35566 Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations 

1The 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-MexicoCanada Agreement. 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Parts 10, 102, 132, 134, 163, 

182 and 190 

[USCBP–2021–0026] 

[CBP Dec. 21–10] 

RIN 1515–AE56 

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 

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 include 

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). The USMCA applies to goods 

from Canada and Mexico entered for 

consumption, or withdrawn from 

warehouse for consumption, on or after 

July 1, 2020. This document amends the 

Code of Federal Regulations (CFR) to 

implement the provisions in Chapters 1, 

2, 5, and 7 of the USMCA related to 

general definitions, confidentiality, 

import requirements, export 

requirements, post-importation duty 

refund claims, drawback and dutydeferral programs, general verifications 

and determinations of origin, 

commercial samples, goods re-entered 

after repair or alteration in Canada or 

Mexico, and penalties. This document 

makes amendments to apply the 

marking rules in determining the 

country of origin for marking purposes 

for goods imported from Canada or 

Mexico and for other purposes specified 

by the USMCA. This document also 

includes amendments to add the sugarcontaining products subject to a tariffrate quota under Appendix 2 to Annex 

2–B of Chapter 2 of the USMCA to the 

CBP regulations governing the 

requirement for an export certificate, 

and conforming amendments for the 

declaration required for goods reentered after repair or alteration in 

Canada or Mexico, recordkeeping 

provisions, and the modernized 

drawback provisions. Concurrently with 

this interim final rule, CBP is publishing 

a notice of proposed rulemaking that 

proposes to apply the rules for all nonpreferential origin determinations made 

by CBP for goods imported from Canada 

or Mexico. CBP will also issue 

additional USMCA implementing 

regulations in an interim final rule to be 

published in the Federal Register at a 

later date. 

DATES: Effective date: This interim final 

rule is effective on July 1, 2021. 

Comments due date: Comments must 

be received by September 7, 2021. 

ADDRESSES: You may submit comments, 

identified by docket number USCBP– 

2021–0026, by one of the following 

methods: 

• Federal eRulemaking Portal at 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Due to COVID–19-related 

restrictions, CBP has temporarily 

suspended its ability to receive public 

comments by mail. 

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. Due to the 

relevant COVID–19-related restrictions, 

CBP has temporarily suspended on-site 

public inspection of the public 

comments. 

FOR FURTHER INFORMATION CONTACT: 

Operational Aspects and Audit 

Aspects: Queena Fan, Director, USMCA 

Center, Office of Trade, U.S. Customs 

and Border Protection, (202) 738–8946 

or usmca@cbp.dhs.gov. 

Legal Aspects: Craig T. Clark, 

Director, Commercial and Trade 

Facilitation Division, Regulations and 

Rulings, Office of Trade, U.S. Customs 

and Border Protection, (202) 325–0276 

or craig.t.clark@cbp.dhs.gov. 

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. 

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 adopted the 

USMCA through the enactment of the 

United States-Mexico-Canada 

Agreement Implementation Act 

(USMCA Act), Public Law 116–113, 134 

Stat. 11 (19 U.S.C. Chapter 29), on 

January 29, 2020. Section 103(a)(1)(B) of 

the USMCA 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 

the domestic implementation of the 

USMCA through the enactment of 


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Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations 35567 

2Available at: https://ustr.gov/trade-agreements/ 

free-trade-agreements/united-states-mexicocanada-agreement/free-trade-commissiondecisions/usmca-free-trade-commission-decisionno-1. 

3The S+ indicator is used for certain agricultural 

goods and textile tariff preference levels (TPLs). 

implementing legislation, 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), Public Law 

116–260, was enacted with Title VI of 

the Act containing technical corrections 

to the USMCA Act. All of the changes 

contained within Title VI of the 

Appropriations Act are retroactively 

effective on July 1, 2020, which is the 

entry into force date of the USMCA. 

These changes include amending 

section 202 of the USMCA 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. 

Pursuant to Article 5.16 of the 

USMCA, 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

• 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) 

(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 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) will be amended 

through rulemaking to reflect future 

changes to the Uniform Regulations, as 

needed. 

The USMCA superseded NAFTA and 

its related provisions on the USMCA’s 

entry into force date. See Protocol, 

paragraph 1. Section 601 of the USMCA 

Act repealed the North American Free 

Trade Agreement Implementation Act 

(NAFTA Implementation Act), Public 

Law 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 tariff 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,’’ 

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 

(Appendix A to part 182). 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/priorityissues/trade-agreements/free-tradeagreements/USMCA for further 

guidance, including the U.S. USMCA 

Implementing Instructions. The United 

States International Trade Commission 

has modified the HTSUS to include the 

addition of a new 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

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 the Uniform 

Regulations regarding rules of origin as 

well as the Uniform Regulations 

regarding origin procedures, pursuant to 

Article 5.16 of the USMCA. 

This IFR amends the CBP regulations 

to implement significant portions of the 

USMCA, but does not contain all 

relevant subparts. CBP will promulgate 

the remaining USMCA implementing 

regulations and solicit public comments 

at a later date. Additionally, future 

trilateral negotiations on the Uniform 

Regulations may result in additional 

provisions that must be included in the 

rulemaking process at a later date. CBP 

will address any comments received in 

a final rule published in the Federal 

Register. 

1. Customs Related USMCA Provisions 

Addressed in This IFR 

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 to Annex 

2–B (Tariff Commitments) of Chapter 2 

of the USMCA. See Article 2.4 of the 

USMCA. Appendix 2 to Annex 2–B of 

Chapter 2 of the USMCA contains the 

Tariff Schedule of the United States 

reflecting the tariff-rate quotas that the 

United States will apply to certain 

originating goods from Canada under 

the USMCA. Specifically, paragraph 15 

of Appendix 2 to Annex 2–B contains 

the tariff-rate quota for sugar-containing 

products of Canada that necessitates an 

amendment to the CBP regulations. 

Chapter 2 of the USMCA also sets forth 

the definition of ‘‘commercial samples 

of negligible value’’ (Article 2.1); the 

duty-free treatment of those commercial 

samples of negligible value, subject to 

certain conditions (Article 2.9); the 

duty-free treatment of goods re-entered 

after being temporarily exported to 

another USMCA country for repair or 

alteration, subject to certain exceptions 

and conditions (Article 2.8); and the 

drawback and duty-deferral program 

provisions (Article 2.5). 

Chapter 5 of the USMCA sets forth the 

origin procedures. Specifically, Chapter 

5 of the USMCA contains the rules for 

making a claim for preferential tariff 

treatment (Article 5.2); the requirements 

for a certification of origin (Article 5.2); 

the set of minimum data elements 

required for a certification of origin 

(Annex 5–A); the basis of the 

certification of origin (Article 5.3); the 


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35568 Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations 

importer’s obligations regarding 

importations when claiming preferential 

tariff treatment (Article 5.4); the 

exporter’s and producer’s obligations 

(Article 5.6); the recordkeeping 

requirements for importers, exporters, 

and producers (Article 5.8); the general 

origin verification requirements and 

procedures (Article 5.9); the 

determination of origin provisions 

(Article 5.10); the right to file for 

refunds and claims for preferential tariff 

treatment after importation (Article 

5.11); and the confidentiality provisions 

related to the exchange of information 

between USMCA countries (Article 

5.12). Additionally, Article 5.5 of the 

USMCA sets forth the exceptions to the 

certification of origin requirement. 

Pursuant to Article 5.5, a certification of 

origin is not required, with some 

exceptions related to evading 

compliance, for a claim of preferential 

tariff treatment if the value of the 

importation does not exceed $1,000 U.S. 

dollars or any higher amount as the 

importing USMCA country may 

establish, or it is an importation of a 

good for which the USMCA country into 

whose territory the good was imported 

has waived the requirement for a 

certification of origin. Consistent with 

this article, the United States has 

established, with the same exceptions 

related to evading compliance, a higher 

importation value amount of $2,500 

U.S. dollars for commercial 

importations and has waived the 

certification of origin requirement for 

the entire category of non-commercial 

importations. 

The penalties provisions for the 

USMCA are described in Chapters 5 and 

7. Article 5.13 provides that each 

USMCA country shall maintain 

criminal, civil, or administrative 

penalties for violations of its laws and 

regulations related to Chapter 5 (see also 

Articles 5.4.2 and 5.6.3). Chapter 7 of 

the USMCA generally sets forth 

provisions related to customs 

administration and trade facilitation. 

Specifically, Article 7.18 states that each 

USMCA country shall adopt or maintain 

measures that allow for the imposition 

of a penalty by a USMCA country’s 

customs administration for breach of its 

customs laws, regulations, or procedural 

requirements, including those governing 

tariff classification, customs valuation, 

transit procedures, country of origin, or 

claims for preferential tariff treatment. 

Chapter 7 of the USMCA also contains 

the confidentiality provisions related to 

the protection of information collected 

from traders. The confidentiality 

provisions in Article 7.22, in 

combination with the confidentiality 

provisions in Article 5.12, ensure the 

protection of confidential information 

provided to a USMCA country’s 

customs administration and prevent the 

unauthorized disclosure of this 

information to third parties and to other 

USMCA countries. 

The Chapters 1, 2, 5, and 7 provisions 

discussed above are reflected in this 

IFR. 

2. Customs Related Provisions 

Addressed in Previously Published IFR 

Chapter 4 of the USMCA contains the 

general rules of origin for preferential 

tariff treatment provisions, and Chapter 

6 includes the rules of origin specific to 

textiles and apparel goods. CBP has 

already incorporated these rules of 

origin into the CBP regulations. On July 

1, 2020, CBP published an IFR in the 

Federal Register (85 FR 39690) to, in 

part, add the Uniform Regulations 

regarding rules of origin trilaterally 

agreed upon by the United States, 

Mexico, and Canada as Appendix A of 

new part 182 to title 19 of the CFR (19 

CFR part 182). 

3. Customs Related Provisions To Be 

Addressed in Subsequent Rulemaking 

Any additional CBP regulations 

needed to implement USMCA 

provisions will be included in a 

subsequent rulemaking to be published 

in the Federal Register at a later date. 

B. Verifications and Determinations of 

Origin 

Chapter 5 of the USMCA and the 

Uniform Regulations regarding origin 

procedures govern the verification and 

determination of origin requirements 

and procedures. Pursuant to Article 

5.9.1 of Chapter 5 of the USMCA, a 

USMCA country, through its customs 

administration, may conduct a 

verification to determine whether a 

good qualifies for USMCA preferential 

tariff treatment by one or more of the 

following means: A written request or 

questionnaire seeking information, 

including documents, from the 

importer, exporter, or producer; a 

verification visit to the premises of the 

exporter or producer in order to request 

information, including documents, and 

to observe the production process and 

the related facilities; 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. For textile or apparel 

goods, the verification procedures set 

out in USMCA Article 6.6 provide an 

alternative verification means that a 

USMCA country has the discretion to 

utilize only when conducting a textile 

or apparel goods verification. The 

USMCA Article 6.6 site visit verification 

requirements and procedures will be 

addressed in a subsequent rulemaking 

to be published in the Federal Register 

at a later date. 

A USMCA country may choose to 

initiate a verification, using any of these 

verification means, with the importer or 

with the person who completed the 

certification of origin. See USMCA 

Article 5.9.2. If the USMCA country 

initiates a verification other than with 

the importer, it must inform the 

importer, only for the purpose of the 

importer’s knowledge, of the initiation 

of the verification. See USMCA Article 

5.9.6 and the Uniform Regulations 

regarding origin procedures. 

USMCA Article 5.9 and the Uniform 

Regulations regarding origin procedures 

set forth the information that must be 

contained in a written request for 

information, questionnaire, or request 

for a verification visit (see USMCA 

Article 5.9.5), the requirements that a 

USMCA country must follow during a 

verification (see USMCA Article 5.9.7(a) 

and (b)), the time that the importer, 

exporter, or producer has to respond to 

a request for information or 

questionnaire (see USMCA Article 

5.9.7(c)), and the time that the exporter 

or producer has to consent to or refuse 

a verification visit request (see USMCA 

Article 5.9.7(d)). 

Pursuant to USMCA Article 5.9.9, 

when a USMCA country initiates a 

verification through a verification visit 

request, the USMCA country is required 

to provide a copy of the verification 

visit request to the customs 

administration of the USMCA country 

in whose territory the visit is to occur, 

and, if requested by the USMCA country 

in whose territory the visit is to occur, 

the embassy of that USMCA country in 

the territory of the USMCA country 

proposing to conduct the visit. USMCA 

Article 5.9 contains additional 

provisions governing verification visit 

procedures, including providing the 

circumstances under which the exporter 

or producer whose premises are to be 

visited during the verification visit, or 

the customs administration of the 

USMCA country in whose territory the 

verification visit is to occur, may 

postpone the verification visit. See 

USMCA Article 5.9.10 and 5.9.11. 

During a verification, there are also 

requirements that records be made 

available for inspection. USMCA Article 

5.8 requires that importers, exporters, 

and producers maintain certain 

documentation and records. Pursuant to 

the Uniform Regulations regarding 

origin procedures, these records must be 

maintained in such a manner as to 

enable an officer of the USMCA 


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4See Uniform Regulations regarding origin 

procedures, Origin Verifications Section, paragraph 

10, which states that where the customs 

administration of a USMCA country, in conducting 

an origin verification of a good imported into its 

territory under USMCA Article 5.9, conducts an 

origin verification of a material that is used in the 

production of the good, the origin verification of 

that material is expected to be conducted in 

accordance with the procedures set out in: USMCA 

Article 5.9(1), (5), (7 through 11), (13), and (18); and 

paragraphs 3, 6, 13, 14, and 15 of the Origin 

Verifications Section of the Uniform Regulations 

regarding origin procedures. 

country’s customs administration, when 

conducting a verification under USMCA 

Article 5.9, to perform detailed 

verifications of the documentation and 

records to verify the information on the 

basis of which the certification of origin 

was completed and the claim for 

preferential tariff treatment was made. 

Importers, exporters, and producers that 

are required to maintain records 

pursuant to USMCA Article 5.8.1 and 

5.8.2 must make those records available 

for inspection by an officer of the 

USMCA country’s customs 

administration conducting a 

verification, and in the case of a 

verification visit, provide facilities for 

that inspection. 

The Uniform Regulations regarding 

origin procedures also clarify that, 

where a USMCA country’s customs 

administration is conducting a 

verification of a good under USMCA 

Article 5.9, the customs administration 

may conduct an origin verification of a 

material that is used in the production 

of that good. The verification of that 

material is expected to be conducted in 

accordance with certain USMCA 

procedures. The Uniform Regulations 

regarding origin procedures enumerate 

the specific USMCA articles and 

Uniform Regulations regarding origin 

procedures paragraphs that apply to the 

verification of materials.4 The USMCA 

country’s customs administration may, 

during a verification of a material that 

is used in the production of a good, 

consider the material to be nonoriginating in determining whether the 

good is an originating good, if the 

producer or supplier of that material 

does not allow the customs 

administration access to information 

required to make a determination of 

whether the material is originating by 

denying access to its records; failing to 

respond to a verification questionnaire 

or letter; or refusing to consent to a 

verification visit within the required 

time. 

After the verification is conducted, 

the USMCA country must provide the 

importer, and the exporter or producer 

that completed the certification of origin 

and is the subject of the verification, 

with a written determination of origin 

that includes the findings of facts and 

the legal basis for the determination. See 

USMCA Article 5.9.14. Prior to issuing 

this determination of origin, if the 

USMCA country intends to deny 

USMCA preferential tariff treatment, the 

USMCA country must inform the 

importer, and any exporter or producer 

who is the subject of the verification 

and provided information during the 

verification, of the preliminary results of 

the verification and a notice of intent to 

deny that includes when the denial 

would be effective and a period of at 

least 30 days for the submission of 

additional information, including 

documents, related to the originating 

status of the good. See USMCA Article 

5.9.16. The reasons that a USMCA 

country may deny USMCA preferential 

tariff treatment are set forth in USMCA 

Article 5.10.2. Additionally, in 

accordance with USMCA Article 5.9.17, 

if a verification indicates a pattern of 

conduct by an importer, exporter, or 

producer of false or unsupported 

representations that a good imported 

into the country’s territory qualifies as 

an originating good, the USMCA 

country may withhold preferential tariff 

treatment to identical goods imported, 

exported, or produced by such person 

until that person establishes compliance 

with USMCA Chapters 4, 5, and 6. 

Section 207(a)(1)(A) of the USMCA 

Act (19 U.S.C. 4533(a)(1)(A)) provides 

the Secretary of the Treasury with the 

authority to conduct a verification, 

pursuant to USMCA Article 5.9, of 

whether a good is an originating good 

under section 202 of the USMCA Act 

(19 U.S.C. 4531) or section 202A of the 

USMCA Act (19 U.S.C. 4532). Section 

207(b) of the USMCA Act (19 U.S.C. 

4533(b)(1)) sets forth the basis for a 

negative determination of origin that 

applies to verifications conducted under 

USMCA Chapter 5. Specifically, section 

207(b) of the USMCA Act provides that 

a negative determination is a 

determination by the Secretary that a 

claim by the importer, exporter, or 

producer that the good qualifies as an 

originating good under 19 U.S.C. 4531 is 

inaccurate; that the good does not 

qualify for preferential tariff treatment 

under the USMCA because the importer, 

exporter, or producer failed to respond 

to a request for information or failed to 

provide sufficient information to 

determine that the good qualifies as an 

originating good; after receipt of a 

notification of a verification visit, the 

exporter or producer did not provide 

written consent for the visit; the 

importer, exporter, or producer does not 

maintain, or denies access to, records or 

documentation required under section 

508(1) of the Tariff Act of 1930, as 

amended (19 U.S.C. 1508(1)); or the 

importer, exporter, or producer 

otherwise fails to comply with the 

requirements of section 207 of the 

USMCA Act or, based on the 

preponderance of the evidence, 

circumvents the requirements of section 

207 of the USMCA Act. Section 

207(c)(1) of the USMCA Act (19 U.S.C. 

4533(c)(1)) provides that, upon making 

a negative determination, the Secretary 

may deny preferential tariff treatment 

under the USMCA with respect to the 

good while section 207(c)(2) of the 

USMCA Act (19 U.S.C. 4533(c)(2)) 

allows the Secretary to withhold 

preferential tariff treatment for identical 

goods based on a pattern of conduct. 

To address these general USMCA 

verification and determination of origin 

requirements and procedures, CBP has 

included subpart G, Origin Verifications 

and Determinations, in part 182 of title 

19 of the CFR. 

C. Marking Rules 

Section 304(a) of the Tariff Act of 

1930, as amended (19 U.S.C. 1304), 

provides that, unless excepted, every 

article of foreign origin imported into 

the United States shall be marked in a 

conspicuous place as legibly, indelibly, 

and permanently as the nature of the 

article (or container) will permit in such 

manner as to indicate to an ultimate 

purchaser in the United States the 

English name of the country of origin of 

the article. The regulations issued under 

the authority of section 304 to 

implement the country of origin 

marking requirements are set forth in 19 

CFR part 134. Part 134 identifies the 

articles subject to marking, the methods 

and manner of marking that should be 

used, the exceptions to the marking 

requirements, the marking requirements 

for containers or holders, and the 

procedures for articles found not legally 

marked. 

CBP employs two primary methods 

for determining the country of origin for 

marking purposes when imported goods 

are processed in, or contain materials 

from, more than one country. One 

method uses case-by-case adjudication 

to determine whether the goods have 

been substantially transformed in a 

particular country. The other method 

consists of codified rules, also used to 

determine whether the goods have been 

substantially transformed, primarily 

expressed through a change in the 

HTSUS classification, often referred to 

as a ‘‘tariff shift.’’ 

Part 134 sets forth the country of 

origin marking requirements and 

exceptions. Section 134.1(b) defines 


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5That proposed rule does not apply for purposes 

of determining whether merchandise is subject to 

the scope of antidumping and countervailing duty 

proceedings under Title VII of the Tariff Act of 

1930, as amended, as such determinations fall 

under the authority of the Department of 

Commerce. Specifically, notwithstanding a CBP 

country of origin determination, that merchandise 

may be subject to the scope of antidumping and/ 

or countervailing duty proceedings associated with 

a different country. 

6Although Canada is not a party to Chapter 13 

of the USMCA, the United States has a similar 

commitment to Canada through Article IV–5 of the 

World Trade Organization (WTO) Revised 

Agreement on Government Trade, as amended on 

Mar. 30, 2012, Marrakesh Agreement Establishing 

the World Trade Organization, Annex 4(b), 1915 

U.N.T.S. 103. 

‘‘country of origin’’ as the country of 

manufacture, production, or growth of 

any article of foreign origin entering the 

United States. Further work or material 

added to an article in another country 

must effect a substantial transformation 

in order to render such other country 

the ‘‘country of origin’’ within the 

meaning of part 134; however, for a 

good of a NAFTA country, the marking 

rules set forth in part 102 of title 19 of 

the CFR (19 CFR part 102) apply 

(although these rules have commonly 

been referred to as the NAFTA Marking 

Rules, they apply in other contexts as 

well and are thus referred to herein as 

the ‘‘part 102 rules’’).’’). The part 102 

rules are codified rules that determine 

the country of origin for marking 

purposes using primarily the ‘‘tariff 

shift’’ method. CBP first promulgated 

these codified part 102 rules to fulfill 

the United States’ commitment under 

Annex 311 of NAFTA, which required 

the parties to establish rules for 

determining whether a good is a good of 

a NAFTA country. Although the 

NAFTA Implementation Act was 

repealed by the USMCA Act as of July 

1, 2020, the part 102 rules remain in 

effect. The part 102 rules are also used 

for several other trade agreements. For 

instance, as indicated in the scope 

provision for part 102 (§ 102.0), the 

rules set forth in §§ 102.1 through 

102.21 also apply for purposes of 

determining whether an imported good 

is a new or different article of commerce 

under § 10.769 of the United StatesMorocco Free Trade Agreement 

regulations and § 10.809 of the United 

States-Bahrain Free Trade Agreement 

regulations. 

The USMCA does not contain a 

general marking requirement. Except for 

certain agricultural goods, a good does 

not need to first qualify to be marked as 

a good of Mexico or Canada in order to 

receive preferential tariff treatment 

under the USMCA. For most goods, only 

the general Uniform Regulations 

regarding rules of origin set forth in 

Appendix A of part 182 of title 19 of the 

CFR and the product-specific rules of 

origin contained in General Note 11, 

HTSUS, are needed to determine 

whether a good is an originating good 

under the USMCA to receive 

preferential tariff treatment. Therefore, 

in line with the present scope of the part 

102 rules, the part 102 rules will 

continue to be applicable to determine 

country of origin for marking purposes 

for goods imported from Canada or 

Mexico under the USMCA (regardless of 

whether preferential tariff treatment is 

claimed). 

The Secretary of the Treasury has 

general rulemaking authority, pursuant 

to 19 U.S.C. 1304 and 1624, to make 

such regulations as may be necessary to 

carry out the provisions of section 

304(a) of the Tariff Act of 1930, as 

amended, related to the country of 

origin marking requirements for 

imported articles of foreign origin. CBP 

believes that extending application of 

the well-established part 102 rules to 

USMCA goods will provide continuity 

for the Canadian and Mexican importing 

community because those rules have 

been applied to all imports from Canada 

and Mexico since 1994. As a result of 

this longevity, the importing community 

has made extensive efforts to comply 

with the part 102 rules and CBP has 

significant experience in applying those 

rules to goods from Canada and Mexico. 

These factors provide predictability and 

consistency in the application of the 

marking rules and in CBP’s 

administration of the rules. The codified 

part 102 rules are a simplified and 

standardized approach for determining 

the country of origin for marking 

purposes (regardless of whether 

preferential tariff treatment is claimed). 

The importing communities from 

Canada and Mexico are used to applying 

the part 102 rules as opposed to the 

case-by-case method. Accordingly, to 

make the transition from NAFTA to the 

USMCA as least disruptive to the 

importing community as possible, CBP 

has decided to continue application of 

the current part 102 rules to determine 

the country of origin for marking 

purposes of a good imported from 

Canada or Mexico to articles imported 

pursuant to the USMCA. However, the 

other marking requirements in 19 CFR 

part 134, such as the rules for marking 

containers, the exceptions applicable to 

the marking requirements, and the 

methods of marking, also previously 

applied to goods from Canada and 

Mexico, and continue to apply to these 

goods. Thus, CBP is amending parts 102 

and 134 of title 19 of the CFR to 

continue the application of the part 102 

rules for determining origin for marking 

purposes for Mexico and Canada, and 

also to reflect the continued 

applicability of the other marking 

requirements and the relevant 

exceptions. 

Origin determinations are also 

required in other instances, such as in 

the administration of quantitative 

restrictions. Concurrently with this IFR, 

CBP is publishing a notice of proposed 

rulemaking (NPRM) that proposes to 

apply the part 102 rules for nonpreferential origin determinations made 

by CBP for goods imported from Canada 

or Mexico, including government 

procurement determinations.5 In 

addition to promoting uniformity and 

transparency, the NPRM will implement 

USMCA Article 13.4.5, which provides 

as follows: ‘‘For the purposes of covered 

procurement, a Party shall not apply 

rules of origin to goods or services 

imported from or supplied from the 

other Party that are different from the 

rules of origin the Party applies at the 

same time in the normal course of trade 

to imports or supplies of the same goods 

or services from the same Party.’’ 6

Adverse Marking Decisions 

Under NAFTA, an adverse marking 

decision is a decision by CBP which an 

exporter or producer of merchandise 

believes to be contrary to the provisions 

of Annex 311 of NAFTA. While Article 

510 of NAFTA provides specific rights 

of review and appeal for marking 

determinations, the USMCA does not 

provide any such rights. Additionally, 

section 209 of the USMCA 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 with respect to adverse marking 

decisions, for NAFTA exporters and 

producers. Thus, these specific rights 

and procedures are not provided for 

under the USMCA or the USMCA Act. 

Accordingly, an importer, or an exporter 

or producer (only when acting as the 

importer of record (IOR)) wishing to 

request review and/or appeal of CBP 

marking determinations must follow the 

procedures set forth in part 174 of the 

CFR. 

Part 174 sets forth the general protest 

procedures pursuant to 19 U.S.C. 1514, 

which allows for the administrative 

review of challenges to CBP 

determinations, including marking and 

other origin decisions. As the general 

statutory and regulatory authority for 

protests in 19 U.S.C. 1514 and 19 CFR 

part 174 and the specific USMCA 

authority under the USMCA and the 

USMCA Act do not provide exporters or 


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producers the right to request 

administrative review and appeal of 

marking decisions, USMCA exporters 

and producers may not file a protest of 

a marking determination under the 

USMCA, unless the exporter or 

producer is acting as the IOR. 

D. Tariff-Rate Quota for SugarContaining Products Originating in 

Canada 

Tariff-rate quotas permit a specified 

quantity (‘‘in-quota quantity’’) of 

merchandise to be entered or withdrawn 

for consumption at a reduced duty rate 

(‘‘in-quota tariff rate of duty’’) during a 

specified period. See 19 CFR 132.1(b). 

Appendix 2 to Annex 2–B of Chapter 2 

of the USMCA, entitled Tariff Schedule 

of the United States—(Tariff Rate 

Quotas), reflects the tariff-rate quotas 

that the United States will apply to 

certain originating goods from Canada 

under the USMCA. These originating 

goods from Canada are permitted entry 

into the territory of the United States, at 

the in-quota quantity, subject to the 

reduced quota rates instead of the rates 

of duty specified in Chapter 1 through 

Chapter 97 of the HTSUS. 

Paragraph 15 of Appendix 2 to Annex 

2–B of the USMCA sets out the tariffrate quota for sugar-containing products 

of Canada, including the aggregate 

quantity of originating goods of Canada 

permitted to enter free of duty in each 

calendar year and the article description 

of the qualifying originating goods. 

Pursuant to section 103(c)(4) of the 

USMCA Act, which authorizes the 

President to take necessary actions to 

implement the tariff-rate quotas in the 

Schedule of the United States to Annex 

2–B of the USMCA, the special 

classification provisions in Chapter 98 

of the HTSUS have been modified to 

include the sugar-containing products 

subject to this tariff-rate quota. 

The tariff-rate quota for sugarcontaining products of Canada under 

the USMCA will be administered using 

export certificates. When Canada 

provides the United States with the 

written notification of its intent to 

require export certificates for sugarcontaining products in accordance with 

paragraph 15(d) of Appendix 2 of Annex 

2–B of the USMCA, the USTR will 

publish a notice in the Federal Register 

announcing this determination. In any 

year for which the USTR has published 

such a determination in the Federal 

Register, imports of the sugarcontaining products of Canada, at the 

in-quota quantity, will only be eligible 

for the in-quota tariff rate of duty if the 

U.S. importer makes a declaration to 

CBP, in the form and manner 

determined by CBP, that a valid export 

certificate issued by the Government of 

Canada is in effect for the goods. 

Section 132.17 of title 19 of the CFR 

(19 CFR 132.17) sets forth the form and 

manner determined by CBP to constitute 

a required declaration that a valid 

export certificate is in effect for the 

goods. Specifically, § 132.17 governs the 

requirement for an export certificate for 

sugar-containing products to qualify for 

the tariff-rate quota and provides a 

description of the sugar-containing 

products subject to these requirements, 

when the export certificate is valid, and 

the recordkeeping retention and 

production requirements. For the sugarcontaining products described in 

§ 132.17(a), the importer must possess a 

valid export certificate in order to claim 

the in-quota tariff rate of duty on the 

products at the time they are entered or 

withdrawn from warehouse for 

consumption. The importer must record 

the unique identifier of the export 

certificate for these products on the 

entry summary or warehouse 

withdrawal for consumption (Customs 

Form 7501, column 34), or its electronic 

equivalent. The Government of Canada 

will issue the export certificates. A 

certificate is valid if it meets the 

requirements of 15 CFR 2015.3(b). If the 

export certificate is valid, it will 

authorize entry into the United States at 

the in-quota tariff rate of duty 

established under the USMCA. 

III. Amendments to the Regulations 

Pursuant to 19 U.S.C. 4535(a), the 

Secretary of the Treasury has the 

authority to prescribe such regulations 

as may be necessary to implement the 

USMCA. Section 103(b)(1) of the 

USMCA Act (19 U.S.C. 4513(b)(1)) 

requires that initial regulations 

necessary or appropriate to carry out the 

actions required by or authorized under 

the USMCA Act or proposed in the 

Statement of Administrative Action 

approved under 19 U.S.C. 4511(a)(2) to 

implement the USMCA shall, to the 

maximum extent feasible, be prescribed 

within one year after the date on which 

the USMCA enters into force. This IFR 

amends the CBP regulations to 

implement significant portions of the 

USMCA. CBP will promulgate the 

remaining USMCA implementing 

regulations. 

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-MexicoCanada Agreement. Part 182 sets forth 

the USMCA preferential tariff treatment 

and other customs related provisions. 

This IFR amends part 182 to add 

regulations implementing significant 

portions of USMCA Chapters 1, 2, 5, 

and 7, as discussed above, in the 

existing part 182 regulatory framework. 

Additionally, this document makes 

necessary amendments to other parts of 

title 19 of the CFR to implement 

relevant USMCA provisions and to 

apply the part 102 rules when 

determining the country of origin for 

marking purposes for goods imported 

from USMCA countries. 

All of the regulatory amendments 

made in this document are consistent 

with the provisions of the USMCA, the 

Uniform Regulations regarding origin 

procedures, and the USMCA Act (19 

U.S.C. Chapter 29). 

A. Part 10 

Section 10.8 sets forth the 

documentation requirements for articles 

exported for repairs or alterations. As 

explained further in Section III.F., 

Subpart J—Commercial Samples and 

Goods Returned after Repair or 

Alteration below, CBP is applying the 

documentation provisions of § 10.8(a), 

(b), and (c) to the entry of goods which 

are returned from Canada or Mexico 

after having been exported for repairs or 

alterations and which are claimed to be 

duty-free. Section 10.8(a)(2) provides 

that a declaration must be completed by 

the owner, importer, consignee, or agent 

having knowledge of the pertinent facts 

and filed during entry of the articles that 

are returned after having been exported 

for repairs or alterations. Currently, this 

declaration requires the individual 

completing it to state that such articles 

were exported from the United States 

for repairs or alterations and without 

benefit of drawback. This portion of the 

declaration is necessary because 

ordinarily these re-entered goods do not 

qualify for a reduced duty rate with the 

benefit of drawback. However, there is 

an exception provided in U.S. Note 1 of 

Subchapter II, Chapter 98, HTSUS, for 

NAFTA and USMCA drawback. Goods 

re-entered after repair or alteration are 

eligible for duty-free treatment even if 

subject to NAFTA or USMCA drawback. 

Accordingly, CBP is amending the 

declaration in § 10.8(a)(2) to clarify this 

distinction by adding ‘‘(unless subject to 

USMCA drawback)’’ after ‘‘without the 

benefit of drawback.’’ 

B. Part 102 

Part 102, Rules of Origin, sets forth 

rules for determining the country of 

origin of certain imported goods. CBP is 

amending part 102 of title 19 of the CFR 

(19 CFR part 102) to apply its rules of 

origin to determine the country of origin 

for marking purposes of goods imported 

from Canada or Mexico under the 


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USMCA (regardless of whether 

preferential tariff treatment is claimed). 

1. Scope 

This document amends § 102.0 to 

extend the scope of part 102 to include 

the USMCA. Section 102.0 is revised to 

state that the rules set forth in §§ 102.1 

through 102.18 and 102.20 also 

determine the country of origin for 

marking purposes for goods imported 

from a USMCA country. Under the 

USMCA, the Uniform Regulations 

regarding rules of origin set forth in 

Appendix A to part 182 and the 

product-specific rules of origin 

contained in General Note 11, HTSUS, 

are needed to determine whether a good 

originates under the USMCA to receive 

preferential tariff treatment. The 

USMCA includes, inter alia, provisions 

that rely on whether goods qualify to be 

marked as goods of Canada, Mexico, or, 

under General Note 11, HTSUS, the 

United States, to determine the 

appropriate tariff benefit, thus also 

requiring the part 102 rules. See 

USMCA Chapter 2, Annex 2–B, Tariff 

Schedule of the United States, General 

Notes. 

2. Definitions 

Section 102.1 sets forth the general 

definitions applicable to this part. CBP 

is adding a new definition for 

‘‘inventory management method’’ to 

provide clarity to the public. Currently, 

part 102 refers to the inventory 

management method merely with crossreferences to part 181 without defining 

the term or providing a specific citation 

for where the method is described. As 

the term ‘‘inventory management 

method’’ is used for purposes of NAFTA 

and the USMCA, CBP believes that 

adding the definition in § 102.1 is 

necessary. Thus, the term ‘‘inventory 

management method’’ is added as 

paragraph (l) and is defined as ‘‘(1) 

averaging; (2) ‘‘last-in, first-out;’’ (3) 

‘‘first-in, first-out;’’ or (4) any other 

method that is recognized in the 

Generally Accepted Accounting 

Principles (GAAP) of the country in 

which the production is performed or 

otherwise accepted by that country.’’ In 

order to add the term in alphabetical 

order, CBP is redesignating paragraphs 

(l) through (p) as paragraphs (m) 

through (q). 

CBP is also revising the definition of 

‘‘value.’’ The definition of ‘‘value’’ 

provides different methods for 

calculating the value of goods or 

materials for purposes of determining 

whether foreign material that does not 

undergo the applicable change in tariff 

classification (set out in § 102.20) or 

satisfies the other applicable 

requirements of that section is 

considered de minimis (set out in 

§ 102.13). CBP is adding the clarifier 

‘‘under NAFTA’’ to paragraphs (1) and 

(2) to make clear that the methods set 

forth in these paragraphs only apply to 

NAFTA. CBP is adding a new paragraph 

(3) to set forth the method used for 

calculating the value of goods or 

materials under the USMCA for 

purposes of determining whether 

foreign material is considered de 

minimis. Under the USMCA, the value 

of a good or material is its customs 

value or transaction value within the 

meaning of the Uniform Regulations 

regarding rules of origin set forth in 

Appendix A to part 182. 

3. Inapplicability of NAFTA Preference 

Override to USMCA Claims 

CBP is amending § 102.19 to limit the 

NAFTA preference override to apply to 

NAFTA only. Under NAFTA, to receive 

preferential tariff treatment, a good must 

be ‘‘originating’’ under General Note 12, 

HTSUS, and the good must qualify to be 

marked as a good of a NAFTA country 

under the part 102 rules in § 102.20. 

Under the USMCA, unlike NAFTA, a 

good does not need to qualify to be 

marked as a good of Canada or Mexico 

in order to receive preferential tariff 

treatment. Accordingly, the NAFTA 

preference override provisions are no 

longer necessary under the USMCA. 

Thus, CBP is adding a new paragraph (c) 

to § 102.19 to state that the NAFTA 

preference override in paragraphs (a) 

and (b) applies only to goods entered for 

consumption, or withdrawn from 

warehouse for consumption, prior to 

July 1, 2020, which is the date that the 

USMCA entered into force. 

4. Conforming Amendments 

As a result of adding the definition of 

‘‘inventory management method’’ to 

§ 102.1, CBP needs to make several 

conforming amendments to other 

sections of part 102. Accordingly, CBP 

is removing the phrase ‘‘provided under 

the appendix to part 181 of this 

chapter’’ from § 102.11(b)(2) and 

‘‘provided under the appendix to part 

181 of the Customs Regulations’’ from 

§ 102.12(b). These cross-references to 

the inventory management methods in 

the appendix to part 181 are no longer 

needed because the definition of 

‘‘inventory management method’’ is 

now contained in the general definitions 

of part 102. 

C. Part 132 

Part 132, Quotas, sets forth the rules 

and procedures applicable to quotas 

administered by CBP. CBP is amending 

§ 132.17(a) to reflect the tariff-rate quota 

for sugar-containing products of Canada 

established in paragraph 15 of 

Appendix 2 to Annex 2–B of Chapter 2 

of the USMCA. CBP has decided to 

adopt a similar approach for describing 

the sugar-containing products as used in 

the preceding section of this part when 

describing the beef products subject to 

an export certificate requirement. This 

simpler approach removes the specific 

HTSUS subheading classifications and, 

alternatively, cross-references to the 

USTR definition of sugar-containing 

products and the description of the 

products in paragraph 15 of Appendix 

2 to Annex 2–B of Chapter 2 of the 

USMCA. As CBP is not the party 

responsible for determining the sugarcontaining products that qualify for the 

tariff-rate quota, this approach ensures 

that the CBP regulations contain an 

accurate description of the products in 

the event of a change in the HTSUS 

subheadings or a change in the USTR 

definition. 

D. Part 134 

Part 134, Country of Origin Marking, 

sets forth the regulations implementing 

the country of origin marking 

requirements and exceptions of section 

304 of the Tariff Act of 1930, as 

amended (19 U.S.C. 1304). For purposes 

of the USMCA, the part 102 rules will 

be applied to determine the country of 

origin for marking purposes of a good 

imported from Canada or Mexico 

(regardless of whether preferential tariff 

treatment is claimed). Thus, CBP is 

making the necessary amendments to 

part 134. Part 134 identifies the articles 

subject to marking, the methods and 

manner of marking that should be used, 

the exceptions to the marking 

requirements, the marking requirements 

for containers or holders, and the 

procedures for articles found not legally 

marked. 

1. Definitions 

Section 134.1 contains the definitions 

for part 134. CBP is adding the USMCA 

to several definitions to clarify that, for 

those purposes, a good may be from 

either a NAFTA or USMCA country. In 

the ‘‘country of origin’’ definition in 

§ 134.1(b), CBP is adding language to 

clarify that for a good of a NAFTA or 

USMCA country, the rules set forth in 

part 102 determine the country of origin 

for marking purposes. The definition of 

the ‘‘NAFTA Marking Rules’’ in 

paragraph (j) has been replaced with a 

new definition for the ‘‘Part 102 Rules,’’ 

which are rules promulgated for 

purposes of determining whether a good 

is a good of a NAFTA country and to 

determine the country of origin for 


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marking purposes for goods imported 

from USMCA countries. 

For the definition of ‘‘ultimate 

purchaser’’ in § 134.1(d), CBP is adding 

‘‘or USMCA’’ to note that, instead of the 

general definition of ‘‘ultimate 

purchaser,’’ the USMCA will use the 

same definition of ‘‘ultimate purchaser’’ 

as applied to a good of a NAFTA 

country. For a good of a NAFTA or 

USMCA country, the ‘‘ultimate 

purchaser’’ is the last person in the 

United States who purchases the good 

in the form in which it was imported. 

The words ‘‘or USMCA’’ have also been 

added to the examples and the term 

‘‘part 102 Rules’’ has replaced the term 

‘‘NAFTA Marking Rules,’’ in the 

examples of an ‘‘ultimate purchaser,’’ as 

appropriate. 

CBP is further amending § 134.1(g) to 

add the USMCA to the definition of a 

‘‘good of a NAFTA country’’ and to 

replace references to the ‘‘NAFTA 

Marking Rules’’ with ‘‘part 102 Rules.’’ 

The paragraph heading of paragraph (g) 

has been revised to read ‘‘good of a 

NAFTA or USMCA country’’ and ‘‘or 

USMCA’’ has been added to the 

definition to define a ‘‘good of a NAFTA 

or USMCA country’’ for marking 

purposes, as an article for which the 

country of origin is Canada, Mexico, or 

the United States as determined under 

the part 102 Rules. Paragraph (i) 

defining a ‘‘NAFTA country’’ has 

similarly been revised. The paragraph 

heading of paragraph (i) has been 

revised to read ‘‘NAFTA or USMCA 

country’’ and the appropriate crossreference to the definition of ‘‘territory’’ 

in the USMCA has been added. 

Accordingly, a ‘‘NAFTA or USMCA 

country’’ is defined as the territory of 

the United States, Canada, or Mexico, as 

defined in Annex 201.1 of the NAFTA 

and Chapter 1, Section C of the USMCA. 

Finally, § 134.1 has added a new 

paragraph (l) to include a definition of 

‘‘USMCA’’ and has revised the 

definition of ‘‘NAFTA’’ in paragraph (h). 

The new paragraph (l) defines 

‘‘USMCA’’ as the Agreement between 

the United States of America, the United 

Mexican States, and Canada (USMCA), 

entered into force by the United States, 

Canada and Mexico on July 1, 2020. 

CBP has also added a second sentence 

to the definition of ‘‘NAFTA’’ stating 

that NAFTA is not applicable to goods 

entered for consumption, or withdrawn 

from warehouse for consumption, on or 

after July 1, 2020 to clarify in part 134 

that the USMCA superseded NAFTA 

when it entered into force. 

2. Marking of Containers 

Subpart C of part 134 addresses the 

marking requirements and exceptions 

under 19 U.S.C. 1304(b) for containers 

and holders. CBP is amending 

§§ 134.22, 134.23 and 134.24, which 

provide the general rules for marking of 

containers or holders, the rules for 

containers or holders designed for or 

capable of reuse, and the rules for 

containers or holders not designed for or 

capable of reuse, to add the necessary 

USMCA references. Specifically, CBP is 

adding ‘‘or USMCA’’ to §§ 134.22(b), 

(d)(2), and (e)(1) to indicate that a good 

of a USMCA country which is a usual 

container is treated the same as a good 

of a NAFTA country. No marking is 

required for any good of a NAFTA or 

USMCA country that is a usual 

container. 

CBP is amending § 134.23(a) to note 

that the exception for goods of a NAFTA 

country which are usual containers also 

applies to the USMCA with the addition 

of the words ‘‘or USMCA.’’ CBP is also 

revising §§ 134.24(c)(1), (c)(2), and (d)(1) 

by adding ‘‘or USMCA’’ to clarify that 

disposable containers or holders are 

treated the same under the USMCA as 

under NAFTA. 

3. Exceptions to the Marking 

Requirements 

In section 209 of the USMCA Act, 

Congress amended section 304(k) of the 

Tariff Act of 1930, as amended (19 

U.S.C 1304(k)), to create the same 

exceptions to the marking requirements 

for the goods of a USMCA country as 

under NAFTA. Section 134.32 contains 

the general exceptions to the marking 

requirements. CBP is adding ‘‘or 

USMCA’’ to paragraphs (h), (p) and (q) 

of § 134.32 to indicate that the 

exceptions to the marking requirements 

apply to NAFTA and the USMCA. 

These general exceptions to the marking 

requirements are: to articles of a 

USMCA country for which the ultimate 

purchaser must reasonably know the 

country of origin by reason of the 

circumstances of their importation or by 

reason of the character of the articles 

even though they are not marked to 

indicate their origin; to goods of a 

USMCA country which are original 

works of art; and to goods of a USMCA 

country which are provided for in 

subheading 6904.10 or heading 8541 or 

8542 of the HTSUS. 

4. Other Marking Provisions 

CBP is also adding ‘‘or USMCA’’ to 

multiple other provisions in part 134 to 

indicate that goods of a USMCA country 

are subject to the same treatment and 

marking requirements as goods of a 

NAFTA country. Specifically, CBP is 

revising §§ 134.35(a) and (b), 134.43(a), 

(c)(3), (d)(3), and 134.45(a)(2) to include 

the USMCA. These sections address 

articles substantially changed by 

manufacture, methods of marking 

specific articles, and approved markings 

of country name, respectively. 

Additionally, CBP is revising § 134.35(b) 

to replace a reference to the ‘‘NAFTA 

Marking Rules’’ with ‘‘part 102 Rules.’’ 

E. Part 163 

Part 163, Recordkeeping, sets forth the 

recordkeeping requirements and 

procedures governing the maintenance, 

production, inspection, and 

examination of records. As discussed in 

more detail in Section III.F., Subpart 

C—Export Requirements below, 19 CFR 

182.21(c) requires an exporter or 

producer who completes a certification 

of origin or a producer who provides a 

written representation for a good 

exported from the United States to 

Canada or Mexico to maintain all 

records and supporting documents 

relating to the origin of a good for which 

the certification of origin was 

completed. The records must be 

maintained as provided for in § 163.5. 

Because § 163.5(a) qualifies that the 

requirement to maintain records for the 

required retention periods and in the 

prescribed format only pertains to 

persons listed in § 163.2, CBP is 

amending § 163.2 to add USMCA 

exporters and producers. 

CBP is amending the scope provision 

in § 163.0, redesignating § 163.2(c)(2) to 

(c)(3), and adding a new § 163.2(c)(2) to 

include the USMCA exporters or 

producers. It is not necessary to amend 

§ 163.2 to include the USMCA importers 

because § 163.2 includes all importers 

without qualification. CBP will make 

any additional amendments to part 163 

necessary to implement the USMCA and 

to incorporate modifications to the 

Uniform Regulations in a subsequent 

rulemaking to be published in the 

Federal Register at a later date. 

F. Part 182 

Part 182, United States-MexicoCanada Agreement, implements the 

duty preference and related customs 

provisions applicable to imported goods 

under the USMCA. CBP is amending 

part 182 of title 19 of the CFR (19 CFR 

part 182) to promulgate additional 

USMCA implementing regulations 

related to Chapters 1, 2, 5, and 7 of the 

USMCA. Currently, part 182 contains a 

framework with its various subparts 

outlined. The existing part 182 

substantive provisions include the 

scope, a rules of origin subpart (Subpart 

F), and Appendix A that sets forth the 

Uniform Regulations regarding rules of 

origin trilaterally agreed upon by the 

United States, Mexico, and Canada. 


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This document amends part 182 to 

add the general definitions and 

confidentiality provisions to Subpart A 

(General Provisions), and to add the 

implementing regulations for Subparts B 

(Import Requirements), C (Export 

Requirements), D (Post-Importation 

Duty Refund Claims), E (Restrictions on 

Drawback and Duty-Deferral Programs), 

G (Origin Verifications and 

Determinations), J (Commercial Samples 

and Goods Returned after Repair or 

Alteration), and K (Penalties). The 

implementing regulations for the 

remaining part 182 subparts will be 

included in a subsequent rulemaking to 

be published in the Federal Register at 

a later date. 

Subpart A—General Provisions 

Definitions 

Section 182.1 sets forth the general 

definitions applicable to this part. 

Chapter 1 of the USMCA sets forth the 

general and country-specific definitions 

to be applied throughout the USMCA, 

unless otherwise noted. Since § 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. Additional 

definitions that are not common terms 

throughout part 182 and are applicable 

on a more limited basis are set forth 

elsewhere with the substantive 

provisions to which they relate. For 

instance, Appendix A to part 182 

contains many definitions that are 

applicable only to the Uniform 

Regulations regarding rules of origin. 

Confidentiality 

To ensure protection of confidential 

information provided to a USMCA 

country’s customs administration and to 

prevent the unauthorized disclosure of 

this information to third parties and to 

other USMCA countries, the USMCA 

contains confidentiality protections. 

These confidentiality provisions are set 

forth in USMCA Articles 5.12, 7.22, 

7.26, and 7.28. The USMCA also 

extends the confidentiality provisions in 

Articles 5.12 and 7.22 to textile and 

apparel goods under USMCA Chapter 6. 

See USMCA Article 6.9. 

Article 5.12 generally governs the 

treatment of confidential information 

exchanged by USMCA countries. A 

USMCA country that receives 

information designated as confidential 

from another USMCA country or that is 

deemed confidential under the receiving 

USMCA country’s laws is required to 

maintain the confidentiality of this 

information pursuant to its respective 

laws. The receiving USMCA country 

may use or disclose the confidential 

information, however, for purposes of 

administration or enforcement of its 

customs laws or as otherwise provided 

for under its law, including in an 

administrative, quasi-judicial, or 

judicial proceeding. See USMCA Article 

5.12.1 and 5.12.3. A USMCA country 

may decline to provide information 

requested by another USMCA country if 

it has failed to act to keep information 

confidential in accordance with its law. 

See USMCA Article 5.12.2. USMCA 

Article 7.28 extends these 

confidentiality protections to Section B 

in USMCA Chapter 7 on cooperation 

and enforcement. USMCA Article 7.26 

governs the exchange of specific 

confidential information between 

USMCA countries and sets forth the 

procedures for USMCA countries to 

request and provide information that is 

normally collected in connection with 

the importation, exportation, or transit 

of a good for purposes of enforcing or 

assisting in the enforcement of measures 

concerning customs offenses. 

USMCA Article 7.22 governs the 

protection of information, related to 

members of the trade community 

(traders), received by the USMCA 

country’s customs administration. It 

requires that each USMCA country’s 

customs administration apply measures 

governing the collection, protection, 

use, disclosure, retention, correction, 

and disposal of information that it 

collects from traders. See USMCA 

Article 7.22.1. Each USMCA country’s 

customs administration must protect 

confidential information from use or 

disclosure, in accordance with its laws, 

that could prejudice the competitive 

position of the trader to whom the 

confidential information relates. See 

USMCA Article 7.22.2. The customs 

administration may use or disclose 

confidential information, however, for 

the purposes of administration or 

enforcement of its customs laws or as 

otherwise provided under its law, 

including in an administrative, quasijudicial, or judicial proceeding. See 

USMCA Article 7.22.3. The 

confidentiality provisions as set forth in 

USMCA Articles 5.12, 7.22, 7.26, and 

7.28 apply to all applicable exchanges of 

confidential information between the 

USMCA countries, including a USMCA 

Article 7.27 verification report 

containing information obtained during 

a verification, such as data and 

documents, that is provided when a 

USMCA country requests another 

USMCA country conduct a verification 

in its territory. Additionally, to further 

safeguard confidential information, the 

USMCA allows the importer, exporter, 

or producer to send information directly 

to the USMCA country conducting a 

verification, including documents, to 

allow the party to protect its proprietary 

information. See USMCA Article 5.9.3. 

Several U.S. statutes and regulations 

govern CBP’s treatment and disclosure 

of confidential information. The 

exchange of information between 

USMCA countries is governed by 19 

U.S.C. 1628. Section 209(c) of the 

USMCA Act amended section 628 of the 

Tariff Act of 1930 (19 U.S.C. 1628) by 

striking subsection (c) and inserting 

language applicable to the USMCA in 

accordance with USMCA Articles 5.12, 

7.26, and 7.28. Pursuant to 19 U.S.C. 

1628(c), the Secretary may authorize 

CBP to exchange information with any 

government agency of a USMCA 

country if the Secretary reasonably 

believes the exchange of information is 

necessary to implement USMCA 

chapters 2, 4, 5, 6, or 7, and obtains 

assurances from such agency that the 

information will be held in confidence 

and used only for governmental 

purposes. 

The Privacy Act (5 U.S.C. 552a) 

governs the collection, maintenance, 

use, and dissemination of personally 

identifiable information (PII) in systems 

of records maintained by Federal 

agencies. PII is defined as information 

that permits the identity of an 

individual to be directly or indirectly 

inferred, including any other 

information that is linked or linkable to 

that individual, regardless of whether 

the individual is a U.S. citizen, lawful 

permanent resident, visitor to the 

United States, or employee or contractor 

of the Department of Homeland 

Security. 

The Freedom of Information Act 

(FOIA) (5 U.S.C. 552) provides that any 

person has the right to request access to 

records from any federal agency. Under 

FOIA’s terms, federal agencies must 

disclose records upon receiving a 

written request for them, except for 

those records or portions of records 

protected from disclosure by any of the 

nine exemptions or three exclusions 

found in the statute. 

Part 5 of title 6 of the CFR (6 CFR part 

5) governs the disclosure of information 

created or maintained by CBP and 

requested pursuant to the FOIA and 

Privacy Act. Part 103 of title 19 of the 

CFR (19 CFR part 103) governs the 

production and disclosure of CBPmaintained information under other 

statutory or regulatory provisions and/or 

as requested through administrative 

and/or legal processes. Accordingly, 

part 5 of title 6 and part 103 of title 19 


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apply where the impetus for the release 

of information to a member of the public 

by CBP stems from a request from a 

member of the public, while USMCArelated disclosures involve CBP 

proactively releasing information to 

third parties, for example, the importer, 

exporter, producer, or other USMCA 

country, to fulfill the United States’ 

commitments under the USMCA. 

Nonetheless, CBP will maintain the 

confidentiality and disclosure 

protections in part 103 for USMCArelated information disclosures, 

including § 103.23(b) detailing the 

circumstances where disclosures will 

not be made and § 103.33 addressing the 

release of information to foreign 

agencies. 

The Trade Secrets Act (18 U.S.C. 

1905) bars the unauthorized disclosure 

by government officials of any 

information received in the course of 

their employment or official duties 

when such information ‘‘concerns or 

relates to the trade secrets, processes, 

operations, style of work, or apparatus, 

or to the identity, confidential statistical 

data, amount or source of any income, 

profits, losses, or expenditures of any 

person, firm, partnership, corporation, 

or association.’’ See 18 U.S.C. 1905. 

Specifically, the Trade Secrets Act 

protects those required to furnish 

commercial or financial information to 

the government by shielding them from 

the competitive disadvantage that could 

result from disclosure of that 

information by the government. The 

courts have interpreted the Trade 

Secrets Act as covering the same type of 

information that falls under Exemption 

4 of the FOIA. See, e.g., CNA Fin. Corp. 

v. Donovan, 830 F.2d 1132, 1140 (D.C. 

Cir. 1987). Exemption 4 of the FOIA 

protects ‘‘trade secrets and commercial 

or financial information obtained from a 

person [that is] privileged or 

confidential.’’ See 5 U.S.C. 552(b)(4). 

The Trade Secrets Act permits those 

covered by the Act to disclose protected 

information when the disclosure is 

otherwise ‘‘authorized by law,’’ which 

includes both statutes expressly 

authorizing disclosure and properly 

promulgated substantive agency 

regulations authorizing disclosure based 

on a valid statutory interpretation. See 

Chrysler v. Brown, 441 U.S. 281, 294– 

316 (1979). For example, 19 U.S.C. 

1514(e) grants the Secretary of the 

Treasury authority to provide, in the 

case of a negative USMCA 

determination, the entry number and 

any other entry information considered 

necessary to allow the exporter or 

producer, who is the subject of the 

determination and completed the 

certification of origin, to exercise its 

protest rights pursuant to 19 CFR part 

174, except when there is a pattern of 

conduct of false or unsupported 

representations pursuant to 19 U.S.C. 

1514(f). 

Thus, CBP is adding a new § 182.2 to 

address CBP’s responsibility to maintain 

the confidentiality of the USMCArelated information it receives from the 

public in accordance with existing 

statutory and regulatory requirements, 

including 19 CFR part 103, 6 CFR part 

5, and all other applicable statutes and 

regulations, the legally permitted 

disclosures of this information that CBP 

is authorized to make to third parties 

and other USMCA countries, and the 

information sharing that is permissible 

with U.S. government authorities, 

including the Department of Labor with 

respect to the USMCA’s labor value 

content requirements. 

Section 182.2 fulfills CBP’s 

commitment under USMCA Article 7.22 

to apply measures governing the 

protection, use, and disclosure of 

information collected from traders. 

Section 182.2 is focused on USMCArelated disclosures of information 

collected from members of the trade 

community (traders). As discussed in 

more detail in Section III.F., Subpart 

G—Origin Verifications and 

Determinations below, the USMCA 

requires several notifications, unique to 

the USMCA, that permit authorized 

disclosures to importers, exporters, or 

producers of information collected from 

traders. Under the USMCA and the 

Uniform Regulations regarding origin 

procedures, the confidentiality 

requirements apply when CBP provides 

a determination of origin, originally 

issued to the exporter or producer, to 

the importer in accordance with 

USMCA Article 5.9.14 and the Uniform 

Regulations regarding origin procedures. 

In order to ensure compliance with 

the applicable U.S. statutory and 

regulatory provisions, CBP is also 

extending the confidentiality 

regulations in § 182.2 to any of the 

notifications made during a verification 

that potentially involve information 

disclosures to third parties. These 

include CBP’s notification of the 

initiation of a verification to the 

importer (§ 182.73(c)), sending a request 

for information to the exporter or 

producer prior to issuing a negative 

determination (§ 182.75(c)(1)), the 

issuance of a positive or negative 

determination of origin (§ 182.75), and 

the issuance of the intent to deny 

(§ 182.75(c)(3)). Section 182.2(b) also 

authorizes CBP to disclose confidential 

information collected from traders to 

U.S. government authorities responsible 

for the administration and enforcement 

of USMCA requirements, such as the 

information in the labor value content 

vehicle certifications to the Department 

of Labor. The provision that allows the 

importer, exporter, or producer to send 

information directly to CBP to protect 

its proprietary information is set forth in 

§ 182.72(c). See subpart G of part 182. 

While § 182.2 is intended to address 

only USMCA-specific information 

collections and disclosures, CBP will 

continue to treat all confidential 

information received from the public, 

such as routine entry information, in 

accordance with existing statutory and 

regulatory requirements, including the 

routine uses of the systems of record 

notices (SORNs) for the trade systems 

maintained by CBP. As discussed above, 

the exchange of information between 

USMCA countries is governed by 

statutory authority (19 U.S.C. 1628). 

Subpart B—Import Requirements 

Subpart B of part 182 (19 CFR 182.11– 

182.16) contains the USMCA import 

requirement provisions, as provided for 

in Chapter 5 of the USMCA, including 

the filing of a claim for preferential tariff 

treatment upon importation (§ 182.11), 

certification of origin requirements 

(§ 182.12), importer obligations 

(§ 182.13), certification of origin not 

required (§ 182.14), maintenance of 

records (§ 182.15), effect of 

noncompliance, and failure to provide 

documentation regarding transshipment 

(§ 182.16). 

Section 182.11, Filing of claim for 

preferential tariff treatment upon 

importation, sets forth the procedure for 

making a claim for preferential tariff 

treatment upon importation, the basis 

for making a claim, and the requirement 

that the importer correct a claim if it has 

reason to believe that the claim is based 

on inaccurate information or is 

otherwise invalid. In accordance with 

Article 5.2.1 of the USMCA, an importer 

may make a claim for USMCA 

preferential tariff treatment based on a 

certification of origin completed by the 

importer, exporter, or producer for the 

purpose of certifying that a good being 

exported from the territory of a USMCA 

country into the territory of another 

USMCA country qualifies as an 

originating good. An importer who 

makes a claim for preferential tariff 

treatment upon importation, pursuant to 

§ 182.11(b), also qualifies for an 

exemption from the merchandise 

processing fee. 

Section 182.12, Certification of Origin, 

indicates the requirements for the 

certification of origin, consistent with 

Articles 5.2 and 5.3 of the USMCA, 

including the specifics on what the 

certification of origin must contain, its 


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form, its basis, its applicability, and its 

validity. 

Section 182.14, Certification of origin 

not required, sets forth the types of 

importations, consistent with Article 5.5 

of the USMCA, where an importer will 

not be required to submit a copy of a 

certification of origin. Unless § 182.14(b) 

applies, an importer will not be required 

to submit a copy of a certification of 

origin for a non-commercial importation 

of a good; or a commercial importation 

for which the value of the originating 

goods does not exceed $2,500 in U.S. 

dollars. 

Section 182.15, Maintenance of 

records, contains the recordkeeping 

requirements, in accordance with 

Article 5.8.1 of the USMCA, that apply 

to an importer claiming USMCA 

preferential tariff treatment for a good 

imported into the United States. The 

importer must maintain the certification 

of origin and all records and documents 

that the importer has demonstrating that 

the good qualifies for preferential tariff 

treatment under the USMCA, including 

those related to transit and 

transshipment, for a minimum of five 

years from the date of importation of the 

good. These records are in addition to 

any other records that the importer is 

required to prepare, maintain, or make 

available to CBP under part 163. 

Pursuant to § 182.16(a), if the 

importer fails to comply with applicable 

requirements under this subpart, 

including submission of a complete 

certification of origin prepared in 

accordance with §§ 182.12 and 182.14, 

when requested, CBP may deny 

preferential tariff treatment to imported 

goods. In addition, pursuant to 

§ 182.16(b), CBP may deny preferential 

tariff treatment to an originating good if 

the good is transported outside the 

territories of the USMCA countries, and 

at the request of CBP, the importer of 

the good does not provide evidence 

demonstrating to the satisfaction of CBP 

that the transit and transshipment 

conditions of the USMCA were met. 

Subpart C—Export Requirements 

Subpart C of part 182 (19 CFR 182.21) 

sets forth the obligations of an exporter 

or producer who completes a 

certification of origin for a good 

exported from the United States to 

Canada or Mexico. These export 

requirements are in accordance with 

Article 5.6 of the USMCA. These 

requirements include the submission of 

the certification of origin to CBP upon 

request, and a requirement to provide 

prompt notification of errors in the 

certification of origin that could affect 

its accuracy or validity to every person 

to whom the certification was provided, 

including CBP. 

Paragraph (c) of § 182.21 sets forth the 

recordkeeping requirements, in 

accordance with Article 5.8.2 of the 

USMCA, that apply to an exporter or 

producer who completes a certification 

of origin or a producer who provides a 

written representation for a good 

exported from the United States to 

Canada or Mexico. These records must 

be maintained as provided for in 19 CFR 

163.5 and must be stored and made 

available for examination and 

inspection by the appropriate CBP 

official in the same manner as provided 

in part 163. As discussed in Section 

III.E. Part 163 above, to impose these 

recordkeeping requirements on the 

USMCA exporters and producers, CBP 

had to make conforming amendments to 

19 CFR 163.2(c). 

Subpart D—Post-Importation Duty 

Refund Claims 

Subpart D of part 182 (19 CFR 182.31– 

182.33) sets forth the provisions related 

to post-importation claims for 

preferential tariff treatment. 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 (1520(d) claims). 

Notwithstanding the fact that a valid 

protest was not filed, and provided a 

claimant files the required documents as 

described in 19 CFR 182.32(b), this 

provision allows the claimant to receive 

refunds for any excess duties. See 19 

U.S.C. 1520(d). 

Section 182.31 sets forth the right to 

make this post-importation claim for 

preferential tariff treatment. 

Specifically, where a good would have 

qualified as an originating good when it 

was imported into the United States but 

no claim for preferential tariff treatment 

was made, the importer of that good 

may file a claim for a refund of any 

excess duties at any time within one 

year after the date of importation of the 

good in accordance with the procedures 

set forth in § 182.32. CBP may refund 

any excess duties by liquidation or 

reliquidation of the entry covering the 

good in accordance with § 182.33 of this 

subpart. 

As described above, on December 27, 

2020, the Appropriations Act was 

enacted with Title VI of the Act setting 

forth technical corrections to the 

USMCA Act. Prior to the enactment of 

the Appropriations Act and the 

technical corrections, section 

205(a)(1)(C) of the USMCA Act only 

permitted an importer who made a 

claim for USMCA preferential tariff 

treatment upon importation pursuant to 

§ 182.11(b) to qualify for an exemption 

from the merchandise processing fee 

while importers who filed a USMCA 

post-importation claim under 19 U.S.C. 

1520(d) (1520(d) claim) were limited to 

the refund of any excess duties paid at 

importation and were specifically 

excluded from receiving the refund of 

any merchandise processing fees paid at 

importation. 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. This 

change is retroactively effective as of 

July 1, 2020, USMCA’s entry into force 

date, and authorizes CBP to issue 

refunds of the merchandise processing 

fees for USMCA post-importation 

claims. 

Subpart E—Restrictions on Drawback 

and Duty-Deferral Programs 

Subpart E of part 182 (19 CFR 182.41– 

182.54) sets forth the provisions 

regarding drawback claims and dutydeferral 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 duties, taxes, and 

fees imposed and paid under Federal 

law upon entry or importation. 

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 

foreign trade zones under part 146, and 

for temporary importations under bond 

in part 10. 

Subpart E contains sections on 

applicability (§ 182.41), duties and fees 

not subject to drawback (§ 182.42), 

eligible goods subject to USMCA 

drawback (§ 182.43), calculation of 

drawback (§ 182.44)—which includes 

the lesser of duty rule for USMCA 

drawback at § 182.44(a), goods eligible 

for full drawback (§ 182.45), filing of 

drawback claim (§ 182.46), completion 

of claim for drawback (§ 182.47), 

retention of records (§ 182.49), 

liquidation and payment of drawback 

claims (§ 182.50), prevention of 


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7See Uniform Regulations regarding origin 

procedures, Origin Verifications Section, paragraph 

10, which states that where the customs 

administration of a USMCA country, in conducting 

an origin verification of a good imported into its 

territory under USMCA Article 5.9, conducts an 

origin verification of a material that is used in the 

production of the good, the origin verification of 

that material is expected to be conducted in 

accordance with the procedures set out in: USMCA 

Article 5.9(1), (5), (7 through 11), (13), and (18); and 

paragraphs 3, 6, 13, 14, and 15 of the Origin 

Verifications Section of the Uniform Regulations 

regarding origin procedures. 

improper payment of claims (§ 182.51), 

subsequent claims for preferential tariff 

treatment (§ 182.52), verification of 

claim for drawback, and waiver or 

reduction of duties (§ 182.54). Certain 

sections and paragraphs in subpart E of 

part 182 remain reserved. CBP is 

reviewing these reserved sections and 

paragraphs because of outstanding 

policy considerations and they will be 

addressed in a subsequent rulemaking. 

With the exception of the specific 

sections discussed below, the USMCA 

drawback provisions contained in 

subpart E are substantially similar to the 

NAFTA drawback provisions contained 

in part 181. 

In § 182.44(d), Substitution 

manufacturing drawback under 19 

U.S.C. 1313(b), CBP is allowing 

substitution using the 8-digit HTSUS 

subheading number standard for the 

USMCA. See 19 U.S.C. 4534(b). This 8- 

digit HTSUS subheading number 

standard is the standard previously 

provided for in section 906, Drawback 

and Refunds, of the Trade Facilitation 

and Trade Enforcement Act of 2015 

(TFTEA) (Pub. L. 114–125, 130 Stat. 

122, February 24, 2016). CBP is adding 

a paragraph (d)(2), Special rule for 

sought chemical elements, in § 182.44, 

that was not part of NAFTA drawback. 

This paragraph (d)(2) is intended to 

clarify the term ‘‘same kind and quality’’ 

as it applies to sought chemical 

elements. 

The USMCA drawback provisions in 

§ 182.45 include a few differences from 

NAFTA drawback. In § 182.45, CBP has 

made changes to paragraph (d), Certain 

goods exported to Canada or Mexico, 

regarding, inter alia, certain sugar tariffs 

that are excluded from the lesser of duty 

rule as provided for in 19 U.S.C. 

4534(a)(6). In § 182.45, CBP also has 

added new paragraph (e), Certain goods 

exported to Canada, as provided for in 

19 U.S.C. 4534(a)(7) and (a)(8), and a 

new paragraph (f), Certain goods that 

are exported or deemed exported, as 

provided for in 19 U.S.C. 4534(a)(3). 

The USMCA did not provide for the 

time or method of filing a USMCA 

drawback claim. Accordingly, CBP has 

made conforming changes to the 

procedures in § 182.46, Filing of 

drawback claim, to better align with the 

general requirements of part 190, 

Modernized Drawback, as provided for 

in 19 U.S.C. 1313, as amended. These 

conforming changes will ensure a more 

uniform approach to the filing and 

processing of all drawback claims by 

requiring claims to be filed within 5 

years after the date of importation and 

to be transmitted electronically in the 

Automated Commercial Environment 

(ACE). 

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, including the applicability 

of these provisions (§ 182.71), 

verification of claim for preferential 

tariff treatment (§ 182.72), notification 

and response procedures (§ 182.73), 

verification visit procedures (§ 182.74), 

determinations of origin (§ 182.75), and 

repeated false or unsupported 

preference claims (§ 182.76). 

Section 182.71, Applicability, states 

that subpart G contains the general 

origin verification and determination 

provisions applicable to goods claiming 

USMCA preferential tariff treatment. 

USMCA Articles 5.9 and 5.10 and the 

Uniform Regulations regarding origin 

procedures address general verification 

and determinations of origin. 

Additional verification procedures 

that apply to textile and apparel goods 

and automotive goods will be set forth 

in Subpart H, Textile and Apparel 

Goods, and Subpart I, Automotive 

Goods, in part 182. These subparts will 

be included in a subsequent rulemaking 

to be published in the Federal Register 

at a later date. Please refer to the CBP 

website at https://www.cbp.gov/trade/ 

priority-issues/trade-agreements/freetrade-agreements/USMCA for more 

information, including the U.S. USMCA 

Implementing Instructions, regarding 

verifications of textile and apparel 

goods and automotive goods. 

Section 182.72, Verification of claim 

for preferential tariff treatment, 

describes the means that CBP may use 

to conduct a verification, contains the 

provisions related to verifications of a 

material, states that CBP will accept 

information directly from the importer, 

exporter, or producer during a 

verification, and contains the 

accounting principles that apply to a 

verification. A claim for USMCA 

preferential tariff treatment will be 

subject to such verification as CBP 

deems necessary. A verification 

described in subpart G of part 182 may 

be conducted by a Center of Excellence 

and Expertise (Center) or by Regulatory 

Audit and Agency Advisory Services. In 

accordance with USMCA Article 5.9.2, 

CBP may initiate the verification of 

goods imported into the United States 

under the USMCA with the importer, or 

with the exporter or producer who 

completed the certification of origin. 

A verification of a claim for USMCA 

preferential tariff treatment may be 

conducted by means of one or more of 

the following: Requests for information, 

including documents, from the 

importer, exporter, or producer; 

questionnaires seeking information, 

including documents, from the 

importer, exporter, or producer; 

verification visits to the premises of the 

exporter or producer in Mexico or 

Canada in order to request information, 

including documents, and to observe 

production processes and facilities; and 

any other procedure to which the 

USMCA countries may agree. 

As described in § 182.72(b), when 

conducting a verification of a 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 

any of the verification means set forth 

in § 182.72(a). Please note that CBP 

believes that the term ‘‘material 

producer’’ and our application of the 

verification of materials in part 182 to 

be sufficiently broad to encompass a 

verification of either a material producer 

or a material supplier. CBP encourages 

public comment on this issue, including 

whether a material supplier should be 

separately accounted for in the 

regulations. In accordance with the 

Uniform Regulations regarding origin 

procedures,7 with the exception of the 

notification to the importer of the 

initiation of a verification (§ 182.73(c)) 

and the determination of origin 

provisions (§ 182.75), subpart G applies 

when CBP is conducting a verification 

of a material. 

Section 182.73, Notification and 

response procedures, contains the 

notification and response procedures for 

requests for information, questionnaires, 

and verification visits. Paragraph (a) 

specifies the contents of a request for 

information and a questionnaire, in 

accordance with USMCA Article 5.9.5, 

and that the importer, exporter, or 

producer must make records available 

for inspection by a CBP official during 

a verification. Paragraph (b) states that, 

prior to conducting a verification visit 

in Canada or Mexico, CBP will provide 

the exporter or producer with a 

notification stating the intent to conduct 

a verification visit, and provides the 

contents of that notification in 


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accordance with USMCA Article 5.9.5. 

Paragraph (c) sets forth the importer 

notification that is required, pursuant to 

USMCA Article 5.9.6 and the Uniform 

Regulations regarding origin procedures, 

when CBP initiates a verification with 

the exporter or producer. Paragraph (d) 

provides the means of communication 

that CBP may use to contact the exporter 

or producer. In accordance with 

USMCA Article 5.9.18, all 

communication to the exporter or 

producer will be sent by any means that 

can produce a confirmation of receipt, 

with the Uniform Regulations regarding 

origin procedures specifying the specific 

means. Paragraph (e) contains 

information regarding when the time 

periods in subpart G begin, and 

paragraph (f) sets forth the amount of 

time that the importer, exporter, or 

producer has to respond to a request for 

information and a questionnaire, and 

that an exporter or producer has to 

consent to or deny the verification visit. 

Section 182.74, Verification visit 

procedures, sets forth the verification 

visit procedures applicable to CBP when 

it is conducting a verification visit of an 

exporter or producer in Canada or 

Mexico. CBP may conduct a verification 

visit of the exporter or producer’s 

premises in-person or remotely. The 

same verification visit procedures apply 

to both in-person and remote 

verification visits, including the 

notification of a verification visit to the 

exporter or producer whose premises 

are to be visited (§ 182.73(b)), the 

response time for responding to a 

notification of a verification visit 

(§ 182.73(f)(2)), the written consent 

required prior to the verification visit 

(§ 182.74(a)), the option to request a 

postponement of the visit (§ 182.74(b)), 

the records that must be made available 

for inspection by a CBP official 

conducting the verification, the facilities 

provided for that inspection 

(§ 182.74(c)), and the right to have 

observers (§ 182.74(d)). 

Section 182.75, Determinations of 

origin, sets forth the contents of a 

determination of origin and the parties 

that will receive the determination of 

origin. While USMCA Article 5.9.14 

only requires that a USMCA country 

provide a written determination of 

origin to the importer, and the exporter 

or producer that completed the 

certification of origin and is the subject 

of a verification, CBP has decided to 

extend the parties to whom it will issue 

a determination of origin. As stated in 

§ 182.75(b), CBP will issue the 

determination of origin to the importer, 

and to 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 to ensure that the 

same parties receive both the intent to 

deny and the determination of origin. 

This determination of origin will be 

issued to these parties within 120 days 

or, in exceptional cases and upon 

notification to the appropriate parties, 

within 210 days, after CBP has 

determined that it has received all the 

information necessary to issue a 

determination in accordance with 

USMCA Article 5.9.15. 

USMCA Article 5.9.15 requires the 

USMCA country conducting the 

verification to, as expeditiously as 

possible and within 120 days after it has 

received all the information necessary 

(including any information collected 

pursuant to a verification request to an 

exporter or producer) to make the 

determination and provide the written 

determination to the appropriate parties. 

The Uniform Regulations regarding 

origin procedures further clarify that 

‘‘all the information necessary’’ includes 

information that may be required 

regarding the materials used in the 

production of a good or any assistance 

requested under USMCA Article 5.9.8 

during a verification from another 

USMCA country. Pursuant to USMCA 

Article 5.9.15, the USMCA country may 

extend this 120-day period, in 

exceptional cases, for up to 90 days after 

notifying the importer, and any exporter 

or producer who is subject the 

verification or provided information 

during the verification. CBP has decided 

to provide this notification of the 

extension to all parties to whom it will 

issue a determination of origin pursuant 

to 19 CFR 182.75(b), including to 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. 

Paragraph (c) of § 182.75 contains the 

provisions that apply to negative 

determinations of origin when CBP 

intends to deny USMCA preferential 

tariff treatment. This paragraph sets 

forth the circumstances under which 

CBP must send a request for information 

to the exporter or producer prior to 

issuing a negative determination in 

accordance with USMCA Article 5.9.4, 

the reasons that CBP may deny 

preferential tariff treatment, the intent to 

deny provision, and the additional 

requirements that apply when CBP 

issues a negative determination. 

Paragraph (c)(2) contains the reasons 

that CBP may deny USMCA preferential 

tariff treatment as set forth in USMCA 

Article 5.10.2. CBP will amend 

paragraph (c)(2) in a subsequent 

rulemaking to be published in the 

Federal Register at a later date to reflect 

the application of the USMCA Article 

5.10.2 reasons for denial to textile and 

apparel goods and automotive goods 

and to ensure that paragraph (c)(2) 

contains a comprehensive list of the 

reasons for denial with the appropriate 

cross-references. 

As described above, pursuant to 

USMCA Article 5.9.16, prior to issuing 

a written determination of origin, if the 

USMCA country intends to deny 

USMCA preferential tariff treatment, the 

USMCA country must inform the 

importer, and any exporter or producer 

who is subject to the verification and 

provided information during the 

verification, of the preliminary results of 

the verification and provide those 

persons with a notice of intent to deny. 

Paragraph (c)(3) of § 182.75 contains the 

intent to deny provision, including that 

CBP will inform 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, of CBP’s intent to deny 

preferential tariff treatment. As 

discussed above, CBP has decided to 

extend the parties who receive an intent 

to deny, beyond the requirements in 

USMCA Article 5.9.16, to ensure that 

the same parties receive the intent to 

deny and the determination of origin. 

The intent to deny will contain the 

preliminary results of the verification, 

the effective date of the denial of 

preferential tariff treatment, and a notice 

to the importer, exporter, or producer 

that CBP will provide 30 days to submit 

additional information, including 

documents, related to the preferential 

tariff treatment of the good. Pursuant to 

paragraph (c)(4), if, 30 days after the 

importer receives the intent to deny, 

CBP determines that one or more of the 

reasons for the denial of preferential 

tariff treatment continues to apply, CBP 

will issue a negative determination of 

origin. In addition to the contents of the 

determination set forth in § 182.75(a), 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, unless CBP 

determines that there is a pattern of 

conduct of false or unsupported 

representations pursuant to § 182.76. 

Pursuant to 19 U.S.C. 1514(e), CBP is 

authorized to provide exporters or 

producers who receive a negative 

determination of origin with the entry 

number and any other entry information 

considered necessary to allow the 

exporter or producer to exercise its 

protest rights under 19 U.S.C. 1514 and 


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part 174, unless CBP determines that 

there is a pattern of conduct of false or 

unsupported representations pursuant 

to 19 U.S.C. 1514(f). CBP will be 

amending part 174 to allow exporters 

and producers to exercise their protest 

rights in a subsequent rulemaking to be 

published in the Federal Register at a 

later date. 

Section 182.76, Repeated false or 

unsupported preference claims, states 

that, in accordance with USMCA Article 

5.9.17, if a verification reveals a pattern 

of conduct by the importer, exporter, or 

producer of false or unsupported 

representations that a good imported 

into the United States qualifies for 

USMCA preferential tariff treatment, 

CBP may withhold preferential tariff 

treatment for entries of identical goods 

until CBP determines that 

representations of that person are in 

conformity with part 182 and with 

General Note 11, HTSUS. 

As explained in more detail above in 

Section III.F., Subpart A—General 

Provisions, CBP has a duty to ensure the 

protection of confidential business 

information. In order to ensure 

compliance with the applicable U.S. 

statutory and regulatory provisions, CBP 

has decided to apply the confidentiality 

regulations in § 182.2 to any of the 

notifications made during a verification 

that potentially involve information 

disclosures to third parties. These 

include CBP’s notification of the 

initiation of a verification to the 

importer (§ 182.73(c)), sending a request 

for information to the exporter or 

producer prior to issuing a negative 

determination (§ 182.75(c)(1)), the 

issuance of a positive or negative 

determination of origin (§ 182.75), and 

the issuance of the intent to deny 

(§ 182.75(c)(3)). The provision that 

allows the importer, exporter, or 

producer to send information directly to 

CBP to protect its proprietary 

information is set forth in § 182.72(c). 

Subpart I—Automotive Goods 

Subpart I of part 182 pertains to 

automotive goods. The regulations in 

subpart I, which are currently reserved 

as §§ 182.91–182.93, may be more 

expansive than previously anticipated. 

To allow for this possibility, the 

numbering structure of the regulations 

in subpart J has been modified, as 

explained below. The actual text of the 

subpart I regulations will be included in 

a subsequent rulemaking to be 

published in the Federal Register at a 

later date. 

Subpart J—Commercial Samples and 

Goods Returned After Repair or 

Alteration 

Subpart J (19 CFR 182.111–182.112) 

provides for the duty-free treatment of 

commercial samples of negligible value 

and goods re-entered after repair or 

alteration in Canada or Mexico. The 

regulations in subpart J, which were 

previously reserved as § 182.101 and 

§ 182.102, are redesignated as § 182.111 

and § 182.112 due to changes in the 

numbering structure of subpart I of part 

182, discussed above. 

Commercial Samples 

Section 182.111 defines commercial 

samples of negligible value, based on 

Article 2.1 of the USMCA, as 

commercial samples which have a 

value, individually or in the aggregate as 

shipped, of not more than one U.S. 

dollar, or the equivalent amount in the 

currency of Canada or Mexico; or which 

are so marked, torn, perforated, or 

otherwise treated that they are 

unsuitable for sale or for use except as 

commercial samples. These commercial 

samples of negligible value qualify for 

duty-free entry from Canada or Mexico, 

in accordance with Article 2.9 of the 

USMCA, only if the samples are 

imported solely for the purpose of 

soliciting orders for foreign goods or 

services. 

Goods Re-Entered After Repair or 

Alteration in Canada or Mexico 

Section 182.112 sets forth the rules 

that apply for purposes of obtaining 

duty-free treatment on goods returned 

after repair or alteration in Canada or 

Mexico. This section also contains the 

conditions under which these goods are 

not eligible for duty-free treatment and 

provides the documentation 

requirements. The documentary 

requirements set forth in § 10.8(a), (b), 

and (c) apply to goods claiming dutyfree treatment under § 182.112. While 

CBP is aware that under ordinary 

circumstances § 10.8 applies to articles 

claimed to be subject to duty on the 

value of the repairs or alterations 

performed abroad, for purposes of the 

USMCA, the same documentation 

requirements in § 10.8(a), (b), and (c) 

apply in connection with the entry of 

goods returned after repairs or 

alterations from Canada or Mexico 

which are claimed to be duty-free under 

the USMCA. 

Subpart K—Penalties 

Subpart K of part 182 (19 CFR 

182.121–182.124) sets forth penalties 

provisions, including those related to 

general penalties under the USMCA 

(§ 182.121), corrected claim or 

certification of origin by importers 

(§ 182.122), corrected certification of 

origin by U.S. exporters or producers 

(§ 182.123), and the framework for 

correcting claims or certifications of 

origin (§ 182.124). The regulations in 

subpart K, which were previously 

reserved as §§ 182.111–182.114, are 

redesignated as §§ 182.121–182.124 due 

to changes in the numbering structure of 

subparts I and J of part 182, as discussed 

above. These provisions are in 

accordance with Articles 5.13, 5.4.2, 

5.6.3, and 7.18 of the USMCA. 

As stated in § 182.121, except as 

otherwise provided in subpart K, all 

criminal, civil, or administrative 

penalties which may be imposed on 

U.S. importers, exporters, and producers 

for violations of the customs and related 

U.S. laws and regulations will also 

apply to U.S. importers, exporters, and 

producers for violations of the U.S. laws 

and regulations relating to the USMCA. 

An importer who makes a corrected 

claim or certification of origin, and an 

exporter or producer who provides 

written notification of an incorrect 

certification of origin will not be subject 

to civil or administrative penalties 

under 19 U.S.C. 1592 if the corrected 

claim, certification of origin, or written 

notification is made promptly and 

voluntarily. Section 182.124, 

Framework for correcting claims or 

certifications of origin, defines 

‘‘promptly and voluntarily’’ for these 

purposes, provides that in cases 

involving fraud or subsequent incorrect 

claims a person may not voluntarily 

correct a claim or certification of origin, 

sets forth the requirements for the 

statement that must accompany each 

corrected claim or certification of origin, 

and requires that a U.S. importer who 

makes a corrected claim must tender 

any actual loss of duties and 

merchandise processing fees, if 

applicable. 

G. Part 190 

Part 190, Modernized Drawback, sets 

forth the general provisions applicable 

to all drawback claims and specialized 

provisions applicable to specific types 

of drawback claims filed under 19 

U.S.C. 1313, as amended. CBP is 

amending part 190 to make conforming 

edits to include USMCA drawback 

claims. The scope provision in § 190.0 

is amended to clarify that additional 

drawback provisions relating to the 

USMCA are contained in subpart E of 

part 182. Section 190.0a addresses 

claims filed under NAFTA and CBP is 

amending the paragraph heading of 

§ 190.0a to reflect that this section is 

applicable to claims filed under both 

NAFTA and the USMCA. Section 190.0a 


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is also amended to clarify that USMCA 

drawback claims filed under the 

provisions of part 182 must be filed 

separately from claims filed under the 

provisions of part 190 (currently it only 

lists NAFTA drawback claims filed 

under part 181). And lastly, § 190.51 

provides the process for completion of 

drawback claims and CBP is making 

conforming changes such as referencing 

the USMCA and part 182 to indicate 

that the same process is used for both 

NAFTA drawback and USMCA 

drawback claims. 

IV. Statutory and Regulatory 

Requirements 

A. Administrative Procedure Act 

Under section 553 of 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, 

consider public comments in deciding 

on the content of the final amendments, 

and publish 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 

is promulgating several of the U.S. 

domestic regulations necessary to 

implement the preferential tariff 

treatment and customs related 

provisions of the USMCA, which is a 

trilateral agreement negotiated between 

the United States, Mexico, and Canada. 

However, CBP is soliciting comments on 

this IFR and will consider all comments 

received before issuing a final rule. 

For the same reasons, a delayed 

effective date is not required under 5 

U.S.C. 553(d)(3). The USMCA entered 

into force on July 1, 2020. CBP provided 

guidance to the public on how to 

comply with the requirements of the 

USMCA by posting on the CBP website, 

available at https://www.cbp.gov/trade/ 

priority-issues/trade-agreements/freetrade-agreements/USMCA, the U.S. 

USMCA Implementing Instructions, 

which were issued on March 25, 2020 

and updated on June 30, 2020. The 

provisions of this IFR codify several of 

these Implementing Instructions. A 

delayed effective date would cause 

additional confusion and would be 

impractical, unnecessary, and contrary 

to public interest. 

B. Executive Orders 13563 and 12866 

Executive Orders 13563 and 12866 

direct 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 both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

Rules involving the foreign affairs 

function of the United States are exempt 

from the requirements of Executive 

Orders 13563 and 12866. Because this 

rule involves a foreign affairs function 

of the United States by implementing a 

trilaterally negotiated agreement 

between the United States, Mexico, and 

Canada, this rule is not subject to the 

provisions of Executive Orders 13563 

and 12866. 

C. 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. 

D. Paperwork Reduction Act 

The collection of information in this 

document has been approved by OMB 

in accordance with the Paperwork 

Reduction Act (44 U.S.C. 3507) under 

OMB control numbers 1651–0117, 

1651–0098, and 1651–0023. 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. The collections of 

information and recordkeeping 

requirements related to this rule have 

been approved by OMB under an 

emergency revision and extension of 

collection number 1651–0117 (Free 

Trade Agreements), an emergency 

revision of collection number 1651– 

0098 (NAFTA Regulations and 

Certificate of Origin), and an emergency 

revision and extension of collection 

number 1651–0023 (CBP Form 28 

Request For Information). The revision 

of collection number 1651–0117 is 

necessary for CBP to collect the 

information needed to implement the 

USMCA. The revision of collection 

number 1651–0023 is necessary to 

reflect an increase in burden hours due 

to the use of CBP Form 28 for an 

additional purpose: Requesting 

additional information needed for 

enforcing the USMCA. The revision of 

collection number 1651–0098 is 

necessary to reflect the reduction in 

burden hours that results from the 

USMCA superseding NAFTA and the 

repeal of the NAFTA Implementation 

Act, as of the USMCA’s entry into force 

date of July 1, 2020. Importers, who did 

not claim preferential tariff treatment at 

the time of importation, have one year 

from the date of importation of the 

originating goods to file postimportation claims. These importers 

may need to use the NAFTA Certificate 

of Origin to file a post-importation claim 

for goods from Canada and Mexico 

entered for consumption, or withdrawn 

from warehouse for consumption, prior 

to July 1, 2020 during that one-year time 

period. Once one year has elapsed, CBP 

will discontinue this information 

collection. The likely respondents for 

these information collections are 

importers, exporters, producers, and 

customs brokers. 

The information collection 

requirements will result in the following 

estimated burden hours: 

Free Trade Agreements 

Estimated Number of Annual 

Respondents: 4,699,460. 

Estimated Number of Annual 

Responses per Respondent: 1.00034. 

Estimated Total Annual Responses: 

4,701,060. 

Estimated Time per Response: 2 

hours. 

Estimated Total Annual Burden 

Hours: 9,402,120. 

NAFTA Certificate of Origin 

Estimated Number of Annual 

Respondents: 13,000. 

Estimated Number of Annual 

Responses per Respondent: 1. 

Estimated Total Annual Responses: 

13,000. 

Estimated Time per Response: 2 

hours. 

Estimated Total Annual Burden 

Hours: 26,000. 

NAFTA Questionnaire 

Estimated Number of Annual 

Respondents: 400. 

Estimated Number of Annual 

Responses per Respondent: 1. 

Estimated Total Annual Responses: 

400. 

Estimated Time per Response: 2 

hours. 

Estimated Total Annual Burden 

Hours: 800. 


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NAFTA Motor Vehicle Averaging 

Election 

Estimated Number of Annual 

Respondents: 11. 

Estimated Number of Annual 

Responses per Respondent: 1.28. 

Estimated Total Annual Responses: 

14. 

Estimated Time per Response: 1 hour. 

Estimated Total Annual Burden 

Hours: 14. 

CBP Form 28 Request for Information 

Estimated Number of Annual 

Respondents: 62,000. 

Estimated Number of Annual 

Responses per Respondent: 1. 

Estimated Total Annual Responses: 

62,000. 

Estimated Time per Response: 2 

hours. 

Estimated Total Annual Burden 

Hours: 124,000. 

Comments concerning the collection 

of information and the accuracy of the 

estimated annual burden, and 

suggestions for reducing that burden, 

should be directed to the Office of 

Management and Budget, Attention: 

Desk Officer for Customs and Border 

Protection, Department of Homeland 

Security, Office of Information and 

Regulatory Affairs, Washington, DC 

20503. A copy should also be sent to the 

Trade and Commercial Regulations 

Branch, Regulations and Rulings, U.S. 

Customs and Border Protection, 90 K 

Street NE, 10th Floor, Washington, DC 

20229–1177. 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 

September 7, 2021. 

V. Signing Authority 

This rulemaking is being issued in 

accordance with 19 CFR 0.1(a)(1), 

pertaining to the authority of the 

Secretary of the Treasury (or that of his 

or her delegate) to approve regulations 

related to certain customs revenue 

functions. 

List of Subjects 

19 CFR Part 10 

Bonds, Exports, Imports, Reporting 

and recordkeeping requirements, Trade 

agreements. 

19 CFR Part 102 

Canada, Mexico, Reporting and 

recordkeeping requirements, Trade 

agreements. 

19 CFR Part 132 

Imports. 

19 CFR Part 134 

Labeling, Packaging and containers. 

19 CFR Part 163 

Administrative practice and 

procedure, Exports, Imports, Penalties, 

Reporting and recordkeeping 

requirements. 

19 CFR Part 182 

Administrative practice and 

procedure, Canada, Exports, Mexico, 

Reporting and recordkeeping 

requirements, Trade agreements. 

19 CFR Part 190 

Alcohol and alcoholic beverages, 

Claims, Exports, Foreign trade zones, 

Guantanamo Bay Naval Station, Cuba, 

Packaging and containers, Reporting 

and recordkeeping requirements, Trade 

agreements. 

For the reasons stated above, amend 

parts 10, 102, 132, 134, 163, 182, and 

190 of title 19 of the Code of Federal 

Regulations as set forth below. 

PART 10—ARTICLES CONDITIONALLY 

FREE, SUBJECT TO A REDUCED 

RATE, ETC. 

■ 1. The general authority citation for 

part 10 is revised 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. 

§ 10.8 [Amended] 

■ 2. In § 10.8(a)(2) amend the 

declaration by adding the words 

‘‘(unless subject to USMCA drawback)’’ 

after the words ‘‘without the benefit of 

drawback.’’ 

PART 102—RULES OF ORIGIN 

■ 3. The general authority citation for 

part 102 is revised to read as follows: 

Authority: 19 U.S.C. 66, 1202 (General 

Note 3(i), Harmonized Tariff Schedule of the 

United States), 1624, 3592, 4513. 

§ 102.0 [Amended] 

■ 4. Amend § 102.0 as follows: 

■ a. In the beginning of the second 

sentence, remove the word ‘‘These’’ and 

add in its place the words ‘‘Under 

NAFTA, these’’; and 

■ b. Add a new third sentence. 

The addition reads as follows: 

§ 102.0 Scope. * * * The rules set forth in 

§§ 102.1 through 102.18 and 102.20 also 

determine the country of origin for marking 

purposes of imported goods under the 

Agreement Between the United States of 

America, the United Mexican States, and 

Canada (USMCA). * * * 

* * * * * 

■ 5. In § 102.1: 

■ a. Paragraph (a) is amended by 

removing the reference to ‘‘(m)(5), 

(m)(6), and (m)(7)’’ and adding in its 

place the reference to ‘‘(n)(5), (n)(6), and 

(n)(7)’’; 

■ b. Paragraph (i) is amended by 

removing the reference to ‘‘(m)(5), 

(m)(6), and (m)(7)’’ and adding in its 

place the reference to ‘‘(n)(5), (n)(6), and 

(n)(7)’’; 

■ c. Paragraphs (l) through (p) are 

redesignated as paragraphs (m) through 

(q); 

■ d. A new paragraph (l) is added; 

■ e. In redesignated paragraph (q)(1), 

add the words ‘‘under NAFTA’’ after the 

word ‘‘good’’; 

■ f. In redesignated paragraph (q)(2), 

add the words ‘‘under NAFTA’’ after the 

word ‘‘material’’; and 

■ g. Add paragraph (q)(3). 

The additions read as follows: 

§ 102.1 Definitions. 

* * * * * 

(l) Inventory management method. 

‘‘Inventory management method’’ 

means: 

(1) Averaging; 

(2) ‘‘Last-in, first-out;’’ 

(3) ‘‘First-in, first-out;’’ or 

(4) Any other method that is 

recognized in the Generally Accepted 

Accounting Principles (GAAP) of the 

country in which the production is 

performed or is otherwise accepted by 

that country. 

* * * * * 

(q) * * * 

(3) In the case of a good or material 

under the USMCA, its customs value or 

transaction value within the meaning of 

Appendix A to part 182 of this chapter. 

§ 102.11 [Amended] 

■ 6. Amend § 102.11(b)(2) by removing 

the phrase ‘‘provided under the 

appendix to part 181 of this chapter’’. 

§ 102.12 [Amended] 

■ 7. Amend § 102.12(b) by removing the 

phrase ‘‘provided under the appendix to 

part 181 of the Customs Regulations’’. 


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§ 102.19 [Amended] 

■ 8. In § 102.19, add paragraph (c) to 

read as follows: 

§ 102.19 NAFTA preference override. 

* * * * * 

(c) Paragraphs (a) and (b) of this 

section apply only to goods entered for 

consumption, or withdrawn from 

warehouse for consumption, prior to 

July 1, 2020. 

PART 132—QUOTAS 

■ 9. The general and specific authority 

citations for part 132 continue to read as 

follows: 

Authority: 19 U.S.C. 66, 1202 (General 

Note 3(i), Harmonized Tariff Schedule of the 

United States (HTSUS)), 1623, 1624. 

Sections 132.15, 132.17, and 132.18 also 

issued under 19 U.S.C. 1202 (additional U.S. 

Note 3 to Chapter 2, HTSUS; additional U.S. 

Note 8 to Chapter 17, HTSUS; and 

subchapter II of Chapter 99, HTSUS, 

respectively), 1484, 1508. 

§ 132.17 [Amended] 

■ 10. Amend § 132.17 by revising the 

first sentence of paragraph (a) to read as 

follows: 

(a) * * * For sugar-containing 

products defined in 15 CFR 2015.2(a), 

and as described in paragraph 15 of 

Appendix 2, Tariff Schedule of the 

United States—(Tariff Rate Quotas), to 

Annex 2–B of Chapter 2 of the 

Agreement Between the United States of 

America, the United Mexican States, 

and Canada (USMCA), for which 

preferential tariff treatment is claimed 

under the USMCA, and that are 

products of a participating country, as 

defined in 15 CFR 2015.2(e), the 

importer must possess a valid export 

certificate in order to claim the in-quota 

tariff rate of duty on the products at the 

time they are entered or withdrawn 

from warehouse for consumption. * * * 

* * * * * 

PART 134—COUNTRY OF ORIGIN 

MARKING 

■ 11. The general authority citation for 

part 134 continues to read as follows: 

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 

(General Note 3(i), Harmonized Tariff 

Schedule of the United States), 1304, 1624. 

■ 12. Amend § 134.1 as follows: 

■ a. Revise the second sentence of 

paragraph (b); 

■ b. In paragraph (d), add the words ‘‘or 

USMCA’’ after the words ‘‘good of a 

NAFTA’’ each place it appears and 

remove the words ‘‘NAFTA Marking 

Rules’’ each place they appear and add 

in their place the words ‘‘part 102 

Rules’’; 

■ c. In paragraph (g): 

■ i. Add the words ‘‘or USMCA’’ after 

the term ‘‘NAFTA’’ in the paragraph 

heading; 

■ ii. Add the words ‘‘or USMCA’’ after 

the words ‘‘good of a NAFTA’’; and 

■ iii. Remove the words ‘‘NAFTA 

Marking Rules’’ and add in their place 

the words ‘‘part 102 Rules’’; 

■ e. Add a second sentence to paragraph 

(h); 

■ f. Revise paragraph (i); 

■ g. Revise paragraph (j); and 

■ h. Add paragraph (l). 

The revisions and additions read as 

follows: 

§ 134.1 Definitions. 

* * * * * 

(b) * * * Further work or material 

added to an article in another country 

must effect a substantial transformation 

in order to render such other country 

the ‘‘country of origin’’ within the 

meaning of this part; however, for a 

good of a NAFTA or USMCA country, 

the marking rules set forth in part 102 

of this chapter (hereinafter referred to as 

the part 102 Rules) will determine the 

country of origin. 

* * * * * 

(h) * * * NAFTA is not applicable to 

goods entered for consumption, or 

withdrawn from warehouse for 

consumption, on or after July 1, 2020. 

(i) NAFTA or USMCA country. 

‘‘NAFTA or USMCA country’’ means 

the territory of the United States, 

Canada or Mexico, as defined in Annex 

201.1 of NAFTA and Chapter 1, Section 

C of the USMCA. 

(j) Part 102 Rules. ‘‘Part 102 Rules’’ 

are the rules promulgated for purposes 

of determining whether a good is a good 

of a NAFTA country, as set forth in part 

102 of this chapter. The rules also apply 

to determine the country of origin for 

marking purposes for goods imported 

under the USMCA. 

* * * * * 

(l) USMCA. ‘‘USMCA’’ means the 

Agreement Between the United States of 

America, the United Mexican States, 

and Canada (USMCA), entered into 

force by the United States, Canada and 

Mexico on July 1, 2020. 

§ 134.22 [Amended] 

■ 13. Amend § 134.22 as follows: 

■ a. In paragraph (b), add the words ‘‘or 

USMCA’’ after the term ‘‘NAFTA’’; 

■ b. In paragraph (d)(2): 

■ i. Add the words ‘‘or USMCA’’ after 

the term ‘‘NAFTA’’ in the paragraph 

heading; and 

■ ii. Add the words ‘‘or USMCA’’ after 

the term ‘‘NAFTA’’ in the first sentence; 

and 

■ c. In paragraph (e)(1), add the words 

‘‘or USMCA’’ after the term ‘‘NAFTA’’. 

§ 134.23 [Amended] 

■ 14. Amend § 134.23(a) by adding the 

words ‘‘or USMCA’’ after the term 

‘‘NAFTA’’ in the first sentence. 

§ 134.24 [Amended] 

■ 15. Amend § 134.24 by adding the 

words ‘‘or USMCA’’ after the term 

‘‘NAFTA’’ each place it appears. 

§ 134.32 [Amended] 

■ 16. Amend § 134.32 as follows: 

■ a. In paragraph (h), add the words ‘‘or 

USMCA’’ after the term ‘‘NAFTA’’; 

■ b. In paragraph (p), add the words ‘‘or 

USMCA’’ after the term ‘‘NAFTA’’; and 

■ c. In paragraph (q), add the words ‘‘or 

USMCA’’ after the term ‘‘NAFTA’’. 

§ 134.35 [Amended] 

■ 17. Amend § 134.35 as follows: 

■ a. In paragraph (a), add the words ‘‘or 

USMCA’’ after the term ‘‘NAFTA’’ in the 

paragraph heading; 

■ b. In paragraph (b): 

■ i. Add the words ‘‘or USMCA’’ after 

the term ‘‘NAFTA’’ in the paragraph 

heading; 

■ ii. Add the words ‘‘or USMCA’’ after 

the words ‘‘goods of a NAFTA’’ in the 

first sentence; and 

■ iii. Remove the words ‘‘NAFTA 

Marking Rules’’ and add in their place 

the words ‘‘part 102 Rules’’. 

§ 134.43 [Amended] 

■ 18. Amend § 134.43 by adding the 

words ‘‘or USMCA’’ after the term 

‘‘NAFTA’’ in each place it appears. 

§ 134.45 [Amended] 

■ 19. Amend § 134.45(a)(2) by adding 

the words ‘‘or USMCA’’ after the term 

‘‘NAFTA’’. 

PART 163—RECORDKEEPING 

■ 20. The general and specific authority 

citations for part 163 continue to read as 

follows: 

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 

1484, 1508, 1509, 1510, 1624. 

Section 163.2 also issued under 19 U.S.C. 

3904, 3907. 

§ 163.0 [Amended] 

■ 21. Amend § 163.0 as follows: 

■ a. Add the words ‘‘and the Agreement 

Between the United States of America, 

the United Mexican States, and Canada 

(USMCA)’’ after the words ‘‘North 

American Free Trade Agreement’’; 

■ b. Add the words ‘‘and 182’’ after the 

number ‘‘181’’. 

■ 22. Amend § 163.2(c) by: 


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■ a. Adding the words ‘‘and producers’’ 

after the word ‘‘exporters’’ in the 

paragraph heading; 

■ b. Redesignating paragraph (c)(2) as 

paragraph (c)(3); 

■ c. Adding a new paragraph (c)(2). 

The addition reads as follows: 

§ 163.2 Persons required to maintain 

records. 

* * * * * 

(c) * * * 

(2) USMCA. Any exporter or producer 

who completes a certification of origin 

or a producer who provides a written 

representation for a good exported from 

the United States to Canada or Mexico 

pursuant to the Agreement Between the 

United States of America, the United 

Mexican States, and Canada (USMCA) 

must maintain records in accordance 

with part 182 of this chapter. 

* * * * * 

PART 182—UNITED STATES-MEXICOCANADA AGREEMENT 

■ 23. 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 A—General Provisions 

■ 24. Add § 182.1 to read as follows: 

§ 182.1 General definitions. 

The definitions applicable to rules of 

origin are contained in Appendix A. 

This section sets forth the general 

definitions used throughout this part. 

As used in this part, the following terms 

will have the meanings indicated unless 

either the context in which they are 

used requires a different meaning or a 

different definition is prescribed for a 

particular section of this part: 

Canada, when used in a geographical 

rather than governmental context, 

means the ‘‘Territory’’ of Canada as 

defined in Appendix A to this part; 

Claim for preferential tariff treatment 

means a claim that a good is entitled to 

the customs duty rate applicable under 

the USMCA to an originating good and 

to an exemption from the merchandise 

processing fee; 

Commercial importation means the 

importation of a good into the United 

States, Canada, or Mexico for the 

purpose of sale, or any commercial, 

industrial, or other like use. 

Customs duty includes a duty or 

charge of any kind imposed on or in 

connection with the importation of a 

good, and any surtax or surcharge 

imposed in connection with such 

importation, but does not include any: 

(1) Charge equivalent to an internal 

tax imposed consistently with Article 

III:2 of the GATT 1994; 

(2) Fee or other charge in connection 

with the importation commensurate 

with the cost of services rendered; 

(3) Antidumping or countervailing 

duty; and 

(4) Premium offered or collected on 

an imported good arising out of any 

tendering system in respect of the 

administration of quantitative import 

restrictions, tariff-rate quotas, or tariff 

preference levels; 

Customs Valuation Agreement means 

the Agreement on Implementation of 

Article VII of the General Agreement on 

Tariffs and Trade 1994, set out in 

Annex 1A to the WTO Agreement; 

Days means calendar days, and 

includes Saturdays, Sundays and 

holidays; 

Enterprise means an entity 

constituted or organized under 

applicable law, whether or not for 

profit, and whether privately-owned or 

governmentally-owned or controlled, 

including a corporation, trust, 

partnership, sole proprietorship, joint 

venture, association or similar 

organization; 

Exporter means an exporter located in 

the territory of a USMCA country and 

an exporter required under this part to 

maintain records regarding exportations 

of a good; 

GATT 1994 means the General 

Agreement on Tariffs and Trade 1994, 

set out in Annex 1A to the WTO 

Agreement; 

Goods means merchandise, product, 

article, or material; 

Goods of a USMCA country means 

domestic products as these are 

understood in the GATT 1994 or such 

goods as the USMCA country may agree, 

and includes originating goods of a 

USMCA country; 

HTSUS means the Harmonized Tariff 

Schedule of the United States as 

promulgated by the U.S. International 

Trade Commission; 

Identical goods means goods that are 

the same in all respects, including 

physical characteristics, quality, and 

reputation, irrespective of minor 

differences in appearance that are not 

relevant to a determination of origin of 

those goods; 

Importer means an importer located 

in the territory of a USMCA country and 

an importer required under this part to 

maintain records regarding importations 

of a good; 

Indirect material means a material 

used or consumed in the production, 

testing, or inspection of a good but not 

physically incorporated into the good, 

or a material used or consumed in the 

maintenance of buildings or the 

operation of equipment associated with 

the production of a good, including: 

(1) Fuel and energy, 

(2) Tools, dies, and molds, 

(3) Spare parts and materials used or 

consumed in the maintenance of 

equipment or buildings, 

(4) Lubricants, greases, compounding 

materials and other materials used or 

consumed in production or used to 

operate equipment or buildings, 

(5) Gloves, glasses, footwear, clothing, 

safety equipment, and supplies, 

(6) Equipment, devices and supplies 

used or consumed for testing or 

inspecting the goods, 

(7) Catalysts and solvents, and 

(8) Any other material that is not 

incorporated into the good but if the use 

in the production of the good can 

reasonably be demonstrated to be a part 

of that production; 

Material means a good that is used in 

the production of another good, and 

includes a part or ingredient; 

Mexico, when used in a geographical 

rather than governmental context, 

means the ‘‘Territory’’ of Mexico as 

defined in Appendix A to this part; 

Originating, when used with regard to 

a good or material, means a good or 

material qualifying as originating under 

the rules of origin set forth in General 

Note 11, HTSUS, and in Appendix A to 

this part; 

Person means a natural person or an 

enterprise; 

Post-importation duty refund claim 

means a claim filed by the importer of 

a good for a refund of any excess 

customs duties at any time within one 

year after the date of importation of the 

good where the good would have 

qualified as an originating good when it 

was imported into the United States but 

no claim for preferential tariff treatment 

was made. 

Preferential tariff treatment means the 

customs duty rate applicable under the 

USMCA to an originating good; 

Producer means a person who engages 

in the production of a good; 

Series of importations means two or 

more customs entries covering a good 

arriving the same day from the same 

exporter and consigned to the same 

person; 


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United States, when used in a 

geographical rather than governmental 

context, means the territory of the 

United States as defined in Appendix A 

to this part; 

Used means used or consumed in the 

production of a good; 

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. 

USMCA country means a Party to the 

USMCA; 

Value means the value of a good or 

material for the purpose of calculating 

customs duties or for the purpose of 

applying this part; 

WTO means the World Trade 

Organization; and 

WTO Agreement means the 

Marrakesh Agreement Establishing the 

World Trade Organization done at 

Marrakesh on April 15, 1994. 

■ 25. Add § 182.2 to subpart A to read 

as follows: 

§ 182.2 Confidentiality. 

(a) Maintaining confidentiality. 

Subject to paragraph (b) of this section, 

CBP must maintain the confidentiality 

of the information that it receives from 

the public when the information is 

considered trade secrets under the 

Trade Secrets Act (18 U.S.C. 1905), 

personally identifiable information 

under the Privacy Act (5 U.S.C. 552a), 

or privileged or confidential commercial 

or financial information. This 

information must be maintained as 

confidential in accordance with part 103 

of this chapter, 6 CFR part 5, and all 

other applicable statutes and 

regulations. 

(b) Authorized disclosures. CBP may 

only disclose the confidential 

information in paragraph (a) of this 

section to third parties and to other 

USMCA countries for purposes of 

administration or enforcement of the 

customs laws or if otherwise authorized 

by law, and pursuant to the routine uses 

of the systems of record notices (SORNs) 

for the trade systems maintained by 

CBP. This does not preclude the 

disclosure of confidential information to 

U.S. government authorities responsible 

for the administration and enforcement 

of USMCA requirements, such as the 

Department of Labor, and of customs 

and revenue matters. 

Subpart B—Import Requirements 

■ 26. Add § 182.11 to read as follows: 

§ 182.11 Filing of claim for preferential 

tariff treatment upon importation. 

(a) Basis of claim. An importer may 

make a claim for USMCA preferential 

tariff treatment, including an exemption 

from the merchandise processing fee, 

based on a written or electronic 

certification of origin, as specified in 

§ 182.12, completed by the importer, 

exporter, or producer for the purpose of 

certifying that a good qualifies as an 

originating good. 

(b) Making a claim. The claim is made 

by including on the entry summary, or 

equivalent documentation, or by the 

method specified for equivalent 

reporting via a CBP-authorized 

electronic data interchange system, the 

letters ‘‘S’’ or ‘‘S+’’ as a prefix to the 

subheading of the HTSUS under which 

each originating good is classified. 

(c) Corrected claim. If, after making 

the claim specified in paragraph (b) of 

this section, the importer has reason to 

believe that the certification of origin is 

based on inaccurate information or is 

otherwise invalid, the importer must 

promptly and voluntarily correct the 

claim or certification of origin, pay any 

duties that may be due, and submit a 

statement either in writing to the CBP 

office where the original claim was filed 

or via a CBP-authorized electronic data 

interchange system in accordance with 

§ 182.124 of this part (see §§ 182.122 

and 182.124 of this part). 

■ 27. Add § 182.12 to read as follows: 

§ 182.12 Certification of origin. 

(a) General. An importer who makes 

a claim, pursuant to § 182.11(b), based 

on a certification of origin completed by 

the importer, exporter, or producer that 

the good is originating must submit, at 

the request of CBP, a copy of the 

certification of origin. The certification 

of origin: 

(1) Need not be in a prescribed format 

but must be in writing or must be 

transmitted electronically pursuant to 

any electronic means authorized by CBP 

for that purpose; 

(2) May be provided on an invoice or 

any other document, except an invoice 

or commercial document issued in the 

territory of a non-USMCA country; 

(3) Must be in the possession of the 

importer at the time the claim for 

preferential tariff treatment is made; 

(4) Must include the following 

information to be valid: 

(i) Whether the certifier is the 

importer, exporter, or producer in 

accordance with this subpart; 

(ii) The certifier’s name, title, address 

(including country), telephone number, 

and email address; 

(iii) The exporter’s name, address 

(including country), email address, and 

telephone number if different from the 

certifier, unless the producer is 

completing the certification of origin 

and does not know the identity of the 

exporter; 

(iv) The producer’s name, address 

(including country), email address, and 

telephone number, if different from the 

certifier or exporter; or if there are 

multiple producers, ‘‘Various’’ or a list 

of producers (see also paragraph (c) of 

this section); 

(v) If known, the importer’s name, 

address, email address, and telephone 

number; or if there are multiple 

importers, ‘‘Various’’ or a list of 

importers; 

(vi) The legal name, address 

(including country), telephone number, 

and email address (if any) of the 

responsible official or authorized agent 

of the importer, exporter, or producer 

signing the certification; 

(vii) A description of the good for 

which preferential tariff treatment is 

claimed, which must be sufficiently 

detailed to relate it to the invoice and 

the Harmonized System (HS) 

nomenclature; 

(viii) The HTSUS tariff classification, 

to six or more digits, as necessary for the 

specific change in tariff classification 

rule for the good set forth in General 

Note 11, HTSUS; 

(ix) The applicable rule of origin set 

forth in General Note 11, HTSUS, under 

which the good qualifies as an 

originating good; 

(x) In the case of a good listed in 

Schedule II of Appendix A of this part, 

the following statement must be 

included: ‘‘Schedule II of the USMCA 

Rules of Origin Uniform Regulations’’; 

(xi) If the certification of origin covers 

a single shipment of a good, the invoice 

number related to the exportation, if 

known; 

(xii) In case of a blanket certification 

issued with respect to multiple 

shipments of identical goods within any 

period specified in the certification of 

origin, not exceeding 12 months from 

the date of certification, the period that 

the certification covers; and 

(5) Must include the following 

statement: ‘‘I certify that the goods 

described in this document qualify as 

originating and the information 

contained in this document is true and 

accurate. I assume responsibility for 

proving such representations and agree 

to maintain and present upon request or 

to make available during a verification 

visit, documentation necessary to 

support this certification.’’ 

(b) Address. For the purposes of the 

certification of origin provided for in 

paragraph (a) of this section: 

(1) The address of the exporter 

provided under paragraph (a)(4)(iii) is 

the place of export of the good in a 

USMCA country’s territory; 


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(2) The address of a producer 

provided under paragraph (a)(4)(iv) is 

the place of production of the good in 

a USMCA country’s territory; and 

(3) The address of the importer 

provided under paragraph (a)(4)(v) must 

be in a USMCA country’s territory. 

(c) Confidentiality of producer 

information. For the purposes of the 

information provided under paragraph 

(a)(4)(iv) of this section, a person that 

wishes for this information to remain 

confidential may state ‘‘Available upon 

request by the importing authorities.’’ 

(d) Responsible official or agent. The 

certification of origin provided for in 

paragraph (a) of this section must be 

signed and dated by a responsible 

official of the importer, exporter, or 

producer, or by the importer’s, 

exporter’s, or producer’s authorized 

agent having knowledge of the relevant 

facts. 

(e) Language. The certification 

provided for in paragraph (a) of this 

section must be completed in English, 

French, or Spanish. If the certification of 

origin is not in English, CBP may 

require the importer to submit an 

English translation of the certification. 

(f) Basis of a certification of origin. (1) 

A certification of origin may be 

completed by the importer, exporter, or 

producer of the good on the basis of: 

(i) The certifier of the certification of 

origin of the good having information, 

including documents, that demonstrate 

that the good is originating; or 

(ii) In the case of an exporter who is 

not the producer of the good, reasonable 

reliance on the producer’s written 

representation, such as in a certification 

of origin, that the good is originating. 

(2) CBP may not require that an 

exporter or producer complete a 

certification of origin, or provide a 

certification of origin or written 

representation to another person. 

(g) Applicability of certification of 

origin. The certification of origin 

provided for in paragraph (a) of this 

section may be applicable to: 

(1) A shipment of goods into the 

United States, which may consist of: 

(i) A single shipment of goods that 

results in the filing of one or more 

entries; or 

(ii) More than one shipment of goods 

that results in the filing of one entry. 

(2) Multiple shipments of identical 

goods into the United States that occur 

within a specified blanket period, not 

exceeding 12 months, set out in the 

certification. 

(h) Validity of certification of origin. 

A certification of origin that is properly 

completed, signed, and dated in 

accordance with the requirements of 

this section will be accepted as valid for 

four years following the date on which 

it was completed. 

■ 28. Add § 182.13 to read as follows: 

§ 182.13 Importer obligations. 

(a) General. An importer who makes 

a claim for USMCA preferential tariff 

treatment: 

(1) Will be deemed to have made a 

statement based on a valid certification 

of origin that the good qualifies as an 

originating good; 

(2) Is responsible for the truthfulness 

of the claim and of all the information 

and data contained in the certification 

of origin provided for in § 182.12; and 

(3) Is responsible for submitting 

supporting documents requested by 

CBP, and for the truthfulness of the 

information contained in those 

documents. When a certification of 

origin prepared by an exporter or 

producer forms the basis of a claim for 

preferential tariff treatment and CBP 

requests the submission of supporting 

documents, the importer will provide to 

CBP, or arrange for the direct 

submission by the exporter or producer 

of, information relied on by the exporter 

or producer in preparing the 

certification. 

(b) Exemption from penalties. An 

importer will not be subject to civil or 

administrative penalties under 19 U.S.C. 

1592 for making an incorrect claim for 

preferential tariff treatment or 

submitting an incorrect certification of 

origin, provided that the importer 

promptly and voluntarily corrects the 

claim or certification of origin, pays any 

duties and merchandise processing fees, 

if applicable, that may be due, and 

submits a statement either in writing or 

via a CBP-authorized electronic data 

interchange system to the CBP office 

where the original claim was filed in 

accordance with § 182.124 (see 

§§ 182.122 and 182.124). 

■ 29. Add § 182.14 to read as follows: 

§ 182.14 Certification of origin not 

required. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, an importer will not be required 

to submit a copy of a certification of 

origin under § 182.12 for: 

(1) A non-commercial importation of 

a good; or 

(2) A commercial importation for 

which the value of the originating goods 

does not exceed $2,500 in U.S. dollars. 

(b) Exception. If CBP determines that 

an importation described in paragraph 

(a) of this section is part of a series of 

importations carried out or planned for 

the purpose of evading compliance with 

the certification requirements of 

§ 182.12, CBP will notify the importer 

that for that importation the importer 

must submit to CBP a copy of the 

certification of origin. The importer 

must submit such a copy within 30 days 

from the date of the notice. Failure to 

timely submit a copy of the certification 

of origin will result in denial of the 

claim for preferential tariff treatment. 

■ 30. Add § 182.15 to read as follows: 

§ 182.15 Maintenance of records. 

(a) General. An importer claiming 

USMCA preferential tariff treatment for 

a good must maintain for a minimum of 

five years from the date of importation 

of the good, all records and documents 

that the importer has demonstrating that 

the good qualifies for preferential tariff 

treatment under the USMCA, including 

the certification of origin and records 

related to transit and transshipment. 

These records are in addition to any 

other records that the importer is 

required to prepare, maintain, or make 

available to CBP under part 163 of this 

chapter. 

(b) Method of maintenance. The 

records and documents referred to in 

paragraph (a) of this section must be 

maintained by importers as provided in 

§ 163.5 of this chapter. 

■ 31. Add § 182.16 to read as follows: 

§ 182.16 Effect of noncompliance; failure 

to provide documentation regarding 

transshipment. 

(a) General. If the importer fails to 

comply with applicable requirements 

under this subpart, including 

submission of a complete certification of 

origin prepared in accordance with 

§§ 182.12 and 182.14, when requested, 

CBP may deny preferential tariff 

treatment to the imported good. 

(b) Failure to provide documentation 

regarding transshipment. Where the 

requirements for preferential tariff 

treatment set forth elsewhere in this 

subpart are met, CBP nevertheless may 

deny preferential tariff treatment to an 

originating good if the good is 

transported outside the territories of the 

USMCA countries, and at the request of 

CBP, the importer of the good does not 

provide evidence demonstrating to the 

satisfaction of CBP that the transit and 

transshipment conditions set forth in 

Appendix A of this part were met. 

Subpart C—Export Requirements 

■ 32. Add § 182.21 to read as follows: 

§ 182.21 Certification of origin for goods 

exported to Canada or Mexico. 

(a) Submission of certification of 

origin to CBP. An exporter or producer 

who completes a certification of origin 

for a good exported from the United 

States to Canada or Mexico must 


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provide a copy of the certification of 

origin (written or electronic) to CBP 

upon request. 

(b) Notification of errors in 

certification of origin. An exporter or 

producer who completes a certification 

of origin for a good exported from the 

United States to Canada or Mexico and 

who has reason to believe that the 

certification contains or is based on 

incorrect information must promptly 

and voluntarily notify every person, in 

writing, to whom the certification was 

provided of any change that could affect 

the accuracy or validity of the 

certification. Notification of an incorrect 

certification must also be given either in 

writing or via a CBP-authorized 

electronic data interchange system to 

CBP specifying the correction in 

accordance with § 182.124 (see 

§§ 182.123 and 182.124). 

(c) Maintenance of records—(1) 

General. An exporter or producer who 

completes a certification of origin or a 

producer who provides a written 

representation for a good exported from 

the United States to Canada or Mexico 

must maintain, for a period of at least 

five years after the date the certification 

was completed, all records and 

supporting documents relating to the 

origin of a good for which the 

certification of origin was completed, 

including the certification or copies 

thereof and records and documents 

associated with: 

(i) The purchase, cost, value, and 

shipping of, and payment for, the good 

or material; 

(ii) The purchase, cost, value, and 

shipping of, and payment for, all 

materials, including indirect materials, 

used in the production of the good or 

material; and 

(iii) The production of the good in the 

form in which the good is exported or 

the production of the material in the 

form in which it was sold. 

(2) Method of maintenance. The 

records referred to in paragraph (c) of 

this section must be maintained as 

provided in § 163.5 of this chapter. 

(3) Availability of records. For 

purposes of determining compliance 

with the provisions of this part, the 

records required to be maintained under 

this section must be stored and made 

available for examination and 

inspection by a CBP official in the same 

manner as provided in part 163 of this 

chapter. 

Subpart D—Post-Importation Duty 

Refund Claims 

■ 33. Add § 182.31 to read as follows: 

§ 182.31 Right to make post-importation 

claim for preferential tariff treatment and 

refund duties. 

Notwithstanding any other available 

remedy, where a good would have 

qualified as an originating good when it 

was imported into the United States but 

no claim for preferential tariff treatment 

was made, 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 in accordance 

with 19 U.S.C. 1520(d) and the 

procedures set forth in § 182.32. Unless 

the importer fails to comply with the 

applicable requirements in this part, 

CBP may refund any excess customs 

duties by liquidation or reliquidation of 

the entry covering the good in 

accordance with § 182.33. 

■ 34. Add § 182.32 to read as follows: 

§ 182.32 Filing procedures. 

(a) Place of filing. A post-importation 

claim for a refund must be filed with 

CBP, either at the port of entry or 

electronically. 

(b) Contents of claim. A postimportation claim for a refund must be 

filed by presentation of the following: 

(1) A written or electronic declaration 

or statement stating that the good was 

an originating good at the time of 

importation and setting forth the 

number and date of the entry or entries 

covering the good; 

(2) A copy of a written or electronic 

certification of origin prepared in 

accordance with § 182.12 demonstrating 

that the good qualifies for preferential 

tariff treatment; 

(3) A written statement indicating 

whether the importer of the good 

provided a copy of the entry summary 

or equivalent documentation to any 

other person. If such documentation 

was so provided, the statement must 

identify each recipient by name, CBP 

identification number, and address and 

must specify the date on which the 

documentation was provided; and 

(4) A written statement indicating 

whether or not any person has filed a 

protest, petition, or request for 

reliquidation; and if any such protest, 

petition, or request for reliquidation has 

been filed, the statement must identify 

the filing by number and date. 

■ 35. Add § 182.33 to read as follows: 

§ 182.33 CBP processing procedures. 

(a) Status determination. After receipt 

of a post-importation claim made 

pursuant to § 182.32, CBP will 

determine whether the entry covering 

the good has been liquidated and, if 

liquidation has taken place, whether the 

liquidation has become final. 

(b) Pending protest, petition, or 

request for reliquidation or judicial 

review. If CBP determines that any 

protest, petition, or request for 

reliquidation relating to the good has 

not been finally decided, CBP will 

suspend action on the claim filed under 

§ 182.32 until the decision on the 

protest, petition, or request for 

reliquidation becomes final. If a 

summons involving the tariff 

classification or dutiability of the good 

is filed in the Court of International 

Trade, CBP will suspend action on the 

claim filed under § 182.32 until judicial 

review has been completed. 

(c) Allowance of claim—(1) 

Unliquidated entry. If CBP determines 

that a claim for a refund filed under 

§ 182.32 should be allowed and the 

entry covering the good has not been 

liquidated, CBP will take into account 

the claim for refund in connection with 

the liquidation of the entry. 

(2) Liquidated entry. If CBP 

determines that a claim for a refund 

filed under § 182.32 should be allowed 

and the entry covering the good has 

been liquidated, whether or not the 

liquidation has become final, the entry 

must be reliquidated in order to effect 

a refund of customs duties under this 

section. If the entry is otherwise to be 

reliquidated based on administrative 

review of a protest or as a result of 

judicial review, CBP will reliquidate the 

entry taking into account the claim for 

refund under § 182.32. 

(d) Denial of claim—(1) General. CBP 

may deny a claim for a refund filed 

under § 182.32 if the claim was not filed 

timely, if the importer has not complied 

with the requirements of § 182.32 or the 

other applicable requirements in this 

part, or if, following an origin 

verification, CBP determines either that 

the imported good was not an 

originating good at the time of 

importation or that a basis exists upon 

which preferential tariff treatment may 

be denied. 

(2) Unliquidated entry. If CBP 

determines that a claim for a refund 

filed under § 182.32 should be denied 

and the entry covering the good has not 

been liquidated, CBP will deny the 

claim in connection with the liquidation 

of the entry, and notice of the denial 

and the reason for the denial will be 

provided to the importer in writing or 

via a CBP-authorized electronic data 

interchange system. 

(3) Liquidated entry. If CBP 

determines that a claim for a refund 

filed under § 182.32 should be denied 

and the entry covering the good has 

been liquidated, whether or not the 

liquidation has become final, the claim 

may be denied without reliquidation of 


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the entry. If the entry is otherwise to be 

reliquidated based on administrative 

review of a protest, petition, or request 

for reliquidation or as a result of judicial 

review, such reliquidation may include 

denial of the claim filed under this 

subpart. In either case, CBP will provide 

notice of the denial and the reason for 

the denial to the importer in writing or 

via a CBP-authorized electronic data 

interchange system. 

Subpart E—Restrictions on Drawback 

and Duty-Deferral Programs 

■ 36. Add § 182.41 to read as follows: 

§ 182.41 Applicability. 

This subpart sets forth the provisions 

regarding drawback claims and dutydeferral programs 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. The provisions of this 

subpart apply to goods which are 

entered for consumption, or withdrawn 

from warehouse for consumption, into 

the United States on or after July 1, 

2020. The requirements and procedures 

set forth in this subpart for USMCA 

drawback are in addition to the general 

definitions, requirements, and 

procedures for all drawback claims set 

forth in part 190 of this chapter, unless 

otherwise specifically provided in this 

subpart. Also, the requirements and 

procedures set forth in this subpart for 

USMCA duty-deferral programs are in 

addition to the requirements and 

procedures for manipulation, 

manufacturing, and smelting and 

refining warehouses contained in part 

19 and part 144 of this chapter, for 

foreign trade zones under part 146 of 

this chapter, and for temporary 

importations under bond contained in 

part 10 of this chapter. 

■ 37. Add § 182.42 to read as follows: 

§ 182.42 Duties and fees not subject to 

drawback. 

The following duties or fees which 

may be applicable to a good entered for 

consumption or withdrawn from 

warehouse for consumption in the 

Customs territory of the United States 

are not subject to drawback under this 

subpart: 

(a) Antidumping and countervailing 

duties; 

(b) A premium offered or collected on 

a good with respect to quantitative 

import restrictions, tariff-rate quotas or 

tariff preference levels; and 

(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(j)(2) on goods exported to Canada 

or Mexico. 

■ 38. Add § 182.43 to read as follows: 

§ 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 (see 19 U.S.C. 1313(j)(1)); 

(b) Used as a material in the 

production of another good that is 

subsequently exported to Canada or 

Mexico (see 19 U.S.C. 1313(a)); or 

(c) Substituted by a good of the same 

kind and quality as defined in 

§ 182.44(d) and used as a material in the 

production of another good that is 

subsequently exported to Canada or 

Mexico (see 19 U.S.C. 1313(b)). 

■ 39. Add § 182.44 to read as follows: 

§ 182.44 Calculation of drawback. 

(a) General. Except in the case of 

goods specified in § 182.45, drawback of 

the duties previously paid upon 

importation of a good into the United 

States may be granted by the United 

States, upon presentation of a USMCA 

drawback claim under this subpart, on 

the lower amount of: 

(1) The total duties paid or owed on 

the good in the United States; or 

(2) The total amount of duties paid on 

the exported good upon subsequent 

importation into Canada or Mexico. 

(b) Individual relative value and duty 

comparison principle. For purposes of 

this section, relative value will be 

determined, and the comparison 

between the duties referred to in 

paragraph (a)(1) of this section and the 

duties referred to in paragraph (a)(2) of 

this section will be made, separately 

with reference to each individual 

exported good, including where two 

components or materials are used to 

produce one exported good or one 

component or material is divided among 

multiple exported goods. 

(c) Direct identification 

manufacturing drawback under 19 

U.S.C. 1313(a). Upon presentation of the 

USMCA drawback claim under 19 

U.S.C. 1313(a), in which 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 refunded may not exceed 99 

percent of the duty paid on such 

imported merchandise into the United 

States. 

(d) Substitution manufacturing 

drawback under 19 U.S.C. 1313(b). 

Upon presentation of a USMCA 

drawback claim under 19 U.S.C. 

1313(b), on which 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 is the same as that which 

would have been allowed had the 

substituted merchandise used in 

manufacture been itself imported. 

(1) General. For purposes of drawback 

under this subpart, the term ‘‘same kind 

and quality’’ has the same meaning as 

the 8-digit HTSUS substitution standard 

established in 19 U.S.C. 1313(b)(1) (see 

§§ 190.2 and 190.22(a)(1)(i) of this 

chapter). 

(2) Special rule for sought chemical 

elements. For purposes of drawback 

under this subpart, for sought chemical 

elements, the term ‘‘same kind and 

quality’’ has the same meaning as the 8- 

digit HTSUS substitution standard 

established in 19 U.S.C. 1313(b)(4) (see 

§ 190.22(a)(2) of this chapter). 

(e) Meats cured with imported salt. 

Meats, whether packed or smoked, 

which have been cured with imported 

salt may be eligible for drawback in 

aggregate amounts of not less than $100 

in duties paid on the imported salt upon 

exportation of the meats to Canada or 

Mexico (see 19 U.S.C. 1313(f)). 

(f) Jet aircraft engines. A foreign-built 

jet aircraft engine that has been 

overhauled, repaired, rebuilt, or 

reconditioned in the United States with 

the use of imported merchandise, 

including parts, may be eligible for 

drawback of duties paid on the 

imported merchandise in aggregate 

amounts of not less than $100 upon 

exportation of the engine to Canada or 

Mexico (19 U.S.C. 1313(h)). 

(g) Unused goods under 19 U.S.C. 

1313(j)(1) that have changed in 

condition. An imported good that is 

unused in the United States under 19 

U.S.C. 1313(j)(1) and that is shipped to 

Canada or Mexico not in the same 

condition within the meaning of 

§ 182.45(b)(1) may be eligible for 

drawback under this section except 

when the shipment to Canada or Mexico 

does not constitute an exportation under 

19 U.S.C. 1313(j)(4). 

■ 40. Add § 182.45 to read as follows: 

§ 182.45 Goods eligible for full drawback. 

(a) Goods originating in Canada or 

Mexico. A Canadian or Mexican 

originating good that is dutiable and is 

imported into the United States is 

eligible for drawback without regard to 

the limitation on drawback set forth in 

§ 182.44 if that good is originating under 

the rules of origin set out in General 

Note 11, HTSUS, and Appendix A of 

this part, and is: 


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(1) Subsequently exported to Canada 

or Mexico; 

(2) Used as a material in the 

production of another good that is 

subsequently exported to Canada or 

Mexico; or 

(3) Substituted by a good of the same 

8-digit HTSUS subheading number and 

used as a material in the production of 

another good that is subsequently 

exported to Canada or Mexico. 

(b) Claims under 19 U.S.C 1313(j)(1) 

for goods in same condition. A good 

imported into the United States and 

subsequently exported to Canada or 

Mexico in the same condition is eligible 

for drawback under 19 U.S.C. 1313(j)(1) 

without regard to the limitation on 

drawback set forth in § 182.44 . 

(1) Same condition defined. For 

purposes of this subpart, a reference to 

a good in 

the ‘‘same condition’’ includes a good 

that has been subjected to any of the 

following operations provided that no 

such operation materially alters the 

characteristics of the good: 

(i) Mere dilution with water or 

another substance; 

(ii) Cleaning, including removal of 

rust, grease, paint or other coatings; 

(iii) Application of preservative, 

including lubricants, protective 

encapsulation, or preservation paint; 

(iv) Trimming, filing, slitting or 

cutting; 

(v) Putting up in measured doses, or 

packing, repacking, packaging or 

repackaging; or 

(vi) Testing, marking, labelling, 

sorting, grading, or inspecting a good. 

(2) Commingling of fungible goods— 

(i) General—(A) Inventory of other than 

all non-originating goods. Commingling 

of fungible originating and nonoriginating goods in inventory is 

permissible provided that the origin of 

the goods and the identification of 

entries for designation for same 

condition drawback are on the basis of 

an approved inventory management 

method set forth in the Appendix A to 

this part (see 19 CFR 102.1). 

(B) Inventory of the non-originating 

goods. If all goods in a particular 

inventory are non-originating goods, 

identification of entries for designation 

for same condition drawback must be on 

the basis of one of the accounting 

methods in § 190.14 of this chapter, as 

appropriate. 

(ii) Exception. Agricultural goods 

imported from Mexico may not be 

commingled with fungible agricultural 

goods in the United States for purposes 

of same condition drawback under this 

subpart. 

(c) Goods not conforming to sample or 

specifications or shipped without 

consent of consignee under 19 U.S.C. 

1313(c). 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) without regard to the 

limitation on drawback set forth in 

§ 182.44. Such a good must be exported 

or destroyed within the statutory 5-year 

time period and in compliance with the 

requirements set forth in subpart D of 

part 190 of this chapter, as applicable. 

(d) Certain goods exported to Canada 

or Mexico. A good provided for in U.S. 

tariff items 1701.13.20 or 1701.14.20 

that is imported into the Customs 

territory of the United States under any 

re-export or like program that is used as 

a material, or substituted for by a good 

of the same kind and quality that is used 

as a material, in the production of a 

good provided for in Canadian tariff 

item 1701.99.00 or Mexican tariff items 

1701.99.01, 1701.99.02, and 1701.99.99 

(relating to refined sugar), is eligible for 

drawback without regard to the 

limitation on drawback set forth in 

§ 182.44. Same kind and quality for 

purposes of this subsection means that 

the imported good and the substituted 

good must be capable of being used 

interchangeably in the manufacture or 

production of the exported or destroyed 

articles with no substantial change in 

the manufacturing or production 

process. 

(e) Certain goods exported to Canada. 

Goods identified in Article 2.5.6(g) of 

the USMCA and in 19 U.S.C. 4534(a)(7) 

and (8), if exported to Canada, are 

eligible for drawback without regard to 

the limitations on drawback set forth in 

§ 182.44. 

(f) Certain goods that are exported or 

deemed exported. Goods that are 

delivered: 

(1) To a duty-free shop, 

(2) For ship’s stores or supplies for 

ships or aircrafts, or 

(3) For the use in a project undertaken 

jointly by the United States and a 

USMCA country, and destined to 

become the property of the United 

States, are eligible upon exportation for 

drawback without regard to the 

limitations on drawback set forth in 

§ 182.44. 

■ 41. Add § 182.46 to read as follows: 

§ 182.46 Filing of drawback claim. 

(a) Time of filing. A drawback claim 

under this subpart must be filed within 

5 years after the date of importation of 

the goods on which drawback is 

claimed. No extension will be granted 

unless it is established that a CBP 

official was responsible for the untimely 

filing. Drawback will be allowed only if 

the completed good is exported within 

5 years after importation of the 

merchandise identified or designated to 

support the claim. 

(b) Method of filing. A drawback 

claim must be filed electronically 

through a CBP-authorized electronic 

system (see § 190.51 of this chapter). 

■ 42. Add § 182.47 to read as follows: 

§ 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 § 182.46 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, and a 

certification from the Canadian or 

Mexican importer as to the amount of 

duties paid. Each drawback entry filed 

under this subpart must be filed using 

the indicator ‘‘USMCA Drawback’’. 

(2) Specific claims. The following 

documentation, for the drawback claims 

specified below, 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. 

(i) Manufacturing drawback claim. 

The following must be submitted in 

connection with a claim for direct 

identification manufacturing drawback 


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or substitution manufacturing 

drawback: 

(A) A completed CBP Form 331, or its 

electronic equivalent, to establish the 

manufacture of goods made with 

imported merchandise and, if 

applicable, the identity of substituted 

domestic, duty-paid or duty-free 

merchandise, and including the tariff 

classification number of the imported 

merchandise; 

(B) CBP Form 7501, or its electronic 

equivalent, or the import entry number; 

(C) [Reserved] 

(D) Evidence of exportation and 

satisfactory evidence of the payment of 

duties in Canada or Mexico, as provided 

in paragraph (c) of this section; 

(E) 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 

(F) 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) Same condition drawback claim 

under 19 U.S.C. 1313(j)(1). The 

following must be submitted in 

connection with a drawback claim 

covering a good in the same condition: 

(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, and, if 

applicable, 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 above 

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) Notification of intent to export or 

waiver of prior notice. CBP must be 

notified at least 5 business days in 

advance of the intended date of 

exportation in order to have the 

opportunity to examine the goods (see 

§ 190.35 of this chapter); 

(E) Evidence of exportation. 

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) Waiver of right to drawback. 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): 

(A) Customs 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 

§ 182.48(b)); 

(B) [Reserved] 

(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 5 business days in 

advance of the intended date of 

exportation in order to have the 

opportunity to examine the goods (see 

§ 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 subpart N of part 190 of 

this chapter. 

(c) [Reserved] 

■ 43. Add § 182.49 to read as follows: 

§ 182.49 Retention of records. 

All records required to be kept by the 

exporter, importer, manufacturer or 

producer under this subpart with 

respect to manufacturing drawback 

claims, and all records kept by others 

which complement the records of the 

importer, exporter, manufacturer or 

producer, including any person who 

transfers or enables another person to 

make or perfect a drawback claim, must 

be retained for at least three years from 

the date of liquidation of such claims or 

longer period if required by law (see 

§§ 190.10, 190.15, 190.38, and 

190.175(c) of this chapter). 

■ 44. Add § 182.50 to read as follows: 

§ 182.50 Liquidation and payment of 

drawback claims. 

(a) General. When the drawback claim 

has been fully completed by the filing 

of all required documents, and 

exportation of the articles has been 

established and the amount of duties 

paid to Canada or Mexico has been 

established, the entry will be liquidated 

to determine the proper amount of 

drawback due either in accordance with 

the limitation on drawback set forth in 

§ 182.44 of this subpart or in accordance 

with the regular drawback calculation. 

The liquidation procedures of subpart H 

of part 190 of this chapter, as 

appropriate, will control for purposes of 

this subpart. 

(b) [Reserved] 

(c) Accelerated payment. Accelerated 

drawback payment procedures will 

apply as set forth in § 190.92 of this 

chapter, as appropriate. However, a 

person who receives drawback of duties 

under this procedure must repay the 


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duties paid if a USMCA drawback claim 

is adversely affected thereafter by 

administrative or court action. 

■ 45. Add § 182.51 to read as follows: 

§ 182.51 Prevention of improper payment 

of claims. 

(a) Double payment of claim. The 

drawback claimant must certify to CBP 

that the claimant has not earlier 

received payment on the same import 

entry for the same designation of goods. 

If, notwithstanding such a certification, 

such an earlier payment was in fact 

made to the claimant, the claimant must 

repay any amount paid on the second 

claim. 

(b) Preparation of Certification of 

Origin. The drawback claimant must, 

within 30 calendar days after the filing 

of the drawback claim under this 

subpart, submit to CBP a written 

statement as to whether the claimant 

has prepared, or has knowledge that 

another person has prepared, a 

certification of origin provided for 

under § 182.12 and pertaining to the 

goods which are covered by the claim. 

If, following such 30-day period, the 

claimant prepares, or otherwise learns 

of the existence of, any such 

certification of origin, the claimant 

must, within 30 calendar days 

thereafter, disclose that fact to CBP. 

■ 46. Add § 182.52 to read as follows: 

§ 182.52 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 drawback has been granted under 

this subpart, the appropriate CBP 

official must reliquidate the drawback 

claim and obtain a refund of the amount 

paid in drawback in excess of the 

amount permitted to be paid under 

§ 182.44. 

■ 47. Add § 182.54 to read as follows: 

§ 182.54 Verification of claim for 

drawback, waiver or reduction of duties. 

The allowance of a claim for 

drawback, waiver or reduction of duties 

submitted under this subpart is subject 

to such verification, including 

verification with the Canadian or 

Mexican customs administration, of any 

documentation obtained in Canada or 

Mexico and submitted in connection 

with the claim, as CBP may deem 

necessary. 

Subpart G—Origin Verifications and 

Determinations 

■ 48. Add § 182.71 to read as follows: 

§ 182.71 Applicability. 

This subpart contains the general 

origin verification and determination 

provisions applicable to goods claiming 

preferential tariff treatment under 

§ 182.11(b) or § 182.32. 

■ 49. Add § 182.72 to read as follows: 

§ 182.72 Verification of claim for 

preferential tariff treatment. 

(a) Verification. A claim for 

preferential tariff treatment made under 

§ 182.11(b) or 182.32, including any 

statements or other information 

submitted to CBP in support of the 

claim, will be subject to such 

verification as CBP deems necessary. 

CBP may initiate the verification of 

goods imported into the United States 

under the USMCA with the importer, or 

with the exporter or producer who 

completed the certification of origin. A 

verification of a claim for preferential 

tariff treatment under the USMCA may 

be conducted by means of one or more 

of the following: 

(1) Requests for information or 

questionnaires, including a request for 

documents, to the importer, exporter, or 

producer; 

(2) Verification visits to the premises 

of the exporter or producer in Mexico or 

Canada in order to request information, 

including documents, and to observe 

production processes and facilities; and 

(3) Any other procedure to which the 

USMCA countries may agree. 

(b) Verification of a material. When 

conducting a verification of a 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 

any of the verification means set forth 

in paragraph (a) of this section. With the 

exception of §§ 182.73(c) and 182.75, 

the provisions in this subpart also apply 

to the verification of a material and 

references to the term ‘‘producer’’ apply 

to a producer of a good or to a material 

producer. 

(c) Sending information directly to 

CBP. During a verification, CBP will 

accept information, including 

documents, directly from an importer, 

exporter, or producer. 

(d) Applicable accounting principles. 

When conducting a verification to 

which Generally Accepted Accounting 

Principles or an otherwise accepted 

inventory method may be relevant, CBP 

will apply and accept the Generally 

Accepted Accounting Principles 

applicable in the USMCA country in 

which the production is performed or 

from which the good is exported, as 

appropriate, or an otherwise accepted 

inventory management method as 

provided for in Appendix A of this part. 

If information, including documents, 

books and records, were not maintained 

accordingly, CBP will provide the 

importer, exporter or producer 30 days 

to record costs in accordance with 

Appendix A of this part. 

■ 50. Add § 182.73 to read as follows: 

§ 182.73 Notification and response 

procedures. 

(a) Requests for information and 

questionnaires. When conducting a 

verification through a request for 

information or a questionnaire as 

provided for in § 182.72(a)(1), CBP will 

send the importer, exporter or producer 

a written request for information, a 

written questionnaire, or its electronic 

equivalent, including a request for 

specific documentation to support the 

claim for preferential tariff treatment. 

(1) Contents. The written request for 

information, written questionnaire, or 

its electronic equivalent will contain the 

following: 

(i) The objective and scope of the 

verification, including the specific issue 

that the verification is seeking to 

resolve; and 

(ii) Sufficient information to identify 

the good or material that is the subject 

of the verification. 

(2) Availability of records—(i) 

Verification of a good. The importer, 

exporter, or producer must make the 

records, which are required to be 

maintained to demonstrate that the good 

qualifies for preferential tariff treatment 

under the USMCA, available for 

inspection by a CBP official conducting 

a verification. CBP may deny the claim 

for preferential tariff treatment of the 

good for failure to maintain the required 

records or if a CBP official is denied 

access to the records. 

(ii) Verification of a material. During 

the verification of a material, any 

records in the material producer’s 

possession demonstrating that the 

material qualifies as originating must be 

made available for inspection by a CBP 

official conducting a verification. CBP 

may consider the material that is used 

in the production of the good and is the 

subject of the verification to be nonoriginating material if a CBP official is 

denied access to these records. 

(b) Notification of a verification visit. 

Prior to conducting a verification visit 

in Canada or Mexico, CBP will provide 

the exporter or producer, using one of 

the communication means specified in 

paragraph (d)(2) of this section, with a 

notification stating the intent to conduct 

a verification visit and containing the 

following: 

(1) The objective and scope of the 

verification, including the specific issue 


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that the verification is seeking to 

resolve; 

(2) Sufficient information to identify 

the good or material that is the subject 

of the verification; 

(3) A request for the written consent 

of the exporter or producer whose 

premises are going to be visited; 

(4) The legal authority for the visit; 

(5) The proposed date and location of 

the visit; 

(6) The specific purpose of the visit; 

and 

(7) The names and titles of the U.S. 

officials conducting the visit. 

(c) Importer notification. When CBP 

initiates a verification by sending a 

request for information or questionnaire 

under paragraph (a) of this section to an 

exporter or producer or by sending a 

notification of a verification visit under 

paragraph (b) of this section, CBP will 

notify the importer claiming preferential 

tariff treatment of the good that CBP has 

initiated a verification of that good, 

subject to the confidentiality provisions 

in § 182.2. 

(d) Means of communications. (1) For 

purposes of a verification, it is sufficient 

for CBP to use the contact information 

provided in the certification of origin for 

any communication sent to the 

importer, exporter, or producer. 

(2) For purposes of a verification, CBP 

will send all communication to the 

exporter or producer by any means that 

can produce a confirmation of receipt 

including: 

(i) Electronic mail; 

(ii) International courier services; 

(iii) Certified or registered mail 

services; or 

(iv) A CBP-authorized electronic data 

interchange system. 

(e) Time periods. Any time periods 

specified in this subpart begin from the 

date of confirmation of receipt, provided 

for in paragraph (d)(2) of this section, 

when sending communication to the 

exporter or producer, and begin from 

the date the communication is sent 

when sending communication to the 

importer. 

(f) Response time for a request for 

information, a questionnaire, and a 

notification of a verification visit—(1) 

Request for information and 

questionnaire. When CBP sends a 

request for information or a 

questionnaire, the importer, exporter, or 

producer will have 30 days from the 

date specified in paragraph (e) of this 

section to respond and provide the 

requested documentation. CBP may 

deny the claim for preferential tariff 

treatment of the good, or consider the 

material that is used in the production 

of the good to be non-originating 

material, for failure to respond to the 

request for information subject to the 

conditions in § 182.75(c)(1), or for 

failure to respond to the questionnaire. 

(2) Notification of a verification visit. 

When CBP sends a notification of a 

verification visit, the exporter or 

producer will have 30 days from the 

date specified in paragraph (e) of this 

section to consent to or deny the 

verification visit. CBP may deny the 

claim for preferential tariff treatment of 

the good, or consider the material that 

is used in the production of the good to 

be non-originating material, for failure 

to provide consent for a verification 

visit within the 30-day response period, 

unless a postponement is requested in 

accordance with § 182.74(b). 

■ 51. Add § 182.74 to read as follows: 

§ 182.74 Verification visit procedures. 

(a) Written consent required. Prior to 

conducting a verification visit in Canada 

or Mexico, CBP must obtain the written 

consent of the exporter or producer 

whose premises are to be visited. The 

exporter or producer must submit this 

written consent, requested in the 

notification of a verification visit under 

§ 182.73(b)(3), to CBP through one of the 

communication means specified in 

§ 182.73(d)(2), within the time period 

provided in § 182.73(f)(2), unless a 

postponement is requested in 

accordance with paragraph (b) of this 

section. 

(b) Postponement of a verification 

visit—(1) Request for postponement by 

an exporter or producer. Within 15 days 

of confirmed receipt of the notification 

of a verification visit, the exporter or 

producer may, on a single occasion, 

using one of the communication means 

specified in § 182.73(d)(2), request the 

postponement of the verification visit 

for a period not to exceed 30 days from 

the proposed date of the visit. 

(2) Notification of a postponement. 

CBP will notify the exporter or producer 

when a postponement request under 

paragraph (b)(1) of this section is 

received and will provide the new date 

of the verification visit. The Mexican or 

Canadian customs administration where 

the verification visit will occur may 

also, within 15 days of confirmed 

receipt of the notification of a 

verification visit, postpone the 

verification visit for a period not to 

exceed 60 days from the proposed date 

of the visit or for a longer period as CBP 

and the Mexican or Canadian customs 

administration may decide. CBP will 

notify the exporter or producer if the 

verification visit is postponed at the 

request of the Mexican or Canadian 

customs administration. 

(c) Availability of records—(1) 

Verification of a good. The exporter or 

producer must make the records, which 

are required to be maintained to 

demonstrate that the good qualifies for 

preferential tariff treatment under the 

USMCA, available for inspection by a 

CBP official conducting a verification 

and provide facilities for that inspection 

during the verification visit. CBP may 

deny the claim for preferential tariff 

treatment of the good for failure to 

maintain these records or if a CBP 

official is denied access to these records. 

(2) Verification of a material. During 

the verification of a material, any 

records in the material producer’s 

possession demonstrating that the 

material qualifies as originating must be 

made available for inspection by a CBP 

official conducting a verification. CBP 

may consider the material that is the 

used in the production of the good and 

is the subject of the verification visit to 

be non-originating material if a CBP 

official is denied access to these records. 

(d) Observers. The exporter or 

producer may designate up to two 

observers to be present during the 

verification visit, if the exporter or 

producer chooses, provided that: 

(1) The observers do not participate in 

a manner other than as observers; 

(2) The failure of the exporter or 

producer to designate observers does 

not result in the postponement of the 

visit; and 

(3) The exporter or producer identifies 

to CBP any observers designated to be 

present during the visit. 

■ 52. Add § 182.75 to subpart G to read 

as follows: 

§ 182.75 Determinations of origin. 

(a) Contents. For verifications 

initiated under this part, CBP will issue 

a determination of origin that sets forth: 

(1) A description of the good that was 

the subject of the verification; 

(2) A statement setting forth the 

findings of facts made in connection 

with the verification and upon which 

the determination is based; and 

(3) The legal basis for the 

determination. 

(b) Parties who will receive a 

determination of origin. CBP will issue 

the determination of origin to the 

importer, and to 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 § 182.2, 

within 120 days (or in exceptional cases 

and upon notification to the parties, 

within 210 days) after CBP has 

determined that it has received all the 

information necessary to issue a 

determination of origin, including any 


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information necessary from the exporter 

or producer. 

(c) Negative determinations—(1) 

When a request for information must be 

sent to the exporter or producer prior to 

issuing a negative determination. If a 

claim for preferential tariff treatment is 

based on a certification of origin 

completed by the exporter or producer, 

and, in response to a request for 

information, the importer does not 

provide CBP with sufficient information 

to verify or substantiate the claim, CBP 

will send a written request for 

information or its electronic equivalent 

to the exporter or producer that 

completed the certification of origin, 

subject to the confidentiality provisions 

in § 182.2, prior to issuing a negative 

determination. 

(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 § 182.12(a); 

(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 

§ 182.11(c); 

(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; 

(v) The importer, exporter, or 

producer fails to respond to the request 

for information pursuant to 

§ 182.73(f)(1) subject to the conditions 

in § 182.75(c)(1); 

(vi) The importer, exporter, or 

producer fails to respond to the 

questionnaire pursuant to § 182.73(f)(1); 

(vii) The exporter or producer fails to 

consent to a verification visit pursuant 

to § 182.74; 

(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 § 182.76; or 

(xii) CBP determines that any other 

reason to deny a claim for preferential 

tariff treatment as set forth in this part 

applies 

(3) Intent to deny. Prior to issuing a 

negative determination, CBP will inform 

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, of CBP’s intent to deny 

preferential tariff treatment, subject to 

the confidentiality provisions in § 182.2. 

This intent to deny will contain the 

preliminary results of the verification, 

the effective date of the denial of 

preferential tariff treatment, and a notice 

to the importer, exporter, or producer 

that CBP will provide 30 days to submit 

additional information, including 

documents, related to the preferential 

tariff treatment of the good. 

(4) Issuance of a negative 

determination of origin. CBP will issue 

a negative determination of origin to the 

parties specified in paragraph (b) of this 

section if CBP determines, at least 30 

days after receipt by the importer, 

exporter, or producer of the intent to 

deny issued pursuant to paragraph (c)(3) 

of this section, that one or more of the 

reasons for denial of preferential tariff 

treatment under paragraph (c)(2) of this 

section continues to apply. In addition 

to the contents of the determination set 

forth in paragraph (a) of this section, 

unless CBP determines that there is a 

pattern of conduct of false or 

unsupported representations pursuant 

to § 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 of 

this chapter. 

■ 53. Add § 182.76 to subpart G to read 

as follows: 

§ 182.76 Repeated false or unsupported 

preference claims. 

Where the verification reveals a 

pattern of conduct by the importer, 

exporter, or producer of false or 

unsupported representations relevant to 

a claim that a good imported into the 

United States qualifies for preferential 

tariff treatment under the USMCA, CBP 

may withhold preferential tariff 

treatment under the USMCA for entries 

of identical goods covered by 

subsequent statements, declarations, or 

certifications by that importer, exporter, 

or producer until CBP determines that 

representations of that person are in 

conformity with this part and with 

General Note 11, HTSUS. 

■ 54. Revise subpart J consisting of 

§§ 182.111 through 182.112 to read as 

follows: 

Subpart J—Commercial Samples and 

Goods Returned after Repair or 

Alteration 

Sec. 

182.111 Commercial samples of negligible 

value. 

182.112 Goods re-entered after repair or 

alteration in Canada or Mexico. 

§ 182.111 Commercial samples of 

negligible value. 

(a) General. Commercial samples of 

negligible value imported from Canada 

or Mexico may qualify for duty-free 

entry under subheading 9811.00.60, 

HTSUS. For purposes of this section, 

‘‘commercial samples of negligible 

value’’ means commercial samples 

which have a value, individually or in 

the aggregate as shipped, of not more 

than one U.S. dollar, or the equivalent 

amount in the currency of Canada or 

Mexico, or which are so marked, torn, 

perforated, or otherwise treated that 

they are unsuitable for sale or for use 

except as commercial samples. 

(b) Qualification for duty-free entry. 

Commercial samples of negligible value 

imported from Canada or Mexico will 

qualify for duty-free entry under 

subheading 9811.00.60, HTSUS, only if: 

(1) The samples are imported solely 

for the purpose of soliciting orders for 

foreign goods or services; and 

(2) If valued over one U.S. dollar, the 

samples are properly marked, torn, 

perforated or otherwise treated prior to 

arrival in the United States so that they 

are unsuitable for sale or for use except 

as commercial samples. 

§ 182.112 Goods re-entered after repair or 

alteration in Canada or Mexico. 

(a) General. This section sets forth the 

rules that apply for purposes of 

obtaining duty-free treatment on goods 

returned after repair or alteration in 

Canada or Mexico as provided for in 

subheadings 9802.00.40 and 9802.00.50, 

HTSUS. Goods returned after having 

been repaired or altered in Canada or 

Mexico, regardless of whether the repair 

or alteration could be performed in the 

United States or has increased the value 

of the good and regardless of their 

origin, are eligible for duty-free 

treatment, provided that the 

requirements of this section are met. For 

purposes of this section, ‘‘repairs or 

alterations’’ means restoration, addition, 

renovation, re-dyeing, cleaning, resterilizing, or other treatment that does 

not destroy the essential characteristics 

of, or create a new or commercially 


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different good from, the good exported 

from the United States. 

(b) Goods not eligible for duty-free 

treatment after repair or alteration. The 

duty-free treatment referred to in 

paragraph (a) of this section will not 

apply to goods that: 

(1) In their condition, as exported 

from the United States to Canada or 

Mexico, are incomplete for their 

intended use and for which the 

processing operation performed in 

Canada or Mexico constitutes an 

operation that is performed as a matter 

of course in the preparation or 

manufacture of finished goods; or 

(2) Are imported under a dutydeferral program that are exported for 

repair or alteration and are not reimported under a duty-deferral program. 

(c) Documentation. The provisions of 

§ 10.8(a), (b), and (c) of this chapter, 

relating to the documentary 

requirements for goods entered under 

subheading 9802.00.40 or 9802.00.50, 

HTSUS, will apply in connection with 

the entry of goods which are returned 

from Canada or Mexico after having 

been exported for repairs or alterations 

and which are claimed to be duty-free. 

■ 55. Revise subpart K consisting of 

§§ 182.121 through 182.124 to read as 

follows: 

Subpart K—Penalties 

Sec. 

182.121 General. 

182.122 Corrected claim or certification of 

origin by importers 

182.123 Corrected certification of origin by 

U.S. exporters or producers 

182.124 Framework for correcting claims or 

certifications of origin 

§ 182.121 General. 

Except as otherwise provided in this 

subpart, all criminal, civil, or 

administrative penalties which may be 

imposed on U.S. importers, exporters, 

and producers for violations of the 

customs and related U.S. laws and 

regulations will also apply to U.S. 

importers, exporters, and producers for 

violations of the U.S. laws and 

regulations relating to the USMCA. 

§ 182.122 Corrected claim or certification 

of origin by importers. 

An importer who makes a corrected 

claim under § 182.11(c) will not be 

subject to civil or administrative 

penalties under 19 U.S.C. 1592 for 

having made an incorrect claim or 

having submitted an incorrect 

certification of origin, provided that the 

corrected claim is promptly and 

voluntarily made in accordance with 

§ 182.124. 

§ 182.123 Corrected certification of origin 

by U.S. exporters or producers. 

Civil or administrative penalties 

provided for under 19 U.S.C. 1592 will 

not be imposed on an exporter or 

producer who completed a certification 

of origin for a good exported from the 

United States to Canada or Mexico 

when the exporter or producer promptly 

and voluntarily provides written 

notification pursuant to §§ 182.21(b) 

and 182.124 with respect to the making 

of an incorrect certification of origin. 

§ 182.124 Framework for correcting claims 

or certifications of origin. 

(a) ‘‘Promptly and voluntarily’’ 

defined. Except as provided for in 

paragraph (b) of this section, for 

purposes of this part, the making of a 

corrected claim or certification of origin 

by an importer or the providing of 

written notification of an incorrect 

certification of origin by an exporter or 

producer will be deemed to have been 

done promptly and voluntarily if: 

(1)(i) Done before the commencement 

of a formal investigation, within the 

meaning of § 162.74(g) of this chapter; 

or 

(ii) Done before any of the events 

specified in § 162.74(i) of this chapter 

has occurred; or 

(iii) Done within 30 days after the 

importer, exporter, or producer initially 

becomes aware that the claim or 

certification is incorrect; and 

(2) Accompanied by a statement 

setting forth the information specified in 

paragraph (c) of this section; and 

(3) In the case of a corrected claim or 

certification of origin by an importer, 

accompanied or followed by a tender of 

any actual loss of duties and 

merchandise processing fees, if 

applicable, in accordance with 

paragraph (d) of this section. 

(b) Exception in cases involving fraud 

or subsequent incorrect claims—(1) 

Fraud. Notwithstanding paragraph (a) of 

this section, a person who acted 

fraudulently in making an incorrect 

claim or certification of origin may not 

make a voluntary correction of that 

claim or certification of origin. For 

purposes of this paragraph, the term 

‘‘fraud’’ will have the meaning set forth 

in paragraph (C)(3) of Appendix B to 

part 171 of this chapter. 

(2) Subsequent incorrect claims. An 

importer who makes one or more 

incorrect claims after becoming aware 

that a claim involving the same 

merchandise and circumstances is 

invalid may not make a voluntary 

correction of the subsequent claims 

pursuant to paragraph (a) of this section. 

(c) Statement. For purposes of this 

part, each corrected claim or 

certification of origin must be 

accompanied by a statement, submitted 

in writing or via a CBP-authorized 

electronic data interchange system, 

which: 

(1) Identifies the class or kind of good 

to which the incorrect claim or 

certification of origin relates; 

(2) In the case of a corrected claim or 

certification of origin by an importer, 

identifies each affected import 

transaction, including each port of 

importation and the approximate date of 

each importation; 

(3) In the case of a written notification 

of an incorrect certification of origin by 

an exporter or producer, identifies each 

affected export transaction, including 

each port of exportation and the 

approximate date of each exportation. A 

producer who provides written 

notification that certain information in a 

certification of origin is incorrect and 

who is unable to identify the specific 

export transactions under this paragraph 

must provide as much information 

concerning those transactions as the 

producer, by the exercise of good faith 

and due diligence, is able to obtain; 

(4) Specifies the nature of the 

incorrect statements or omissions 

regarding the claim or certification of 

origin; and 

(5) Sets forth, to the best of the 

person’s knowledge, the true and 

accurate information or data which 

should have been covered by or 

provided in the claim or certification of 

origin, and states that the person will 

provide any additional information or 

data which is unknown at the time of 

making the corrected claim or 

certification of origin within 30 days or 

within any extension of that 30-day 

period as CBP may permit in order for 

the person to obtain the information or 

data. 

(d) Tender of actual loss of duties. A 

U.S. importer who makes a corrected 

claim must tender any actual loss of 

duties at the time of making the 

corrected claim, or within 30 days 

thereafter, or within any extension of 

that 30-day period as CBP may allow in 

order for the importer to obtain the 

information or data necessary to 

calculate the duties owed. 

PART 190—MODERNIZED DRAWBACK 

■ 56. The general and specific authority 

citations for part 190 continue to read as 

follows: 

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 

(General Note 3(i), Harmonized Tariff 

Schedule of the United States), 1313, 1624; 

§§ 190.2, 190.10, 190.15, 190.23, 190.38, 

190.51 issued under 19 U.S.C. 1508; 

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35594 Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations 

§ 190.0 [Amended] 

■ 57. Amend § 190.0 by adding the 

phrase ‘‘, and provisions relating to the 

Agreement Between the United States of 

America, the United Mexican States, 

and Canada (USMCA) are contained in 

subpart E of part 182 of this chapter’’ 

after the words ‘‘part 181 of this 

chapter’’. 

§ 190.0a [Amended] 

■ 58. Amend § 190.0a as follows: 

■ a. Add the words ‘‘and USMCA’’ after 

the term ‘‘NAFTA’’ in the paragraph 

heading; 

■ b. Add the words ‘‘or part 182’’ after 

the number ‘‘181’’. 

§ 190.51 [Amended] 

■ 59. Amend § 190.51(a)(2)(xv) as 

follows: 

■ a. Add the words ‘‘and USMCA’’ after 

the words ‘‘For NAFTA’’; 

■ b. Remove the words ‘‘part 181’’ and 

add in their place the words ‘‘parts 181 

and 182’’; 

■ c. Remove the words ‘‘to NAFTA 

countries’’. 

Troy A. Miller, the Senior Official 

Performing the Duties of the 

Commissioner, having reviewed and 

approved this document, is delegating 

the authority to electronically sign this 

document to Robert F. Altneu, who is 

the Director of the Regulations and 

Disclosure Law Division for CBP, for 

purposes of publication in the Federal 

Register. 

Robert F. Altneu, 

Director, Regulations & Disclosure Law 

Division, Regulations & Rulings, Office of 

Trade, U.S. Customs and Border Protection. 

Approved: 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. 2021–14264 Filed 7–1–21; 11:15 am] 

BILLING CODE 9111–14–P 


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