMCA preferential tariff treatment must also meet the 
applicable requirements and follow the applicable procedures contained 
throughout part 182.
    An importer may only make a claim for USMCA preferential tariff 
treatment if the covered vehicle complies with the USMCA rules of 
origin, including the product-specific rules of origin, and the 
additional requirements and procedures set forth in subpart I. Section 
182.92, Claim for preferential tariff treatment for covered vehicles, 
specifies additional requirements that a covered vehicle must meet to 
make a claim for USMCA preferential tariff treatment, including the LVC 
requirement in Sec.  182.93, the steel purchasing and aluminum 
purchasing requirements in Sec.  182.94, and certifications attesting 
that the vehicle producer has complied with the LVC, steel purchasing, 
and aluminum purchasing certification requirements under Sec. Sec.  
182.95, 182.96, and 182.97. When making a claim for preferential tariff 
treatment under Sec.  182.11(b) or Sec.  182.32, an importer must also 
submit the unique identifier assigned by CBP for each of the LVC, steel 
purchasing, and aluminum purchasing certifications that form the basis 
for the covered vehicle's eligibility for preferential tariff 
treatment. 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 preferential tariff treatment and to demonstrate 
compliance with the vehicle certification requirements.
1. LVC, Steel Purchasing, and Aluminum Purchasing Requirements and 
Certifications
    Sections 182.93, Labor value content (LVC) requirement, and 182.94, 
Steel purchasing and aluminum purchasing requirements, specify the 
requirements that must be met in General Note 11, HTSUS, and Appendix A 
to part 182, the applicable requirements if the producer is subject to 
an alternative staging regime, the calculation methods, and the choice 
of calculation periods. With respect to the LVC requirement, DOL is 
responsible for implementing and administering the high-wage components 
of the LVC requirement. The DOL regulations are contained in 29 CFR 
part 810. The producer of a covered vehicle must use the rules set 
forth in the DOL regulations, including for high-wage material and 
manufacturing expenditures, high-wage technology expenditures, and 
high-wage assembly expenditures, to properly calculate and determine 
the high-wage components of the LVC requirement. CBP determines whether 
a covered vehicle meets the LVC requirement generally based on an 
analysis of the high-wage components by DOL and CBP's determination of 
the components of the LVC requirement not governed by DOL, including 
the valuation and other components of the LVC calculation. CBP has sole 
authority to determine whether a covered vehicle qualifies for USMCA 
preferential tariff treatment.
    Sections 182.95, Labor value content (LVC) certification, 182.96, 
Steel purchasing certification, and 182.97, Aluminum purchasing 
certification, contain the respective vehicle certification provisions. 
A covered vehicle is eligible for USMCA preferential tariff treatment 
only if the producer of the covered vehicle has certified to CBP that 
the production of the vehicle by the producer meets the LVC 
requirement, as described in Sec.  182.93, the steel purchasing 
requirement, as described in Sec.  182.94, and the aluminum purchasing 
requirement, as described in Sec.  182.94. Unless specifically exempt 
under an alternative staging regime, all three vehicle certifications 
must be submitted to CBP and considered properly filed for a covered 
vehicle to qualify for USMCA preferential tariff treatment. The 
producer of the covered vehicle must have information in its possession 
that proves the accuracy of the calculations relied on for the 
certifications.

[[Page 6473]]

    Paragraph (c) of Sec. Sec.  182.95, 182.96, and 182.97 contains the 
data elements for each of the vehicle certifications. With respect to 
Sec.  182.95(c)(1), CBP wishes to clarify that the alternative unique 
identification number of the producer's choosing must be a publicly 
available identifier, such as the examples provided in Sec.  
182.95(c)(1) and may not be an identification number generated 
internally by the producer's organization, such as a business partner 
ID or supplier code.
    CBP has added several data elements in Sec. Sec.  182.95(c), 
182.96(c), and 182.97(c), in addition to the list of data elements 
contained in the U.S. Implementing Instructions issued on June 30, 2020 
(and in the DOL regulations at 29 CFR part 810), for each of the 
vehicle certifications to ensure that CBP has all the information 
needed to establish that the producer meets the LVC, steel purchasing, 
and aluminum purchasing requirements. The data elements that have been 
added to the CBP regulations for the steel purchasing and aluminum 
purchasing certifications are: any Manufacturers Identification Code 
(MID), Federal Employer Identification Number (EIN), or Importer of 
Record number (IOR) associated with the producer; the vehicle category 
for which the steel or aluminum purchases are calculated, as specified 
in section 17(9) of Appendix A to part 182; and the name and address 
for each steel or aluminum producer, service center, or distributor 
relied upon in calculating the total value of purchases of steel or 
aluminum that qualify as originating goods and any MID, EIN, or IOR 
numbers associated with those entities. These enumerated data elements 
are necessary to clarify information in the certifications and consist 
of information that the certifier, who is completing the vehicle 
certification, must already have to certify compliance with the steel 
purchasing and aluminum purchasing requirements. CBP has also added LVC 
certification data elements to further align the LVC certification with 
the steel purchasing and aluminum purchasing requirements, to clarify 
information in the certification, and to collect information that the 
vehicle producer already has when making the underlying LVC 
calculation. The added LVC certification data elements are: the name, 
title, and contact information of the certifier (the person completing 
the LVC certification); the LVC calculation used to determine that the 
production of the covered vehicles meets the LVC requirement in General 
Note 11(k)(vi), HTSUS, 19 CFR 182.93(c), and Appendix A to part 182 
including the resulting LVC percentage; and the authorized certifier's 
signature, date signed, and certifying statement. An LVC certification 
submitted to CBP must include all the information in Sec.  182.95(c) 
and the DOL regulations at 29 CFR part 810.
    Any vehicle certification submitted to CBP pursuant to Sec.  
182.95(f), 182.96(f), or 182.97(f) on or after the delayed compliance 
date of May 19, 2025 must contain the full list of data elements in 
Sec.  182.95(c), 182.96(c), or 182.97(c) and the DOL regulations at 29 
CFR part 810, with vehicle certifications for covered vehicles subject 
to an exemption or different requirements under an alternative staging 
regime required to comply with the requirements set forth in Sec.  
182.95(b), 182.96(b), or 182.97(b), and Sec.  182.106(c). Revised 
vehicle certifications resubmitted to CBP under the procedures set 
forth in Sec.  182.95(i), 182.96(i), or 182.97(i), which were initially 
submitted to CBP prior to the IFR's delayed compliance date, are not 
required to contain the full list of data elements. Furthermore, 
vehicle producers are not required to request a modification of a 
properly filed certification submitted prior to the IFR's delayed 
compliance date, under Sec.  182.95(k), 182.96(k), or 182.97(k), solely 
due to the absence of the full list of data elements in Sec.  
182.95(c), 182.96(c), or 182.97(c). However, any new, modified vehicle 
certification that the producer submits to CBP on or after the IFR's 
delayed compliance date, pursuant to Sec.  182.95(k), 182.96(k), or 
182.97(k), must include all the data elements in Sec.  182.95(c), 
182.96(c), or 182.97(c) for the entirety of the certification period, 
with vehicle certifications for covered vehicles subject to an 
exemption or different requirements under an alternative staging regime 
required to comply with the requirements set forth in Sec.  182.95(b), 
182.96(b), or 182.97(b) and Sec.  182.106(c). Please see below for 
additional information regarding the resubmission and modification 
process.
    In order to grant the trade additional time to adjust its business 
practices to comply with the new USMCA automotive good requirements, 
CBP, in accordance with its USMCA Phase I Implementation Policy, 
allowed vehicle producers until December 31, 2020 to submit the 
required vehicle certifications needed to receive preferential tariff 
treatment beginning July 1, 2020. However, following this initial 
submission, the submission date for vehicle certifications is based on 
each producer's chosen calculation period(s) under Sec.  182.93(d) and 
(e) or Sec.  182.94(c) and (d). Pursuant to Sec. Sec.  182.95(f), 
182.96(f), and 182.97(f), for any vehicle certification submitted to 
CBP on or after the delayed compliance date of May 19, 2025, the 
producer of the covered vehicle must submit the LVC, steel purchasing, 
and aluminum purchasing certifications to CBP through an authorized 
electronic data interchange system or other specified means at least 90 
days prior to the beginning of the certification period. Vehicle 
certifications submitted to CBP prior to the IFR's delayed compliance 
date are not required to comply with the 90-day submission requirement. 
The IFR's delayed compliance date allows vehicle producers sufficient 
time to timely submit the vehicle certifications at least 90 days prior 
to the beginning of the certification period and to include the 
additional required data elements.
    It is important to note that the calculation period does not 
necessarily align with the certification period. The calculation period 
is the period over which the LVC requirement was calculated or the 
qualifying steel or aluminum purchases were made for a given vehicle 
category. In contrast, the certification period is the period over 
which the vehicle certification is effective for the vehicles produced 
(or exported, if applicable) within that period for a given vehicle 
category. Since the certification period determines which vehicles are 
eligible for USMCA preferential tariff treatment, the certification 
period is the relevant period for determining when the vehicle producer 
must submit the vehicle certification. Different certification periods 
are applicable depending on the calculation period that the vehicle 
producer selects to calculate the LVC, steel purchasing, and aluminum 
purchasing requirements for U.S. imports. The producer may select from 
several different calculation periods, such as the previous fiscal year 
of the producer, previous calendar year, and the other calculation 
periods set forth in Sec.  182.93(d) and (e) or Sec.  182.94(c) and 
(d). If the producer relies on a calculation period based on its fiscal 
year, the producer must indicate in the vehicle certification that the 
calculation period corresponds to its fiscal year. A vehicle producer 
may choose different calculation periods for its LVC calculation, its 
steel purchasing calculation and its aluminum purchasing calculation. 
Paragraph (j) of Sec. Sec.  182.95, 182.96, and 182.97 sets forth the 
applicable certification periods based on the calculation period that 
the producer chooses.
    The producer of the covered vehicle must submit the LVC, steel 
purchasing, and aluminum purchasing certifications

[[Page 6474]]

to CBP through an authorized electronic data interchange system or 
other specified means. See Sec. Sec.  182.95(f), 182.96(f), and 
182.97(f). Details on how to submit the certifications can be found at 
the CBP website at https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA and https://trade.cbp.gov/USMCA/s/. Currently, vehicle producers can file vehicle certifications 
through a portal on the CBP website at https://trade.cbp.gov/USMCA/s/automotive-certification-request. If the USMCA portal is down, 
certifications can be emailed to [email protected]. CBP will 
notify the public on our website at https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA and https://trade.cbp.gov/USMCA/s/, and update the regulations, as needed, if the 
means of submission are updated at a later date.
    After the producer submits the LVC, steel purchasing, and aluminum 
purchasing certification(s) to CBP, the certification(s) will be 
reviewed for omissions and errors. An omission would include, for 
example, the vehicle producer failing to include with its vehicle 
certification one of the data elements listed in Sec.  182.95(c), 
182.96(c), or 182.97(c). An error would include, for example, a vehicle 
certification that is based on the wrong type of information, such as 
calculating the producer's purchases of steel over a calculation period 
not provided for in Sec.  182.94(c) and (d). For the LVC certification, 
in accordance with 19 U.S.C. 4532(c)(1)(B)(i), the Secretary of Labor, 
in consultation with the Commissioner of CBP, will ensure that the LVC 
certification does not contain omissions or errors before the 
certification is considered properly filed. CBP is solely responsible 
for ensuring that the steel purchasing and aluminum purchasing 
certifications do not contain omissions or errors before the 
certification is considered properly filed. See 19 U.S.C. 
4532(c)(2)(B)(i).
    Paragraph (g) of Sec. Sec.  182.95, 182.96, and 182.97 details the 
review process for omissions and errors. If the vehicle certification 
is determined to be properly filed, the certification is effective for 
the certification period specified in paragraph (j). Upon receipt of a 
notification that an omission or error was discovered, the producer 
will have five business days to submit to CBP a revised vehicle 
certification, correcting the error or omission that CBP or DOL 
discovered or providing an explanation of why the producer believes 
that the certification contains no omissions or errors. The submission 
of this revised certification is an opportunity for the producer to 
correct the discovered error or omission or provide an explanation 
before a determination is made regarding whether the certification is 
properly filed. If the revised certification contains an omission or 
error or if no revised certification is submitted within the prescribed 
timeframe, CBP will provide written or electronic notification to the 
producer of the covered vehicle that the certification was not properly 
filed.
    While the vehicle certification is being reviewed for omissions and 
errors, an importer may make a claim for USMCA preferential tariff 
treatment under Sec.  182.11(b) or Sec.  182.32 for such covered 
vehicles until the producer has received notice from CBP that the 
certification that forms the basis for the covered vehicle's 
eligibility for preferential tariff treatment has not been properly 
filed. As described in the U.S. Implementing Instructions, at this 
time, the review process for omissions and errors may take up to 120 
days. Consequently, this provision facilitates trade by allowing 
importers to make claims for USMCA preferential tariff treatment while 
CBP and DOL, if applicable, are still reviewing the vehicle 
certification(s). If the producer receives notice that a certification 
has not been properly filed, the producer must send a notification, 
with a copy to CBP, to any known importers of the covered vehicle, of 
that determination within 30 days of receipt of the CBP notice. See 19 
CFR 182.95(h), 182.96(h), and 182.97(h). If a vehicle certification is 
not properly filed, an importer, upon receipt of notification from the 
producer, must promptly and voluntarily correct any claims for covered 
vehicles for which that vehicle certification formed the basis for the 
vehicle's eligibility for preferential tariff treatment, pay any duties 
that may be due, and submit the required statement pursuant to Sec.  
182.11(c).
    Within 10 business days of receiving the notification from CBP that 
the vehicle certification was determined to be not properly filed under 
paragraph (g), the producer may resubmit the certification in 
accordance with Sec. Sec.  182.95(i), 182.96(i), and 182.97(i). This 
resubmission process allows the vehicle producer, after the initial 
vehicle certification was determined to be not properly filed, to 
submit a new vehicle certification for the same category and same 
calculation period. This new certification would undergo the same 
review for omissions and errors process that the initial certification 
underwent, as described in paragraph (g). The producer may resubmit a 
vehicle certification under Sec. Sec.  182.95(i), 182.96(i), and 
182.97(i) for the same category and same calculation period up to two 
times per certification period. During the resubmission period, after 
the vehicle certification has been determined to not be properly filed, 
an importer does not have a reasonable basis for claiming that the 
covered vehicle meets the product-specific rules of origin, and thus, 
an importer should not submit claims for USMCA preferential tariff 
treatment under Sec.  182.11(b) or Sec.  182.32. The importer may only 
submit a claim for USMCA preferential tariff treatment after the 
producer receives notice that the resubmitted certification that forms 
the basis for the covered vehicle's eligibility for preferential tariff 
treatment has been properly filed. An importer may make a post-
importation claim, if it qualifies, under Sec.  182.32, for covered 
vehicles entered for consumption, or withdrawn from warehouse for 
consumption, during the vehicle certification resubmission period when 
the certifications that form the basis for the covered vehicle's 
eligibility for preferential tariff treatment have subsequently been 
determined to be properly filed.
    During the certification period, if there are any material changes 
to the information contained in the vehicle certification that would 
affect its validity, for example, changes to the vehicle certification 
period, vehicle category chosen, or the calculation period of LVC 
requirement and/or steel or aluminum purchases, the producer must 
request a modification of the properly filed certification pursuant to 
Sec.  182.95(k), 182.96(k), or 182.97(k). This modification process, as 
described in paragraph (k), only applies to vehicle certifications that 
have been previously considered properly filed. If CBP determines that 
the new, modified certification is properly filed under paragraph (g) 
or (i), the new certification supersedes the former certification and 
the new certification is effective for the certification period 
specified in paragraph (j). Accordingly, the new, modified vehicle 
certification that the producer submits to CBP must include all the 
applicable information in Sec. Sec.  182.95(c), 182.96(c), and 
182.97(c) for the entirety of the certification period and should not 
be limited to the modification. Additionally, the producer must submit 
a list of the material changes to the information contained in the 
certification and an explanation as to why the modification is 
necessary with respect to the validity

[[Page 6475]]

of the certification. Within 30 days of receiving notice that the new 
certification has been properly filed, the producer must send a 
notification, with a copy to CBP, to any known importers of that 
determination.
    Section 182.98, Appeal of the determination that LVC, steel 
purchasing, or aluminum purchasing certification is not properly filed, 
sets forth the appeals process, following the review of the second 
resubmission of the vehicle certification pursuant to Sec. Sec.  
182.95(i)(2), 182.96(i)(2), and 182.97(i)(2), for the vehicle producer 
to appeal a determination that the LVC, steel purchasing, or aluminum 
purchasing certification is not properly filed. While CBP believes that 
it is unlikely that a vehicle producer will need to resubmit a vehicle 
certification twice and file an appeal, CBP is establishing this 
appeals process, pursuant to its general USMCA rulemaking authority in 
19 U.S.C. 4535(a), to provide a recourse for appeal and a means for a 
vehicle producer to submit arguments to CBP explaining why it believes 
the vehicle certification should be considered properly filed. Once it 
has been determined that a vehicle certification has not been properly 
filed, the covered vehicle is not considered an originating good under 
the USMCA, and the importer may not make a claim for USMCA preferential 
tariff treatment. Given that the appeal of a determination that a 
vehicle certification is not properly filed is not a matter subject to 
protest under 19 U.S.C. 1514(a)(1) through (a)(7), neither the vehicle 
producer nor the importer may file a protest under 19 U.S.C. 1514 or 
part 174, if a claim for USMCA preferential tariff treatment of the 
covered vehicle has not yet been made when the determination is made. 
Since there is no existing recourse enabling the vehicle producer or 
the importer to appeal a determination that the vehicle certification 
is not properly filed in this scenario, CBP has established this new 
appeals process, which is limited to vehicle certifications. Section 
182.98 contains the scope of the appeal, the procedures, and the 
applicable timelines. The appeal cannot be filed until both 
opportunities for resubmission of a vehicle certification pursuant to 
Sec. Sec.  182.95(i)(2), 182.96(i)(2), and 182.97(i)(2) have been 
completed. When an appeal involves DOL's review of the LVC 
certification for omissions and errors, CBP will coordinate with DOL 
regarding the appeal, as necessary. An importer of the covered vehicle 
should not submit claims for USMCA preferential tariff treatment under 
Sec.  182.11(b) or Sec.  182.32 for covered vehicles until the producer 
has received notice that the certification that forms the basis for the 
covered vehicle's eligibility for preferential tariff treatment has 
been properly filed. At that time, if the vehicle certifications have 
been determined to be properly filed, the importer may make a post-
importation claim, if it qualifies, under Sec.  182.32.
2. Motor Vehicle Averaging
    For the purpose of calculating the RVC or LVC of a covered vehicle, 
the producer of the vehicle may elect to average the RVC or LVC 
calculation. These averaging elections are described in Sec.  182.100, 
Motor vehicle averaging elections. To elect RVC averaging, the producer 
must comply with all the RVC averaging provisions set forth in section 
16 of Appendix A of part 182, including the averaging categories and 
averaging periods. To elect LVC averaging, the vehicle producer must 
comply with all the LVC averaging provisions set forth in section 18 of 
Appendix A of part 182, including the averaging categories. The LVC 
averaging periods are set forth in Sec.  182.93(d) and (e). A producer 
who elects to average its RVC or LVC calculation must separately 
average covered vehicles that are subject to an alternative staging 
regime. The producer may not average its RVC or LVC across covered 
vehicles that are subject to an alternative staging regime and covered 
vehicles that are not subject to an alternative staging regime.
    When filing an RVC averaging election, the averaging election must 
include the required data elements in Sec.  182.100(d). CBP is 
discontinuing use of the motor vehicle averaging election form, CBP 
Form 447, which was required when filing an RVC averaging election 
under NAFTA, and instead allowing the RVC averaging election data 
elements to be provided to CBP in a free format. The LVC averaging 
election is a new election under USMCA. When filing an LVC averaging 
election, the averaging election must include the required data 
elements in Sec.  182.100(e). Pursuant to Sec.  182.100(f), a vehicle 
producer who files an RVC or LVC averaging election must submit, at the 
request of CBP, a cost submission reflecting the actual costs incurred 
in the production of the category of motor vehicles for which the 
election was made.
    A producer of a covered vehicle who elects to average its RVC or 
LVC calculation must file an averaging election with CBP pursuant to 
Sec.  182.100(c) at least 10 days before the first day of the 
producer's fiscal year during which the vehicles will be exported, or 
such shorter period as CBP may accept. The producer may request a 
shorter period by contacting CBP via email. Details on how to submit 
the averaging elections can be found at the CBP website at https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA and https://trade.cbp.gov/USMCA/s/. Currently, vehicle 
producers can file the RVC or LVC averaging elections through a portal 
on the CBP website at https://trade.cbp.gov/USMCA/s/automotive-certification-request. If the USMCA portal is down, the averaging 
elections can be emailed to [email protected]. CBP will notify 
the public on our website at https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA, https://trade.cbp.gov/USMCA/s/, and update the regulations, as needed, if the means of 
submission are updated at a later date.
    Section 182.101, Averaging for other automotive goods, provides the 
applicable provisions in Appendix A of part 182 governing the averaging 
of automotive parts and other vehicles. This regulation clarifies that 
the producer is not required to file an RVC averaging election when 
averaging the RVC of these automotive goods.
3. Required Year-End Reconciliation
    Section 16(9) and section 17(11) of the Uniform Regulations 
regarding Rules of Origin, contained in Appendix A of part 182, require 
a year-end analysis of the actual costs of the RVC if the producer 
calculated the RVC based on estimated costs, and a year-end analysis of 
the actual purchases of steel or aluminum made over the calculation 
period if the producer calculated the steel or aluminum purchases on 
the basis of estimates. Depending on the certification period that a 
vehicle producer chooses, the vehicle certification may be based in 
whole or in part on projected costs or projected purchases. Section 
182.102, Required year-end reconciliation to actual costs when 
estimated costs or purchases used, requires the producer of a covered 
vehicle, who has calculated the RVC or LVC of its vehicles or its steel 
or aluminum purchases on the basis of estimates, to conduct a 
reconciliation at the end of the producer's fiscal year to the actual 
costs incurred or the actual purchases made. CBP has added the LVC 
year-end reconciliation requirement to ensure that the producer has met 
all the applicable USMCA requirements during that period with actual, 
not projected, costs. Therefore, this year-end reconciliation is 
required

[[Page 6476]]

irrespective of whether the producer filed an averaging election 
pursuant to Sec.  182.100. If, based on the year-end reconciliation 
performed, the covered vehicle does not satisfy the RVC or LVC 
requirement on the basis of the actual costs, or the steel or aluminum 
purchasing requirement on the basis of the actual purchases, the 
producer must make the notifications contained in paragraph (b) that 
the vehicle is a non-originating good. In addition to the notifications 
required pursuant to sections 16(9) and 17(11) of Appendix A of part 
182, CBP is also requiring the producer to notify CBP to ensure that 
CBP is aware that the producer did not meet the USMCA requirements for 
preferential tariff treatment.
4. Recordkeeping Requirements
    Pursuant to section 206(a) of the USMCA Implementation Act (19 
U.S.C. 1508(b)(4)(B)), any vehicle producer whose goods are the subject 
of a claim for USMCA preferential tariff treatment must make, keep, and 
pursuant to the rules and regulations promulgated by the Secretary of 
the Treasury and Secretary of Labor, render for examination and 
inspection records and supporting documents related to the LVC, steel 
purchasing, and aluminum purchasing requirements. Section 182.103, 
Producer and exporter recordkeeping responsibilities for records 
relating to LVC, steel purchasing, and aluminum purchasing 
requirements, sets forth the producer of the covered vehicle's 
recordkeeping responsibilities and the exporter who completed the 
certification of origin's recordkeeping responsibilities. The vehicle 
producer must make and keep, for a minimum of five years from the date 
that the vehicle certifications were submitted to CBP, the LVC 
certification, the steel purchasing certification, the aluminum 
purchasing certification, and all records and supporting documents 
necessary to demonstrate whether the covered vehicle meets the LVC, 
steel purchasing, and aluminum purchasing requirements. CBP encourages 
vehicle producers subject to an alternative staging regime to keep 
these records and supporting documentation for longer than the minimum 
five years required to demonstrate compliance with the LVC, steel 
purchasing and aluminum purchasing requirements should USTR later make 
a determination that the vehicle producer failed to meet the 
requirements for the alternative staging regime under 19 U.S.C. 
4532(d)(5). The vehicle producer must also maintain any records related 
to the high-wage components of the LVC requirement as required by DOL 
pursuant to 29 CFR part 810. The records must be capable of being 
retrieved upon lawful request and must be produced to CBP or DOL upon 
request.
    Pursuant to Sec.  182.103(b), an exporter who completed the 
certification of origin for a covered vehicle must keep, for a minimum 
of five years from the date that the certification of origin was 
completed, the LVC certification, steel purchasing certification, 
aluminum purchasing certification, and all records and supporting 
documents to demonstrate whether the covered vehicle meets the LVC, 
steel purchasing, and aluminum purchasing requirements. The exporter 
must also maintain any records related to the high-wage components of 
the LVC requirement as required by DOL pursuant to 29 CFR part 810. The 
records must be capable of being retrieved upon lawful request and must 
be produced to CBP or DOL upon request.
    CBP may deny USMCA preferential tariff treatment, as described in 
Sec.  182.107, when vehicle producers or exporters do not meet these 
recordkeeping requirements.
    Section 182.104, Importer's responsibility to maintain records 
relating to LVC, steel purchasing, and aluminum purchasing 
requirements, contains the importer of a covered vehicle's 
recordkeeping responsibilities. All importers claiming USMCA 
preferential tariff treatment, including importers of covered vehicles, 
are required to comply with the recordkeeping requirements in 19 CFR 
parts 163 and 182, and must also maintain any records related to the 
high-wage components of the LVC requirement as required by DOL pursuant 
to 29 CFR part 810. The extent of the importer's additional 
recordkeeping responsibilities for covered vehicles is contingent on 
whether the importer completed the certification of origin. If the 
claim for USMCA preferential tariff treatment is based on a 
certification of origin completed by the exporter or producer, the 
importer must maintain, for a minimum of five years from the date of 
importation of the covered vehicle, any records and supporting 
documents in the importer's possession relating to the vehicle 
certifications. If the claim for USMCA preferential tariff treatment is 
based on a certification of origin completed by the importer, the 
importer must maintain, in accordance with 19 U.S.C. 1508(b)(4)(A), for 
a minimum of five years from the date of importation of the covered 
vehicle, the vehicle certifications, and all records and supporting 
documents necessary to demonstrate whether the covered vehicle meets 
the LVC, steel purchasing, and aluminum purchasing requirements. These 
records must be maintained by importers as provided in Sec.  163.5 and 
produced to CBP or DOL upon request. CBP encourages all importers who 
import vehicles subject to an alternative staging regime to keep the 
records and supporting documentation for longer than the minimum five 
years required to demonstrate compliance with the LVC, steel purchasing 
and aluminum purchasing requirements. These records and supporting 
documents will be valuable should USTR later make a determination that 
the vehicle producer failed to meet the requirements for the 
alternative staging regime under 19 U.S.C. 4532(d)(5).
5. Verifications
    CBP will initiate and conduct verifications of automotive goods in 
accordance with the general verification and determination of origin 
provisions in subpart G of part 182. Section 182.105, Verification of 
automotive goods, contains additional verification provisions that are 
applicable for automotive good verifications, including when a 
verification involves the LVC requirement. CBP will conduct a 
verification of a covered vehicle involving the high-wage components of 
the LVC requirement in conjunction with DOL. Accordingly, the 
provisions in Sec.  182.105 set forth DOL's and CBP's roles in the 
verification, the additional requirements that the importer, exporter, 
or producer must comply with, and any added procedures necessitated by 
DOL's involvement in the verification.
    CBP will initiate all verifications of covered vehicles pursuant to 
the verification means in Sec.  182.72(a), including a request for 
information, a questionnaire, and/or a verification visit. When CBP 
initiates a verification of a covered vehicle and the verification 
involves whether the covered vehicle meets the LVC requirement, CBP 
will notify the producer of the covered vehicle that CBP has initiated 
a verification of the covered vehicle and advise the producer whether 
the verification involves the high-wage components of the LVC 
requirement, necessitating DOL's involvement. DOL is responsible, 
pursuant to 19 U.S.C. 4532(e) and the DOL requirements and procedures 
in 29 CFR part 810, for conducting the verification of the high-wage 
components of the LVC requirement and determining whether the covered 
vehicle meets the high-wage components of the LVC requirement.

[[Page 6477]]

CBP is responsible for verifying all other aspects of the LVC 
requirement, and is ultimately responsible for determining whether the 
covered vehicle meets the LVC requirement, the requirements in 19 CFR 
part 182, and whether the covered vehicle qualifies for USMCA 
preferential treatment.
    During a verification of a covered vehicle, the importer, exporter, 
and producer must provide all records requested by CBP or DOL and make 
these records available for inspection by the appropriate CBP or DOL 
official as provided for in Sec.  182.105(c). As stated in Sec.  
182.105(b), CBP or DOL also may conduct a verification of a part, 
component, or material that is used in the production of a covered 
vehicle. During the verification of such a part, component, or 
material, the producer of the part, component, or material must provide 
CBP or DOL with all the records requested and make these records 
available for inspection by the appropriate CBP or DOL official, and 
failure to do so may result in a determination that the part, 
component, or material is non-originating.
    CBP will determine whether the covered vehicle meets the LVC 
requirement and qualifies for USMCA preferential tariff treatment based 
in part on DOL's determination on whether the covered vehicle complied 
with the high-wage components of the LVC requirement, and DOL's 
verification findings and analysis. CBP will then issue a determination 
of origin to the qualifying parties pursuant to Sec.  182.75. An 
importer, exporter, or producer, who has the right to file a protest 
pursuant to Sec.  174.12(a)(6), may protest a CBP determination of 
origin under 19 U.S.C. 1514 and part 174. When a protest involves DOL's 
analysis of the high-wage components of the LVC requirement, CBP will 
coordinate with DOL regarding the review of the protest. DOL is 
responsible, pursuant to 19 U.S.C. 4532(e)(6)(A), for conducting an 
administrative review of its initial analysis pursuant to its 
administrative review procedures in the DOL's regulations at 29 CFR 
part 810 and providing a determination containing the results of the 
administrative review to CBP. As explained in more detail in section 
III.E. of this IFR, CBP will review and act on the protest pursuant to 
the procedures and requirements set forth in part 174.
6. Alternative Staging Regime
    As described in more detail above in section II.C. of this IFR, a 
covered vehicle may be originating pursuant to an alternative staging 
regime. Section 182.106, Alternative staging regime, sets forth the 
conditions under which a covered vehicle is eligible for USMCA 
preferential tariff treatment under an alternative staging regime. 
Pursuant to paragraph (c) of Sec.  182.106, a producer of a covered 
vehicle is required to submit to CBP a separate vehicle certification 
that covers only those vehicles subject to the alternative staging 
regime under certain circumstances. If the terms of the alternative 
staging regime specifically exempt the producer from the LVC, steel 
purchasing, or aluminum purchasing requirement (including when the 
producer qualifies for NAFTA 403.6 treatment), then the producer must 
submit to CBP a vehicle certification for that LVC, steel purchasing, 
or aluminum purchasing requirement covering only those vehicles subject 
to the alternative staging regime. If the terms of the alternative 
staging regime contain different requirements from sections 13 through 
18 of Appendix A to 19 CFR part 182, then the producer must submit to 
CBP a vehicle certification for that LVC, steel purchasing, or aluminum 
purchasing requirement that covers only those vehicles subject the 
alternative staging regime. This additional vehicle certification must 
meet the requirements set forth in Sec. Sec.  182.95, 182.96, and 
182.97, as applicable, with the exception of the certifying statement, 
and must contain the additional information, including the certifying 
statement, as set forth in paragraph (c) of this section.
7. Reasons for Denial of USMCA Preferential Tariff Treatment of Covered 
Vehicles
    In addition to the general reasons for denial set forth in Sec.  
182.75(c)(2) of subpart G, CBP may deny a claim for USMCA preferential 
tariff treatment of covered vehicles for the additional reasons set 
forth in Sec.  182.107, Denial of preferential tariff treatment of a 
covered vehicle. These reasons for denial relate specifically to the 
LVC, steel purchasing, and aluminum purchasing requirements, the 
vehicle certifications, and the additional recordkeeping requirements 
for covered vehicles. If CBP determines that one of these reasons for 
denial set forth in Sec.  182.107 applies to a vehicle certification 
that forms the basis for a claim's eligibility for USMCA preferential 
tariff treatment, CBP may deny USMCA preferential tariff treatment for 
any claim which uses that vehicle certification as a basis for 
eligibility for USMCA preferential tariff treatment regardless of 
whether the importer lacks prior knowledge of the vehicle producer's 
failure to meet the LVC, steel purchasing, or aluminum purchasing 
requirements because of the unique nature of the vehicle 
certifications.

G. Other Conforming Amendments

    CBP is also amending certain sections of title 19 of the CFR, 
including Sec. Sec.  10.31(h), 113.62(a), 141.0a(a), 141.0a(f), 
141.68(i), and 144.38(b), to add the appropriate cross-references to 
the USMCA drawback and duty-deferral program provisions alongside 
existing references to NAFTA duty-deferral and drawback provisions.

IV. Statutory and Regulatory Requirements

A. Administrative Procedure Act

    Under the Administrative Procedure Act (APA) (5 U.S.C. 553), 
agencies generally are required to publish a notice of proposed 
rulemaking in the Federal Register that solicits public comment on the 
proposed regulatory amendments, considers public comments in deciding 
on the content of the final amendments, and publishes the final 
amendments at least 30 days prior to their effective date. This rule is 
exempt from APA rulemaking requirements pursuant to 5 U.S.C. 553(a)(1) 
as a foreign affairs function of the United States because it 
implements the preferential tariff treatment and customs related 
provisions of the USMCA, which is a specific trilateral agreement 
negotiated between the United States, Mexico, and Canada. This IFR 
implements trilaterally agreed upon provisions in the USMCA, the 
Uniform Regulations regarding the Rules of Origin, and the Uniform 
Regulations regarding Origin Procedures. The regulatory amendments 
promulgated in this IFR fulfill the United States' USMCA commitments. 
This IFR amends 19 CFR part 182 to add regulations implementing 
provisions from USMCA Chapters 1, 2, 4, 5, and 6, as well as the USMCA 
Uniform Regulations regarding the Rules of Origin and the Uniform 
Regulations regarding Origin Procedures. Additionally, this IFR makes 
the amendments to 19 CFR parts 10, 24, 113, 123, 141, 144, 163, and 174 
to implement provisions from USMCA Chapters 2, 5, 6, and 7 as well as 
the USMCA Uniform Regulations regarding Origin Procedures. This IFR 
meets the U.S. commitments to the other USMCA countries, as agreed to 
in the USMCA, and fulfills our international obligations.

B. Executive Orders 12866 and 13563

    Executive Order 12866 (Regulatory Planning and Review), as 
reaffirmed by Executive Order 13563 (Improving Regulation and 
Regulatory Review) and

[[Page 6478]]

amended by Executive Order 14094 (Modernizing Regulatory Review), 
directs agencies to assess the costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasizes the importance 
of quantifying costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility.
    Rules involving the foreign affairs function of the United States 
are exempt from the requirements of Executive Orders 12866, as amended 
by Executive Order 14094, and 13563. Because this rule involves a 
foreign affairs function of the United States by implementing a 
specific trilateral agreement negotiated between the United States, 
Mexico, and Canada, the rule is not subject to the provisions of 
Executive Orders 12866, as amended by Executive Order 14094, and 13563.

C. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.), 
the Office of Information and Regulatory Affairs (OIRA) designated this 
rule as a ``major rule,'' as defined by 5 U.S.C. 804(2).

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996, 
requires an agency to prepare and make available to the public a 
regulatory flexibility analysis that describes the effect of a proposed 
rule on small entities (i.e., small businesses, small organizations, 
and small governmental jurisdictions) when the agency is required to 
publish a general notice of proposed rulemaking for a rule. Since a 
notice of proposed rulemaking is not necessary for this rule, CBP is 
not required to prepare a regulatory flexibility analysis for this 
rule.

E. Paperwork Reduction Act

    The collection of information in this document was submitted to OMB 
for review in accordance with the requirements of the Paperwork 
Reduction Act (44 U.S.C. 3507). Approval and assigned OMB control 
number are pending. An agency may not conduct or sponsor, and a person 
is not required to respond to, a collection of information unless it 
displays a valid control number assigned by OMB. These regulations 
provide for a new collection of information for USMCA's automotive 
goods requirements. Vehicle producers will be required to submit three 
new vehicle certifications to CBP, including the labor value content 
(LVC) certification, the aluminum purchasing certification, and the 
steel purchasing certification. In addition, vehicle producers may 
submit motor vehicle averaging elections, including an averaging 
election for labor value content (LVC) and regional value content 
(RVC). This information is used by CBP to determine if vehicles 
imported from Canada and Mexico are entitled to preferential tariff 
treatment under USMCA.
    The proposed information collection requirements will result in the 
following estimated burden hours:
Aluminum Purchasing Certification
    Estimated Number of Annual Respondents: 25.
    Estimated Number of Annual Responses per Respondent: 1.5.
    Estimated Total Annual Responses: 37.
    Estimated Time per Response: 2 hours.
    Estimated Total Annual Burden Hours: 74.
Labor Value Content Certification
    Estimated Number of Annual Respondents: 25.
    Estimated Number of Annual Responses per Respondent: 1.5.
    Estimated Total Annual Responses: 37.
    Estimated Time per Response: 2 hours.
    Estimated Total Annual Burden Hours: 74.
Steel Purchasing Certification
    Estimated Number of Annual Respondents: 25.
    Estimated Number of Annual Responses per Respondent: 1.5.
    Estimated Total Annual Responses: 37.
    Estimated Time per Response: 2 hours.
    Estimated Total Annual Burden Hours: 74.
Labor Value Content Averaging Election
    Estimated Number of Annual Respondents: 25.
    Estimated Number of Annual Responses per Respondent: 1.
    Estimated Total Annual Responses: 25.
    Estimated Time per Response: 1 hour.
    Estimated Total Annual Burden Hours: 25.
Regional Value Content Averaging Election
    Estimated Number of Annual Respondents: 25.
    Estimated Number of Annual Responses per Respondent: 1.
    Estimated Total Annual Responses: 25.
    Estimated Time per Response: 1 hour.
    Estimated Total Annual Burden Hours: 25.
    Comments concerning the collection of information and the accuracy 
of the estimated annual burden, and suggestions for reducing that 
burden, should be posted to the docket of this rulemaking or to 
reginfo.gov. Comments are specifically welcome on (a) whether the 
proposed collection of information is necessary for the proper 
performance of the mission of the agencies, and whether the information 
will have practical utility; (b) the accuracy of the estimate of the 
burden of the collections of information; (c) ways to enhance the 
quality, utility, and clarity of the information collection; (d) ways 
to minimize the burden of the information collection, including through 
the use of automated collection techniques or other forms of 
information technology; and (e) estimates of capital or start-up costs 
and costs of operation, maintenance, and purchase of services to 
maintain the information. Comments should be received on or before 
March 18, 2025.

Signing Authority

    In accordance with Treasury Order 100-20, the Secretary of the 
Treasury delegated to the Secretary of Homeland Security the authority 
related to the customs revenue functions vested in the Secretary of the 
Treasury as set forth in 6 U.S.C. 212 and 215, subject to certain 
exceptions. This regulation is being issued in accordance with DHS 
Directive 07010.3, Revision 03, which delegates to the Commissioner of 
CBP the authority to prescribe and approve/sign regulations related to 
customs revenue functions.
    Pete Flores, Senior Official Performing the Duties of the 
Commissioner, having reviewed and approved this document, has delegated 
the authority to electronically sign the document to the Director (or 
Acting Director, if applicable) of the Regulations and Disclosure Law 
Division of CBP, for purposes of publication in the Federal Register.

[[Page 6479]]

List of Subjects

19 CFR Part 10

    Bonds, Exports, Imports, Reporting and recordkeeping requirements, 
Trade agreements.

19 CFR Part 24

    Accounting, Claims, Exports, Freight, Harbors, Reporting and 
recordkeeping requirements, Taxes.

19 CFR Part 113

    Common carriers, Exports, Freight, Laboratories, Reporting and 
recordkeeping requirements, Surety bonds.

19 CFR Part 123

    Canada, Freight, International boundaries, Mexico, Motor carriers, 
Railroads, Reporting and recordkeeping requirements, Vessels.

19 CFR Part 141

    Reporting and recordkeeping requirements.

19 CFR Part 144

    Reporting and recordkeeping requirements, Warehouses.

19 CFR Part 163

    Administrative practice and procedure, Exports, Imports, Penalties, 
Reporting and recordkeeping requirements.

CFR Part 174

    Administrative practice and procedure.

19 CFR Part 182

    Administrative practice and procedure, Canada, Exports, Mexico, 
Reporting and recordkeeping requirements, Trade agreements.

Amendments to the CBP Regulations

    For the reasons stated above, U.S. Customs and Border Protection 
and the Department of the Treasury amend 19 CFR parts 10, 24, 113, 123, 
141, 144, 163, 174, and 182 of title 19 of the Code of Federal 
Regulations as set forth below:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general and specific authority citations for part 10 continue to 
read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624, 4513.
* * * * *
    Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322;
    Sections 10.211 through 10.217 also issued under 19 U.S.C. 3721;
    Sections 10.221 through 10.228 and Sec. Sec.  10.231 through 
10.237 also issued under 19 U.S.C. 2701 et seq.
* * * * *

0
2. In Sec.  10.31, paragraphs (f) and (h) are revised to read as 
follows:


Sec.  10.31  Entry; bond.

* * * * *
    (f) With the exceptions stated herein, a bond shall be given on CBP 
Form 301, containing the bond conditions set forth in Sec.  113.62 of 
this chapter, in an amount equal to double the duties and fees, which 
it is estimated would accrue (or such larger amount as the Center 
director shall state in writing or by the electronic equivalent to the 
entrant is necessary to protect the revenue) had all the articles 
covered by the entry been entered under an ordinary consumption entry. 
In the case of samples solely for use in taking orders entered under 
subheading 9813.00.20, HTSUS, motion-picture advertising films entered 
under subheading 9813.00.25, HTSUS, and professional equipment, tools 
of trade and repair components for such equipment or tools entered 
under subheading 9813.00.50, HTSUS, the bond required to be given shall 
be in an amount equal to 110 percent of the estimated duties and fees, 
determined at the time of entry. If appropriate, a carnet, under the 
provisions of part 114 of this chapter, may be filed in lieu of a bond 
on CBP Form 301 (containing the bond conditions set forth in Sec.  
113.62 of this chapter). Cash deposits in the amount of the bond may be 
accepted in lieu of sureties. When the articles are entered under 
subheading 9813.00.05, 9813.00.20, or 9813.00.50, HTSUS without formal 
entry, as provided for in Sec. Sec.  10.36 and 10.36a, or the amount of 
the bond taken under any subheading of Chapter 98, Subchapter XIII, 
HTSUS, is less than $25, the bond shall be without surety or cash 
deposit, and the bond shall be modified to so indicate. In addition, 
notwithstanding any other provision of this paragraph, in the case of 
professional equipment necessary for carrying out the business 
activity, trade or profession of a business person, equipment for the 
press or for sound or television broadcasting, cinematographic 
equipment, articles imported for sports purposes and articles intended 
for display or demonstration, if brought into the United States by a 
national of Canada or Mexico, or by a resident of Singapore, Chile, 
Morocco, Australia, El Salvador, Guatemala, Honduras, Nicaragua, the 
Dominican Republic, Costa Rica, Bahrain, Oman, Peru, the Republic of 
Korea, Colombia, or Panama and entered under Chapter 98, Subchapter 
XIII, HTSUS, no bond or other security will be required if the entered 
article is a good originating, within the meaning of General Notes 11, 
12, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, and 35, HTSUS, in the 
country of which the importer is a national or resident, as applicable. 
In the case of articles imported for sports purposes and articles 
intended for display or demonstration, if brought into the United 
States by a national of Canada or Mexico, the bond shall be without 
surety or cash deposit in an amount equal to 110 percent of the 
estimated duties and fees determined at the time of entry, if the 
entered article is not originating, within the meaning of General Notes 
11 and 12, HTSUS, in the country of which the importer is a national.
* * * * *
    (h) After the entry and bond have been accepted, the articles may 
be released to the importer. The entry shall not be liquidated as the 
transaction does not involve liquidated duties. However, a TIB importer 
may be required to file an entry for consumption and pay duties, or pay 
liquidated damages under its bond for a failure to do so, in the case 
of merchandise imported under subheading 9813.00.05, HTSUS, and 
subsequently exported to Canada or Mexico (see Sec.  181.53 or 182.53 
of this chapter).

0
3. In Sec.  10.36a, paragraph (a) is revised to read as follows:


Sec.  10.36a  Vehicles, pleasure boats and aircraft brought in for 
repair or alteration.

    (a) A vehicle (such as an automobile, truck, bus, motorcycle, 
tractor, trailer), pleasure boat, or aircraft brought into the United 
States by an operator of such vehicle, pleasure boat, or aircraft for 
repair or alteration (with repair or alteration defined as restoration, 
addition, renovation, re-dyeing, cleaning, re-sterilizing, or other 
treatment that does not destroy the essential characteristics of, or 
create a new or commercially different good from, the good imported 
into the United States) may be entered on the operator's baggage 
declaration, in lieu of formal entry and examination, and may be passed 
under subheading 9813.00.05, Harmonized Tariff Schedule of the United 
States (HTSUS), at the place of arrival in the same manner as 
passengers' baggage. When the vehicle, aircraft, or pleasure boat to be 
entered is being towed by or transported on another vehicle, the 
operator of the towing or transporting vehicle may make entry for the 
vehicle, aircraft or pleasure boat to be repaired or altered.

[[Page 6480]]

The bond, prescribed by Sec.  10.31(f), filed to support entry under 
this section, shall be without surety or cash deposit except as 
provided by this paragraph and paragraph (d) of this section. The 
examination may be made by an inspector who is qualified to determine 
the amount of such bond to be filed in support of the entry. The 
privilege accorded by this paragraph shall not apply when two or more 
vehicles, pleasure boats, or aircraft are to be entered by the same 
importer under subheading 9813.00.05, HTSUS, at the same time. In that 
event, the importer must file a formal entry supported by bond with 
surety or cash deposit in lieu of surety.
* * * * *

0
4. In Sec.  10.41a, paragraphs (g)(1) and (3) are revised to read as 
follows:


Sec.  10.41a  Lift vans, cargo vans, shipping tanks, skids, pallets, 
and similar instruments of international traffic; repair components.

* * * * *
    (g)(1) Except as provided in paragraph (j) of this section, a 
container (as defined in Article 1 of the Customs Convention on 
Containers) that is designated as an instrument of international 
traffic is deemed to remain in international traffic provided that the 
container exits the United States within 365 days of the date on which 
it was admitted under this section. A container that is designated as 
an instrument of international traffic and admitted from Canada or 
Mexico is deemed to remain in international traffic beyond this 365-day 
time limit when CBP grants an extension, at the request of the person 
who filed the application for release under paragraph (a)(1) of this 
section, provided that the container exits the United States prior to 
the date of expiration of the extension granted. An exit from the 
United States in this context means a movement across the border of the 
United States into a foreign country where either:
    (i) All merchandise is unladen from the container; or
    (ii) Merchandise is laden aboard the container (if the container is 
empty).
* * * * *
    (3) If the container does not exit the United States within 365 
days of the date on which it is admitted under this section, or, by the 
date on which an extension granted under paragraph (g)(1) of this 
section expires, such container shall be considered to have been 
removed from international traffic, and entry for consumption must be 
made within 10 business days after the end of the month in which the 
container is deemed removed from international traffic. When entry is 
required under this section, any containers considered removed from 
international traffic in the same month may be listed on one entry. 
Such entry may be made at any port of entry. Under 19 U.S.C. 
1484(a)(1)(B), the importer of record is required, using reasonable 
care, to complete the entry by filing with CBP the declared value, 
classification and rate of duty applicable to the merchandise. The 
importer of record must use the value of the container as determined in 
accordance with section 402, Tariff Act of 1930 (19 U.S.C. 1401a), as 
amended by the Trade Agreements Act of 1979 (TAA).

0
5. In Sec.  10.212, paragraph (l) is revised to read as follows:


Sec.  10.212  Definitions.

* * * * *
    (l) USMCA. ``USMCA'' means the Agreement between the United States 
of America, the United Mexican States, and Canada, entered into force 
by the United States, Canada and Mexico on July 1, 2020.
* * * * *


Sec.  10.213  [Amended]

0
6. In Sec.  10.213(a)(8), remove the words ``General Note 12(t)'' and 
add, in their place, the words ``General Note 11''.


Sec.  10.214  [Amended]

0
7. Amend Sec.  10.214 as follows:
0
a. In paragraph (b), remove the word ``NAFTA'' from the table and add, 
in its place, the word ``USMCA''; and
0
b. In paragraph (c)(12), remove the word ``NAFTA'' and add, in its 
place, the word ``USMCA''.

0
8. In Sec.  10.222, remove the definition for ``NAFTA'' and add, in 
alphabetical order, the definition for ``USMCA''.
    The addition reads as follows:


Sec.  10.222  Definitions.

* * * * *
    USMCA. ``USMCA'' means the Agreement between the United States of 
America, the United Mexican States, and Canada, entered into force by 
the United States, Canada and Mexico on July 1, 2020.
* * * * *


Sec.  10.223  [Amended]

0
9. In Sec.  10.223(a)(7), remove the words ``Annex 401 of the NAFTA'' 
and add, in their place, the words ``Annex 4-B of the USMCA''.


Sec.  10.224  [Amended]

0
10. In Sec.  10.224(c)(12), remove the word ``NAFTA'' and add, in its 
place, the word ``USMCA''.

0
11. Amend Sec.  10.232 as follows:
0
a. Remove the definition for ``NAFTA'';
0
b. Amend the definition of ``Preferential tariff treatment'' by 
removing the words ``Annex 302.2 of the NAFTA'' and adding, in their 
place, the words ``Annex 2-B of the USMCA''; and
0
c. Add, in alphabetical order, the definition for ``USMCA''.
    The addition reads as follows:


Sec.  10.232  Definitions.

* * * * *
    USMCA. ``USMCA'' means the Agreement between the United States of 
America, the United Mexican States, and Canada, entered into force by 
the United States, Canada and Mexico on July 1, 2020.

0
12. In Sec.  10.233, revise paragraphs(b) introductory text and (b)(1) 
to read as follows:


Sec.  10.233  Articles eligible for preferential treatment.

* * * * *
    (b) Application of the USMCA rules of origin. In determining 
whether an article is a CBTPA originating good for purposes of 
paragraph (a) of this section, application of the provisions of General 
Note 11 of the HTSUS, and part 182, appendix A of this chapter, will be 
subject to the following rules:
    (1) No country other than the United States and a CBTPA beneficiary 
country may be treated as being a party to the USMCA;
* * * * *

0
13. In Sec.  10.237, revise paragraph (b) to read as follows:


Sec.  10.237  Verification and justification of claim for preferential 
tariff treatment.

* * * * *
    (b) Importer requirements. In order to make a claim for 
preferential tariff treatment under Sec.  10.235, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the article qualifies for preferential tariff 
treatment. Those records must include documents that support a claim 
that the article in question qualifies for preferential tariff 
treatment because it meets the applicable rule of origin set forth in 
General Note 11, HTSUS, and in part 182, appendix A of this chapter. A 
properly completed Certificate of Origin in the form prescribed in 
Sec.  10.236(b) is a record that would serve this purpose;
* * * * *

0
14. Revise Sec.  10.301 to read as follows:


Sec.  10.301  Scope and applicability.

    The provisions of Sec. Sec.  10.302 through 10.311 of this part 
relate to the

[[Page 6481]]

procedures for obtaining duty preferences on imported goods under the 
United States-Canada Free-Trade Agreement (the Agreement) entered into 
on January 2, 1988, and the United States-Canada Free-Trade Agreement 
Implementation Act of 1988 (102 Stat. 1851). The United States and 
Canada agreed to suspend operation of the Agreement with effect from 
January 1, 1994, to coincide with the entry into force of the North 
American Free Trade Agreement (see part 181 of this chapter) and to 
continue suspending operation of the Agreement with the entry into 
force of the Agreement Between the United States of America, the United 
Mexican States, and Canada (USMCA) (see part 182 of this chapter) and, 
accordingly, the provisions of Sec. Sec.  10.302 through 10.311 of this 
part apply only to goods imported from Canada that were entered for 
consumption, or withdrawn from warehouse for consumption, during the 
period January 1, 1989, through December 31, 1993. In situations 
involving goods subject to bilateral restrictions or prohibitions, or 
country of origin marking, other criteria for determining origin may be 
applicable pursuant to Article 407 of the Agreement.

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
15. The general and specific authority citation for part 24 is revised 
to read as follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 3(i), Harmonized Tariff Schedule of the United States), 1505, 
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
    Section 24.23 also issued under 19 U.S.C. 4531; Sec. 892, Public 
Law 108-357, 118 Stat. 1418 (19 U.S.C. 58c); Sec. 32201, Public Law 
114-94, 129 Stat. 1312 (19 U.S.C. 58c); Public Law 115-271, 132 
Stat. 3895 (19 U.S.C. 58c).
* * * * *
    Section 24.36 also issued under 26 U.S.C. 5001(c)(4), 
5041(c)(7), 5051(a)(6), 6423; Public Law 115-97; Public Law 116-260; 
134 Stat. 3046.


0
16. In Sec.  24.23, paragraph (c)(3) is revised to read as follows:


Sec.  24.23  Fees for processing merchandise.

* * * * *
    (c) * * *
    (3) The ad valorem, surcharge, and specific fees provided for under 
paragraphs (b)(1) and (2) of this section will not apply to goods 
originating within the meaning of General Note 11, HTSUS (see also 19 
U.S.C. 4531), or to goods that qualify for preferential tariff 
treatment under Sec.  182.82 of this chapter (see also Annex 6-A of the 
USMCA), that are entered for consumption, or withdrawn from warehouse 
for consumption, on or after July 1, 2020. The ad valorem, surcharge, 
and specific fees will also not apply to goods originating in Canada or 
Mexico within the meaning of General Note 12, HTSUS, that are entered 
for consumption, or withdrawn from warehouse for consumption, prior to 
July 1, 2020 where such goods qualify to be marked, respectively, as 
goods of Canada or Mexico pursuant to Annex 311 of the North American 
Free Trade Agreement and without regard to whether the goods are 
marked. For qualifying goods originating in Mexico, the exemption 
applies to goods entered or released (as defined in this section) after 
June 29, 1999. Where originating goods or goods that qualify for 
preferential tariff treatment under Sec.  182.82 of this chapter are 
entered or released with other goods that are not originating goods or 
are goods that do not qualify for preferential tariff treatment, the ad 
valorem, surcharge, and specific fees will apply only to those goods 
which are not originating goods or are goods that do not qualify for 
preferential tariff treatment.
* * * * *

0
17. In Sec.  24.36, paragraph (a)(1) introductory text is revised to 
read as follows:


Sec.  24.36  Refunds of excessive duties, taxes, etc.

    (a) * * *
    (1) Except as otherwise provided in paragraphs (a)(1)(i) through 
(iii) of this section, the refund shall include interest on the excess 
moneys deposited with Customs, and such interest shall accrue from the 
date the duties, taxes, fees or interest were deposited or, in a case 
in which a proper claim is filed under 19 U.S.C. 1520(d), from the date 
such claim is filed, to the date of liquidation or reliquidation of the 
applicable entry or reconciliation. An example follows:
* * * * *

PART 113--CBP BONDS

0
18. The general authority citation for part 113 continues to read as 
follows:

    Authority:  19 U.S.C. 66, 1623, 1624.
* * * * *

0
19. In Sec.  113.62, revise paragraph (a)(1) to read as follows:


Sec.  113.62  Basic importation and entry bond conditions.

* * * * *
    (a) Agreement to pay duties, taxes, and charges. (1) If merchandise 
is imported and released from CBP custody or withdrawn from a CBP 
bonded warehouse into the commerce of, or for consumption in, the 
United States, or under Sec.  181.53 or 182.53 of this chapter is 
withdrawn from a duty-deferral program for exportation to Canada or 
Mexico or for entry into a duty-deferral program in Canada or Mexico, 
the obligors (principal and surety, jointly and severally) agree to:
* * * * *

PART 123--CBP RELATIONS WITH CANADA AND MEXICO

0
20. The general authority citation for part 123 continues to read as 
follows:

    Authority:  19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1415, 1431, 1433, 
1436, 1448, 1624, 2071 note.
* * * * *

0
21. Revise Sec.  123.0 to read as follows:


Sec.  123.0  Scope.

    This part contains special regulations pertaining to CBP procedures 
at the Canadian and Mexican borders. Included are provisions governing 
report of arrival, manifesting, unlading and lading, instruments of 
international traffic, shipments in transit through Canada or Mexico or 
through the United States, commercial traveler's samples transiting the 
United States or Canada, baggage arriving from Canada or Mexico 
including baggage transiting the United States or Canada or Mexico, and 
electronic information for rail and truck cargo in advance of arrival. 
Aircraft arriving from or departing for Canada or Mexico are governed 
by the provisions of part 122 of this chapter. The arrival of all 
vessels from, and clearance of all vessels departing for, Canada or 
Mexico are governed by the provisions of part 4 of this chapter. Fees 
for services provided in connection with the arrival of aircraft, 
vessels, vehicles and other conveyances from Canada or Mexico are set 
forth in Sec.  24.22 of this chapter. Regulations pertaining to the 
treatment of goods from Canada or Mexico under the North American Free 
Trade Agreement are contained in part 181 of this chapter. Regulations 
pertaining to the treatment of goods from Canada or Mexico under the 
Agreement Between the United States of America, the United Mexican 
States, and Canada (USMCA) are contained in part 182 of this chapter. 
The requirements for the United States Postal Service to transmit 
advance electronic information for inbound international mail shipments 
are set forth in Sec.  145.74 of this chapter.

[[Page 6482]]

PART 141--ENTRY OF MERCHANDISE

0
22. The general and specific authority citations for part 141 continue 
to read as follows:

    Authority:  19 U.S.C. 66, 1448, 1484, 1498, 1624.
* * * * *
    Section 141.68 also issued under 19 U.S.C. 1315;
* * * * *

0
23. In Sec.  141.0a, paragraphs (a) and (f) are revised to read as 
follows:


Sec.  141.0a  Definitions.

* * * * *
    (a) Entry. ``Entry'' means that documentation or data required by 
Sec.  142.3 of this chapter to be filed with the appropriate CBP 
officer or submitted electronically to the Automated Commercial 
Environment (ACE) or any other CBP-authorized electronic data 
interchange system to secure the release of imported merchandise from 
CBP custody, or the act of filing that documentation. ``Entry'' also 
means that documentation or data required by Sec.  181.53 or 182.53 of 
this chapter to be filed with CBP to withdraw merchandise from a duty-
deferral program in the United States for exportation to Canada or 
Mexico or for entry into a duty-deferral program in Canada or Mexico.
* * * * *
    (f) Entered for consumption. ``Entered for consumption'' means that 
an entry summary for consumption has been filed with CBP in proper 
form, including electronic submission to the Automated Commercial 
Environment (ACE) or any other CBP-authorized electronic data 
interchange system, with estimated duties attached. ``Entered for 
consumption'' also means the necessary documentation has been filed 
with CBP to withdraw merchandise from a duty-deferral program in the 
United States for exportation to Canada or Mexico or for entry into a 
duty-deferral program in Canada or Mexico (see Sec.  181.53 or 182.53 
of this chapter).
* * * * *

0
24. In Sec.  141.68, paragraph (i) is revised to read as follows:


Sec.  141.68  Time of entry.

* * * * *
    (i) Exportation to Canada or Mexico of goods imported into the 
United States under a duty-deferral program defined in Sec.  181.53 or 
182.53 of this chapter. When merchandise in a U.S. duty-deferral 
program is withdrawn for exportation to Canada or Mexico or for entry 
into a duty-deferral program in Canada or Mexico, the date of entry is 
the date that the entry is required to be filed under Sec.  
181.53(a)(2)(iii) or 182.53(a)(2)(iii) of this chapter.
* * * * *

PART 144--WAREHOUSE AND REWAREHOUSE ENTRIES AND WITHDRAWALS

0
25. The general authority citation for part 144 continues to read as 
follows:

    Authority:  19 U.S.C. 66, 1484, 1557, 1559, 1624.
* * * * *

0
26. In Sec.  144.38, paragraph (b) is revised to read as follows:


Sec.  144.38  Withdrawal for consumption.

* * * * *
    (b) Withdrawal for exportation to Canada or Mexico. A withdrawal 
for exportation to Canada or Mexico or for entry into a duty-deferral 
program in Canada or Mexico is considered a withdrawal for consumption 
pursuant to Sec.  181.53 or 182.53 of this chapter.
* * * * *

PART 163--RECORDKEEPING

0
27. The general authority citation for part 163 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510, 
1624.


0
28. Amend Sec.  163.1(a)(2) as follows:
0
a. Redesignate paragraph (a)(2)(xviii) as paragraph (a)(2)(xix);
0
b. In newly redesignated paragraph (a)(2)(xix), remove the word 
``Customs'' and add in its place the word ``CBP''; and
0
c. Add a new paragraph (a)(2)(xviii).
    The addition reads as follows:


Sec.  163.1  Definitions.

* * * * *
    (a) * * *
    (2) * * *
    (xviii) The maintenance of any documentation in support of a claim 
for preferential tariff treatment under the Agreement Between the 
United States of America, the United Mexican States, and Canada (USMCA) 
pursuant to part 182 of this chapter, including the certification of 
origin.
* * * * *


Sec.  163.7  [Amended]

0
29. Amend Sec.  163.7(a)(2) by adding the phrase ``to a USMCA country 
as defined in 19 U.S.C. 4502(10) (see also part 182 of this chapter) 
or'' after the phrase ``knowingly caused merchandise to be exported,''.

0
30. Amend Appendix to part 163 as follows:
0
a. Revise the Sec.  10.307 listing; and
0
b. Add a new listing under section IV in numerical order.
    The revision and addition read as follows:

Appendix to Part 163--Interim (a)(1)(A) List

* * * * *
    IV. * * *

[dagger] [Sec.  10.307 Documents, etc. required for entries under CFTA 
Certificate of origin of CF 353]

    [[dagger] CFTA provisions are suspended while USMCA remains in 
effect. See part 182.]
* * * * *


Sec.  182.13  USMCA records that the importer may have in support of a 
USMCA claim for preferential tariff treatment, including the 
certification of origin.

* * * * *

PART 174--PROTESTS

0
31. The general authority citation for part 174 continues to read as 
follows:

    Authority:  19 U.S.C. 66, 1514, 1515, 1624.


0
32. Amend Sec.  174.12(a) as follows:
0
a. In paragraph (a)(5), remove the word ``or'' after the phrase ``Sec.  
181.11(a) of this chapter;'';
0
b. Redesignate paragraph (a)(6) as paragraph (a)(7);
0
c. Add a new paragraph (a)(6); and
0
d. In newly redesignated paragraph (a)(7), remove the number ``5'' and 
add in its place the number ``6''.
    The addition reads as follows:


Sec.  174.12  Filing of protests.

    (a) * * *
    (6) With respect to a determination of origin under part 182, 
subpart G, of this chapter, any exporter or producer of the merchandise 
subject to the determination of origin, if the exporter or producer 
completed and signed a certification of origin covering the merchandise 
as provided for in Sec.  182.12 of this chapter; or
* * * * *

0
33. Revise Sec.  174.13(a)(9) to read as follows:


Sec.  174.13  Contents of protest.

    (a) * * *
    (9) A declaration, to the best of the protestant's knowledge, as to 
whether the entry is the subject of drawback, or if there is the 
ability for a party to make such entry the subject of drawback (see 
Sec. Sec.  181.50, 182.50, 190.81, and 191.81 of this chapter).
* * * * *

0
34. Revise Sec.  174.15(b) to read as follows:

[[Page 6483]]

Sec.  174.15   Consolidation of protests filed by different parties.

* * * * *
    (b) NAFTA or USMCA transactions. The following rules shall apply to 
a consolidation of multiple protests concerning a determination of 
origin under part 181, subpart G, or part 182, subpart G, of this 
chapter if one of the protests is filed by or on behalf of an exporter 
or producer described in Sec.  174.12(a)(5) or (a)(6) of this part:
    (1) If consolidation under paragraph (a) of this section is 
pursuant to specific written requests for consolidation received from 
all interested parties who filed protests under this part, those 
interested parties shall be deemed to have waived their rights to 
confidentiality as regards business information within the meaning of 
Sec.  181.121 of this chapter for NAFTA transactions or within the 
meaning of Sec.  182.2 of this chapter for USMCA transactions. In such 
cases, a separate notice of the decision will be issued to each 
interested party under this part but without regard to whether the 
notice reflects confidential business information obtained from one but 
not all of those interested parties.
    (2) If consolidation under paragraph (a) of this section is done by 
the port director or Center director, before January 19, 2017, or the 
Center director on or after January 19, 2017, in the absence of 
specific written requests for consolidation from all interested parties 
who filed protests under this part, no waiver of confidentiality by 
those interested parties shall be deemed to have taken place. In such 
cases, a separate notice of the decision will be issued to each 
interested party and each such notice shall adhere to the principle of 
confidentiality set forth in Sec.  181.121 of this chapter for NAFTA 
transactions or Sec.  182.2 of this chapter for USMCA transactions.

0
35. In Sec.  174.22, amend paragraph (a) by adding a sentence to the 
end of the paragraph.


Sec.  174.22   Accelerated disposition of protest.

    (a) * * * Accelerated disposition of a protest is not available for 
protests involving eligibility for USMCA preferential tariff treatment 
of a covered vehicle if the protest relates to the Department of 
Labor's analysis of the high-wage components of the labor value content 
(LVC) requirements as described under Sec.  182.105(e) of this chapter.
* * * * *


Sec.  174.29   [Amended]

0
36. In Sec.  174.29, add the phrase ``or (a)(6)'' after the phrase 
``under Sec.  174.12(a)(5)''.

PART 182--UNITED STATES-MEXICO-CANADA AGREEMENT

0
37. The general and specific authority citations for part 182 are 
revised to read as follows:

    Authority:  19 U.S.C. 66, 1202 (General Note 3(i) and General 
Note 11, Harmonized Tariff Schedule of the United States (HTSUS)), 
1624, 4513, 4535; Section 182.1 also issued under 19 U.S.C. 4502; 
Subpart D also issued under 19 U.S.C. 1520(d); Subpart E also issued 
under 19 U.S.C. 4534; Subpart 182.61 also issued under 19 U.S.C. 
4531, 4532; Subpart G also issued under 19 U.S.C. 4533; Subpart H 
also issued under 19 U.S.C. 4533; Subpart I also issued under 19 
U.S.C. 4532.

Subpart A--General Provisions

0
38. Amend Sec.  182.0 by adding a sentence to the end of the paragraph 
to read as follows:


Sec.  182.0   Scope.

    * * * Additional provisions applicable to the USMCA are contained 
in parts 10, 24, 163, 174, and 177 of this chapter.

0
39. Amend Sec.  182.1 by adding the definitions for ``Alternative 
staging regime'',
    ``Automotive good'', ``Corporate level'', ``Covered vehicle'', 
``Customs offenses'',
    ``DOL'', ``Heavy truck'', ``Light truck'', ``Passenger vehicle'', 
``Tariff preference level'',
    ``Textile or apparel good'', ``USMCA drawback'', ``Vehicle 
certifications'', and ``Wool apparel'' in alphabetical order to read as 
follows:


Sec.  182.1   General definitions.

* * * * *
    Alternative staging regime means the application of the 
requirements of section 19 of Appendix A to this part to the production 
of covered vehicles to allow producers of such vehicles to bring such 
production into compliance with the requirements of sections 13 through 
18 of Appendix A to this part;
    Automotive good means either a covered vehicle or a part, 
component, or material listed in Table A.1, A.2, B, C, D, E, F, or G of 
Appendix A to this part;
* * * * *
    Corporate level. For an independent producer of a covered vehicle, 
its purchases or expenditures at the corporate level means the 
producer's total purchases or expenditures by value in one or more of 
the USMCA countries. For a subsidiary company whose financial 
information is included in the parent company's consolidated financial 
statements, its purchases or expenditures at the corporate level means 
the parent company's total purchases or expenditures by value in one or 
more of the USMCA countries. For purposes of the high-wage technology 
expenditures credit for the labor value content (LVC) requirement, 
corporate level must include all USMCA countries with such 
expenditures.
    Covered vehicle means a passenger vehicle, light truck, or heavy 
truck;
* * * * *
    Customs offenses means any act committed for the purpose of, or 
having the effect of, avoiding the laws or regulations of the United 
States pertaining to the provisions of the USMCA governing importations 
or exportations of goods between, or transit of goods through, the 
territories of the United States, Canada, and Mexico, specifically 
those that violate a customs law or regulation for restrictions or 
prohibitions on imports or exports, duty evasion, transshipment, 
falsification of documents relating to the importation or exportation 
of goods, fraud, or smuggling of goods;
* * * * *
    DOL means the United States Department of Labor;
* * * * *
    Heavy truck means a vehicle other than a vehicle that is solely or 
principally for off-road use of subheading 8701.20, 8704.22, 8704.23, 
8704.32 or 8704.90, HTSUS, or a chassis fitted with an engine of 
heading 8706, HTSUS, as in effect on July 1, 2020, that is for use in 
such a vehicle;
* * * * *
    Light truck means a vehicle of subheading 8704.21 or 8704.31, 
HTSUS, as in effect on July 1, 2020, except for a vehicle that is 
solely or principally for off-road use;
* * * * *
    Passenger vehicle means a vehicle of subheading 8703.21 through 
8703.90, HTSUS, as in effect on July 1, 2020, except for: A vehicle 
with a compression-ignition engine of subheadings 8703.31 through 
8703.33, HTSUS, as in effect on July 1, 2020, or a vehicle of 
subheading 8703.90, HTSUS, as in effect on July 1, 2020, with both a 
compression-ignition engine and an electric motor for propulsion, a 
three- or four-wheeled motorcycle, an all-terrain vehicle, a motorhome 
or entertainer coach, or an ambulance, hearse or prison van;
* * * * *

[[Page 6484]]

    Tariff preference level means a quantitative limit for certain non-
originating textile or apparel goods that may be entitled to 
preferential tariff treatment based on the goods meeting the 
requirements set forth in Sec.  182.82 of this part;
    Textile or apparel good means a textile or apparel good classified 
in the HTSUS Chapters 54 through 63 or the following HTSUS headings or 
subheadings, as in effect on July 1, 2020: 4202.12, 4202.22, 4202.32, 
4202.92, 5004 through 5007, 5104 through 5113, 5204 through 5212, 5303 
through 5311, 6601, 7019, 9404.90, and 9619;
* * * * *
    USMCA drawback means any drawback, waiver, or reduction of U.S. 
customs duty provided for in subpart E of this part;
* * * * *
    Vehicle certifications means the labor value content (LVC) 
certification, steel purchasing certification, and aluminum purchasing 
certification for covered vehicles required by Sec. Sec.  182.95, 
182.96, and 182.97 of this part;
    Wool apparel means apparel predominantly of wool, by weight; woven 
apparel predominantly of man-made fibers by weight, and containing 36 
percent or more of wool, by weight; or knitted or crocheted apparel 
predominantly of man-made fibers by weight, and containing 23 percent 
or more of wool by weight;
* * * * *

Subpart E--Restrictions on Drawback and Duty-Deferral Programs

0
40. Revise Sec.  182.42(c) to read as follows:


Sec.  182.42   Duties and fees not subject to drawback.

* * * * *
    (c) Customs duties paid or owed under unused merchandise 
substitution drawback. There will be no payment of such drawback under 
19 U.S.C. 1313(c)(2), 1313(j)(2), and 1313(p), when the basis for 
drawback is imported duty-paid petroleum derivatives (that is, not 
articles manufactured under 19 U.S.C. 1313(a) or (b)), pursuant to 
Sec.  190.173 of this chapter, on goods exported to Canada or Mexico 
per Article 2.5 of the USMCA.

0
41. Revise Sec.  182.43 to read as follows:


Sec.  182.43   Eligible goods subject to USMCA drawback.

    Except as otherwise provided in this subpart, drawback is 
authorized for an imported good that is entered for consumption and is:
    (a) Subsequently exported to Canada or Mexico;
    (b) Used as a material in the production of another good that is 
subsequently exported to Canada or Mexico; or
    (c) Substituted by a good of the same kind and quality as defined 
in Sec.  182.44(d) of this subpart and used as a material in the 
production of another good that is subsequently exported to Canada or 
Mexico.

0
42. Amend Sec.  182.44 by adding new paragraphs (h) and (i) to read as 
follows:


Sec.  182.44   Calculation of drawback.

* * * * *
    (h) Substitution of finished petroleum derivatives under 19 U.S.C. 
1313(p) for derivatives manufactured under 19 U.S.C. 1313(a) or (b). 
Upon presentation of a USMCA drawback claim under 19 U.S.C. 1313(p) for 
manufactured or produced petroleum derivatives in accordance with Sec.  
190.174 of this chapter, the amount of drawback payable is based on the 
lesser amount of the customs duties paid on the good either to the 
United States or to Canada or Mexico. The amount of drawback payable 
may not exceed the amount of drawback attributable to the article 
manufactured or produced under 19 U.S.C. 1313(a) or (b) which serves as 
the basis for drawback. For purposes of substitution drawback under 
this subpart, the term ``same kind and quality'' is as used in 19 
U.S.C. 1313(p) and part 190, subpart Q, of this chapter dealing with 
substitution of finished petroleum derivatives.
    (i) Goods sold at retail and returned under 19 U.S.C. 
1313(c)(1)(C)(ii). Upon presentation of the USMCA drawback claim under 
19 U.S.C. 1313(c)(1)(C)(ii) for goods ultimately sold at retail by the 
importer or the person who received the merchandise from the importer, 
and for any reason returned to and accepted by the importer or the 
person who received the merchandise from the importer, the amount of 
drawback payable is based on the lesser amount of the customs duties 
paid on the good either to the United States or to Canada or Mexico. 
The amount of drawback payable may not exceed 99 percent of the duty 
paid on such imported merchandise into the United States. Substitution 
pursuant to 19 U.S.C. 1313(c)(2) is not permitted (see Sec.  182.42(c) 
of this subpart).

0
43. In Sec.  182.45, revise paragraph (c) to read as follows:


Sec.  182.45   Goods eligible for full drawback.

* * * * *
    (c) Goods not conforming to sample or specifications or shipped 
without consent of consignee under 19 U.S.C. 1313(c)(1)(C)(i). An 
imported good exported to Canada or Mexico by reason of failure of the 
good to conform to sample or specification or by reason of shipment of 
the good without the consent of the consignee is eligible for drawback 
under 19 U.S.C. 1313(c)(1)(C)(i) without regard to the limitation on 
drawback set forth in Sec.  182.44 of this subpart. Such a good must be 
exported or destroyed within the statutory five-year time period and in 
compliance with the requirements set forth in part 190, subpart D, of 
this chapter, as applicable.
* * * * *

0
44. Revise Sec.  182.47 to read as follows:


Sec.  182.47   Completion of claim for drawback.

    (a) General. A claim for drawback will be granted, upon the 
submission of appropriate documentation to substantiate compliance with 
the drawback laws and regulations of the United States, evidence of 
exportation to Canada or Mexico, and satisfactory evidence of the 
payment of duties to Canada or Mexico. Unless otherwise provided in 
this subpart, the documentation, filing procedures, time and place 
requirements and other applicable procedures required to determine 
whether a good qualifies for drawback must be in accordance with the 
provisions of part 190 of this chapter, as appropriate; however, a 
drawback claim subject to the provisions of this subpart must be filed 
separately from any part 190 drawback claim (that is, a claim that 
involves goods exported to countries other than Canada or Mexico). 
Claims inappropriately filed or otherwise not completed within the 
periods specified in Sec.  182.46 of this subpart will be considered 
abandoned.
    (b) Complete drawback claim--(1) General. A complete drawback claim 
under this subpart must consist of the filing of the appropriate 
completed drawback entry, evidence of exportation (a copy of the 
Canadian or Mexican customs entry showing the amount of duty paid to 
Canada or Mexico) and its supporting documents. Each drawback entry 
filed under this subpart must be filed using the indicator ``USMCA 
Drawback''.
    (2) Specific claims. The following documentation must be submitted 
to CBP in order for a drawback claim to be processed under this 
subpart. Missing documentation or incorrect or incomplete information 
on required customs forms or supporting documentation will result in an 
incomplete drawback claim.

[[Page 6485]]

    (i) Manufacturing drawback claim. The following must be submitted 
in connection with a claim for direct identification manufacturing 
drawback or substitution manufacturing drawback:
    (A) A manufacturing drawback ruling number;
    (B) CBP Form 7501, or its electronic equivalent, or the import 
entry number;
    (C) Evidence of exportation and satisfactory evidence of the 
payment of duties in Canada or Mexico. Satisfactory evidence must 
include the Canadian or Mexican customs entry number and the amount of 
duty paid to Canada or Mexico;
    (D) Waiver of right to drawback. If the person exporting to Canada 
or Mexico was not the importer or the manufacturer, written waivers 
executed by the importer or manufacturer and by any intervening person 
to whom the good was transferred must be submitted in order for the 
claim to be considered complete; and
    (E) An affidavit of the party claiming drawback stating that no 
other drawback claim has been made on the designated goods, that such 
party has not provided an exporter's certification of origin pertaining 
to the exported goods to another party except as stated on the drawback 
claim, and that the party agrees to notify CBP if the party 
subsequently provides such an exporter's certification of origin to any 
person.
    (ii) Unused merchandise drawback claim under 19 U.S.C. 1313(j)(1). 
The following must be submitted in connection with a drawback claim 
covering a good eligible for unused merchandise drawback under 19 
U.S.C. 1313(j)(1):
    (A) The foreign entry number and date of entry, the HTSUS 
classification for the foreign entry, the amount of duties paid for the 
foreign entry and the applicable exchange rate. For goods in the same 
condition, a certification from the claimant that provides as follows: 
``Same condition--The undersigned certifies that the merchandise herein 
described is in the same condition as when it was imported under the 
import entry(s) and further certifies that this merchandise was not 
subjected to any process of manufacture or other operation except the 
allowable operations as provided for by regulation.'';
    (B) Information sufficient to trace the movement of the imported 
goods after importation;
    (C) In-bond application submitted pursuant to part 18 of this 
chapter, if applicable. This is required for merchandise which is 
examined at one port but exported through border points outside of that 
port. Such goods must travel in bond from the location where they were 
examined to the point of the border crossing (exportation). If 
examination is waived, in-bond transportation is not required;
    (D) CBP must be notified at least five business days in advance of 
the intended date of exportation in order to have the opportunity to 
examine the goods (see Sec.  190.35 of this chapter);
    (E) Acceptable documentary evidence of exportation to Canada or 
Mexico may include originals or copies of any of the following 
documents that are issued by the exporting carrier: bill of lading, air 
waybill, freight waybill, export ocean bill of lading, Canadian customs 
manifest, and cargo manifest. Supporting documentary evidence must 
establish fully the time and fact of exportation, the identity of the 
exporter, and the identity and location of the ultimate consignee of 
the exported goods;
    (F) If the party exporting to Canada or Mexico was not the 
importer, a written waiver from the importer and from each intermediate 
person to whom the goods were transferred is required in order for the 
claim to be considered complete; and
    (G) An affidavit of the party claiming drawback stating that no 
other drawback claim has been made on the designated goods.
    (iii) Nonconforming or improperly shipped goods drawback claim. The 
following must be submitted in the case of goods not conforming to 
sample or specifications, or shipped without the consent of the 
consignee and subject to a drawback claim under 19 U.S.C. 
1313(c)(1)(C)(i):
    (A) CBP Form 7501, or its electronic equivalent, to establish the 
fact of importation, the receipt of the imported goods, and the 
identity of the party to whom drawback is payable (see Sec.  182.48(c) 
of this subpart);
    (B) Documentary evidence to support the claim that the goods did 
not conform to sample or specifications, or were shipped without the 
consent of the consignee. In the case of nonconforming goods, such 
documentation may include a copy of a purchase order and any related 
documents such as a specification sheet, catalogue or advertising 
brochure from the supplier, the basis for which the order was placed, 
and copy of a letter or credit memo from the supplier indicating 
acceptance of the returned merchandise. This documentation is necessary 
to establish that the goods are, in fact, being returned to the party 
from which they were procured or that they are being sent to the 
supplier's other customer directly;
    (C) CBP Form 7512, or its electronic equivalent, if applicable;
    (D) Notification of intent to export or waiver of prior notice. CBP 
must be notified at least five business days in advance of the intended 
date of exportation in order to have the opportunity to examine the 
goods (see Sec.  190.42 of this chapter); and
    (E) Evidence of exportation, as provided in paragraph (b)(2)(ii)(E) 
of this section.
    (iv) Meats cured with imported salt. The provisions of paragraph 
(b)(2)(i) of this section relating to direct identification 
manufacturing drawback will apply to claims for drawback on meats cured 
with imported salt filed under this subpart insofar as applicable to 
and not inconsistent with the provisions of this subpart, and the forms 
referred to in that paragraph must be modified to show that the claim 
is being made for refund of duties paid on salt used in curing meats.
    (v) Jet aircraft engines. The provisions of paragraph (b)(2)(i) of 
this section relating to direct identification manufacturing drawback 
will apply to claims for drawback on foreign-built jet aircraft engines 
repaired or reconditioned in the United States filed under this subpart 
insofar as applicable to and not inconsistent with the provisions of 
this subpart and the provisions of part 190, subpart N, of this 
chapter.
    (vi) Substitution of finished petroleum derivatives under 19 U.S.C. 
1313(p) for derivatives manufactured under 19 U.S.C. 1313(a) or (b). 
The provisions of paragraph (b)(2)(i) of this section relating to 
manufacturing drawback will apply to claims for drawback on 
manufactured or produced petroleum derivatives, in accordance with 
Sec.  190.174 of this chapter, filed under this subpart insofar as 
applicable to and not inconsistent with the provisions of this subpart 
and the provisions of part 190, subpart Q, of this chapter.
    (vii) Goods sold at retail and returned under 19 U.S.C. 
1313(c)(1)(C)(ii). The following must be submitted in the case of goods 
ultimately sold at retail by the importer or the person who received 
the merchandise from the importer, and for any reason returned to and 
accepted by the importer or the person who received the merchandise 
from the importer and subject to a drawback claim under 19 U.S.C. 
1313(c)(1)(C)(ii):
    (A) CBP Form 7501, or its electronic equivalent, to establish the 
fact of importation, the receipt of the imported goods, and the 
identity of the party to

[[Page 6486]]

whom drawback is payable (see Sec.  182.48(c) of this subpart);
    (B) Documentary evidence to support the claim that the goods were 
ultimately sold at retail by the importer or the person who received 
the merchandise from the importer, and were returned to and accepted by 
the importer or the person who received the merchandise from the 
importer;
    (C) CBP Form 7512, or its electronic equivalent, if applicable;
    (D) Notification of intent to export or waiver of prior notice. CBP 
must be notified at least five business days in advance of the intended 
date of exportation in order to have the opportunity to examine the 
goods (see Sec.  190.42 of this chapter); and
    (E) Evidence of exportation, as provided in paragraph (b)(2)(ii)(E) 
of this section.
    (c) Evidence of exportation and of duties paid in Canada or Mexico. 
For purposes of this subpart, evidence of exportation and satisfactory 
evidence of payment of duties in Canada or Mexico must consist of one 
of the following types of documentation, provided that, for purposes of 
evidence of duties paid, such documentation includes the import entry 
number, the date of importation, the tariff classification number, the 
rate of duty and the amount of duties paid:
    (1) In the case of Canada, the Canadian entry document, presented 
with either the K-84 Statement or the Detailed Coding Statement. A 
Canadian customs document that is not accompanied by a valid receipt is 
not adequate evidence of exportation and payment of duty in Canada;
    (2) In the case of Mexico, the Mexican entry document (the 
``pedimento'');
    (3) The final customs duty determination of Canada or Mexico, or a 
copy thereof, with respect to the relevant entry; or
    (4) An affidavit, from the person claiming drawback, which is based 
on information received from the importer of the good in Canada or 
Mexico.

0
45. Add Sec.  182.48 to subpart E to read as follows:


Sec.  182.48  Person entitled to receive drawback.

    (a) General. The person named as exporter on the notice of 
exportation or on the bill of lading, air waybill, freight waybill, 
Canadian or Mexican customs manifest, cargo manifest, or certified 
copies of these documents, will be considered the exporter and entitled 
to drawback.
    (b) Manufacturing drawback. The person named as the exporter is 
entitled to claim manufacturing drawback, unless the manufacturer or 
producer reserves the right to claim drawback. The manufacturer or 
producer who reserves this right may claim drawback, will receive 
payment upon production of satisfactory evidence that the reservation 
was made with the knowledge and consent of the exporter. Drawback also 
may be granted to the agent of the manufacturer, producer, or exporter, 
or to the person the manufacturer, producer, exporter, or agent directs 
in writing to receive the drawback of duties.
    (c) Nonconforming or improperly shipped goods drawback under 19 
U.S.C. 1313(c)(1)(C)(i) and drawback on goods sold at retail and 
returned under 19 U.S.C. 1313(c)(1)(C)(ii). The person named as the 
exporter is entitled to claim rejected merchandise drawback; if the 
claimant was not the importer of the merchandise or its agent, the 
claimant must submit a statement signed by the importer and every other 
person, other than the ultimate purchaser, that owned the goods, that 
no other claim for drawback was made on the goods (see Sec.  190.42(b) 
of this chapter).
    (d) Unused merchandise drawback under 19 U.S.C. 1313(j)(1). The 
person named as the exporter is entitled to claim drawback under 19 
U.S.C. 1313(j)(1) unless the exporter has in writing waived its right 
to claim drawback (see Sec.  190.33 of this chapter).

0
46. Add Sec.  182.50(b) to read as follows:


Sec.  182.50  Liquidation and payment of drawback claims.

* * * * *
    (b) Time for liquidation. A drawback claim will not be liquidated 
until either a written waiver of the right to protest under 19 U.S.C. 
1514 is filed with CBP or the liquidation of the import entry has 
become final under U.S. law. In addition, except in the case of goods 
covered by Sec.  182.45 of this subpart, a drawback claim must not be 
liquidated for a period of three years after the date of entry of the 
goods in Canada or Mexico. A drawback claim may be adjusted pursuant to 
19 U.S.C. 4534(e)(1) even after liquidation of the U.S. import entry 
has become final.
* * * * *

0
47. Add Sec.  182.53 to subpart E to read as follows:


Sec.  182.53  Collection and waiver or reduction of duty under duty-
deferral programs.

    (a) General--(1) Definitions. The following definitions apply for 
purposes of this section:
    (i) Date of exportation. Date of exportation means the date of 
importation into Canada or Mexico as reflected on the applicable 
Canadian or Mexican entry document (see Sec.  182.47(c)(1) and (2) of 
this subpart).
    (ii) Duty-deferral program. A duty-deferral program means any 
measure which postpones duty payment upon arrival of a good in the 
United States until withdrawn or removed for exportation to Canada or 
Mexico or for entry into a Canadian or Mexican duty-deferral program. 
Such measures govern manipulation warehouses, manufacturing warehouses, 
smelting and refining warehouses, foreign trade zones, and those 
temporary importations under bond that are specified in paragraph 
(b)(5) of this section.
    (2) Treatment as entered or withdrawn for consumption--(i) General.
    (A) Where a good is imported into the United States pursuant to a 
duty-deferral program and is subsequently withdrawn from the duty-
deferral program for exportation to Canada or Mexico or is used as a 
material in the production of another good that is subsequently 
withdrawn from the duty-deferral program for exportation to Canada or 
Mexico, and provided that the good is a ``good subject to USMCA 
drawback'' within the meaning of 19 U.S.C. 4534 and is not described in 
Sec.  182.45 of this subpart, the documentation required to be filed 
under this section in connection with the exportation of the good will, 
for purposes of this chapter, constitute an USMCA entry or withdrawal 
for consumption and the exported good must be subject to duty which 
will be assessed in accordance with paragraph (b) of this section.
    (B) Where a good is imported into the United States pursuant to a 
duty-deferral program and is subsequently withdrawn from the duty-
deferral program and entered into a duty-deferral program in Canada or 
Mexico or is used as a material in the production of another good that 
is subsequently withdrawn from the duty-deferral program and entered 
into a duty-deferral program in Canada or Mexico, and provided that the 
good is a ``good subject to USCMA drawback'' within the meaning of 19 
U.S.C. 4534 and is not described in Sec.  182.45 of this subpart, the 
documentation required to be filed under this section in connection 
with the withdrawal of the good from the U.S. duty-deferral program 
will, for purposes of this chapter, constitute a USMCA entry or 
withdrawal for consumption and the withdrawn good must be subject to 
duty which will be assessed in accordance with paragraph (b) of this 
section.

[[Page 6487]]

    (C) Any assessment of duty under this section must include the 
duties and fees referred to in Sec.  182.42(a) and (b) of this subpart 
and the fees provided for in Sec.  24.23 of this chapter; these 
inclusions will not be subject to refund, waiver, reduction or 
drawback.
    (ii) Bond requirements. The provisions of Sec.  142.4 of this 
chapter will apply to each withdrawal and exportation transaction 
described in paragraph (a)(2) of this section. However, in applying the 
provisions of Sec.  142.4 of this chapter in the context of this 
section, any reference to release from CBP custody in Sec.  142.4 of 
this chapter will be taken to mean exportation to Canada or Mexico.
    (iii) Documentation filing and duty payment procedures--(A) Persons 
required to file. In the circumstances described in paragraph (a)(2) of 
this section, the documentation described in paragraph (a)(2)(iii)(B) 
of this section must be filed by one of the following persons:
    (1) In the case of a withdrawal of the goods from a warehouse, the 
person who has the right to withdraw the goods in accordance with Sec.  
144.31 of this chapter;
    (2) In the case of a temporary importation under bond (TIB) 
specified in paragraph (b)(5) of this section, the TIB importer whether 
or not it sells the goods for export to Canada or Mexico unless Sec.  
10.31(h) of this chapter applies; or
    (3) In the case of a withdrawal from a foreign trade zone, the 
person who has the right to make entry (see Sec.  146.62 of this 
chapter). However, if a zone operator is not the person with the right 
to make entry of the good, the zone operator will be responsible for 
the payment of any duty due in the event the zone operator permits such 
other person to remove the goods from the zone (Sec. Sec.  146.67 and 
146.68 of this chapter) and such other person fails to comply with the 
requirements of this provision.
    (B) Documentation required to be filed and required filing date. 
The person required to file must file CBP Form 7501, or its electronic 
equivalent, no later than 10 working days after the date of exportation 
to Canada or Mexico or 10 working days after the goods' being entered 
into a duty-deferral program in Canada or Mexico. Except where the 
context otherwise requires and except as otherwise specifically 
provided in this section, the procedures for completing and filing CBP 
Form 7501, or its electronic equivalent, in connection with the entry 
of merchandise under this chapter will apply for purposes of this 
paragraph. For purposes of completing CBP Form 7501, or its electronic 
equivalent, under this paragraph, any reference to the entry date will 
be taken to refer to the date of exportation of the good or the date 
the good is entered into a duty-deferral program in Canada or Mexico. 
The CBP Form 7501, or its electronic equivalent, required under this 
paragraph, may be transmitted electronically. See Sec. Sec.  141.62, 
141.63, and 144.38 (bonded warehouse) of this chapter.
    (C) Duty payment. The duty estimated to be due under paragraph (b) 
of this section must be deposited with CBP 60 calendar days after the 
date of exportation of the good. If a good is entered into a duty-
deferral program in Canada or Mexico, the duty estimated to be due 
under paragraph (b) of this section, but without any waiver or 
reduction provided for in that paragraph, must be deposited with CBP 60 
calendar days after the date the good is entered into such duty-
deferral program. Nothing precludes the deposit of such estimated duty 
at the time of filing the CBP Form 7501, or its electronic equivalent, 
under paragraph (a)(2)(iii)(B) of this section or at any other time 
within the 60-day period prescribed in this paragraph. However, any 
interest calculation will run from the date the duties are required to 
be deposited.
    (3) Waiver or reduction of duties--(i) General. Except in the case 
of duties and fees referred to in Sec.  182.42(a) and (b) of this 
subpart and fees provided for in Sec.  24.23 of this chapter, CBP may 
waive or reduce the duties paid or owed under paragraph (a)(2) of this 
section by the person who is required to file the CBP Form 7501, or its 
electronic equivalent (see paragraph (a)(2)(iii)(A) of this section) in 
accordance with paragraph (b) of this section, provided that a claim 
for waiver or reduction of the duties is filed with CBP within the 
appropriate 60-day time frame. The claim must be based on evidence of 
exportation or entry into a Canadian or Mexican duty-deferral program 
and satisfactory evidence of duties paid in Canada or Mexico (see Sec.  
182.47(c) of this subpart).
    (ii) Filing of claim and payment of reduced duties. A claim for a 
waiver or reduction of duties under paragraph (a)(3)(i) of this section 
must be made on CBP Form 7501, or its electronic equivalent, which must 
set forth, in addition to the information required under paragraph 
(a)(2)(iii)(B) of this section, a description of the goods exported to 
Canada or Mexico, and the Canadian or Mexican import entry number, date 
of importation, tariff classification number, rate of duty and amount 
of duty paid. If a claim for reduction of duties is filed under this 
paragraph, the reduced duties must be deposited with CBP when the claim 
is filed.
    (iii) Drawback on goods entered into a duty-deferral program in 
Canada or Mexico. After goods within a duty-deferral program in the 
United States, which were exported from the United States and entered 
into a duty-deferral program in Canada or Mexico, are then withdrawn 
from that Canadian or Mexican duty-deferral program either for entry 
into Canada or Mexico or for export to a non-USMCA country, the person 
who filed the CBP Form 7501, or its electronic equivalent and the 
information required in paragraph (a)(2)(iii)(B) of this section, may 
file a claim for drawback if the goods are withdrawn within five years 
from the date of the original importation of the good into the United 
States. If the goods are entered for consumption in Canada or Mexico, 
drawback will be calculated in accordance with Sec.  182.44 of this 
subpart.
    (4) Liquidation of entry--(i) If no claim is filed. If no claim for 
a waiver or reduction of duties is filed in accordance with paragraph 
(a)(3) of this section, CBP will determine the final duties due under 
paragraph (a)(2)(i) of this section and will post a notice of 
liquidation of the entry filed under this section in accordance with 
Sec.  159.9 of this chapter. Where no claim was filed in accordance 
with this section and CBP fails to liquidate, or extend liquidation of, 
the entry filed under this section within one year from the date of 
entry, upon the date of expiration of that one-year period the entry 
will be deemed liquidated by operation of law in the amount asserted by 
the exporter on the CBP Form 7501, or its electronic equivalent, filed 
under paragraph (a)(2)(iii)(A) of this section. A protest under 19 
U.S.C. 1514 and part 174 of this chapter must be filed within 180 days 
from the date of liquidation under this section.
    (ii) If a claim is filed. If a claim for a waiver or reduction of 
duties is filed in accordance with paragraph (a)(3) of this section, an 
extension of liquidation of the entry filed under this section will 
take effect for a period not to exceed three years from the date the 
entry was filed. Before the close of the extension period, CBP will 
liquidate the entry filed under this section and will post a bulletin 
of liquidation in accordance with Sec.  159.9 of this chapter. If CBP 
fails to liquidate the entry filed under this section within four years 
from the date of the entry, upon the date of expiration of that four-
year period the entry will be

[[Page 6488]]

deemed liquidated by operation of law in the amount asserted by the 
exporter on the CBP Form 7501, or its electronic equivalent, filed 
under paragraph (a)(3)(ii) of this section. A protest under 19 U.S.C. 
1514 and part 174 of this chapter must be filed within 180 days from 
the date of liquidation under this section.
    (b) Assessment and waiver or reduction of duty--(1) Manipulation in 
warehouse. Where a good subject to USMCA drawback under this subpart is 
withdrawn from a bonded warehouse (see 19 U.S.C. 1562) after 
manipulation for exportation to Canada or Mexico or for entry into a 
duty-deferral program in Canada or Mexico, duty will be assessed on the 
good in its condition and quantity, and at its weight, at the time of 
such withdrawal from the warehouse and with such additions to, or 
deductions from, the final appraised value as may be necessary by 
reason of its change in condition. Such duty must be paid no later than 
60 calendar days after the date of exportation or of entry into the 
duty-deferral program of Canada or Mexico, except that, upon filing of 
a proper claim under paragraph (a)(3) of this section, the duty will be 
waived or reduced in an amount that does not exceed the lesser of the 
total amount of duty payable on the good under this section or the 
total amount of customs duties paid to Canada or Mexico.
    (2) Bonded manufacturing warehouse. Where a good is manufactured in 
a bonded warehouse (see 19 U.S.C. 1311) with imported materials and is 
then withdrawn for exportation to Canada or Mexico or for entry into a 
duty-deferral program in Canada or Mexico, duty will be assessed on the 
materials in their condition and quantity, and at their weight, at the 
time of their importation into the United States. Such duty must be 
paid no later than 60 calendar days after either the date of 
exportation or of entry into a duty-deferral program of Canada or 
Mexico, except that, upon filing of a proper claim under paragraph 
(a)(3) of this section, the duty will be waived or reduced in an amount 
that does not exceed the lesser of the total amount of duty payable on 
the materials under this section or the total amount of customs duties 
paid to Canada or Mexico.
    (3) Bonded smelting or refining warehouse. For any qualifying 
imported metal-bearing materials (see 19 U.S.C. 1312), duty will be 
assessed on the imported materials and the charges against the bond 
canceled no later than 60 calendar days after either the date of 
exportation of the treated materials to Canada or Mexico or the date of 
entry of the treated materials into a duty-deferral program of Canada 
or Mexico, either from the bonded smelting or refining warehouse or 
from such other customs bonded warehouse after the transfer of the same 
quantity of material from a bonded smelting or refining warehouse. 
However, upon filing of a proper claim under paragraph (a)(3) of this 
section, the duty on the imported materials will be waived or reduced 
in an amount that does not exceed the lesser of the total amount of 
duty payable on the imported materials under this section or the total 
amount of customs duties paid to Canada or Mexico.
    (4) Foreign trade zone. For a good that is manufactured or 
otherwise changed in condition in a foreign trade zone (see 19 U.S.C. 
81c(a)) and then withdrawn from the zone for exportation to Canada or 
Mexico or for entry into a Canadian or Mexican duty-deferral program, 
the duty assessed, as calculated under paragraph (b)(4)(i) or (ii) of 
this section, must be paid no later than 60 calendar days after either 
the date of exportation of the good to Canada or Mexico or the date of 
entry of the good into a duty-deferral program of Canada or Mexico, 
except that, upon filing of a proper claim under paragraph (a)(3) of 
this section, the duty will be waived or reduced in an amount that does 
not exceed the lesser of the total amount of duty payable on the good 
under this section or the total amount of customs duties paid to Canada 
or Mexico.
    (i) Nonprivileged foreign status. In the case of a nonprivileged 
foreign status good, duty is assessed on the good in its condition and 
quantity, and at its weight, at the time of its exportation from the 
zone to Canada or Mexico, or its entry into a duty-deferral program of 
Canada or Mexico.
    (ii) Privileged foreign status. In the case of a privileged foreign 
status good, duty is assessed on the good in its condition and 
quantity, and at its weight, at the time privileged status is elected.
    (5) Temporary importation under bond. Except in the case of a good 
imported from Canada or Mexico for repair or alteration, where a good, 
regardless of its origin, was imported temporarily free of duty for 
repair, alteration or processing (subheading 9813.00.05, HTSUS) and is 
subsequently exported to Canada or Mexico, duty will be assessed on the 
good on the basis of its condition at the time of its importation into 
the United States. Such duty must be paid no later than 60 calendar 
days after either the date of exportation or the date of entry into a 
duty-deferral program of Canada or Mexico, except that, upon filing of 
a proper claim under paragraph (a)(3) of this section, the duty will be 
waived or reduced in an amount that does not exceed the lesser of the 
total amount of duty payable on the good under this section or the 
total amount of customs duties paid to Canada or Mexico.
    (c) Recordkeeping requirements. If a person intends to claim a 
waiver or reduction of duty on goods under this section, that person 
must maintain records concerning the value of all involved goods or 
materials at the time of their importation into the United States and 
concerning the value of the goods at the time of their exportation to 
Canada or Mexico or entry into a duty-deferral program of Canada or 
Mexico, and if a person files a claim under this section for a waiver 
or reduction of duty on goods exported to Canada or Mexico or entered 
into a Canadian or Mexican duty-deferral program, that person must 
maintain evidence of exportation or entry into a Canadian or Mexican 
duty-deferral program and satisfactory evidence of the amount of any 
customs duties paid to Canada or Mexico on the good (see Sec.  
182.47(c) of this subpart). Failure to maintain adequate records will 
result in denial of the claim for waiver or reduction of duty.
    (d) Failure to file proper claim. If the person identified in 
paragraph (a)(2)(iii)(A) of this section fails to file a proper claim 
within the 60-day period specified in this section, that person, or the 
FTZ operator, pursuant to paragraph (a)(2)(iii)(A)(3) of this section, 
will be liable for payment of the full duties assessed under this 
section and without any waiver or reduction thereof.
    (e) Subsequent claims for preferential tariff treatment. If a claim 
for a refund of duties is allowed by the Canadian or Mexican customs 
administration under Article 5.11 of the USMCA (post-importation claim) 
or under any other circumstance after duties have been waived or 
reduced under this section, CBP may reliquidate the entry filed under 
this section pursuant to 19 U.S.C. 4534(e) even after liquidation of 
the entry has become final.

0
48. Add Sec.  182.55 to subpart E to read as follows:


Sec.  182.55  Goods exported from duty-deferral programs that are not a 
``good subject to USMCA drawback'' within the meaning of 19 U.S.C. 
4534.

    (a) An importer, or its agent, claiming a good is not a ``good 
subject to USMCA drawback'' within the meaning of 19 U.S.C. 4534 must 
notify CBP at:
    (1) The time of importation and admission into the duty-deferral 
program; or

[[Page 6489]]

    (2) The time of filing the documentation required under Sec.  
182.53(a)(2)(iii)(B) of this subpart.
    (b) A person must maintain records supporting a claim that a good 
is not a ``good subject to USMCA drawback'' within the meaning of 19 
U.S.C. 4534. The records must be made available for examination and 
inspection by a CBP official in the same manner as provided in part 163 
of this chapter in the case of U.S. importer records.

Subpart G--Origin Verifications and Determinations

0
49. In Sec.  182.71, add two sentences to the end of the section


Sec.  182.71  Applicability.

    * * * Additional verification procedures apply to automotive goods 
and are set forth in subpart I of this part. For textile and apparel 
goods, CBP may choose to conduct a verification pursuant to the 
verification means and procedures contained in this subpart or may 
alternatively choose to conduct a verification pursuant to a site visit 
as described in Sec.  182.83 of this part.

0
50. Amend Sec.  182.75 as follows:
0
a. Revise paragraph (c)(2); and
0
b. In paragraph (c)(4), remove the phrase ``unless CBP determines that 
there is a pattern of conduct of false or unsupported representations 
pursuant to Sec.  182.76,''.
    The revision reads as follows:


Sec.  182.75  Determinations of origin.

* * * * *
    (c) * * *
    (2) Denial of preferential tariff treatment. CBP may deny the claim 
for preferential tariff treatment if:
    (i) The certification of origin is not submitted to CBP upon 
request as required pursuant to Sec.  182.12(a) of this part, or, for 
textile or apparel goods claiming USMCA preferential tariff treatment 
under a tariff preference level (TPL), the certificate of eligibility 
is not submitted to CBP upon request as required pursuant to Sec.  
182.82(d) of this part;
    (ii) The claim or certification of origin is invalid or based on 
inaccurate information and is not corrected within the required time 
period pursuant to Sec.  182.11(c) of this part;
    (iii) CBP determines that the importer, exporter, or producer 
failed to provide sufficient information to substantiate the claim;
    (iv) CBP determines that the good does not qualify for preferential 
tariff treatment, including failing to meet the rules of origin 
requirements in General Note 11, HTSUS, and Appendix A to this part, or 
the TPL requirements in Sec.  182.82 of this part;
    (v) The importer, exporter, or producer fails to respond to the 
request for information pursuant to Sec.  182.73(f)(1) subject to the 
conditions in Sec.  182.75(c)(1) of this subpart;
    (vi) The importer, exporter, or producer fails to respond to the 
questionnaire pursuant to Sec.  182.73(f)(1) of this subpart;
    (vii) The exporter or producer fails to consent to a verification 
visit pursuant to Sec.  182.74 of this subpart;
    (viii) The importer, exporter, or producer fails to maintain 
records demonstrating that the good qualifies for preferential tariff 
treatment as required pursuant to this part;
    (ix) The importer, exporter, or producer denies access, as 
requested by CBP, to records or documentation that are in its 
possession or required to be maintained pursuant to this part;
    (x) The exporter or producer denies access to records or 
documentation that are in its possession or required to be maintained, 
or to facilities during a verification visit as required pursuant to 
this part;
    (xi) CBP finds a pattern of conduct pursuant to Sec.  182.76 of 
this subpart or, for textile and apparel goods, pursuant to Sec.  
182.83(g) of this part;
    (xii) CBP determines, pursuant to a site visit for textiles or 
apparel goods conducted under Sec.  182.83 of this part, that any of 
the reasons for denial set forth in Sec.  182.83(e) of this part 
applies;
    (xiii) CBP determines, for automotive goods, that any of the 
reasons for denial set forth in Sec.  182.107 of this part applies; or
    (xiv) CBP determines that any other reason to deny a claim for 
preferential tariff treatment as set forth in this part applies.
* * * * *

Subpart H--Textile and Apparel Goods

0
51. Revise Sec.  182.81 to read as follows:


Sec.  182.81  Applicability.

    This subpart applies only to textile or apparel goods. This subpart 
contains the provisions for textile or apparel goods that are claiming 
USMCA preferential tariff treatment under a tariff preference level 
(TPL) and the provisions related to site visits. With the exception of 
Sec. Sec.  182.11, 182.12, 182.14, 182.16, subpart D, and the rules of 
origin set forth in Appendix A of this part, the relevant requirements 
and procedures set forth in this part apply to TPLs. For textile or 
apparel goods, including TPLs, CBP has the discretion to conduct a 
verification pursuant to the general verification means and procedures 
contained in subpart G of this part or to choose to conduct a 
verification pursuant to a site visit as set forth in this subpart. 
Unless otherwise specified in this subpart, the requirements and 
procedures set forth in subpart G of this part do not apply to a site 
visit conducted pursuant to this subpart.

0
52. Revise Sec.  182.82 to read as follows:


Sec.  182.82  Claim for preferential tariff treatment under tariff 
preference level.

    (a) Basis of claim. Textile or apparel goods described in paragraph 
(b) of this section that do not qualify as originating goods under the 
rules of origin in General Note 11, HTSUS, and Appendix A of this part 
may qualify for preferential tariff treatment under the USMCA under an 
applicable tariff preference level (TPL). An importer, who cannot make 
a claim pursuant to Sec.  182.11(b) for these non-originating goods, 
may make a claim for USMCA preferential tariff treatment under a TPL, 
including an exemption from the merchandise processing fee, for such 
textile or apparel goods provided that:
    (1) The textile or apparel goods are eligible for a TPL claim under 
paragraph (b) of this section;
    (2) The annual quantitative limit has not been reached for the 
subject TPL as indicated in U.S. Note 11, Subchapter XXIII, Chapter 98, 
HTSUS, and paragraph (b) of this section; and
    (3) The claim is based on a certificate of eligibility, as 
specified in paragraph (d) of this section.
    (b) Goods eligible for TPL claims. The following goods are eligible 
for a TPL claim made under paragraph (c) of this section:
    (1) Cotton or man-made fiber apparel goods of a USMCA country. 
Cotton or man-made fiber apparel goods described in U.S. Notes 11(a)(i) 
and (b)(i), Subchapter XXIII, Chapter 98, HTSUS, that are both cut (or 
knit-to-shape) and sewn or otherwise assembled in the territory of a 
USMCA country, and that meet the applicable conditions for preferential 
tariff treatment under the USMCA, other than the condition that they 
are originating goods. The preferential tariff treatment is limited to 
the quantities specified in U.S. Notes 11(a) and 11(b), Subchapter 
XXIII, Chapter 98, HTSUS;
    (2) Wool apparel goods of a USMCA country. Wool apparel goods 
described in U.S. Note 11, Subchapter XXIII, Chapter 98, HTSUS, and 
that meet the applicable conditions for preferential tariff treatment 
under the USMCA, other than the condition that they are originating 
goods. The preferential tariff treatment is limited to the quantities

[[Page 6490]]

specified in U.S. Note 11(a)(i)(B) and (b)(i)(C), Subchapter XXIII, 
Chapter 98, HTSUS;
    (3) Cotton or man-made fiber fabrics and made-up goods. Fabrics and 
made-up goods described in U.S. Note 11(a)(ii) and (b)(ii), Subchapter 
XXIII, Chapter 98, HTSUS, made from cotton or man-made fiber, provided 
that the goods meet the applicable conditions for preferential tariff 
treatment under the USMCA, other than the condition that they are 
originating goods. The preferential tariff treatment is limited to the 
quantities specified in U.S. Note 11(a)(ii) and (b)(ii), Subchapter 
XXIII, Chapter 98, HTSUS; and
    (4) Cotton or man-made fiber spun yarn. Yarn described in U.S. Note 
11(a)(iii) and (b)(iii), Subchapter XXIII, Chapter 98, HTSUS, made from 
cotton or man-made fiber, provided that the yarn meets the applicable 
conditions for preferential tariff treatment under the USMCA, other 
than the condition that they are originating goods. The preferential 
tariff treatment is limited to the quantities specified in U.S. Note 
11(a)(iii) and (b)(iii), Subchapter XXIII, Chapter 98, HTSUS.
    (c) Making a TPL claim. A claim for preferential tariff treatment 
under a TPL is made by including on the entry summary, or equivalent 
documentation, or by the method specified for equivalent reporting via 
an authorized electronic data interchange system, the applicable 
subheading in Chapter 98, HTSUS, the applicable subheading under which 
each non-originating textile or apparel good is classified with the 
letter ``S+'' as a prefix to the subheadings of the HTSUS, and the 
certificate of eligibility number. The applicable subheadings in 
Chapter 98, HTSUS, are:
    (1) For goods described in paragraph (b)(1) of this section, 
subheadings 9823.52.01 and 9823.53.01;
    (2) For goods described in paragraph (b)(2) of this section, 
subheadings 9823.52.02, 9823.52.03, 9823.53.02;
    (3) For goods described in paragraph (b)(3) of this section, 
subheadings 9823.52.04, 9823.52.05, 9823.52.06, 9823.53.03, 9823.53.04, 
and 9823.53.05; and
    (4) For goods described in paragraph (b)(4) of this section, 
subheadings 9823.52.07, 9823.52.08, and 9823.53.06.
    (d) Certificate of eligibility. An importer who makes a claim for 
preferential tariff treatment pursuant to paragraph (c) of this section 
must submit, at the request of CBP, a certificate of eligibility issued 
by an authorized official of the government of Mexico or Canada. The 
certificate of eligibility must contain information demonstrating that 
a good is eligible for a TPL claim as set forth in paragraph (b) of 
this section and to track allocation and use of a TPL. The certificate 
of eligibility must be transmitted electronically pursuant to any 
electronic means authorized by CBP for that purpose.
    (e) Post-importation claims. (1) Right to make a post-importation 
claim. Where a textile or apparel good would have qualified for 
preferential tariff treatment under paragraph (a) of this section when 
it was imported into the United States but no claim for preferential 
tariff treatment was made under paragraph (c) of this section, the 
importer of that good may file a claim for a refund of any excess 
customs duties at any time within one year after the date of 
importation of the good. As this post-importation claim is not filed in 
accordance with 19 U.S.C. 1520(d) or subpart D of this part, the claim 
must be filed in accordance with the procedures set forth in paragraph 
(e)(2) of this section.
    (2) Filing procedures. Post-importation claims under a 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 limits for 
the subject TPL, as provided for in paragraph (b) of this section, are 
already met.
    (f) Denial of preferential tariff treatment. If the importer fails 
to comply with the requirements under this section, including the 
submission of a certificate of eligibility upon request in accordance 
with paragraph (d) of this section, or if the textile or apparel good 
is not eligible to make a TPL claim under paragraph (b) of this 
section, CBP may deny preferential tariff treatment to the textile or 
apparel good.
    (g) Verifications. CBP will conduct a verification of a textile or 
apparel good claiming USMCA preferential tariff treatment under a TPL 
pursuant to the means and procedures in either subpart G of this part 
or Sec.  182.83 of this subpart.

0
53. Add Sec.  182.83 to subpart H to read as follows:


Sec.  182.83  Verifications of textile and apparel goods.

    (a) Verification of textile and apparel goods. For textile and 
apparel goods, CBP has two alternative means of conducting a 
verification. CBP may conduct a verification for purposes of 
determining whether a textile and apparel good qualifies for 
preferential tariff treatment using any of the means described in Sec.  
182.72(a) of this part. Alternatively, as described in this section, 
CBP may conduct a site visit to the premises of the exporter or 
producer of textile or apparel goods in Mexico or Canada for the 
purpose of determining:
    (1) That a textile or apparel good qualifies for preferential 
tariff treatment; or
    (2) That customs offenses with regard to a textile or apparel good 
are occurring or have occurred.
    (b) Verification of a material during a site visit. When conducting 
a verification of a textile or apparel good imported into the United 
States, CBP may conduct a verification of the material that is used in 
the production of that good. A verification of a material producer may 
be conducted pursuant to the site visit procedures set forth in this 
section. With the exception of Sec.  182.75, the provisions in this 
section also apply to the verification of a material and references to 
the term ``producer'' apply to a producer of a textile or apparel good 
or to a material producer.
    (c) Site visit procedures. (1) Consent required. Prior to 
conducting a site visit in Canada or Mexico pursuant to this section, 
CBP must obtain the consent of the exporter, producer, or a person 
having capacity to consent on behalf of the exporter or producer, 
either prior to the site visit or at the time of the site visit, to 
access the relevant records or facilities. CBP must, at the time of the 
request for consent, inform the exporter, producer, or person having 
the capacity to consent to a site visit of:
    (i) The legal authority for the visit;
    (ii) The specific purpose of the visit; and
    (iii) The names and titles of the U.S. officials performing the 
visit.
    (2) Failure to receive CBP on initial date. (i) If the exporter, 
producer, or a person having the capacity to consent on behalf of the 
exporter or producer is not able to receive CBP to carry out the site 
visit, the site visit will be conducted on the following business day 
unless:
    (A) CBP agrees otherwise; or
    (B) The exporter, producer, or person having the capacity to 
consent on behalf of the exporter or producer substantiates a valid 
reason acceptable to CBP for why the site visit cannot occur on the 
following business day.
    (ii) If the exporter, producer, or person having the capacity to 
consent on behalf of the exporter or producer, does not have a valid 
reason acceptable to CBP for why the site visit cannot take place on 
the following business day, CBP will consider any reasonable 
alternative proposed dates, taking into account the availability of 
relevant employees or facilities of the exporter or producer to be 
visited. After such consideration, CBP may deem consent

[[Page 6491]]

for the site visit or access to the records or facilities to be denied.
    (3) Availability of records and facilities. During a site visit, 
CBP may request access to:
    (i) Records and facilities relevant to the claim for preferential 
tariff treatment; or
    (ii) Records and facilities relevant to the customs offenses being 
verified.
    (d) Right to request report of the site visit. The exporter or 
producer may request CBP's written report of the results of the site 
visit. The exporter or producer must submit this request in writing to 
CBP. CBP will provide the exporter or producer the portions of the 
report that pertain to that exporter or producer, including any 
findings, subject to the confidentiality provisions in Sec.  182.2 of 
this part.
    (e) Denial of preferential tariff treatment. CBP may deny 
preferential tariff treatment to any textile or apparel good imported 
or produced by the person that is the subject of the verification if 
CBP determines any of the following:
    (1) CBP determines, pursuant to a site visit conducted under this 
section, that it has not received sufficient information to determine 
that the textile or apparel good qualifies for preferential tariff 
treatment;
    (2) CBP determines that the textile or apparel good does not 
qualify for preferential tariff treatment, including failing to meet 
the rules of origin requirements in General Note 11, HTSUS, and 
Appendix A to this part, or the TPL requirements in Sec.  182.82 of 
this subpart;
    (3) CBP is unable to determine, pursuant to a site visit conducted 
under paragraph (a)(2) of this section, that the exporter or producer 
is complying with applicable customs measures affecting trade in 
textile or apparel goods;
    (4) CBP is unable to conduct a site visit because access to or 
consent for the site visit is denied by the exporter, producer, or 
person having the capacity to consent on behalf of the exporter or 
producer;
    (5) The exporter, producer, or a person having the capacity to 
consent on behalf of the exporter or producer prevents CBP from 
completing the site visit on the initial date of the site visit and the 
exporter or producer does not provide an acceptable alternative date 
for the site visit;
    (6) The exporter, producer, or person having the capacity to 
consent on behalf of the exporter or producer fails to provide CBP with 
access to relevant documents or facilities during a site visit as 
required under Sec.  182.83(c)(3) of this section; or
    (7) CBP determines that any other reason to deny a claim for 
preferential tariff treatment as set forth in Sec.  182.75(c)(2) of 
this part applies.
    (f) Intent to deny and determination of origin. After CBP conducts 
a site visit under this section, CBP will issue a determination of 
origin pursuant to the procedures set forth in Sec.  182.75, with the 
exception of Sec.  182.75(c)(1). If CBP conducts a site visit under 
this section and, as a result, intends to deny preferential tariff 
treatment to a textile or apparel good, it must, prior to issuing a 
determination of origin, issue an intent to deny pursuant to Sec.  
182.75(c)(3).
    (g) Pattern of conduct for textile or apparel goods. Where the 
verification of identical textile or apparel goods by CBP indicates a 
pattern of conduct by an exporter or producer of false or unsupported 
representations that a textile or apparel good imported into the 
territory of the United States qualifies for preferential tariff 
treatment, CBP may withhold preferential tariff treatment to identical 
textile or apparel goods imported, exported, or produced by that person 
until it is demonstrated to CBP that those identical textile or apparel 
goods qualify for preferential tariff treatment.

Subpart I--Automotive Goods

0
54. Add Sec.  182.91 to read as follows:


Sec.  182.91  Applicability.

    This subpart contains the additional requirements and procedures 
applicable only to automotive goods, including covered vehicles 
claiming USMCA preferential tariff treatment under Sec.  182.11(b) or 
Sec.  182.32 of this part. Covered vehicles claiming USMCA preferential 
tariff treatment must also meet the requirements and follow the 
procedures contained in this part, including the requirements set forth 
in Appendix A of this part. This subpart contains the labor value 
content (LVC), steel purchasing, and aluminum purchasing requirements 
for covered vehicles (passenger vehicles, light trucks, and heavy 
trucks), the LVC, steel purchasing, and aluminum purchasing 
certification requirements and procedures, the motor vehicle averaging 
election requirements and procedures, the recordkeeping requirements, 
the verification procedures applicable to automotive goods, and 
additional reasons that CBP may deny preferential tariff treatment to 
covered vehicles.

0
55. Add Sec.  182.92 to read as follows:


Sec.  182.92  Claim for preferential tariff treatment for covered 
vehicles.

    (a) General. An importer may make a claim for USMCA preferential 
tariff treatment under Sec.  182.11(b) or Sec.  182.32 of this part for 
a covered vehicle only if the requirements set forth in this part are 
met, including the certification of origin requirement in Sec.  182.12 
of this part, the LVC requirement in Sec.  182.93 of this subpart, and 
the steel purchasing and aluminum purchasing requirements in Sec.  
182.94 of this subpart, and if the vehicle producer has complied with 
the LVC, steel purchasing, and aluminum purchasing certification 
requirements under Sec. Sec.  182.95, 182.96, and 182.97 of this 
subpart.
    (b) Requirement to include vehicle certification unique identifier. 
An importer making a claim for USMCA preferential tariff treatment for 
a covered vehicle under Sec.  182.11(b) of this part must include on 
the entry summary or equivalent documentation, or by the method 
specified for equivalent reporting via an authorized data interchange 
system, the unique identifier assigned by CBP for each of the LVC, 
steel purchasing, and aluminum purchasing certifications that forms the 
basis for the covered vehicle's eligibility for preferential tariff 
treatment. An importer making a claim for USMCA preferential tariff 
treatment for a covered vehicle under Sec.  182.32 of this part must 
include, in the post-importation claim, the unique identifier assigned 
by CBP for each of the LVC, steel purchasing, or aluminum purchasing 
certifications that forms the basis for the covered vehicle's 
eligibility for preferential tariff treatment.

0
56. Add Sec.  182.93 to read as follows:


Sec.  182.93  Labor value content (LVC) requirement.

    (a) General. A covered vehicle is eligible for USMCA preferential 
tariff treatment only if the producer of the covered vehicle meets the 
LVC requirement, as set forth in General Note 11(k)(vi), HTSUS, and 
section 18 of Appendix A to this part or, if the producer is subject to 
the alternative staging regime, General Note 11(k)(viii), HTSUS, and 
section 19 of Appendix A to this part.
    (b) Administering the LVC component. The Department of Labor (DOL) 
is responsible for implementing and administering the high-wage 
components of the LVC requirement. The DOL regulations that set forth 
information concerning the high-wage components of the LVC requirement 
and the applicable procedures are in 29 CFR part 810. CBP is 
responsible for determining whether a covered vehicle

[[Page 6492]]

meets the LVC requirement generally, setting procedures for submitting 
the LVC certification, verifying the LVC requirement in conjunction 
with DOL, and determining whether a covered vehicle qualifies for USMCA 
preferential tariff treatment. CBP and DOL may exchange information as 
necessary to properly administer the LVC requirement, subject to the 
confidentiality provisions in Sec.  182.2 of this part and the DOL 
regulations in 29 CFR part 810.
    (c) LVC calculation. For the purpose of determining whether a 
covered vehicle meets the LVC requirement, the producer of the covered 
vehicle must calculate the LVC requirement pursuant to General Note 
11(k)(vi), HTSUS, and section 18 of Appendix A to this part and the 
requirements for the high-wage components of the LVC requirement set 
forth in the DOL regulations at 29 CFR part 810.
    (d) Calculation periods. The producer of a covered vehicle may base 
the LVC calculation over the calculation periods set forth in either 
this paragraph or paragraph (e) of this section. The following 
calculation periods are provided for in section 18(19) of Appendix A to 
this part, and include:
    (1) The previous fiscal year of the producer;
    (2) The previous calendar year;
    (3) The quarter or month to date in which the vehicle is produced 
or exported;
    (4) The producer's fiscal year to date in which the vehicle is 
produced or exported; or
    (5) The calendar year to date in which the vehicle is produced or 
exported.
    (e) Additional calculation periods. If the fiscal year of the 
producer of a covered vehicle begins after July 1, 2020, but before 
July 1, 2021, the producer may base the LVC calculation over the period 
beginning on July 1, 2020 and ending at the end of the following fiscal 
year, as provided for in sections 16(4) and 16(5) of Appendix A to this 
part.
    (1) Additional calculation periods applicable to all covered 
vehicles. For the period from July 1, 2020 to June 30, 2023, the 
producer of a covered vehicle may base the LVC calculation over the 
following periods:
    (i) July 1, 2020 to June 30, 2021;
    (ii) July 1, 2021 to June 30, 2022;
    (iii) July 1, 2022 to June 30, 2023; and
    (iv) July 1, 2023 to the end of the producer's fiscal year.
    (2) Additional calculation periods for heavy trucks. In addition to 
the calculation periods contained in paragraph (e)(1) of this section, 
the producer of a heavy truck may base the LVC calculation of a heavy 
truck over the following additional periods:
    (i) July 1, 2023 to June 30, 2024;
    (ii) July 1, 2024 to June 30, 2025;
    (iii) July 1, 2025 to June 30, 2026;
    (iv) July 1, 2026 to June 30, 2027; and
    (v) July 1, 2027 to the end of the producer's fiscal year.
    (3) Calculation periods. When basing the LVC calculation over the 
additional calculation periods set forth in this paragraph, the 
producer may calculate:
    (i) Beginning on July 1 of the previous year and ending on June 30 
of the current year, except for the additional calculation periods set 
forth in paragraph (e)(1)(iv) or (e)(2)(v) of this section when the 
period ends at the end of the producer's fiscal year; or
    (ii) Beginning on July 1 of the current year and ending on June 30 
of the following year, except for the additional calculation periods in 
paragraph (e)(1)(iv) or (e)(2)(v) of this section when the period ends 
at the end of the producer's fiscal year.

0
57. Add Sec.  182.94 to subpart I to read as follows:


Sec.  182.94   Steel purchasing and aluminum purchasing requirements.

    (a) General. A covered vehicle is eligible for USMCA preferential 
tariff treatment only if the producer of the covered vehicle meets both 
the steel purchasing and the aluminum purchasing requirements, as set 
forth in General Note 11(k)(v), HTSUS, and section 17 of Appendix A to 
this part or, if the producer is subject to alternative staging regime, 
General Note 11(k)(viii), HTSUS, and section 19 of Appendix A of this 
part.
    (b) Steel and aluminum purchasing calculations. For the purpose of 
determining whether the producer of a covered vehicle has met the steel 
or aluminum purchasing requirement, the producer must calculate the 
steel and aluminum requirements pursuant to General Note 11(k)(v), 
HTSUS, and section 17 of Appendix A to this part. The producer may 
calculate the value of the steel and aluminum purchases using a method 
in section 17(6) of Appendix A to this part and may calculate the 
purchases of steel or aluminum on the basis of the categories set forth 
in in section 17(9) of Appendix A to this part.
    (c) Calculation periods. The producer of a covered vehicle may 
calculate the purchases of steel or aluminum over the calculation 
periods set forth in either this paragraph or paragraph (d) of this 
section. The following calculation periods are provided for in section 
17(7) of Appendix A to this part, and include:
    (1) The previous fiscal year of the producer;
    (2) The previous calendar year;
    (3) The quarter or month to date in which the vehicle is exported;
    (4) The producer's fiscal year to date in which the vehicle is 
exported; or
    (5) The calendar year to date in which the vehicle is exported.
    (d) Additional calculation periods. If the fiscal year of a 
producer begins after July 1, 2020, but before July 1, 2021, the 
producer of a covered vehicle may calculate the purchases of steel and 
aluminum over the period beginning on July 1, 2020 and ending at the 
end of the following fiscal year, as provided for in sections 16(4) and 
16(5) of Appendix A to this part.
    (1) Additional calculation periods applicable to all covered 
vehicles. For the period from July 1, 2020 to June 30, 2023, the 
producer of a covered vehicle may calculate the purchases of steel and 
aluminum over the following periods:
    (i) July 1, 2020 to June 30, 2021;
    (ii) July 1, 2021 to June 30, 2022;
    (iii) July 1, 2022 to June 30, 2023; and
    (iv) July 1, 2023 to the end of the producer's fiscal year.
    (2) Additional calculation periods for heavy trucks. In addition to 
the calculation periods set forth in paragraph (d)(1) of this section, 
the producer of a heavy truck may calculate the purchases of steel and 
aluminum for a heavy truck over the additional following periods:
    (i) July 1, 2023 to June 30, 2024;
    (ii) July 1, 2024 to June 30, 2025;
    (iii) July 1, 2025 to June 30, 2026;
    (iv) July 1, 2026 to June 30, 2027; and
    (v) July 1, 2027 to the end of the producer's fiscal year.
    (3) Calculation periods. When calculating the purchases of steel 
and aluminum over the additional calculation periods set forth in this 
paragraph, the producer may calculate:
    (i) beginning on July 1 of the previous year and ending on June 30 
of the current year, except for the additional calculation periods set 
forth in paragraph (d)(1)(iv) or (d)(2)(v) of this section when the 
period ends at the end of the producer's fiscal year; or
    (ii) beginning on July 1 of the current year and ending on June 30 
of the following year, except for the additional calculation periods in 
paragraph (d)(1)(iv) or (d)(2)(v) of this section when the period ends 
at the end of the producer's fiscal year.
    (e) Calculation periods may differ. The producer of a covered 
vehicle may choose different calculation periods for its steel 
purchasing calculation and aluminum purchasing calculation.

0
58. Add Sec.  182.95 to subpart I to read as follows:

[[Page 6493]]

Sec.  182.95  Labor value content (LVC) certification.

    (a) General. A covered vehicle is eligible for USMCA preferential 
tariff treatment only if the producer of the covered vehicle has 
certified to CBP that the production of the vehicle by the producer 
meets the LVC requirement, as described in Sec.  182.93 of this 
subpart. The producer of the covered vehicle must have information in 
its possession in accordance with Sec.  182.103(a) of this subpart that 
proves the accuracy of the calculations relied on for the LVC 
certification.
    (b) Submission of LVC certification for vehicles subject to an 
exemption or different requirements under an alternative staging 
regime. For covered vehicles that qualify as originating pursuant to an 
alternative staging regime, if the terms of the alternative staging 
regime specifically exempt the producer from the LVC requirement or 
contain different requirements than the LVC requirement set forth in 
Sec.  182.93 of this subpart, the producer of the covered vehicle must 
submit to CBP a LVC certification that covers only those vehicles 
subject to the alternative staging regime pursuant to Sec.  182.106(c) 
of this subpart.
    (c) LVC certification data elements. The LVC certification must 
include the information required by 29 CFR part 810 and the following 
information:
    (1) Producer. The certifying vehicle producer's name, corporate 
address (including country), Federal Employer Identification Number or 
alternative unique identification number of the producer's choosing, 
such as a Business Number (BN) issued by the Canada Revenue Agency, 
Registro Federal de Contribuyentes (RFC) number issued by Mexico's Tax 
Administration Service (SAT), Legal Entity Identifier (LEI) number 
issued by the Global Legal Entity Identifier Foundation (GLEIF), or an 
identification number issued to the person or enterprise by CBP, and a 
point of contact for the certifying vehicle producer;
    (2) Certifier. The name, title, address (including country), 
telephone number, and email address of the person completing the 
certification;
    (3) LVC calculation. The calculation used to determine that the 
production of covered vehicles specified under paragraph (c)(4) of this 
section meets the LVC requirement in General Note 11(k)(vi), HTSUS, 
Sec.  182.93(c) of this subpart, and Appendix A to this part. The 
calculation should include each of the elements described in the 
formula based on net cost, as set forth in section 18(6)(a) of Appendix 
A to this part, or in the formula based on total annual purchase value, 
as set forth in section 18(6)(b) of Appendix A to this part, and the 
resulting LVC percentage;
    (4) Vehicle category. The vehicle class, model line, and/or other 
category indicating the motor vehicles covered by the certification;
    (5) Calculation period. For the calculation provided in paragraph 
(c)(3) of this section, the calculation period over which the 
calculation is made, as specified in Sec.  182.93(d) and (e) of this 
subpart;
    (6) Plant or facility information. The name, address, and Federal 
Employer Identification Number or alternative unique identification 
number of the producer's choosing, such as a Business Number (BN) 
issued by the Canada Revenue Agency, Registro Federal de Contribuyentes 
(RFC) number issued by Mexico's Tax Administration Service (SAT), Legal 
Entity Identifier (LEI) number issued by the Global Legal Entity 
Identifier Foundation (GLEIF), or an identification number issued to 
the person or enterprise by CBP, for each plant or facility the 
producer of the covered vehicle is relying on to meet the high-wage 
material and manufacturing expenditures component of the LVC 
requirement for the calculation provided in paragraph (c)(3) in this 
section;
    (7) Average hourly base wage rate. A statement that the average 
hourly base wage rate, calculated as required by DOL's regulations at 
29 CFR part 810, meets or exceeds US $16 per hour for each plant or 
facility identified in paragraph (c)(6) of this section;
    (8) High-wage transportation or related costs. If applicable, a 
statement that the producer is using high-wage transportation or 
related costs to meet the high-wage material and manufacturing 
expenditures component. If the producer is using high-wage 
transportation or related costs, the producer must identify the company 
name, address, and Federal Employer Identification Number or 
alternative unique identification number of the producer's choosing, 
such as a Business Number (BN) issued by the Canada Revenue Agency, 
Registro Federal de Contribuyentes (RFC) number issued by Mexico's Tax 
Administration Service (SAT), Legal Entity Identifier (LEI) number 
issued by the Global Legal Entity Identifier Foundation (GLEIF), or an 
identification number issued to the person or enterprise by CBP, for 
each company the producer used to calculate its high-wage 
transportation or related costs for the calculation provided in 
paragraph (c)(3) of this section;
    (9) High-wage technology expenditures credit. If applicable, a 
statement that the producer is using the high-wage technology 
expenditures credit to meet the LVC requirement for the calculation 
provided in paragraph (c)(3) of this section. If the producer is using 
the high-wage technology expenditures credit, a producer must identify 
the percentage the producer is claiming as a credit towards the total 
LVC requirement; and
    (10) High-wage assembly expenditures credit. If applicable, a 
statement that the producer is using the high-wage assembly 
expenditures credit to meet the LVC requirement for the calculation 
provided in paragraph (c)(3) of this section. If the producer is using 
the high-wage assembly expenditures credit, the producer must identify 
the following:
    (i) The name, address, and Federal Employer Identification Number 
(for U.S. plants) or alternative unique identification number of the 
producer's choosing, such as a Business Number (BN) issued by the 
Canada Revenue Agency, Registro Federal de Contribuyentes (RFC) number 
issued by Mexico's Tax Administration Service (SAT), Legal Entity 
Identifier (LEI) number issued by the Global Legal Entity Identifier 
Foundation (GLEIF), or an identification number issued to the person or 
enterprise by CBP, for the assembly plant the producer used to qualify 
for the high-wage assembly expenditures credit; and
    (ii) A statement that the average hourly base wage rate, calculated 
as required by DOL's regulations at 29 CFR part 810, meets or exceeds 
US $16 per hour for the assembly plant used to qualify for the high-
wage assembly expenditures credit.
    (11) Authorized signature, date and certifying statement. The 
certification must be signed and dated by the certifier and include the 
following certifying statement: ``I certify that, for the vehicle 
category and over the relevant period indicated in this document, the 
producer has satisfied the LVC requirement as set out in General Note 
11(k)(vi), HTSUS, section 18 of the Uniform Regulations regarding Rules 
of Origin, and 19 CFR 182.93. The information in this document is true 
and accurate, and 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.''
    (d) Responsible official or agent. The LVC certification must be 
signed and dated by a responsible official of the

[[Page 6494]]

producer, or by the producer's authorized agent having knowledge of the 
relevant facts.
    (e) Language. The LVC certification must be completed in English, 
French, or Spanish. If the LVC certification is not in English, CBP may 
require the producer to submit an English translation of the 
certification.
    (f) Submission of LVC certification. The producer of the covered 
vehicle must submit the LVC certification to CBP through an authorized 
electronic data interchange system or other specified means at least 90 
days prior to the beginning of the certification period described in 
paragraph (j) of this section.
    (g) Review of LVC certification to determine whether it is properly 
filed. After the producer of the covered vehicle submits the LVC 
certification to CBP pursuant to paragraphs (f) or (i) of this section, 
the LVC certification will be reviewed for omissions and errors to 
determine whether the certification has been properly filed.
    (1) Review for omissions and errors. DOL, in consultation with CBP, 
will review the LVC certification for omissions and errors to determine 
whether the certification has been properly filed.
    (2) LVC certification contains no omissions or errors. Upon a 
determination that the LVC certification contains no omissions or 
errors, CBP will provide written or electronic notification to the 
producer of the covered vehicle that the certification has been 
properly filed and is effective for the period specified in paragraph 
(j) of this section.
    (3) LVC certification contains omissions or errors. Upon a 
determination that the LVC certification contains an omission or error, 
CBP will provide written or electronic notification to the producer of 
the covered vehicle that an omission or error was discovered, provide a 
description of the omission or error, and that the producer has the 
right to submit a revised LVC certification.
    (i) Submission of revised LVC certification. Upon receipt of this 
notification that an omission or error was discovered, the producer 
must submit a revised certification or an explanation of why the 
producer believes the certification contains no omission or error to 
CBP within five business days. If no revised certification is submitted 
within the five business days, CBP will provide written or electronic 
notification to the producer of the covered vehicle that the 
certification has not been properly filed.
    (ii) Review of revised LVC certification. Upon a determination that 
the revised LVC certification contains no omissions or errors, CBP will 
provide written or electronic notification to the producer of the 
covered vehicle that the certification has been properly filed and is 
effective for the period specified in paragraph (j) of this section. 
Upon a determination that the revised LVC certification contains an 
omission or error, CBP will provide written or electronic notification 
to the producer of the covered vehicle that the certification was not 
properly filed.
    (h) Making a claim for USMCA preferential tariff treatment during 
review for omissions and errors period. If the LVC certification was 
filed by the required date, as specified in paragraph (f) of this 
section, an importer may make a claim for USMCA preferential tariff 
treatment under Sec.  182.11(b) or Sec.  182.32 of this part for such 
covered vehicles during the period of review for omissions and errors, 
as described in paragraph (g) of this section, until the producer has 
received notice from CBP that the LVC certification that forms the 
basis for the covered vehicle's eligibility for preferential tariff 
treatment has not been properly filed under paragraph (g)(3)(ii) of 
this section. If the producer receives notice that the LVC 
certification has not been properly filed under paragraph (g)(3)(ii) of 
this section, the producer must send a notification, with a copy to 
CBP, to any known importers of the covered vehicle of that 
determination within 30 days of receipt of the CBP notice.
    (i) Resubmission of the LVC certification upon determination that 
the LVC certification was not properly filed. Upon notification that 
the LVC certification has not been properly filed under paragraph 
(g)(3)(ii) of this section, the producer of the covered vehicle may, 
within 10 business days of receiving the notification, resubmit a new 
LVC certification to CBP.
    (1) Resubmission process. The producer must resubmit a new LVC 
certification to CBP pursuant to the means set forth in paragraph (f) 
of this section and CBP will use the review of omissions and errors 
process as described in paragraph (g) of this section to determine 
whether the new certification is properly filed.
    (2) Right to resubmit LVC certification. The producer may resubmit 
a new LVC certification for the same category and same calculation 
period up to two times per certification period, as described in this 
section.
    (3) Making a claim for USMCA preferential tariff treatment during 
resubmission period. Notwithstanding paragraph (h) of this section, if 
a producer chooses to resubmit the new LVC certification, an importer 
of the covered vehicle should not submit claims for USMCA preferential 
tariff treatment under Sec.  182.11(b) or Sec.  182.32 of this part for 
such covered vehicles until the producer has received notice that the 
new certification that forms the basis for the covered vehicle's 
eligibility for preferential tariff treatment has been properly filed.
    (j) Certification periods. (1) For an LVC calculation based on the 
previous fiscal year of the producer pursuant to Sec.  182.93(d)(1) of 
this subpart, the certification period begins on the first day of the 
following fiscal year of the producer. If the certification is 
considered properly filed, the certification is effective for covered 
vehicles produced or exported, as the case may be, within that period;
    (2) For an LVC calculation based on the previous calendar year 
pursuant to Sec.  182.93(d)(2) of this subpart, the certification 
period begins on the first day of the following calendar year. If the 
certification is considered properly filed, the certification is 
effective for covered vehicles produced or exported, as the case may 
be, within that period;
    (3) For all other LVC calculation periods pursuant to Sec.  
182.93(d) of this subpart, the certification period begins on the first 
day of that calculation period. If the certification is considered 
properly filed, the certification is effective for covered vehicles 
produced or exported, as the case may be, within that period;
    (4) For an LVC calculation based on an additional calculation 
period calculated pursuant to Sec.  182.93(e)(3)(i) of this subpart, 
the certification period begins on first day of the following period, 
meaning July 1 of the current year and ends on June 30 of the following 
year, except for the additional calculation periods in Sec.  
182.93(e)(1)(iv) or (e)(2)(v) when the certification period begins on 
the first day of the following fiscal year of the producer. If the 
certification is considered properly filed, the certification is 
effective for covered vehicles produced or exported, as the case may 
be, within that period; and
    (5) For an LVC calculation based on an additional calculation 
period calculated pursuant to Sec.  182.93(e)(3)(ii) of this subpart, 
the certification period begins on the first day of that calculation 
period, meaning July 1 of the current year and ends on the last day of 
the calculation period, except for the additional calculation periods 
in Sec.  182.93(e)(1)(iv) or (e)(2)(v) when the certification period 
begins on the first

[[Page 6495]]

day of the current fiscal year of the producer. If the certification is 
considered properly filed, the certification is effective for covered 
vehicles produced or exported, as the case may be, within that period.
    (k) Request for modification of a properly filed LVC certification. 
The producer of the covered vehicle must request a modification of a 
properly filed LVC certification in the event of any material changes 
to the information contained in the certification that would affect its 
validity.
    (1) Submission process. The producer must submit a modification 
request to CBP by submitting a new certification through the means set 
forth in paragraph (f) of this section, along with a list of the 
material changes to the information contained in the certification and 
an explanation as to why the modification is necessary with respect to 
the validity of the certification. If CBP grants the modification 
request, DOL, in consultation with CBP, will review the new LVC 
certification to determine whether it is properly filed in accordance 
with the procedures set forth in paragraph (g) of this section. If CBP 
denies the modification request, CBP will provide written or electronic 
notification to the producer of the covered vehicle.
    (2) Resubmission process. The producer may resubmit the new 
certification, pursuant to the procedures in paragraph (i) of this 
section, upon a determination that the new certification was not 
properly filed. The producer may resubmit the new LVC certification up 
to two times in accordance with paragraph (i)(2) of this section.
    (3) Effective date of new LVC certification. If CBP determines that 
the new certification is properly filed under paragraph (g) or (i) of 
this section, the new certification supersedes the former certification 
and is effective for the period specified in paragraph (j) of this 
section. Within 30 days of receiving notice that the new certification 
has been properly filed, the producer must send a notification, with a 
copy to CBP, to any known importers of that determination.

0
59. Add Sec.  182.96 to subpart I to read as follows:


Sec.  182.96   Steel purchasing certification.

    (a) General. A covered vehicle is eligible for USMCA preferential 
tariff treatment only if the producer of the covered vehicle has 
certified to CBP that the production of the vehicle by the producer 
meets the steel purchasing requirement, as described in Sec.  182.94 of 
this subpart. The producer of the covered vehicle must have information 
in its possession in accordance with Sec.  182.103(a) of this subpart 
that proves the accuracy of the calculations relied on for the steel 
purchasing certification.
    (b) Submission of steel purchasing certification for vehicles 
subject to an exemption or different requirements under an alternative 
staging regime. For covered vehicles that qualify as originating 
pursuant to an alternative staging regime, if the terms of the 
alternative staging regime specifically exempt the producer from the 
steel purchasing requirements or contain different requirements from 
the steel purchasing requirements set forth in Sec.  182.94 of this 
subpart, the producer of the covered vehicle must submit to CBP a steel 
purchasing certification that covers only those vehicles subject to the 
alternative staging regime pursuant to Sec.  182.106(c) of this 
subpart.
    (c) Steel purchasing certification data elements. The steel 
purchasing certification must include:
    (1) Producer. The producer of the covered vehicle's name, address 
(including country), email address, telephone number, and any 
Manufacturers Identification Codes (MID), Federal Employer 
Identification Numbers (EIN), or Importer of Record Numbers (IOR) 
associated with the producer. The address of a producer provided under 
this paragraph is the place of production of the good in a USMCA 
country's territory;
    (2) Certifier. The name, title, address (including country), 
telephone number, and email address of the person completing the 
certification;
    (3) Producer's purchases of steel. The calculation used to 
determine that the producer of the covered vehicle has complied with 
the steel purchasing requirement in General Note 11(k)(v), HTSUS, and 
Appendix A to this part. The calculation should include the total value 
of the vehicle producer's purchases at the corporate level of steel 
listed in Table S of Appendix A to this part in the territories of one 
or more of the USMCA countries, the total value of those purchases that 
qualify as originating goods, and the resulting percentage;
    (4) Vehicle category. For the calculation provided in paragraph 
(c)(3) of this section, the vehicle category for which the purchases 
are calculated, as specified in section 17(9) of Appendix A to this 
part;
    (5) Calculation periods. For the calculation provided in paragraph 
(c)(3) of this section, the calculation period over which the purchases 
are made, as specified in Sec.  182.94(c) and (d) of this subpart;
    (6) Steel producer, service center, or distributor. The name and 
address (including country) for each steel producer, service center, or 
distributor relied upon in calculating the total value of purchases of 
steel that qualify as originating goods under paragraph (c)(3) of this 
section, and any Manufacturers Identification Codes (MID), Federal 
Employer Identification Numbers (EIN), or Importer of Record Numbers 
(IOR) associated with those entities; and
    (7) Authorized signature, date and certifying statement. The 
certification must be signed and dated by the certifier and include the 
following certifying statement: ``I certify that, for the vehicle 
category and over the relevant period indicated in this document, the 
producer has satisfied the steel purchasing requirement as set out in 
General Note 11(k)(v), HTSUS, section 17 of the Uniform Regulations 
regarding Rules of Origin, and 19 CFR 182.94. The information in this 
document is true and accurate, and 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.''
    (d) Responsible official or agent. The steel purchasing 
certification must be signed and dated by a responsible official of the 
producer, or by the producer's authorized agent having knowledge of the 
relevant facts.
    (e) Language. The steel purchasing certification must be completed 
in English, French, or Spanish. If the certification is not in English, 
CBP may require the producer to submit an English translation of the 
certification.
    (f) Submission of steel purchasing certification. The producer of 
the covered vehicle must submit the steel purchasing certification to 
CBP through an authorized electronic data interchange system or other 
specified means at least 90 days prior to the beginning of the 
certification period described in paragraph (j) of this section.
    (g) Review of steel purchasing certification to determine whether 
it is properly filed. After the producer of the covered vehicle submits 
the steel purchasing certification to CBP pursuant to paragraph (f) or 
(i) of this section, CBP will review the certification for errors or 
omissions to determine whether the certification has been properly 
filed.
    (1) Steel purchasing certification contains no omissions or errors. 
If, upon review of the certification, CBP determines the certification 
contains no

[[Page 6496]]

omissions or errors, CBP will provide written or electronic 
notification to the producer of the covered vehicle that the 
certification has been properly filed and is effective for the period 
specified in paragraph (j) of this section.
    (2) Steel purchasing certification contains omissions or errors. 
If, upon review of the certification, CBP determines that the 
certification contains an omission or error, CBP will provide written 
or electronic notification to the producer of the covered vehicle that 
an omission or error was discovered, provide a description of the 
omission or error, and that the producer has the right to submit a 
revised steel purchasing certification.
    (i) Submission of revised steel purchasing certification. Upon 
receipt of this notification that an omission or error was discovered, 
the producer must submit a revised certification or an explanation of 
why the producer believes the certification contains no omission or 
error to CBP within five business days. If no revised certification is 
submitted within the five business days, CBP will provide written or 
electronic notification to the producer of the covered vehicle that the 
certification has not been properly filed.
    (ii) Review of revised steel purchasing certification. Upon a 
determination that the revised steel purchasing certification contains 
no omissions or errors, CBP will provide written or electronic 
notification to the producer of the covered vehicle that the 
certification has been properly filed and is effective for the period 
specified in paragraph (j) of this section. Upon a determination that 
the revised steel purchasing certification contains an omission or 
error, CBP will provide written or electronic notification to the 
producer of the covered vehicle that the certification was not properly 
filed.
    (h) Making a claim for USMCA preferential tariff treatment during 
review for omissions and errors period. If the steel purchasing 
certification was filed by the required date, as specified in paragraph 
(f) of this section, an importer may make a claim for USMCA 
preferential tariff treatment under Sec.  182.11(b) or Sec.  182.32 of 
this part for such covered vehicles during the period of review for 
omissions and errors, as described in paragraph (g) of this section, 
until the producer has received notice from CBP that the steel 
purchasing certification that forms the basis for the covered vehicle's 
eligibility for preferential tariff treatment has not been properly 
filed under paragraph (g)(2)(ii) of this section. If the producer 
receives notice that the steel purchasing certification has not been 
properly filed under paragraph (g)(2)(ii) of this section, the producer 
must send a notification, with a copy to CBP, to any known importers of 
the covered vehicle of that determination within 30 days of receipt of 
the CBP notice.
    (i) Resubmission of the steel purchasing certification upon 
determination that the steel purchasing certification was not properly 
filed. Upon notification that the steel purchasing certification has 
not been properly filed under paragraph (g)(2)(ii) of this section, the 
producer of the covered vehicle may, within 10 business days of 
receiving the notification, resubmit a new steel purchasing 
certification to CBP.
    (1) Resubmission process. The producer must resubmit a new steel 
purchasing certification to CBP pursuant to the means set forth in 
paragraph (f) of this section and CBP will use the review of omissions 
and errors process as described in paragraph (g) of this section to 
determine whether the new certification is properly filed.
    (2) Right to resubmit steel purchasing certification. The producer 
may resubmit a new steel purchasing certification for the same category 
and same calculation period up to two times per certification period, 
as described in this section.
    (3) Making a claim for USMCA preferential tariff treatment during 
resubmission period. Notwithstanding paragraph (h) of this section, if 
a producer chooses to resubmit the new steel purchasing certification, 
an importer of the covered vehicle should not submit claims for USMCA 
preferential tariff treatment under Sec.  182.11(b) or Sec.  182.32 of 
this part for such covered vehicles until the producer has received 
notice that the new certification that forms the basis for the covered 
vehicle's eligibility for preferential tariff treatment has been 
properly filed.
    (j) Certification periods. (1) For a steel purchasing calculation 
based on the previous fiscal year of the producer pursuant to Sec.  
182.94(c)(1) of this subpart, the certification period begins on the 
first day of the following fiscal year of the producer. If the 
certification is considered properly filed, the certification is 
effective for covered vehicles produced within that period;
    (2) For a steel purchasing calculation based on the previous 
calendar year pursuant to Sec.  182.94(c)(2) of this subpart, the 
certification period begins on the first day of the following calendar 
year. If the certification is considered properly filed, the 
certification is effective for covered vehicles produced within that 
period;
    (3) For all other steel purchasing calculation periods pursuant to 
Sec.  182.94(c) of this subpart, the certification period begins on the 
first day of that calculation period. If the certification is 
considered properly filed, the certification is effective for covered 
vehicles exported within that period;
    (4) For a steel purchasing calculation based on an additional 
calculation period calculated pursuant to Sec.  182.94(d)(3)(i) of this 
subpart, the certification period begins on first day of the following 
period, meaning July 1 of the current year and ends on June 30 of the 
following year, except for the additional calculation periods in Sec.  
182.94(d)(1)(iv) or (d)(2)(v) when the certification period begins on 
the first day of the following fiscal year of the producer. If the 
certification is considered properly filed, the certification is 
effective for covered vehicles produced within that period; and
    (5) For a steel purchasing calculation based on an additional 
calculation period calculated pursuant to Sec.  182.94(d)(3)(ii) of 
this subpart, the certification period begins on the first day of that 
calculation period, meaning July 1 of the current year and ends on the 
last day of the calculation period, except for the additional 
calculation periods in Sec.  182.94(d)(1)(iv) or (d)(2)(v) when the 
certification period begins on the first day of the current fiscal year 
of the producer. If the certification is considered properly filed, the 
certification is effective for covered vehicles exported within that 
period.
    (k) Request for modification of a properly filed steel purchasing 
certification. The producer of the covered vehicle must request a 
modification of a properly filed steel purchasing certification in the 
event of any material changes to the information contained in the 
certification that would affect its validity.
    (1) Submission process. The producer must submit a modification 
request to CBP by submitting a new certification through the means set 
forth in paragraph (f) of this section, along with a list of the 
material changes to the information contained in the certification and 
an explanation as to why the modification is necessary with respect to 
the validity of the certification. If CBP grants the modification 
request, CBP will review the new steel purchasing certification to 
determine whether it is properly filed in accordance with the 
procedures set forth in paragraph (g) of this section. If CBP denies 
the modification request, CBP will provide written or electronic

[[Page 6497]]

notification to the producer of the covered vehicle.
    (2) Resubmission process. The producer may resubmit the new 
certification, pursuant to the procedures in paragraph (i) of this 
section, upon a determination that the new certification was not 
properly filed. The producer may resubmit the new steel purchasing 
certification up to two times in accordance with paragraph (i)(2) of 
this section.
    (3) Effective date of new steel purchasing certification. If CBP 
determines that the new certification is properly filed under paragraph 
(g) or (i) of this section, the new certification supersedes the former 
certification and is effective for the period specified in paragraph 
(j) of this section. Within 30 days of receiving notice that the new 
certification has been properly filed, the producer must send a 
notification, with a copy to CBP, to any known importers of that 
determination.

0
60. Add Sec.  182.97 to subpart I to read as follows:


Sec.  182.97   Aluminum purchasing certification.

    (a) General. A covered vehicle is eligible for USMCA preferential 
tariff treatment only if the producer of the covered vehicle has 
certified to CBP that the production of the vehicle by the producer 
meets the aluminum purchasing requirement, as described in Sec.  182.94 
of this subpart. The producer of the covered vehicle must have 
information in its possession in accordance with Sec.  182.103(a) of 
this subpart that proves the accuracy of the calculations relied on for 
the aluminum purchasing certification.
    (b) Submission of aluminum purchasing certification for vehicles 
subject to an exemption or different requirements under an alternative 
staging regime. For covered vehicles that qualify as originating 
pursuant to an alternative staging regime, if the terms of the 
alternative staging regime specifically exempt the producer from the 
aluminum purchasing requirements or contain different requirements from 
the aluminum purchasing requirements set forth in Sec.  182.94 of this 
subpart, the producer of the covered vehicle must submit to CBP an 
aluminum purchasing certification that covers only those vehicles 
subject to the alternative staging regime pursuant to Sec.  182.106(c) 
of this subpart.
    (c) Aluminum purchasing certification data elements. The aluminum 
purchasing certification must include:
    (1) Producer. The producer of the covered vehicle's name, address 
(including country), email address, telephone number, and any 
Manufacturers Identification Codes (MID), Federal Employer 
Identification Numbers (EIN), or Importer of Record Numbers (IOR) 
associated with the producer. The address of a producer provided under 
this paragraph is the place of production of the good in a USMCA 
country's territory;
    (2) Certifier. The name, title, address (including country), 
telephone number, and email address of the person completing the 
certification;
    (3) Producer's purchase of aluminum. The calculation used to 
determine that the producer of the covered vehicle has complied with 
the aluminum purchasing requirement in General Note 11(k)(v), HTSUS, 
and Appendix A to this part. The calculation should include the total 
value of the vehicle producer's purchases at the corporate level of 
aluminum listed in Table S of Appendix A to this part in the 
territories of one or more of the USMCA countries, the total value of 
those purchases that qualify as originating goods, and the resulting 
percentage;
    (4) Vehicle category. For the calculation provided in paragraph 
(c)(3) of this section, the vehicle category for which the purchases 
are calculated, as specified in section 17(9) of Appendix A to this 
part;
    (5) Calculation periods. For the calculation provided in paragraph 
(c)(3) of this section, the calculation period over which the purchases 
are made, as specified in Sec.  182.94(c) and (d) of this subpart;
    (6) Aluminum producer, service center, or distributor. The name and 
address (including country) for each aluminum producer, service center, 
or distributor relied upon in calculating the total value of purchases 
of aluminum that qualify as originating goods under paragraph (c)(3) of 
this section, and any Manufacturers Identification Codes (MID), Federal 
Employer Identification Numbers (EIN), or Importer of Record Numbers 
(IOR) associated with those entities; and
    (7) Authorized signature, date and certifying statement. The 
certification must be signed and dated by the certifier and include the 
following certifying statement: ``I certify that, for the vehicle 
category and over the relevant period indicated in this document, the 
producer has satisfied the aluminum purchasing requirement as set out 
in General Note 11(k)(v), HTSUS, section 17 of the Uniform Regulations 
regarding Rules of Origin, and 19 CFR 182.94. The information in this 
document is true and accurate, and 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.''
    (d) Responsible official or agent. The aluminum purchasing 
certification must be signed and dated by a responsible official of the 
producer, or by the producer's authorized agent having knowledge of the 
relevant facts.
    (e) Language. The aluminum purchasing certification must be 
completed in English, French, or Spanish. If the certification is not 
in English, CBP may require the producer to submit an English 
translation of the certification.
    (f) Submission of aluminum purchasing certification. The producer 
of the covered vehicle must submit the aluminum purchasing 
certification to CBP through an authorized electronic data interchange 
system or other specified means at least 90 days prior to the beginning 
of the certification period described in paragraph (j) of this section.
    (g) Review of aluminum purchasing certification to determine 
whether it is properly filed. After the producer of the covered vehicle 
submits the aluminum purchasing certification to CBP pursuant to 
paragraph (f) or (i) of this section, CBP will review the certification 
for errors or omissions to determine whether the certification has been 
properly filed.
    (1) Aluminum purchasing certification contains no omissions or 
errors. If, upon review of the certification, CBP determines the 
certification contains no omissions or errors, CBP will provide written 
or electronic notification to the producer of the covered vehicle that 
the certification has been properly filed and is effective for the 
period specified in paragraph (j) of this section.
    (2) Aluminum purchasing certification contains omissions or errors. 
If, upon review of the certification, CBP determines that the 
certification contains an omission or error, CBP will provide written 
or electronic notification to the producer of the covered vehicle that 
an omission or error was discovered, provide a description of the 
omission or error, and that the producer has the right to submit a 
revised aluminum purchasing certification.
    (i) Submission of revised aluminum purchasing certification. Upon 
receipt of this notification that an omission or error was discovered, 
the producer must submit a revised certification or an explanation of 
why the producer believes the certification contains no

[[Page 6498]]

omission or error to CBP within five business days. If no revised 
certification is submitted within the five business days, CBP will 
provide written or electronic notification to the producer of the 
covered vehicle that the certification has not been properly filed.
    (ii) Review of revised aluminum purchasing certification. Upon a 
determination that the revised aluminum purchasing certification 
contains no omissions or errors, CBP will provide written or electronic 
notification to the producer of the covered vehicle that the 
certification has been properly filed and is effective for the period 
specified in paragraph (j) of this section. Upon a determination that 
the revised aluminum purchasing certification contains an omission or 
error, CBP will provide written or electronic notification to the 
producer of the covered vehicle that the certification was not properly 
filed.
    (h) Making a claim for USMCA preferential tariff treatment during 
review for omissions and errors period. If the aluminum purchasing 
certification was filed by the required date, as specified in paragraph 
(f) of this section, an importer may make a claim for USMCA 
preferential tariff treatment under Sec.  182.11(b) or Sec.  182.32 of 
this part for such covered vehicles during the period of review for 
omissions and errors, as described in paragraph (g) of this section, 
until the producer has received notice from CBP that the aluminum 
purchasing certification that forms the basis for the covered vehicle's 
eligibility for preferential tariff treatment has not been properly 
filed under paragraph (g)(2)(ii) of this section. If the producer 
receives notice that the aluminum purchasing certification has not been 
properly filed under paragraph (g)(2)(ii) of this section, the producer 
must send a notification, with a copy to CBP, to any known importers of 
the covered vehicle of that determination within 30 days of receipt of 
the CBP notice.
    (i) Resubmission of the aluminum purchasing certification upon 
determination that the aluminum purchasing certification was not 
properly filed. Upon notification that the aluminum purchasing 
certification has not been properly filed under paragraph (g)(2)(ii) of 
this section, the producer of the covered vehicle may, within 10 
business days of receiving the notification, resubmit a new aluminum 
purchasing certification to CBP.
    (1) Resubmission process. The producer must resubmit a new aluminum 
purchasing certification to CBP pursuant to the means set forth in 
paragraph (f) of this section and CBP will use the review of omissions 
and errors process as described in paragraph (g) of this section to 
determine whether the new certification is properly filed.
    (2) Right to resubmit aluminum purchasing certification. The 
producer may resubmit a new aluminum purchasing certification for the 
same category and same calculation period up to two times per 
certification period, as described in this section.
    (3) Making a claim for USMCA preferential tariff treatment during 
resubmission period. Notwithstanding paragraph (h) of this section, if 
a producer chooses to resubmit the new aluminum purchasing 
certification, an importer of the covered vehicle should not submit 
claims for USMCA preferential tariff treatment under Sec.  182.11(b) or 
Sec.  182.32 of this part for such covered vehicles until the producer 
has received notice that the new certification that forms the basis for 
the covered vehicle's eligibility for preferential tariff treatment has 
been properly filed.
    (j) Certification periods. (1) For an aluminum purchasing 
calculation based on the previous fiscal year of the producer pursuant 
to Sec.  182.94(c)(1) of this subpart, the certification period begins 
on the first day of the following fiscal year of the producer. If the 
certification is considered properly filed, the certification is 
effective for covered vehicles produced within that period;
    (2) For an aluminum purchasing calculation based on the previous 
calendar year pursuant to Sec.  182.94(c)(2) of this subpart, the 
certification period begins on the first day of the following calendar 
year. If the certification is considered properly filed, the 
certification is effective for covered vehicles produced within that 
period;
    (3) For all other aluminum purchasing calculation periods pursuant 
to Sec.  182.94(c) of this subpart, the certification period begins on 
the first day of that calculation period. If the certification is 
considered properly filed, the certification is effective for covered 
vehicles exported within that period;
    (4) For an aluminum purchasing calculation based on an additional 
calculation period calculated pursuant to Sec.  182.94(d)(3)(i) of this 
subpart, the certification period begins on first day of the following 
period, meaning July 1 of the current year and ends on June 30 of the 
following year, except for the additional calculation periods in Sec.  
182.94(d)(1)(iv) or (d)(2)(v) when the certification period begins on 
the first day of the following fiscal year of the producer. If the 
certification is considered properly filed, the certification is 
effective for covered vehicles produced within that period; and
    (5) For an aluminum purchasing calculation based on an additional 
calculation period calculated pursuant to Sec.  182.94(d)(3)(ii) of 
this subpart, the certification period begins on the first day of that 
calculation period, meaning July 1 of the current year and ends on the 
last day of the calculation period, except for the additional 
calculation periods in Sec.  182.94(d)(1)(iv) or (d)(2)(v) when the 
certification period begins on the first day of the current fiscal year 
of the producer. If the certification is considered properly filed, the 
certification is effective for covered vehicles exported within that 
period.
    (k) Request for modification of a properly filed aluminum 
purchasing certification. The producer of the covered vehicle must 
request a modification of a properly filed aluminum purchasing 
certification in the event of any material changes to the information 
contained in the certification that would affect its validity.
    (1) Submission process. The producer must submit a modification 
request to CBP by submitting a new certification through the means set 
forth in paragraph (f) of this section, along with a list of the 
material changes to the information contained in the certification and 
an explanation as to why the modification is necessary with respect to 
the validity of the certification. If CBP grants the modification 
request, CBP will review the new aluminum purchasing certification to 
determine whether it is properly filed in accordance with the 
procedures set forth in paragraph (g) of this section. If CBP denies 
the modification request, CBP will provide written or electronic 
notification to the producer of the covered vehicle.
    (2) Resubmission process. The producer may resubmit the new 
certification, pursuant to the procedures in paragraph (i) of this 
section, upon a determination that the new certification was not 
properly filed. The producer may resubmit the new aluminum purchasing 
certification up to two times in accordance with paragraph (i)(2) of 
this section.
    (3) Effective date of new aluminum purchasing certification. If CBP 
determines that the new certification is properly filed under paragraph 
(g) or (i) of this section, the new certification supersedes the former 
certification and is effective for the period specified in paragraph 
(j) of this section. Within 30 days of receiving notice that the new

[[Page 6499]]

certification has been properly filed, the producer must send a 
notification, with a copy to CBP, to any known importers of that 
determination.

0
61. Add Sec.  182.98 to subpart I to read as follows:


Sec.  182.98   Appeal of the determination that LVC, steel purchasing, 
or aluminum purchasing certification is not properly filed.

    (a) Producer of a covered vehicle's right to appeal. If, following 
the review of the second resubmission of the vehicle certification 
pursuant to Sec. Sec.  182.95(i)(2), 182.96(i)(2), and 182.97(i)(2) of 
this subpart, CBP determines that the vehicle certification is not 
properly filed as provided in Sec. Sec.  182.95(g)(3)(ii), 
182.96(g)(2)(ii), and 182.97(g)(2)(ii) of this subpart, the producer of 
the covered vehicle may file a written appeal. This filing cannot be 
made unless the producer utilized both opportunities for resubmission 
of a vehicle certification and the producer has received notification 
from CBP that the resubmitted certification has not been properly 
filed. The determination as to whether a vehicle certification is 
properly filed does not qualify as a matter subject to protest under 
part 174 of this chapter.
    (b) Appeal of not properly filed determination. Upon receipt of 
notification that the vehicle certification is not properly filed, 
following the second resubmission of the vehicle certification pursuant 
to Sec. Sec.  182.95(i)(2), 182.96(i)(2), and 182.97(i)(2) of this 
subpart, the producer of the covered vehicle may file a written appeal 
to CBP Headquarters, Trade Policy and Programs, Office of Trade. This 
filing must be received by CBP within 14 days of the producer of the 
covered vehicle receiving the notification that, following the second 
resubmission, the certification was not properly filed. The Office of 
Trade will review the not properly filed determination and will render 
a written decision on the appeal within 30 days after receipt of the 
appeal. When an appeal involves DOL's review of the LVC certification 
for omissions and errors, CBP will coordinate with DOL regarding the 
appeal as necessary.
    (c) Making a claim for USMCA preferential tariff treatment during 
appeal period. If a producer of the covered vehicle chooses to appeal 
the determination that a vehicle certification is not properly filed 
under this section, an importer of the covered vehicle may not submit 
claims for USMCA preferential tariff treatment under Sec.  182.11(b) or 
Sec.  182.32 of this part for such covered vehicles until the producer 
has received notice that the vehicle certification that forms the basis 
for the covered vehicle's eligibility for preferential tariff treatment 
has been properly filed.


Sec.  182.99   [Reserved]

0
62. Add and reserve Sec.  182.99 to subpart I.

0
63. Add Sec.  182.100 to subpart I to read as follows:


Sec.  182.100   Motor vehicle averaging elections.

    (a) RVC averaging. For the purpose of calculating the regional 
value content (RVC) of a covered vehicle, the producer of the vehicle 
may elect to average the RVC calculation. The producer must comply with 
all the RVC averaging provisions set forth in section 16 of Appendix A 
to this part to elect RVC averaging.
    (1) RVC averaging categories. The producer of a covered vehicle may 
elect to average its RVC calculation using any of the categories 
provided for in section 16(1) of Appendix A to this part, on the basis 
of either all motor vehicles in the category or only those motor 
vehicles in the category that are exported to the territory of one or 
more of the other USMCA countries:
    (i) The same model line of motor vehicles in the same class of 
vehicles produced in the same plant in the territory of a USMCA 
country;
    (ii) The same class of motor vehicles produced in the same plant in 
the territory of a USMCA country;
    (iii) The same model line or same class of motor vehicles produced 
in the territory of a USMCA country; or
    (iv) Any other category as the USMCA countries may decide.
    (2) RVC averaging periods. For purposes of calculating the RVC of a 
covered vehicle, the calculation may be averaged over the producer's 
fiscal year. If the fiscal year of a producer begins after July 1, 
2020, but before July 1, 2021, the producer may base the RVC 
calculation over the period beginning on July 1, 2020 and ending at the 
end of the following fiscal year, as provided for in section 16(4) and 
16(5) of Appendix A to this part.
    (i) RVC averaging periods applicable to all covered vehicles. For 
the period from July 1, 2020 to June 30, 2023, the producer of a 
covered vehicle may base the RVC calculation over the following 
periods:
    (A) July 1, 2020 to June 30, 2021;
    (B) July 1, 2021 to June 30, 2022;
    (C) July 1, 2022 to June 30, 2023; and
    (D) July 1, 2023 to the end of the producer's fiscal year.
    (ii) Additional RVC averaging periods for heavy trucks. In addition 
to the calculation periods set forth in paragraph (a)(2) of this 
section, a producer of a heavy truck may base the RVC calculation of a 
heavy truck over the additional following periods:
    (A) July 1, 2023 to June 30, 2024;
    (B) July 1, 2024 to June 30, 2025;
    (C) July 1, 2025 to June 30, 2026;
    (D) July 1, 2026 to June 30, 2027; and
    (E) July 1, 2027 to the end of the producer's fiscal year.
    (3) Election to average. A producer of a covered vehicle who elects 
to average its RVC calculation must file an averaging election with CBP 
pursuant to paragraph (c) of this section.
    (b) LVC averaging. For purposes of calculating the LVC of a covered 
vehicle, the producer of the vehicle may elect to average the LVC 
calculation. The producer must comply with all the LVC averaging 
provisions set forth in section 18 of Appendix A to this part to elect 
LVC averaging.
    (1) LVC averaging categories. The producer of a covered vehicle may 
elect to average its LVC calculation using any of the categories 
provided for in section 18(15) of Appendix A to this part, on the basis 
of either all motor vehicles in the category or only those motor 
vehicles in the category that are exported to the territory of one or 
more of the other USMCA countries.
    (2) LVC averaging periods. For purposes of calculating the LVC of a 
covered vehicle, the calculation may be averaged over the calculation 
periods as described in Sec.  182.93(d) and (e) of this subpart.
    (3) Election to average. A producer of a covered vehicle who elects 
to average its LVC calculation must file an averaging election with CBP 
pursuant to paragraph (c) of this section.
    (c) Filing of RVC and LVC averaging elections. If the producer of a 
covered vehicle elects to average its RVC or LVC calculations, the 
producer must file an RVC or LVC averaging election with CBP via an 
authorized electronic data interchange system or other specified means 
at least 10 days before the first day of the producer's fiscal year 
during which the vehicles will be exported, or such shorter period as 
CBP may accept.
    (d) RVC averaging election required data elements. When filing an 
RVC averaging election pursuant to paragraph (c) of this section, the 
averaging election must include:
    (1) Producer. The producer of the covered vehicle's name, address 
(including country), email address, and telephone number;
    (2) Averaging period. The period with respect to which the election 
is made pursuant to paragraph (a)(2) of this

[[Page 6500]]

section, including the starting and ending dates;
    (3) Averaging category. The averaging category chosen by the 
producer pursuant to paragraph (a)(1) of this section;
    (4) Vehicles to be averaged. The model name, the model line (if the 
averaging category under section 16(1)(a) or 16(1)(c) of Appendix A to 
this part is chosen), class of motor vehicle, and tariff classification 
of the motor vehicles in that category;
    (5) Location of the plant. The location(s) of the plant at which 
the motor vehicles are produced;
    (6) Basis of calculation. Whether the basis of the calculation is 
all vehicles in that category chosen by the producer or only those 
vehicles in that category that are exported to the territory of one or 
more of the other USMCA countries;
    (7) Basis of regional value content. The basis of the calculation 
in determining the estimated RVC of motor vehicles pursuant to 
paragraph (a) of this section; and
    (8) Authorized signature and date. The authorized officer's name, 
title, address (including country), telephone number, email address, 
signature, and date.
    (e) LVC averaging election required data elements. When filing an 
LVC averaging election pursuant to paragraph (c) of this section, the 
averaging election must include:
    (1) Producer. The producer's name, address (including country), 
email address, and telephone number;
    (2) Averaging period. The period with respect to which the election 
is made pursuant to paragraph (b)(2) of this section, including the 
starting and ending dates;
    (3) Averaging category. The averaging category chosen by the 
producer pursuant to paragraph (b)(1) of this section;
    (4) Vehicles to be averaged. The model name, the model line (if the 
averaging category under section 18(15)(a) and 18(15)(c) of Appendix A 
to this part is chosen), class of motor vehicle, and tariff 
classification of the motor vehicles in that category;
    (5) Location of the plant. The location(s) of the plant at which 
the motor vehicles are produced;
    (6) Basis of calculation. Whether the basis of the calculation is 
all vehicles in that category chosen by the producer or only those 
vehicles in that category that are exported to the territory of one or 
more of the other USMCA countries;
    (7) Estimated LVC and net cost. The estimated LVC and net cost of 
vehicles in that category with respect to the basis of calculation ; 
and
    (8) Authorized signature and date. The authorized officer's name, 
title, address (including country), telephone number, email address, 
signature, and date.
    (f) Cost submission for motor vehicles. A producer of a covered 
vehicle who files an RVC or LVC averaging election pursuant to 
paragraph (c) of this section must submit, at the request of CBP, a 
cost submission reflecting the actual costs incurred in the production 
of the category of motor vehicles for which the election was made. The 
requested cost submission must be submitted to CBP within 180 calendar 
days after the close of the producer's fiscal year or within 60 days 
from the date on which the request was made, whichever is later.

0
64. Add Sec.  182.101 to subpart I to read as follows:


Sec.  182.101   Averaging for other automotive goods.

    (a) Automotive parts. For the purpose of calculating the RVC of an 
automotive good provided for in section 16(10) of Appendix A to this 
part, the producer of the automotive good may average its RVC 
calculation pursuant to the provisions set forth in sections 16(5) and 
16(10) of Appendix A to this part.
    (b) Other vehicles. For the purpose of calculating the RVC of a 
motor vehicle provided for in sections 20(2) or (3) of Appendix A to 
this part, the producer of the automotive good may average its RVC 
calculation pursuant to the provisions set forth in sections 16(5) and 
section 20(6) of Appendix A to this part.
    (c) Averaging election not required. The producer of the automotive 
good is not required to file an RVC averaging election with CBP when 
averaging the RVC pursuant to this section.

0
65. Add Sec.  182.102 to subpart I to read as follows:


Sec.  182.102   Required year-end reconciliation to actual costs when 
estimated costs or purchases used.

    (a) Year-end reconciliation required. (1) RVC and LVC. When the 
producer of a covered vehicle has calculated the RVC or LVC of its 
vehicles on the basis of estimated costs, including standard costs, 
budgeted forecasts or other similar estimating procedures, before or 
during the producer's fiscal year, the producer must conduct a 
reconciliation at the end of the producer's fiscal year to the actual 
costs incurred over the period with respect to the production of the 
vehicle, irrespective of whether the producer filed an averaging 
election pursuant to Sec.  182.100 of this subpart.
    (2) Steel and aluminum purchases. When the producer of a covered 
vehicle has calculated steel and aluminum purchases on the basis of 
estimates before or during the applicable period, the producer must 
conduct a reconciliation at the end of the producer's fiscal year to 
the actual purchases made over the period with respect to the 
production of the vehicle.
    (b) Notification. If, based on the year-end reconciliation 
performed under paragraph (a) of this section, the covered vehicle does 
not satisfy the RVC or LVC requirement on the basis of the actual 
costs, or the steel or aluminum purchasing requirement on the basis of 
the actual purchases, the producer must, within 30 days of making that 
determination:
    (1) Provide written notification to CBP that the vehicle is a non-
originating good; and
    (2) Inform any person to whom the producer has provided a 
certification of origin for the vehicle, or a written statement that 
the vehicle is an originating good, that the vehicle is a non-
originating good.

0
66. Add Sec.  182.103 to subpart I to read as follows:


Sec.  182.103   Producer and exporter recordkeeping responsibilities 
for records relating to LVC, steel purchasing, and aluminum purchasing 
requirements.

    (a) Producer recordkeeping responsibilities. A producer of a 
covered vehicle whose good is subject to a claim for USMCA preferential 
tariff treatment must make and keep, for a minimum of five years from 
the date that the vehicle certifications were submitted to CBP, the LVC 
certification, the steel purchasing certification, the aluminum 
purchasing certification, and all records and supporting documents that 
the producer of the covered vehicle has to demonstrate whether the 
covered vehicle meets the LVC, steel purchasing, and aluminum 
purchasing requirements. The records must be capable of being retrieved 
upon lawful request or demand by CBP. The producer of the covered 
vehicle must also maintain any records related to the high-wage 
components of the LVC requirement as required by DOL pursuant to 29 CFR 
part 810, and produce such records to DOL upon request.
    (b) Exporter who completed the certification of origin 
recordkeeping responsibilities. An exporter who completed the 
certification of origin for a covered vehicle must keep, for a minimum 
of five years from the date that the certification of origin was 
completed, the LVC certification, the steel purchasing certification, 
the aluminum purchasing certification, and

[[Page 6501]]

all records and supporting documents that the exporter has to 
demonstrate whether the covered vehicle meets the LVC, steel 
purchasing, and aluminum purchasing requirements. The records must be 
capable of being retrieved upon lawful request or demand by CBP. The 
exporter must also maintain any records related to the high-wage 
components of the LVC requirement as required by DOL pursuant to 29 CFR 
part 810, and produce such records to DOL upon request.

0
67. Add Sec.  182.104 to subpart I to read as follows:


Sec.  182.104   Importer's responsibility to maintain records relating 
to LVC, steel purchasing, and aluminum purchasing requirements.

    (a) General. In addition to any other records that the importer is 
required to prepare, maintain, or make available to CBP under this part 
or under part 163 of this chapter, an importer claiming USMCA 
preferential tariff treatment for a covered vehicle has additional 
recordkeeping responsibilities. The extent of the importer's 
recordkeeping responsibilities depends on whether the importer 
completed the certification of origin.
    (1) Claims based on certification of origin completed by the 
exporter or producer. If the claim for USMCA preferential tariff 
treatment is based on a certification of origin completed by the 
exporter or producer, the importer must maintain, for a minimum of five 
years from the date of importation of the covered vehicle, any records 
and supporting documents in the importer's possession relating to the 
LVC, steel purchasing, and aluminum purchasing certifications that 
formed the basis for the covered vehicle's eligibility for USMCA 
preferential tariff treatment; or
    (2) Claims based on certification of origin completed by the 
importer. If the claim for USMCA preferential tariff treatment is based 
on a certification of origin completed by the importer, the importer 
must maintain, for a minimum of five years from the date of importation 
of the covered vehicle, the LVC certification, the steel purchasing 
certification, the aluminum purchasing certification, and all records 
and supporting documents to demonstrate whether the covered vehicle 
meets the LVC, steel purchasing, and aluminum purchasing requirements. 
The importer must also maintain any records related to the high-wage 
components of the LVC requirement as required by DOL pursuant to 29 CFR 
part 810, and produce such records to DOL upon request.
    (b) Method of maintenance. The records referred to in paragraph (a) 
of this section must be maintained by importers as provided in Sec.  
163.5 of this chapter.
    (c) Relation to other recordkeeping requirements. Nothing in this 
section precludes compliance with any other applicable recordkeeping or 
reporting requirements, including, but not limited to, any 
recordkeeping requirements set forth in this chapter, and the DOL 
regulations at 29 CFR part 810.

0
68. Add Sec.  182.105 to subpart I to read as follows:


Sec.  182.105   Verification of automotive goods.

    (a) General. CBP will initiate all verifications of automotive 
goods, including covered vehicles, pursuant to the means set forth in 
Sec.  182.72(a) of this part. The general verification and 
determination provisions set forth in subpart G of this part and the 
provisions contained in this section are applicable for automotive good 
verifications.
    (b) Verification of a part, component, or material of a covered 
vehicle. When conducting a verification of a covered vehicle imported 
into the United States, CBP may conduct a verification of the parts, 
components, or materials used in the production of that covered 
vehicle. This verification will be conducted in conjunction with DOL, 
if applicable. A verification of a part, component, or material 
producer may be conducted pursuant to any of the verification means set 
forth in Sec.  182.72(a) of this part. With the exception of Sec.  
182.73(c) and Sec.  182.75, the provisions in subpart G of this part 
apply to the verification of a part, component, or material, and, with 
the exception of paragraph (d)(1) of this section, the provisions in 
this section also apply to the verification of a part, component, or 
material. References to the term ``producer'' in this section apply to 
a producer of a covered vehicle or to a part, component, or material 
producer.
    (c) Availability of records--(1) Verification of a covered vehicle. 
During a verification of a covered vehicle, the importer, exporter, and 
producer must make all records that they are required to maintain 
pursuant to this part, including Sec. Sec.  182.103 and 182.104 of this 
subpart, and the DOL regulations at 29 CFR part 810, available for 
inspection by a CBP or DOL official conducting a verification. With 
respect to records related to vehicle certifications, an importer, 
whose claim is based on a certification of origin completed by the 
exporter or producer, must only make those records in the importer's 
possession, as described in Sec.  182.104, available for inspection by 
a CBP or DOL official conducting a verification. CBP may deny the claim 
for preferential tariff treatment of the covered vehicle for failure to 
maintain the records required by CBP or DOL or for denying a CBP or DOL 
official access to these records.
    (2) Verification of a part, component, or material of a covered 
vehicle. During the verification of a part, component, or material used 
in the production of a covered vehicle, any records in the part, 
component, or material producer's possession related to whether the 
part, component, or material qualifies as originating must be made 
available for inspection by a CBP or DOL official conducting a 
verification. CBP may consider the part, component, or material that is 
used in the production of the covered vehicle and is the subject of the 
verification to be a non-originating part, component, or material if a 
CBP or DOL official is denied access to these records.
    (d) Verification of the high-wage components of the LVC 
requirement. When conducting a verification of a covered vehicle 
involving the high-wage components of the LVC requirement, CBP will 
conduct the verification in conjunction with DOL. DOL is responsible, 
pursuant to 19 U.S.C. 4532(e) and the DOL requirements and procedures 
in 29 CFR part 810, for conducting the verification of the high-wage 
components of the LVC requirement and determining whether the covered 
vehicle meets the high-wage components of the LVC requirement. CBP is 
responsible for verifying all other aspects of the LVC requirement not 
covered by DOL, including the annual purchase value and cost components 
of the high-wage material and manufacturing expenditures, and is 
ultimately responsible for determining whether the covered vehicle 
meets the LVC requirement, the requirements in this part, and whether 
the covered vehicle qualifies for USMCA preferential treatment.
    (1) Producer notification. When CBP initiates a verification of a 
covered vehicle and that verification involves determining whether the 
covered vehicle meets the LVC requirement, CBP will notify the producer 
of the covered vehicle, through one of the communication means 
specified in Sec.  182.73(d)(2) of this part, that CBP has initiated a 
verification of the covered vehicle and advise whether DOL will verify 
the high-wage components of the LVC requirement, subject to the 
confidentiality provisions in Sec.  182.2 of this part and the DOL's 
regulations at 29 CFR part 810.

[[Page 6502]]

    (2) Determinations of origin involving the LVC requirement. When 
issuing a determination of origin pursuant to Sec.  182.75 of this 
part, CBP will determine whether the covered vehicle meets the LVC 
requirement and qualifies for preferential tariff treatment based in 
part on DOL's determination of whether the covered vehicle complied 
with the high-wage components of the LVC requirement and DOL's 
verification findings and analysis.
    (e) Protests. An importer, exporter, or producer, who has the right 
to file a protest pursuant to Sec.  174.12(a)(6) of this chapter, may 
protest a CBP determination of origin under part 174 of this chapter. 
When a protest involves DOL's analysis of the high-wage components of 
the LVC requirement, CBP will coordinate with DOL regarding the review 
of the protest and accelerated disposition of the protest will not be 
available pursuant to Sec.  174.22 of this chapter. DOL is responsible, 
pursuant to 19 U.S.C. 4532(e)(6)(A), for conducting an administrative 
review of its initial analysis pursuant to DOL's regulations at 29 CFR 
part 810 and providing a determination containing the results of the 
administrative review to CBP. CBP will review and act on the protest 
pursuant to the procedures and requirements set forth in part 174 of 
this chapter.

0
69. Add Sec.  182.106 to subpart I to read as follows:


Sec.  182.106   Alternative staging regime.

    (a) General. Pursuant to General Note 11(k)(viii), HTSUS, Appendix 
A to this part, and as may be further provided for in subchapter XXIII 
of chapter 99 of the HTSUS, a covered vehicle may be originating 
pursuant to an alternative staging regime. A covered vehicle is only 
eligible for USMCA preferential tariff treatment under an alternative 
staging regime provided that:
    (1) Use of the alternative staging regime has been authorized by 
the Office of the U.S. Trade Representative (USTR);
    (2) USTR has not made a determination that the producer of the 
covered vehicle failed to meet the requirements for use of an 
alternative staging regime under 19 U.S.C. 4532(d)(5);
    (3) The alternative staging regime period is in effect;
    (4) The terms of the alternative staging regime petition, as 
authorized by the USTR, are met; and
    (5) The covered vehicle meets the requirements in this part, 
including the requirements in this subpart, unless the terms of the 
alternative staging regime specifically exempt the producer from these 
requirements or contain different requirements.
    (b) Verifications. CBP will conduct a verification of a covered 
vehicle subject to an alternative staging regime pursuant to the same 
procedures that govern other covered vehicles as set forth in Sec.  
182.105 of this subpart.
    (c) Vehicle certifications for covered vehicles subject to an 
exemption or different requirements under an alternative staging 
regime. For covered vehicles that qualify as originating pursuant to an 
alternative staging regime, if the terms of the alternative staging 
regime specifically exempt the producer from the LVC, steel purchasing, 
or aluminum purchasing requirement, or contain different requirements 
from sections 13 through 18 of Appendix A to this part, then the 
producer must submit to CBP a vehicle certification for that 
requirement that covers only those vehicles subject the alternative 
staging regime. In addition to meeting all other requirements set forth 
in Sec. Sec.  182.95, 182.96, and 182.97 of this subpart, as 
applicable, with the exception of Sec. Sec.  182.95(c)(11), 
182.96(c)(7), and 182.97(c)(7), a producer's vehicle certification 
submitted pursuant to this paragraph must include the following 
additional information:
    (1) A list of the vehicles covered by the alternative staging 
regime;
    (2) A description of the applicable exemption or different 
requirements as provided under the alternative staging regime; and
    (3) An authorized signature, date, and the following certifying 
statement: ``I certify that, for the vehicles listed and over the 
relevant period indicated in this document, the producer has satisfied 
the requirements of the alternative staging regime as set out in 
General Note 11(k)(viii), HTSUS, section 19 of the Uniform Regulations 
regarding Rules of Origin, 19 CFR 182.106, and under the terms 
authorized by the Office of the U.S. Trade Representative (USTR). The 
information in this document is true and accurate, and 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.''

0
70. Add Sec.  182.107 to subpart I to read as follows:


Sec.  182.107   Denial of preferential tariff treatment of covered 
vehicles.

    CBP may deny any claim for preferential tariff treatment of any 
covered vehicle if:
    (a) CBP determines that the good does not qualify for preferential 
tariff treatment due to a failure to meet the LVC, steel purchasing, or 
aluminum purchasing requirements set forth in General Note 11, HTSUS, 
Appendix A to this part, or Sec. Sec.  182.93 and 182.94 of this 
subpart;
    (b) The producer of the covered vehicle fails to submit the 
required LVC, steel purchasing, or aluminum purchasing certifications 
to CBP, pursuant to Sec. Sec.  182.95, 182.96, and 182.97 of this 
subpart;
    (c) CBP determines that an LVC, steel purchasing, or aluminum 
purchasing certification that forms the basis for a covered vehicle's 
eligibility for USMCA preferential tariff treatment is not properly 
filed pursuant to Sec. Sec.  182.95, 182.96, and 182.97 of this 
subpart;
    (d) CBP determines that an LVC, steel purchasing, or aluminum 
purchasing certification that forms the basis for a covered vehicle's 
eligibility for USMCA preferential tariff treatment is invalid after it 
was determined to be properly filed;
    (e) The importer, exporter, or producer fails to maintain records 
of the vehicle certifications and supporting documents as required 
pursuant to Sec. Sec.  182.103 and 182.104 of this subpart;
    (f) The importer, exporter, or producer fails to provide a CBP or 
DOL official the records or documentation that are in its possession or 
required to be maintained pursuant to Sec.  182.105(c) of this subpart; 
or
    (g) CBP determines that any other reason to deny a claim for 
preferential tariff treatment as set forth in Sec.  182.75(c)(2) of 
this part applies.

Robert F. Altneu,
Director, Regulations & Disclosure Law Division Regulations & Rulings, 
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2025-00550 Filed 1-16-25; 8:45 am]
BILLING CODE 9111-14-P`