IIB 
116TH CONGRESS 
2D SESSION 
H. R. 5430 
IN THE SENATE OF THE UNITED STATES 
JANUARY 3, 2020 
Received; read twice and referred jointly to the Committees on Finance, 
Health, Education, Labor, and Pensions, Environment and Public Works, 
Appropriations, Foreign Relations, Commerce, Science, and Transpor-
tation, and the Budget pursuant to section 151(e)(2) of the Trade Act 
of 1974 
AN ACT 
To implement the Agreement between the United States of 
America, the United Mexican States, and Canada at-
tached as an Annex to the Protocol Replacing the North 
American Free Trade Agreement. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘United States-Mexico-Canada Agreement Implementa-
tion Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purpose. 
Sec. 3. Definitions. 
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING 
TO, THE USMCA 
Sec. 101. Approval and entry into force of the USMCA. 
Sec. 102. Relationship of the USMCA to United States and State law. 
Sec. 103. Implementing actions in anticipation of entry into force; initial regu-
lations; tariff proclamation authority. 
Sec. 104. Consultation and layover provisions for, and effective date of, pro-
claimed actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Trade Representative authority. 
Sec. 107. Effective date. 
TITLE II—CUSTOMS PROVISIONS 
Sec. 201. Exclusion of originating goods of USMCA countries from special ag-
riculture safeguard authority. 
Sec. 202. Rules of origin. 
Sec. 202A. Special rules for automotive goods. 
Sec. 203. Merchandise processing fee. 
Sec. 204. Disclosure of incorrect information; false certifications of origin; de-
nial of preferential tariff treatment. 
Sec. 205. Reliquidation of entries. 
Sec. 206. Recordkeeping requirements. 
Sec. 207. Actions regarding verification of claims under the USMCA. 
Sec. 208. Drawback [reserved]. 
Sec. 209. Other amendments to the Tariff Act of 1930. 
Sec. 210. Regulations. 
TITLE III—APPLICATION OF USMCA TO SECTORS AND SERVICES 
Subtitle A—Relief From Injury Caused by Import Competition [reserved] 
Subtitle B—Temporary Entry of Business Persons [reserved] 
Subtitle C—United States-Mexico Cross-Border Long-Haul Trucking Services 
Sec. 321. Definitions. 
Sec. 322. Investigations and determinations by Commission. 
Sec. 323. Commission recommendations and report. 
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Sec. 324. Action by President with respect to affirmative determination. 
Sec. 325. Confidential business information. 
Sec. 326. Conforming amendments. 
Sec. 327. Survey of operating authorities. 
TITLE IV—ANTIDUMPING AND COUNTERVAILING DUTIES 
Subtitle A—Preventing Duty Evasion 
Sec. 401. Cooperation on duty evasion. 
Subtitle B—Dispute Settlement [reserved] 
Subtitle C—Conforming Amendments 
Sec. 421. Judicial review in antidumping duty and countervailing duty cases. 
Sec. 422. Conforming amendments to other provisions of the Tariff Act of 
1930. 
Sec. 423.
Conforming amendments to title 28, United States Code. 
Subtitle D—General Provisions 
Sec. 431. Effect of termination of USMCA country status. 
Sec. 432. Effective date. 
TITLE V—TRANSFER PROVISIONS AND OTHER AMENDMENTS 
Sec. 501. Drawback. 
Sec. 502. Relief from injury caused by import competition. 
Sec. 503. Temporary entry. 
Sec. 504. Dispute settlement in antidumping and countervailing duty cases. 
Sec. 505. Government procurement. 
Sec. 506. Actions affecting United States cultural industries. 
Sec. 507. Regulatory treatment of uranium purchases. 
Sec. 508. Report on amendments to existing law. 
TITLE VI—TRANSITION TO AND EXTENSION OF USMCA 
Subtitle A—Transitional Provisions 
Sec. 601. Repeal of North American Free Trade Agreement Implementation 
Act. 
Sec. 602. Continued suspension of the United States-Canada Free-Trade 
Agreement. 
Subtitle B—Joint Reviews Regarding Extension of USMCA 
Sec. 611. Participation in joint reviews with Canada and Mexico regarding ex-
tension of the term of the USMCA and other action regarding 
the USMCA. 
Subtitle C—Termination of USMCA 
Sec. 621. Termination of USMCA. 
TITLE VII—LABOR MONITORING AND ENFORCEMENT 
Sec. 701. Definitions. 
Subtitle A—Interagency Labor Committee for Monitoring and Enforcement 
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Sec. 711. Interagency labor committee for monitoring and enforcement. 
Sec. 712. Duties. 
Sec. 713. Enforcement priorities. 
Sec. 714. Assessments. 
Sec. 715. Recommendation for enforcement action. 
Sec. 716. Petition process. 
Sec. 717. Hotline. 
Sec. 718. Reports. 
Sec. 719. Consultations on appointment and funding of rapid response labor 
panelists. 
Subtitle B—Mexico Labor Attache´s 
Sec. 721. Establishment. 
Sec. 722. Duties. 
Sec. 723. Status. 
Subtitle C—Independent Mexico Labor Expert Board 
Sec. 731. Establishment. 
Sec. 732. Membership; term. 
Sec. 733. Funding. 
Sec. 734. Reports. 
Subtitle D—Forced Labor 
Sec. 741. Forced labor enforcement task force. 
Sec. 742. Timeline required. 
Sec. 743. Reports required. 
Sec. 744. Duties related to Mexico. 
Subtitle E—Enforcement Under Rapid Response Labor Mechanism 
Sec. 751. Transmission of reports. 
Sec. 752. Suspension of liquidation. 
Sec. 753. Final remedies. 
TITLE VIII—ENVIRONMENT MONITORING AND ENFORCEMENT 
Sec. 801. Definitions. 
Subtitle A—Interagency Environment Committee for Monitoring and 
Enforcement 
Sec. 811. Establishment. 
Sec. 812. Assessment. 
Sec. 813. Monitoring actions. 
Sec. 814. Enforcement actions. 
Sec. 815. Other monitoring and enforcement actions. 
Sec. 816. Report to Congress. 
Sec. 817. Regulations. 
Subtitle B—Other Matters 
Sec. 821. Border water infrastructure improvement authority. 
Sec. 822. Detail of personnel to Office of the United States Trade Representa-
tive. 
Subtitle C—North American Development Bank 
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Sec. 831. General capital increase. 
Sec. 832. Policy goals. 
Sec. 833. Efficiencies and streamlining. 
Sec. 834. Performance measures. 
TITLE IX—USMCA SUPPLEMENTAL APPROPRIATIONS ACT, 2019 
SEC. 2. PURPOSE. 
The purpose of this Act is to approve and implement 
the Agreement between the United States of America, the 
United Mexican States, and Canada entered into under 
the authority of section 103(b) of the Bipartisan Congres-
sional Trade Priorities and Accountability Act of 2015 (19 
U.S.C. 4202(b)). 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Finance of the 
Senate and the Committee on Ways and Means of 
the House of Representatives. 
(2) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States. 
(3) IDENTICAL
GOODS.—The term ‘‘identical 
goods’’ means goods that are the same in all re-
spects relevant to the rule of origin that qualifies the 
goods as originating goods. 
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(4) INTERNATIONAL TRADE COMMISSION.—The 
term ‘‘International Trade Commission’’ means the 
United States International Trade Commission. 
(5) MEXICO.—The term ‘‘Mexico’’ means the 
United Mexican States. 
(6) NAFTA.—The term ‘‘NAFTA’’ means the 
North American Free Trade Agreement approved by 
Congress under section 101(a)(1) of the North 
American Free Trade Agreement Implementation 
Act (19 U.S.C. 3311(a)(1)). 
(7) PREFERENTIAL TARIFF TREATMENT.—The 
term ‘‘preferential tariff treatment’’ means the cus-
toms duty rate that is applicable to an originating 
good (as defined in section 202(a)) under the 
USMCA. 
(8) 
TRADE
REPRESENTATIVE.—The 
term 
‘‘Trade Representative’’ means the United States 
Trade Representative. 
(9) USMCA.—The term ‘‘USMCA’’ means the 
Agreement between the United States of America, 
the United Mexican States, and Canada, which is— 
(A) attached as an Annex to the Protocol 
Replacing the North American Free Trade 
Agreement with the Agreement between the 
United States of America, the United Mexican 
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States, and Canada, done at Buenos Aires on 
November 30, 2018, as amended by the Pro-
tocol of Amendment to the Agreement Between 
the United States of America, the United Mexi-
can States, and Canada, done at Mexico City 
on December 10, 2019; and 
(B) approved by Congress under section 
101(a)(1). 
(10) USMCA COUNTRY.—Except as otherwise 
provided, the term ‘‘USMCA country’’ means— 
(A) Canada for such time as the USMCA 
is in force with respect to, and the United 
States applies the USMCA to, Canada; and 
(B) Mexico for such time as the USMCA 
is in force with respect to, and the United 
States applies the USMCA to, Mexico. 
TITLE 
I—APPROVAL 
OF, 
AND 
GENERAL 
PROVISIONS 
RE-
LATING TO, THE USMCA 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE 
USMCA. 
(a) APPROVAL OF USMCA AND STATEMENT OF AD-
MINISTRATIVE ACTION.—Pursuant to section 106 of the 
Bipartisan Congressional Trade Priorities and Account-
ability Act of 2015 (19 U.S.C. 4205) and section 151 of 
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the Trade Act of 1974 (19 U.S.C. 2191), Congress ap-
proves— 
(1) the Protocol Replacing the North American 
Free Trade Agreement with the Agreement between 
the United States of America, the United Mexican 
States, and Canada, done at Buenos Aires on No-
vember 30, 2018, as submitted to Congress on De-
cember 13, 2019; 
(2) the Agreement between the United States of 
America, the United Mexican States, and Canada, 
attached as an Annex to the Protocol, as amended 
by the Protocol of Amendment to the Agreement be-
tween the United States of America, the United 
Mexican States, and Canada, done at Mexico City on 
December 10, 2019, as submitted to Congress on 
December 13, 2019; and 
(3) the statement of administrative action pro-
posed to implement that Agreement, as submitted to 
Congress on December 13, 2019. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE 
AGREEMENT.—The President is authorized to provide for 
the USMCA to enter into force with respect to Canada 
and Mexico not earlier than 30 days after the date on 
which the President submits to Congress the written no-
tice required by section 106(a)(1)(G) of the Bipartisan 
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Congressional Trade Priorities and Accountability Act of 
2015 (19 U.S.C. 4205(a)(1)(G)), which shall include the 
date on which the USMCA will enter into force. 
SEC. 102. RELATIONSHIP OF THE USMCA TO UNITED 
STATES AND STATE LAW. 
(a) RELATIONSHIP OF USMCA TO UNITED STATES 
LAW.— 
(1) UNITED STATES LAW TO PREVAIL IN CON-
FLICT.—No provision of the USMCA, nor the appli-
cation of any such provision to any person or cir-
cumstance, which is inconsistent with any law of the 
United States, shall have effect. 
(2) CONSTRUCTION.—Nothing in this Act shall 
be construed— 
(A) to amend or modify any law of the 
United States, or 
(B) to limit any authority conferred under 
any law of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP OF USMCA TO STATE LAW.— 
(1) LEGAL CHALLENGE.—No State law, or the 
application thereof, may be declared invalid as to 
any person or circumstance on the ground that the 
provision or application is inconsistent with the 
USMCA, except in an action brought by the United 
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States for the purpose of declaring such law or ap-
plication invalid. 
(2) DEFINITION OF STATE LAW.—For purposes 
of this subsection, the term ‘‘State law’’ includes— 
(A) any law of a political subdivision of a 
State; and 
(B) any State law regulating or taxing the 
business of insurance. 
(c) EFFECT OF USMCA WITH RESPECT TO PRIVATE 
REMEDIES.—No person other than the United States— 
(1) shall have any cause of action or defense 
under the USMCA or by virtue of congressional ap-
proval thereof; or 
(2) may challenge, in any action brought under 
any provision of law, any action or inaction by any 
department, agency, or other instrumentality of the 
United States, any State, or any political subdivision 
of a State, on the ground that such action or inac-
tion is inconsistent with the USMCA. 
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 
ENTRY INTO FORCE; INITIAL REGULATIONS; 
TARIFF PROCLAMATION AUTHORITY. 
(a) IMPLEMENTING ACTIONS.— 
(1) PROCLAMATION
AUTHORITY.—After the 
date of the enactment of this Act— 
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(A) the President may proclaim such ac-
tions, and 
(B) other appropriate officers of the 
United States Government may prescribe such 
regulations, 
as may be necessary to ensure that any provision of 
this Act, or amendment made by this Act, that takes 
effect on the date on which the USMCA enters into 
force is appropriately implemented on such date, but 
no such proclamation or regulation may have an ef-
fective date earlier than the date on which the 
USMCA enters into force. 
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED 
ACTIONS.—Any action proclaimed by the President 
under the authority of this Act that is not subject 
to the consultation and layover provisions under sec-
tion 104 may not take effect before the 15th day 
after the date on which the text of the proclamation 
is published in the Federal Register. 
(3) WAIVER OF 15-DAY RESTRICTION.—The 15- 
day restriction contained in paragraph (2) on the 
taking effect of proclaimed actions is waived to the 
extent that the application of such restriction would 
prevent the taking effect on the date on which the 
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USMCA enters into force of any action proclaimed 
under this section. 
(b) INITIAL REGULATIONS.— 
(1) IN GENERAL.—Except as provided by para-
graph (2) or (3), initial regulations necessary or ap-
propriate to carry out the actions required by or au-
thorized under this Act or proposed in the statement 
of administrative action approved under section 
101(a)(2) to implement the USMCA shall, to the 
maximum extent feasible, be prescribed within 1 
year after the date on which the USMCA enters into 
force. 
(2) UNIFORM REGULATIONS.—Interim or initial 
regulations to implement the Uniform Regulations 
regarding rules of origin provided for under article 
5.16 of the USMCA shall be prescribed not later 
than the date on which the USMCA enters into 
force. 
(3) IMPLEMENTING ACTIONS WITH EFFECTIVE 
DATES AFTER ENTRY INTO FORCE.—In the case of 
any implementing action that takes effect on a date 
after the date on which the USMCA enters into 
force, initial regulations to carry out that action 
shall, to the maximum extent feasible, be prescribed 
within 1 year after such effective date. 
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(c) TARIFF MODIFICATIONS.— 
(1) TARIFF MODIFICATIONS PROVIDED FOR IN 
THE USMCA.—The President may proclaim— 
(A) such modifications or continuation of 
any duty, 
(B) such continuation of duty-free or ex-
cise treatment, or 
(C) such additional duties, 
as the President determines to be necessary or ap-
propriate to carry out or apply articles 2.4, 2.5, 2.7, 
2.8, 2.9, 2.10, 6.2, and 6.3, the Schedule of the 
United States to Annex 2–B, including the appen-
dices to that Annex, Annex 2–C, and Annex 6–A, of 
the USMCA. 
(2) OTHER
TARIFF
MODIFICATIONS.—Subject 
to the consultation and layover provisions of section 
104, the President may proclaim— 
(A) such modifications or continuation of 
any duty, 
(B) such modifications as the United 
States may agree to with a USMCA country re-
garding the staging of any duty treatment set 
forth in the Schedule of the United States to 
Annex 2–B of the USMCA, including the ap-
pendices to that Annex, 
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(C) such continuation of duty-free or excise 
treatment, or 
(D) such additional duties, 
as the President determines to be necessary or ap-
propriate to maintain the general level of reciprocal 
and mutually advantageous concessions with respect 
to a USMCA country provided for by the USMCA. 
(3) CONVERSION TO AD VALOREM RATES.—For 
purposes of paragraphs (1) and (2), with respect to 
any good for which the base rate in the Schedule of 
the United States to Annex 2–B of the USMCA is 
a specific or compound rate of duty, the President 
shall substitute for the base rate an ad valorem rate 
that the President determines to be equivalent to the 
base rate. 
(4) TARIFF-RATE
QUOTAS.—In implementing 
the tariff-rate quotas set forth in the Schedule of the 
United States to Annex 2–B of the USMCA, the 
President shall take such actions as may be nec-
essary to ensure that imports of agricultural goods 
do not disrupt the orderly marketing of agricultural 
goods in the United States. 
(5) PRESIDENTIAL PROCLAMATION AUTHORITY 
RELATING TO RULES OF ORIGIN.— 
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(A) IN
GENERAL.—The President may 
proclaim, as part of the HTS— 
(i) the provisions set forth in Annex 
4–B of the USMCA; 
(ii) the provisions set forth in para-
graph 2 of article 3.A.6 of Annex 3–A of 
the USMCA; 
(iii) the provisions set forth in para-
graph 5 of Annex 3–B of the USMCA; 
(iv) the provisions set forth in para-
graphs 14(b), 14(c), and 15(e) of Section 
B of Appendix 2 to Annex 2–B of the 
USMCA; and 
(v) any additional subordinate cat-
egory that is necessary to carry out section 
202 and section 202A consistent with the 
USMCA. 
(B) MODIFICATIONS.— 
(i) IN GENERAL.—Subject to the con-
sultation and layover provisions of section 
104, the President may proclaim modifica-
tions to the provisions proclaimed under 
the authority of subparagraph (A), other 
than the provisions of chapters 50 through 
63 of the USMCA. 
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(ii) SPECIAL RULE FOR TEXTILES.— 
Notwithstanding clause (i), and subject to 
the consultation and layover provisions of 
section 104, the President may proclaim— 
(I) such modifications to the pro-
visions proclaimed under the authority 
of subparagraph (A) as are necessary 
to implement an agreement with one 
or more USMCA countries pursuant 
to article 6.4 of the USMCA; and 
(II) before the end of the 1-year 
period beginning on the date on which 
the USMCA enters into force, modi-
fications to correct any typographical, 
clerical, or other nonsubstantive tech-
nical error regarding the provisions of 
chapters 50 through 63 of the 
USMCA. 
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
If a provision of this Act provides that the implemen-
tation of an action by the President by proclamation is 
subject to the consultation and layover requirements of 
this section, that action may be proclaimed only if— 
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(1) the President has obtained advice regarding 
the proposed action from— 
(A) the appropriate advisory committees 
established under section 135 of the Trade Act 
of 1974 (19 U.S.C. 2155); and 
(B) the International Trade Commission, 
which shall hold a public hearing on the pro-
posed action before providing advice regarding 
the proposed action; 
(2) the President has submitted to the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
a report that sets forth— 
(A) the proposed action and the reasons 
therefor; and 
(B) the advice obtained under paragraph 
(1); 
(3) a period of 60 calendar days, beginning on 
the first day on which the requirements set forth in 
paragraphs (1) and (2) have been met, has expired; 
and 
(4) the President has consulted with the com-
mittees referred to in paragraph (2) regarding the 
proposed action during the period referred to in 
paragraph (3). 
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SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO-
CEEDINGS. 
(a) UNITED STATES SECTION OF SECRETARIAT.— 
(1) ESTABLISHMENT OR DESIGNATION OF OF-
FICE.—The President is authorized to establish or 
designate within the Department of Commerce an 
office to serve as the United States Section of the 
Secretariat established under article 30.6 of the 
USMCA. 
(2) FUNCTIONS AND ADMINISTRATIVE ASSIST-
ANCE.—The office established or designated under 
paragraph (1), subject to the oversight of the inter-
agency group established under section 411(c)(2), 
shall— 
(A) carry out its functions within the Sec-
retariat to facilitate the operation of the 
USMCA, including the operation of section D 
of chapter 10 and chapter 31 of the USMCA; 
and 
(B) provide administrative assistance to— 
(i) panels established under chapter 
31 of the USMCA, including under Annex 
31–A (relating to the Facility-Specific 
Rapid Response Labor Mechanism); 
(ii) technical advisers and experts pro-
vided for under chapter 31 of the USMCA; 
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(iii) binational panels and extraor-
dinary challenge committees established 
under section D of chapter 10 of the 
USMCA; and 
(iv) binational panels and extraor-
dinary challenge committees established 
under NAFTA for matters covered by arti-
cle 34.1 of the USMCA (relating to transi-
tion from NAFTA). 
(3) TREATMENT OF OFFICE UNDER FREEDOM 
OF
INFORMATION
ACT.—The office established or 
designated under paragraph (1) shall not be consid-
ered an agency for purposes of section 552 of title 
5, United States Code. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for each fiscal year after 
fiscal year 2020 to the Department of Commerce 
$2,000,000 for— 
(1) the operations of the office established or 
designated under subsection (a)(1); and 
(2) the payment of the United States share of 
the expenses of— 
(A) panels established under chapter 31 of 
the USMCA, including under Annex 31–A (re-
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lating to the Facility-Specific Rapid Response 
Labor Mechanism); 
(B) binational panels and extraordinary 
challenge committees established under section 
D of chapter 10 of the USMCA; and 
(C) binational panels and extraordinary 
challenge committees established under NAFTA 
for matters covered by article 34.1 of the 
USMCA (relating to transition from NAFTA). 
(c) REIMBURSEMENT OF CERTAIN EXPENSES.—If 
the Canadian Section or the Mexican Section of the Secre-
tariat provides funds to the United States Section during 
any fiscal year as reimbursement for expenses in connec-
tion with dispute settlement proceedings under section D 
of chapter 10 or chapter 31 of the USMCA, or under 
chapter 19 of NAFTA, the United States Section may, 
notwithstanding section 3302 of title 31, United States 
Code, retain and use such funds to carry out the functions 
described in subsection (a)(2). 
SEC. 106. TRADE REPRESENTATIVE AUTHORITY. 
If a country (other than the United States) that has 
signed the USMCA does not enact implementing legisla-
tion, the Trade Representative is authorized to enter into 
negotiations with the other country that has signed the 
USMCA to consider how the applicable provisions of the 
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USMCA can come into force with respect to the United 
States and that other country as promptly as possible. 
SEC. 107. EFFECTIVE DATE. 
(a) IN GENERAL.—Sections 1 through 3 and this title 
(other than section 103(c)) shall take effect on the date 
of the enactment of this Act. 
(b) PROCLAMATION
AUTHORITY.—Section 103(c) 
shall take effect on the date on which the USMCA enters 
into force. 
TITLE II—CUSTOMS PROVISIONS 
SEC. 201. EXCLUSION OF ORIGINATING GOODS OF USMCA 
COUNTRIES FROM SPECIAL AGRICULTURE 
SAFEGUARD AUTHORITY. 
(a) IN GENERAL.—Section 405(e) of the Uruguay 
Round Agreements Act (19 U.S.C. 3602(e)) is amended 
to read as follows: 
‘‘(e) EXCLUSION
OF
ORIGINATING
GOODS
OF 
USMCA COUNTRIES.— 
‘‘(1) IN GENERAL.—The President shall exempt 
from any duty imposed under this section any good 
that qualifies as an originating good under section 
202 of the United States-Mexico-Canada Agreement 
Implementation Act of a USMCA country with re-
spect to which preferential tariff treatment is pro-
vided under the USMCA. 
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‘‘(2) DEFINITIONS.—In this subsection, the 
terms ‘preferential tariff treatment’, ‘USMCA’, and 
‘USMCA country’ have the meanings given those 
terms in section 3 of the United States-Mexico-Can-
ada Agreement Implementation Act.’’. 
(b) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall— 
(A) take effect on the date on which the 
USMCA enters into force; and 
(B) apply with respect to a good entered 
for consumption, or withdrawn from warehouse 
for consumption, on or after that date. 
(2) TRANSITION FROM NAFTA TREATMENT.—In 
the case of a good entered for consumption, or with-
drawn from warehouse for consumption, before the 
date on which the USMCA enters into force— 
(A) the amendment made by subsection (a) 
to section 405(e) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3602(e)) shall not apply 
with respect to the good; and 
(B) section 405(e) of such Act, as in effect 
on the day before that date, shall continue to 
apply on and after that date with respect to the 
good. 
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SEC. 202. RULES OF ORIGIN. 
(a) DEFINITIONS.—In this section: 
(1) AQUACULTURE.—The term ‘‘aquaculture’’ 
means the farming of aquatic organisms, including 
fish, molluscs, crustaceans, other aquatic inverte-
brates, and aquatic plants from seed stock such as 
eggs, fry, fingerlings, or larvae, by intervention in 
the rearing or growth processes to enhance produc-
tion such as regular stocking, feeding, or protection 
from predators. 
(2) CUSTOMS
VALUATION
AGREEMENT.—The 
term ‘‘Customs Valuation Agreement’’ means the 
Agreement on Implementation of Article VII of the 
General Agreement on Tariffs and Trade 1994 re-
ferred to in section 101(d)(8) of the Uruguay Round 
Agreements Act (19 U.S.C. 3511(d)(8)). 
(3) FUNGIBLE
GOOD
OR
FUNGIBLE
MATE-
RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate-
rial’’ means a good or material, as the case may be, 
that is interchangeable with another good or mate-
rial for commercial purposes and the properties of 
which are essentially identical to such other good or 
material. 
(4) GOOD WHOLLY OBTAINED OR PRODUCED 
ENTIRELY IN THE TERRITORY OF ONE OR MORE 
USMCA
COUNTRIES.—The term ‘‘good wholly ob-
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such goods are fit only for the recovery of 
raw materials. 
(K) A good produced in the territory of 
one or more USMCA countries exclusively from 
goods referred to in any of subparagraphs (A) 
through (J), or from their derivatives, at any 
stage of production. 
(5) INDIRECT MATERIAL.—The term ‘‘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 pro-
duction of a good, including— 
(A) fuel and energy; 
(B) tools, dies, and molds; 
(C) spare parts and materials used or con-
sumed in the maintenance of equipment or 
buildings; 
(D) lubricants, greases, compounding ma-
terials, and other materials used or consumed 
in production or to operate equipment or build-
ings; 
(E) gloves, glasses, footwear, clothing, 
safety equipment, and supplies; 
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(F) equipment, devices, and supplies used 
for testing or inspecting the good; 
(G) catalysts and solvents; and 
(H) any other material that is not incor-
porated into the good, if the use of the material 
in the production of the good can reasonably be 
demonstrated to be a part of that production. 
(6) INTERMEDIATE MATERIAL.—The term ‘‘in-
termediate material’’ means a material that is self- 
produced, used or consumed in the production of a 
good, and designated as an intermediate material 
pursuant to subsection (d)(9). 
(7) MATERIAL.—The term ‘‘material’’ means a 
good that is used or consumed in the production of 
another good and includes a part or an ingredient. 
(8) NET COST.—The term ‘‘net cost’’ means 
total cost minus sales promotion, marketing, and 
after-sales service costs, royalties, shipping and 
packing costs, and nonallowable interest costs that 
are included in the total cost. 
(9) NET COST OF A GOOD.—The term ‘‘net cost 
of a good’’ means the net cost that can be reason-
ably allocated to a good using one of the methods set 
forth in subsection (d)(7). 
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(10) NONALLOWABLE INTEREST COSTS.—The 
term ‘‘nonallowable interest costs’’ means interest 
costs incurred by a producer that exceed 700 basis 
points above the applicable official interest rate for 
comparable maturities of the country in which the 
producer is located. 
(11) NONORIGINATING
GOOD
OR
NONORIGI-
NATING
MATERIAL.—The 
term 
‘‘nonoriginating 
good’’ or ‘‘nonoriginating material’’ means a good or 
material, as the case may be, that does not qualify 
as originating under this section. 
(12) ORIGINATING GOOD; ORIGINATING MATE-
RIAL.—The term ‘‘originating good’’ or ‘‘originating 
material’’ means a good or material, as the case may 
be, that qualifies as originating under this section. 
(13) 
PACKAGING
MATERIALS
AND
CON-
TAINERS.—The term ‘‘packaging materials and con-
tainers’’ means materials and containers in which a 
good is packaged for retail sale. 
(14) PACKING MATERIALS AND CONTAINERS.— 
The term ‘‘packing materials and containers’’ means 
materials and containers that are used to protect a 
good during transportation. 
(15) PRODUCER.—The term ‘‘producer’’ means 
a person who engages in the production of a good. 
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(16) PRODUCTION.—The term ‘‘production’’ 
means— 
(A) growing, cultivating, raising, mining, 
harvesting, fishing, trapping, hunting, cap-
turing, breeding, extracting, manufacturing, 
processing, or assembling a good; or 
(B) the farming of aquatic organisms 
through aquaculture. 
(17) REASONABLY ALLOCATE.—The term ‘‘rea-
sonably allocate’’ means to apportion in a manner 
appropriate to the circumstances. 
(18) RECOVERED
MATERIAL.—The term ‘‘re-
covered material’’ means a material in the form of 
individual parts that are the result of— 
(A) the disassembly of a used good into in-
dividual parts; and 
(B) the cleaning, inspecting, testing, or 
other processing that is necessary for improve-
ment to sound working condition of such indi-
vidual parts. 
(19) REMANUFACTURED GOOD.—The term ‘‘re-
manufactured good’’ means a good classified in the 
HTS under any of chapters 84 through 90 or under 
heading 9402, other than a good classified under 
heading 8418, 8509, 8510, 8516, or 8703 or sub-
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heading 8414.51, 8450.11, 8450.12, 8508.11, or 
8517.11, that— 
(A) is entirely or partially composed of re-
covered materials; 
(B) has a life expectancy similar to, and 
performs in a manner that is the same as or 
similar to, such a good when new; and 
(C) has a factory warranty similar to that 
applicable to such a good when new. 
(20) ROYALTIES.—The term ‘‘royalties’’ means 
payments of any kind, including payments under 
technical assistance or similar agreements, made as 
consideration for the use of, or right to use, a copy-
right, literary, artistic, or scientific work, patent, 
trademark, design, model, plan, or secret formula or 
secret process, excluding payments under technical 
assistance or similar agreements that can be related 
to a specific service such as— 
(A) personnel training, without regard to 
where the training is performed; or 
(B) if performed in the territory of one or 
more USMCA countries, engineering, tooling, 
die-setting, software design and similar com-
puter services, or other services. 
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(21) SALES
PROMOTION, 
MARKETING, 
AND 
AFTER-SALES
SERVICE
COSTS.—The term ‘‘sales 
promotion, marketing, and after-sales service costs’’ 
means the costs related to sales promotion, mar-
keting, and after-sales service for the following: 
(A) Sales and marketing promotion, media 
advertising, advertising and market research, 
promotional and demonstration materials, ex-
hibits, sales conferences, trade shows, conven-
tions, banners, marketing displays, free sam-
ples, sales, marketing, and after-sales service 
literature (product brochures, catalogs, tech-
nical literature, price lists, service manuals, and 
sales aid information), establishment and pro-
tection of logos and trademarks, sponsorships, 
wholesale and retail charges, and entertain-
ment. 
(B) Sales and marketing incentives, con-
sumer, retailer, or wholesaler rebates, and mer-
chandise incentives. 
(C) Salaries and wages, sales commissions, 
bonuses, benefits (such as medical, insurance, 
and pension benefits), traveling and living ex-
penses, and membership and professional fees 
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(iv) Telephone, mail, and other com-
munications. 
(22) SELF-PRODUCED
MATERIAL.—The term 
‘‘self-produced material’’ means a material that is 
produced by the producer of a good and used in the 
production of that good. 
(23) SHIPPING
AND
PACKING
COSTS.—The 
term ‘‘shipping and packing costs’’ means the costs 
incurred in packing a good for shipment and ship-
ping the good from the point of direct shipment to 
the buyer, excluding the costs of preparing and 
packaging the good for retail sale. 
(24) TERRITORY.—The term ‘‘territory’’, with 
respect to a USMCA country, has the meaning given 
that term in section C of chapter 1 of the USMCA. 
(25) TOTAL COST.— 
(A) 
IN
GENERAL.—The 
term 
‘‘total 
cost’’— 
(i) means all product costs, period 
costs, and other costs for a good incurred 
in the territory of one or more USMCA 
countries; and 
(ii) does not include— 
(I) profits that are earned by the 
producer of the good, regardless of 
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whether the costs are retained by the 
producer or paid out to other persons 
as dividends; or 
(II) taxes paid on those profits, 
including capital gains taxes. 
(B) OTHER DEFINITIONS.—In this para-
graph: 
(i) OTHER COSTS.—The term ‘‘other 
costs’’ means all costs recorded on the 
books of the producer that are not product 
costs or period costs, such as interest. 
(ii) PERIOD COSTS.—The term ‘‘pe-
riod costs’’ means costs, other than prod-
uct costs, that are expensed in the period 
in which they are incurred, such as selling 
expenses and general and administrative 
expenses. 
(iii) 
PRODUCT
COSTS.—The 
term 
‘‘product costs’’ means costs that are asso-
ciated with the production of a good, in-
cluding the value of materials, direct labor 
costs, and direct overhead. 
(26) TRANSACTION VALUE.—The term ‘‘trans-
action value’’ means the price— 
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(A) actually paid or payable for a good or 
material with respect to a transaction of a pro-
ducer; and 
(B) adjusted in accordance with the prin-
ciples set forth in paragraphs 1, 3, and 4 of ar-
ticle 8 of the Customs Valuation Agreement. 
(27) USMCA COUNTRY.—The term ‘‘USMCA 
country’’ means the United States, Canada, or Mex-
ico for such time as the USMCA is in force with re-
spect to Canada or Mexico, and the United States 
applies the USMCA to Canada or Mexico. 
(28) VALUE.—The term ‘‘value’’ means the 
value of a good or material for purposes of calcu-
lating customs duties or applying this section. 
(b) APPLICATION
AND INTERPRETATION.—In this 
section: 
(1) TARIFF
CLASSIFICATION.—The basis for 
any tariff classification is the HTS. 
(2) REFERENCE
TO
HTS.—Whenever in this 
section there is a reference to a chapter, heading, or 
subheading, that reference shall be a reference to a 
chapter, heading, or subheading of the HTS. 
(3) COST OR VALUE.—Any cost or value re-
ferred to in this section with respect to a good shall 
be recorded and maintained in accordance with the 
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generally accepted accounting principles applicable 
in the territory of the USMCA country in which the 
good is produced. 
(c) ORIGINATING GOODS.— 
(1) IN
GENERAL.—For purposes of this Act 
and for purposes of implementing the preferential 
tariff treatment provided for under the USMCA, ex-
cept as otherwise provided in this section, a good is 
an originating good if— 
(A) the good is a good wholly obtained or 
produced entirely in the territory of one or 
more USMCA countries; 
(B) the good is produced entirely in the 
territory of one or more USMCA countries 
using nonoriginating materials, if the good sat-
isfies all applicable requirements set forth in 
Annex 4–B of the USMCA; or 
(C) the good is produced entirely in the 
territory of one or more USMCA countries, ex-
clusively from originating materials; 
(D) except for a good provided for under 
any of chapters 61 through 63— 
(i) the good is produced entirely in the 
territory of one or more USMCA countries; 
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(ii) one or more of the nonoriginating 
materials provided for as parts under the 
HTS and used in the production of the 
good do not satisfy the requirements set 
forth in Annex 4–B of the USMCA be-
cause— 
(I) both the good and its mate-
rials are classified under the same 
subheading or under the same head-
ing that is not further subdivided into 
subheadings; or 
(II) the good was imported into 
the territory of a USMCA country in 
an unassembled form or a disassem-
bled form but was classified as an as-
sembled good pursuant to rule 2(a) of 
the General Rules of Interpretation of 
the HTS; and 
(iii) the regional value content of the 
good is not less than 60 percent if the 
transaction value method is used, or not 
less than 50 percent if the net cost method 
is used and the good satisfies all other ap-
plicable requirements of this section; or 
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(E) the good itself, as imported, is listed in 
table 2.10.1 of the USMCA and is imported 
into the territory of the United States from the 
territory of a USMCA country. 
(2) REMANUFACTURED GOODS.—For purposes 
of determining whether a remanufactured good is an 
originating good, a recovered material derived in the 
territory of one or more USMCA countries shall be 
treated as originating if the recovered material is 
used or consumed in the production of, and incor-
porated into, the remanufactured good. 
(d) REGIONAL VALUE CONTENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (5), for purposes of subparagraphs (B) and 
(D) of subsection (c)(1), the regional value content 
of a good shall be calculated, at the choice of the im-
porter, exporter, or producer of the good, on the 
basis of— 
(A) the transaction value method described 
in paragraph (2); or 
(B) the net cost method described in para-
graph (3). 
(2) TRANSACTION VALUE METHOD.— 
(A) IN GENERAL.—An importer, exporter, 
or producer of a good may calculate the re-
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(i) The value of processing the non-
originating materials undertaken in the 
territory of one or more USMCA countries. 
(ii) The value of any originating mate-
rials used or consumed in the production 
of the nonoriginating materials undertaken 
in the territory of one or more USMCA 
countries. 
(5) NET COST METHOD REQUIRED IN CERTAIN 
CASES.—An importer, exporter, or producer of a 
good shall calculate the regional value content of the 
good solely on the basis of the net cost method de-
scribed in paragraph (3) if the rule for the good set 
forth in Annex 4–B of the USMCA includes a re-
gional value content requirement not based on the 
transaction value method described in paragraph 
(2). 
(6) NET COST METHOD ALLOWED FOR ADJUST-
MENTS.— 
(A) IN
GENERAL.—If an importer, ex-
porter, or producer of a good calculates the re-
gional value content of the good on the basis of 
the transaction value method described in para-
graph (2) and a USMCA country subsequently 
notifies the importer, exporter, or producer, 
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during the course of a verification conducted in 
accordance with chapter 5 or 6 of the USMCA, 
that the transaction value of the good or the 
value of any material used in the production of 
the good must be adjusted or is unacceptable 
under article 1 of the Customs Valuation 
Agreement, the importer, exporter, or producer 
may calculate the regional value content of the 
good on the basis of the net cost method. 
(B) REVIEW
OF
ADJUSTMENT.—Nothing 
in subparagraph (A) shall be construed to pre-
vent any review or appeal available in accord-
ance with article 5.15 of the USMCA with re-
spect to an adjustment to or a rejection of— 
(i) the transaction value of a good; or 
(ii) the value of any material used in 
the production of a good. 
(7) CALCULATING NET COST.—The producer of 
a good may, consistent with regulations imple-
menting this section, calculate the net cost of the 
good under paragraph (3) by— 
(A) calculating the total cost incurred with 
respect to all goods produced by that producer, 
subtracting any sales promotion, marketing, 
and after-sales services costs, royalties, shipping 
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and packing costs, and nonallowable interest 
costs that are included in the total cost of those 
goods, and then reasonably allocating the re-
sulting net cost of those goods to the good; 
(B) calculating the total cost incurred with 
respect to all goods produced by that producer, 
reasonably allocating the total cost to the good, 
and subtracting any sales promotion, mar-
keting, and after-sales service costs, royalties, 
shipping and packing costs, and nonallowable 
interest costs, that are included in the portion 
of the total cost allocated to the good; or 
(C) reasonably allocating each cost that is 
part of the total cost incurred with respect to 
the good so that the aggregate of those costs 
does not include any sales promotion, mar-
keting, and after-sales service costs, royalties, 
shipping and packing costs, and nonallowable 
interest costs. 
(8) VALUE OF MATERIALS USED IN PRODUC-
TION.—For purposes of calculating the regional 
value content of a good under this subsection, apply-
ing the de minimis rules under subsection (f), and 
calculating the value of nonoriginating components 
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in a set under subsection (m), the value of a mate-
rial used in the production of a good is— 
(A) in the case of a material that is im-
ported by the producer of the good, the trans-
action value of the material at the time of im-
portation, including the costs incurred in the 
international shipment of the material; 
(B) in the case of a material acquired in 
the territory in which the good is produced— 
(i) the price paid or payable by the 
producer in the USMCA country where the 
producer is located; 
(ii) the value as determined under 
subparagraph (A), as set forth in regula-
tions prescribed by the Secretary of the 
Treasury providing for the application of 
transaction value in the absence of an im-
portation by the producer; or 
(iii) the earliest ascertainable price 
paid or payable in the territory of the 
country; or 
(C) in the case of a self-produced material, 
the sum of— 
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(i) all expenses incurred in the pro-
duction of the material, including general 
expenses; and 
(ii) an amount for profit equivalent to 
the profit added in the normal course of 
trade or equal to the profit that is usually 
reflected in the sale of goods of the same 
class or kind as the material. 
(9) INTERMEDIATE MATERIALS.— 
(A) IN GENERAL.—Any self-produced ma-
terial that is used in the production of a good 
may be designated by the producer of the good 
as an intermediate material for purposes of cal-
culating the regional value content of the good 
under paragraph (2) or (3). 
(B) MATERIALS USED IN PRODUCTION OF 
INTERMEDIATE MATERIALS.—If a self-produced 
material is designated as an intermediate mate-
rial under subparagraph (A) for purposes of 
calculating a regional value content require-
ment, no other self-produced material subject to 
a regional value content requirement used or 
consumed in the production of that inter-
mediate material may be designated by the pro-
ducer as an intermediate material. 
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(10) FURTHER
ADJUSTMENTS
TO
VALUE
OF 
MATERIALS.—The following expenses, if included in 
the value of a nonoriginating material calculated 
under paragraph (8), may be deducted from the 
value of the nonoriginating material: 
(A) The costs of freight, insurance, pack-
ing, and all other costs incurred in transporting 
the material to the location of the producer. 
(B) Duties, taxes, and customs brokerage 
fees on the material paid in the territory of one 
or more USMCA countries, other than duties or 
taxes that are waived, refunded, refundable, or 
otherwise recoverable, including credit against 
duty or tax paid or payable. 
(C) The cost of waste and spoilage result-
ing from the use of the material in the produc-
tion of the good, less the value of renewable 
scrap or byproducts. 
(e) ACCUMULATION.— 
(1) PRODUCERS.—A good that is produced in 
the territory of one or more USMCA countries, by 
one or more producers, is an originating good if the 
good satisfies the requirements of subsection (c) and 
all other applicable requirements of this section. 
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(2) ORIGINATING MATERIALS USED IN PRODUC-
TION
OF
GOODS
OF
A
USMCA
COUNTRY.—Origi-
nating materials from the territory of one or more 
USMCA countries that are used in the production of 
a good in the territory of another USMCA country 
shall be considered to originate in the territory of 
such other USMCA country. 
(3) PRODUCTION UNDERTAKEN ON NONORIGI-
NATING MATERIALS USED IN THE PRODUCTION OF 
GOODS.—In determining whether a good is an origi-
nating good under this section, production under-
taken on nonoriginating material in the territory of 
one or more USMCA countries by one or more pro-
ducers shall contribute to the originating status of 
the good, regardless of whether that production is 
sufficient to confer originating status to the non-
originating material. 
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) through (4), a good that does not under-
go a change in tariff classification or satisfy a re-
gional value content requirement set forth in Annex 
4–B of the USMCA is an originating good if— 
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(A) the value of all nonoriginating mate-
rials that are used in the production of the 
good, and do not undergo the applicable change 
in tariff classification set forth in Annex 4–B of 
the USMCA— 
(i) does not exceed 10 percent of the 
transaction value of the good, adjusted to 
exclude any costs incurred in the inter-
national shipment of the good; or 
(ii) does not exceed 10 percent of the 
total cost of the good; 
(B) the good meets all other applicable re-
quirements of this section; and 
(C) the value of such nonoriginating mate-
rials is included in the value of nonoriginating 
materials for any applicable regional value con-
tent requirement for the good. 
(2) EXCEPTIONS FOR DAIRY AND OTHER PROD-
UCTS.—Paragraph (1) does not apply to the fol-
lowing: 
(A) A nonoriginating material of headings 
0401 through 0406, or a nonoriginating dairy 
preparation containing over 10 percent by dry 
weight of milk solids of subheading 1901.90 or 
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2106.90, used or consumed in the production of 
a good of headings 0401 through 0406. 
(B) A nonoriginating material of headings 
0401 through 0406, or nonoriginating dairy 
preparation containing over 10 percent by dry 
weight of milk solids of subheading 1901.90 or 
2106.90, used or consumed in the production of 
any of the following goods: 
(i) Infant preparations containing 
over 10 percent by dry weight of milk sol-
ids, of subheading 1901.10. 
(ii) Mixes and doughs containing over 
25 percent by dry weight of butterfat, not 
put up for retail sale, of subheading 
1901.20. 
(iii) A dairy preparation containing 
over 10 percent by dry weight of milk sol-
ids, of subheading 1901.90 or 2106.90. 
(iv) A good of heading 2105. 
(v) Beverages containing milk of sub-
heading 2202.90. 
(vi) Animal feeds containing over 10 
percent by dry weight of milk solids of sub-
heading 2309.90. 
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(C) A nonoriginating material of heading 
0805, or any of subheadings 2009.11 through 
2009.39, used or consumed in the production of 
a good of subheadings 2009.11 through 
2009.39, or a fruit or vegetable juice of any 
single fruit or vegetable, fortified with minerals 
or vitamins, concentrated or unconcentrated, of 
subheading 2106.90 or 2202.90. 
(D) A nonoriginating material of chapter 9 
used or consumed in the production of instant 
coffee, not flavored, of subheading 2101.11. 
(E) A nonoriginating material of chapter 
15 used or consumed in the production of a 
good of heading 1507, 1508, 1512, 1514, or 
1515. 
(F) A nonoriginating material of heading 
1701 used or consumed in the production of a 
good of any of headings 1701 through 1703. 
(G) A nonoriginating material of chapter 
17 or heading 1805 used in the production of 
a good of subheading 1806.10. 
(H) Nonoriginating peaches, pears, or 
apricots of chapter 8 or 20, used in the produc-
tion of a good of heading 2008. 
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(I) A nonoriginating single juice ingredient 
of heading 2009 used or consumed in the pro-
duction of a good of— 
(i) subheading 2009.90, or tariff item 
2106.90.54 (concentrated mixtures of fruit 
or vegetable juice, fortified with minerals 
or vitamins); or 
(ii) tariff item 2202.99.37 (mixtures 
of fruit or vegetable juices, fortified with 
minerals or vitamins). 
(J) A nonoriginating material of any of 
headings 2203 through 2208 used or consumed 
in the production of a good provided for under 
heading 2207 or 2208. 
(3) GOODS PROVIDED FOR UNDER CHAPTERS 1 
THROUGH 27.—Paragraph (1) does not apply to a 
nonoriginating material used or consumed in the 
production of a good provided for in chapters 1 
through 27 unless the nonoriginating material is 
provided for in a different subheading than the sub-
heading of the good for which origin is being deter-
mined. 
(4) TEXTILE OR APPAREL GOODS.— 
(A) GOODS CLASSIFIED UNDER CHAPTERS 
50 THROUGH 60.—Except as provided in sub-
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paragraph (C), a textile or apparel good pro-
vided for in any of chapters 50 through 60 or 
heading 9619 that is not an originating good 
because certain nonoriginating materials used 
in the production of the good do not undergo an 
applicable change in tariff classification set 
forth in Annex 4–B of the USMCA, shall be 
considered to be an originating good if the total 
weight of all such materials, including elas-
tomeric yarns, is not more than 10 percent of 
the total weight of the good and the good meets 
all other applicable requirements of this section. 
(B) GOODS CLASSIFIED UNDER CHAPTERS 
61 THROUGH 63.—Except as provided in sub-
paragraph (C), a textile or apparel good pro-
vided for in chapter 61, 62, or 63 that is not 
an originating good because certain fibers or 
yarns used in the production of the component 
of the good that determines the tariff classifica-
tion of the good do not undergo an applicable 
change in tariff classification set forth in Annex 
4–B of the USMCA shall be considered to be 
an originating good if the total weight of all 
such fibers or yarns in the component, includ-
ing elastomeric yarns, is not more than 10 per-
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cent of the total weight of the component and 
the good meets all other applicable require-
ments of this section. 
(C) GOODS CONTAINING NONORIGINATING 
ELASTOMERIC YARNS.— 
(i) GOODS CLASSIFIED UNDER CHAP-
TERS 50 THROUGH 60 OR HEADING 9619 .— 
A textile or apparel good described in sub-
paragraph (A) containing nonoriginating 
elastomeric yarns shall be considered to be 
an originating good only if the nonorigi-
nating elastomeric yarns contained in the 
good do not exceed 7 percent of the total 
weight of the good. 
(ii) GOODS CLASSIFIED UNDER CHAP-
TERS 61 THROUGH 63.—A textile or ap-
parel good described in subparagraph (B) 
containing 
nonoriginating 
elastomeric 
yarns shall be considered to be an origi-
nating good only if the nonoriginating elas-
tomeric yarns contained in the component 
of the good that determines the tariff clas-
sification of the good do not exceed 7 per-
cent of the total weight of the good. 
(g) FUNGIBLE GOODS AND MATERIALS.— 
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(1) FUNGIBLE MATERIALS USED IN PRODUC-
TION.—Subject to paragraph (3), if originating and 
nonoriginating fungible materials are used or con-
sumed in the production of a good, the determina-
tion of whether the materials are originating may be 
made on the basis of any of the inventory manage-
ment methods set forth in regulations implementing 
this section. 
(2) FUNGIBLE GOODS COMMINGLED AND EX-
PORTED.—Subject to paragraph (3), if originating 
and nonoriginating fungible goods are commingled 
and exported in the same form, the determination of 
whether the goods are originating may be made on 
the basis of any of the inventory management meth-
ods set forth in regulations implementing this sec-
tion. 
(3) USE OF INVENTORY MANAGEMENT METH-
OD.—A person that selects an inventory manage-
ment method for purposes of paragraph (1) or (2) 
shall use that inventory management method 
throughout the fiscal year of the person. 
(h) ACCESSORIES, SPARE PARTS, TOOLS, AND IN-
STRUCTIONAL OR OTHER INFORMATION MATERIALS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
accessories, spare parts, tools, or instructional or 
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other information materials delivered with a good 
shall— 
(A) be treated as originating if the good is 
an originating good; 
(B) be disregarded in determining whether 
a good is a good wholly obtained or produced 
entirely in the territory of one or more USMCA 
countries or satisfies a process or change in tar-
iff classification set forth in Annex 4–B of the 
USMCA; and 
(C) be taken into account as originating or 
nonoriginating materials, as the case may be, in 
calculating any applicable regional value con-
tent of the good set forth in Annex 4–B of the 
USMCA. 
(2) CONDITIONS.—Paragraph (1) shall apply 
only if— 
(A) the accessories, spare parts, tools, or 
instructional or other information materials are 
classified with and delivered with, but not 
invoiced separately from, the good; and 
(B) the types, quantities, and value of the 
accessories, spare parts, tools, or instructional 
or other information materials are customary 
for the good. 
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(i) PACKAGING MATERIALS AND CONTAINERS FOR 
RETAIL SALE.—Packaging materials and containers in 
which a good is packaged for retail sale, if classified with 
the good, shall be disregarded in determining whether all 
of the nonoriginating materials used in the production of 
the good undergo the applicable process or change in tariff 
classification requirement set forth in Annex 4–B of the 
USMCA, or whether the good is a good wholly obtained 
or produced entirely in the territory of one or more 
USMCA countries. If the good is subject to a regional 
value content requirement set forth in that Annex, the 
value of such packaging materials and containers shall be 
taken into account as originating or nonoriginating mate-
rials, as the case may be, in calculating the regional value 
content of the good. 
(j) PACKING MATERIALS
AND CONTAINERS
FOR 
SHIPMENT.—Packing materials and containers for ship-
ment shall be disregarded in determining whether a good 
is an originating good. 
(k) INDIRECT MATERIALS.—An indirect material 
shall be treated as an originating material without regard 
to where it is produced. 
(l) TRANSIT AND TRANSSHIPMENT.—A good that has 
undergone production necessary to qualify as an origi-
nating good under subsection (c) shall not be considered 
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to be an originating good if, subsequent to that produc-
tion, the good— 
(1) undergoes further production or any other 
operation outside the territory of a USMCA country, 
other than— 
(A) unloading, reloading, separation from 
a bulk shipment, storing, labeling, or marking, 
as required by a USMCA country; or 
(B) any other operation necessary to pre-
serve the good in good condition or to transport 
the good to the territory of the importing 
USMCA country; or 
(2) does not remain under the control of cus-
toms authorities in a country other than a USMCA 
country. 
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN 
SETS.— 
(1) GOODS OTHER THAN TEXTILE OR APPAREL 
GOODS.—Notwithstanding the rules set forth in 
Annex 4–B of the USMCA, goods classifiable as 
goods put up in sets for retail sale as provided for 
in rule 3 of the General Rule of Interpretation of the 
HTS shall not be considered to be originating goods 
unless— 
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(A) each of the goods in the set is an origi-
nating good; or 
(B) the total value of the nonoriginating 
goods in the set does not exceed 10 percent of 
the value of the set. 
(2) TEXTILE
OR
APPAREL
GOODS.—Notwith-
standing the rules set forth in Annex 4–B of the 
USMCA, goods classifiable as goods put up in sets 
for retail sale as provided for in rule 3 of the Gen-
eral Rule of Interpretation of the HTS shall not be 
considered to be originating goods unless— 
(A) each of the goods in the set is an origi-
nating good; or 
(B) the total value of the nonoriginating 
goods in the set does not exceed 10 percent of 
the value of the set. 
(n) NONQUALIFYING OPERATIONS.—A good shall not 
be considered to be an originating good merely by reason 
of— 
(1) mere dilution with water or another sub-
stance that does not materially alter the characteris-
tics of the good; or 
(2) any production or pricing practice with re-
spect to which it may be demonstrated, by a prepon-
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derance of the evidence, that the object of the prac-
tice was to circumvent this section. 
(o) EFFECTIVE DATE.— 
(1) IN GENERAL.—This section shall— 
(A) take effect on the date on which the 
USMCA enters into force; and 
(B) apply with respect to a good entered 
for consumption, or withdrawn from warehouse 
for consumption, on or after that date. 
(2) TRANSITION FROM NAFTA TREATMENT.— 
Section 202 of the North American Free Trade 
Agreement Implementation Act (19 U.S.C. 3332), as 
in effect on the day before the date on which the 
USMCA enters into force, shall continue to apply on 
and after that date with respect to a good entered 
for consumption, or withdrawn from warehouse for 
consumption, before that date. 
SEC. 202A. SPECIAL RULES FOR AUTOMOTIVE GOODS. 
(a) DEFINITIONS.—In this section: 
(1) ALTERNATIVE STAGING REGIME.—The term 
‘‘alternative staging regime’’ means the application, 
pursuant to subsection (d), of the requirements of 
article 8 of the automotive appendix to the produc-
tion of covered vehicles to allow producers of such 
vehicles to bring such production into compliance 
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with the requirements of articles 2 through 7 of that 
appendix. 
(2) ALTERNATIVE STAGING REGIME PERIOD.— 
The term ‘‘alternative staging regime period’’ means 
the period during which the alternative staging re-
gime is in effect. 
(3) AUTOMOTIVE APPENDIX.—The term ‘‘auto-
motive appendix’’ means the Appendix to Annex 4– 
B of the USMCA (relating to the product-specific 
rules of origin for automotive goods). 
(4) AUTOMOTIVE
GOOD.—The term ‘‘auto-
motive good’’ means— 
(A) a covered vehicle; or 
(B) a part, component, or material listed 
in table A.1, A.2, B, C, D, or E of the auto-
motive appendix. 
(5) AUTOMOTIVE RULES OF ORIGIN.—The term 
‘‘automotive rules of origin’’ means the rules of ori-
gin for automotive goods set forth in the automotive 
appendix. 
(6) 
COMMISSIONER.—The 
term 
‘‘Commis-
sioner’’ means the Commissioner of U.S. Customs 
and Border Protection. 
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(7) COVERED VEHICLE.—The term ‘‘covered ve-
hicle’’ means a passenger vehicle, light truck, or 
heavy truck. 
(8) 
INTERAGENCY
COMMITTEE.—The 
term 
‘‘interagency committee’’ means the interagency 
committee established under subsection (b)(1). 
(9) 
PASSENGER
VEHICLE; 
LIGHT
TRUCK; 
HEAVY
TRUCK.—The terms ‘‘passenger vehicle’’, 
‘‘light truck’’, and ‘‘heavy truck’’ have the meanings 
given those terms in article 1 of the automotive ap-
pendix. 
(10) USMCA COUNTRY.—The term ‘‘USMCA 
country’’ means the United States, Canada, or Mex-
ico for such time as the USMCA is in force with re-
spect to Canada or Mexico, and the United States 
applies the USMCA to Canada or Mexico. 
(b) 
ESTABLISHMENT
OF
INTERAGENCY
COM-
MITTEE.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the President 
shall establish an interagency committee— 
(A) to provide advice, as appropriate, on 
the implementation, enforcement, and modifica-
tion of provisions of the USMCA that relate to 
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automotive goods, including the alternative 
staging regime; and 
(B) to review the operation of the USMCA 
with respect to trade in automotive goods, in-
cluding— 
(i) the economic effects of the auto-
motive rules of origin on the United States 
economy, workers, and consumers; and 
(ii) the impact of new technology on 
such rules of origin. 
(2) MEMBERS.—The members of the inter-
agency committee shall be the following: 
(A) The Trade Representative. 
(B) The Secretary of Commerce. 
(C) The Commissioner. 
(D) The Secretary of Labor. 
(E) The Chair of the International Trade 
Commission. 
(F) Any other members determined to be 
necessary by the Trade Representative. 
(3) CHAIR.—The chair of the interagency com-
mittee shall be the Trade Representative. 
(4) USE OF INFORMATION.— 
(A) 
INFORMATION
SHARING.—Notwith-
standing any other provision of law, the mem-
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bers of the interagency committee may ex-
change information for purposes of carrying out 
this section. 
(B) 
CONFIDENTIALITY
OF
INFORMA-
TION.—The interagency committee and any 
Federal agency represented on the interagency 
committee may not disclose to the public any 
confidential documents or information received 
in the course of carrying out this section, except 
information aggregated to preserve confiden-
tiality and used in the reports described in sub-
section (g). 
(c) CERTIFICATION REQUIREMENTS.— 
(1) 
CERTIFICATION
RELATING
TO
LABOR 
VALUE CONTENT REQUIREMENTS.— 
(A) IN GENERAL.—A covered vehicle shall 
be eligible for preferential tariff treatment only 
if the producer of the covered vehicle— 
(i) provides a certification to the Com-
missioner that the production of covered 
vehicles by the producer meets the labor 
value content requirements, including the 
high-wage material and manufacturing ex-
penditures, high-wage technology expendi-
tures, and high-wage assembly expendi-
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tures, as set forth in article 7 of the auto-
motive appendix or, if the producer is sub-
ject to the alternative staging regime, arti-
cles 7 and 8 of that appendix, and includes 
the calculations of the producer related to 
the labor value content requirements; and 
(ii) has information on record to sup-
port those calculations. 
(B) IMPLEMENTATION.—For purposes of 
meeting the requirements under subparagraph 
(A)— 
(i) the Secretary of Labor, in con-
sultation with the Commissioner, shall en-
sure that the certification of a producer 
under subparagraph (A)(i) does not con-
tain omissions or errors before the certifi-
cation is considered properly filed; and 
(ii) a calculation described in subpara-
graph (A)(i) based on a producer’s pre-
ceding fiscal or calendar year is valid for 
the producer’s subsequent fiscal or cal-
endar year, as the case may be, as set 
forth in articles 7 and 8 of the automotive 
appendix. 
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(C) REGULATIONS
REQUIRED.—The Sec-
retary of the Treasury, in consultation with the 
Secretary of Labor, shall prescribe regulations 
to carry out this paragraph, including regula-
tions setting forth the procedures and require-
ments for a producer of covered vehicles to es-
tablish that the producer meets the labor value 
content requirements for preferential tariff 
treatment. 
(2) CERTIFICATION RELATING TO STEEL AND 
ALUMINUM PURCHASE REQUIREMENTS.— 
(A) IN GENERAL.—A covered vehicle shall 
be eligible for preferential tariff treatment only 
if the producer of the covered vehicle— 
(i) provides a certification to the Com-
missioner that the production of covered 
vehicles by the producer meets the steel 
and aluminum purchase requirements set 
forth in article 6 of the automotive appen-
dix or, if the producer is subject to the al-
ternative staging regime, articles 6 and 8 
of that appendix; and 
(ii) has information on record to sup-
port the calculations relied on for the cer-
tification. 
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(B) IMPLEMENTATION.—For purposes of 
meeting the requirements under subparagraph 
(A)— 
(i) the Commissioner shall ensure that 
the certification of a producer under sub-
paragraph (A)(i) does not contain omis-
sions or errors before the certification is 
considered properly filed; and 
(ii) a calculation described in subpara-
graph (A)(ii) based on a producer’s pre-
ceding fiscal or calendar year is valid for 
the producer’s subsequent fiscal or cal-
endar year, as the case may be, as set 
forth in articles 6 and 8 of the automotive 
appendix. 
(C) REGULATIONS
REQUIRED.—The Sec-
retary of the Treasury shall prescribe regula-
tions to carry out this paragraph, including reg-
ulations setting forth the procedures and re-
quirements for a producer of covered vehicles to 
establish that the producer meets the steel and 
aluminum purchase requirements for pref-
erential tariff treatment. 
(d) ALTERNATIVE STAGING REGIME.— 
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(1) PUBLICATION
OF
REQUIREMENTS.—Not 
later than 90 days after the date of the enactment 
of this Act, the Trade Representative, in consulta-
tion with the interagency committee, shall publish in 
the Federal Register requirements, procedures, and 
guidance required to implement the alternative stag-
ing regime, including with respect to the following: 
(A) The procedures, calculation method-
ology, timeframe, specific regional value content 
thresholds, and other minimum requirements, 
consistent with article 8 of the automotive ap-
pendix, with which a producer of covered vehi-
cles subject to the alternative staging regime is 
required to comply during the alternative stag-
ing regime period for such vehicles to be eligible 
for preferential tariff treatment pursuant to the 
alternative staging regime. 
(B) The date by which requests for the al-
ternative staging regime are required to be sub-
mitted. 
(C) The information a producer of pas-
senger vehicles or light trucks is required to 
provide, in the producer’s request to use the al-
ternative staging regime, to demonstrate the ac-
tions that the producer will take to be prepared 
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to meet all the requirements set forth in articles 
2 through 7 of the automotive appendix after 
the alternative staging regime period has ex-
pired, including the following: 
(i) A statement identifying which of 
the requirements set forth in articles 2 
through 7 of the automotive appendix that 
the producer expects it will be unable to 
meet upon entry into force of the USMCA 
based on current business plans. 
(ii) A statement indicating whether 
the passenger vehicles or light trucks for 
which the producer seeks to use the alter-
native staging regime account for 10 per-
cent or less, or more than 10 percent, of 
the total production of passenger vehicles 
or light trucks, as the case may be, in 
USMCA countries by the producer during 
the 12-month period preceding the date on 
which the USMCA enters into force, or the 
average of such production during the 36- 
month period preceding that date, which-
ever is greater. 
(iii) In the case of a producer that 
seeks to use the alternative staging regime 
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for more than 10 percent of the producer’s 
total production of passenger vehicles or 
light trucks, as the case may be, in 
USMCA countries— 
(I) a detailed and credible plan 
describing with specificity the actions 
the producer intends to take to bring 
production of the passenger vehicles 
or light trucks, as the case may be, 
into compliance with the requirements 
set forth in articles 2 through 7 of the 
automotive appendix after the alter-
native staging regime period expires; 
and 
(II) a statement indicating the 
time period for which the producer is 
requesting to use the alternative stag-
ing regime, if that time period is 
greater 
than 
years 
after 
the 
USMCA enters into force. 
(D) The procedures for accepting and re-
viewing requests for the alternative staging re-
gime, including that the Trade Representative 
will— 
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(i) notify a producer of any defi-
ciencies in the request of the producer that 
would result in a denial of the request not 
later than 30 days after the request is sub-
mitted; and 
(ii) provide producers the opportunity 
to submit supplemental information. 
(E) The criteria the Trade Representative, 
in consultation with the interagency committee, 
will consider when determining whether to ap-
prove a request for the alternative staging re-
gime. Such criteria shall only include elements 
necessary for the producer to demonstrate the 
producer’s ability to meet the requirements 
specified in subparagraphs (A) and (B). The 
criteria shall also describe the information to 
meet those requirements in sufficient detail to 
allow the producer to identify the information 
necessary to complete a request for the alter-
native staging regime. 
(F) The opportunity for a producer de-
scribed in subparagraph (C)(iii) to modify the 
producer’s request for the alternative staging 
regime. 
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(2) REVIEW OF REQUESTS FOR ALTERNATIVE 
STAGING REGIME.— 
(A) IN
GENERAL.—In reviewing the re-
quest of a producer of passenger vehicles or 
light trucks for the alternative staging regime, 
the Trade Representative, in consultation with 
the interagency committee, shall determine— 
(i) whether the request covers 10 per-
cent or less, or more than 10 percent, of 
the production of passenger vehicles or 
light trucks in USMCA countries by the 
producer; and 
(ii) whether the producer has identi-
fied with specificity which of the require-
ments set forth in articles 2 through 7 of 
the automotive appendix the producer is 
unable to meet based on current business 
plans. 
(B) APPROVAL OF ALTERNATIVE STAGING 
REGIME FOR PASSENGER VEHICLE OR LIGHT 
TRUCK PRODUCTION NOT EXCEEDING 10 PER-
CENT OF NORTH AMERICAN PRODUCTION.—The 
Trade Representative shall authorize the use of 
the alternative staging regime if the Trade Rep-
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resentative, in consultation with the interagency 
committee, determines that— 
(i) the request for the alternative 
staging regime covers passenger vehicles or 
light trucks that do not exceed 10 percent 
of the production of passenger vehicles or 
lights trucks, as the case may be, in 
USMCA countries by the producer; and 
(ii) the producer has identified with 
specificity which of the requirements set 
forth in articles 2 through 7 of the auto-
motive appendix the producer is unable to 
meet based on current business plans. 
(C) APPROVAL OF ALTERNATIVE STAGING 
REGIME FOR PASSENGER VEHICLE OR LIGHT 
TRUCK PRODUCTION EXCEEDING 10 PERCENT 
OF
NORTH
AMERICAN
PRODUCTION.—The 
Trade Representative shall authorize the use of 
the alternative staging regime if the Trade Rep-
resentative, in consultation with the interagency 
committee, determines that— 
(i) the request for the alternative 
staging regime covers more than 10 per-
cent of the production of passenger vehi-
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parel good, the President may direct the Sec-
retary— 
(i) during the verification process, to 
take appropriate action described in sub-
paragraph (D); and 
(ii) if the Secretary makes a negative 
determination described in subsection (b), 
to take action under subsection (c). 
(C) 
VERIFICATION
DESCRIBED.—A 
verification described in this subparagraph with 
respect to a textile or apparel good is— 
(i) a verification of whether the good 
qualifies for preferential tariff treatment 
under the USMCA; or 
(ii) a verification of whether customs 
offenses are occurring or have occurred 
with respect to the good. 
(D) ACTION DURING VERIFICATION.—Ap-
propriate action described in this subparagraph 
may consist of— 
(i) release of the textile or apparel 
good that is the subject of a verification 
described in subparagraph (C) upon pay-
ment of duties or provision of security; 
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