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.
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
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
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.
(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
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
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
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—
(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
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.
(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,
(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.—
(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.
(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—
(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).
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;
(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-
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
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.
‘‘(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.
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-
tained or produced entirely in the territory of one or 
more USMCA countries’’ means any of the fol-
lowing: 
(A) A mineral good or other naturally oc-
curring substance extracted or taken from the 
territory of one or more USMCA countries. 
(B) A plant, plant good, vegetable, or fun-
gus grown, cultivated, harvested, picked, or 
gathered in the territory of one or more 
USMCA countries. 
(C) A live animal born and raised in the 
territory of one or more USMCA countries. 
(D) A good obtained in the territory of one 
or more USMCA countries from a live animal. 
(E) An animal obtained by hunting, trap-
ping, fishing, gathering, or capturing in the ter-
ritory of one or more USMCA countries. 
(F) A good obtained in the territory of one 
or more USMCA countries from aquaculture. 
(G) A fish, shellfish, or other marine life 
taken from the sea, seabed, or subsoil outside 
the territory of one or more USMCA countries 
and outside the territorial sea of any country 
that is not a USMCA country by—
(i) a vessel that is registered or re-
corded with a USMCA country and flying 
the flag of that country; or 
(ii) a vessel that is documented under 
the laws of the United States. 
(H) A good produced on board a factory 
ship from goods referred to in subparagraph 
(G), if such factory ship— 
(i) is registered or recorded with a 
USMCA country and flies the flag of that 
country; or 
(ii) is a vessel that is documented 
under the laws of the United States. 
(I) A good, other than a good referred to 
in subparagraph (G), that is taken by a 
USMCA country, or a person of a USMCA 
country, from the seabed or subsoil outside the 
territory of a USMCA country, if that USMCA 
country has the right to exploit such seabed or 
subsoil. 
(J) Waste and scrap derived from— 
(i) production in the territory of one 
or more USMCA countries; or 
(ii) used goods collected in the terri-
tory of one or more USMCA countries, if
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;
(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).
(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.
(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-
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.
(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
for sales promotion, marketing, and after-sales 
service personnel. 
(D) Product liability insurance. 
(E) Rent and depreciation of sales pro-
motion, marketing, and after-sales service of-
fices and distribution centers. 
(F) Payments by the producer to other 
persons for warranty repairs. 
(G) If the costs are identified separately 
for sales promotion, marketing, or after-sales 
service of goods on the financial statements or 
cost accounts of the producer, the following: 
(i) Property insurance premiums, 
taxes, utilities, and repair and maintenance 
of sales promotion, marketing, and after- 
sales service offices and distribution cen-
ters. 
(ii) Recruiting and training of sales 
promotion, marketing, and after-sales serv-
ice personnel, and after-sales training of 
customers’ employees. 
(iii) Office supplies for sales pro-
motion, marketing, and after-sales service 
of goods.
(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
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—
(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
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;
(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
(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-
gional value content of the good on the basis of 
the following transaction value method: 
TV¥VNM 
RVC = ————— × 100 
TV 
(B) DEFINITIONS.—In this paragraph: 
(i) RVC.—The term ‘‘RVC’’ means 
the regional value content of the good, ex-
pressed as a percentage. 
(ii) TV.—The term ‘‘TV’’ means the 
transaction value of the good, adjusted to 
exclude any costs incurred in the inter-
national shipment of the good. 
(iii) VNM.—The term ‘‘VNM’’ means 
the value of nonoriginating materials used 
by the producer in the production of the 
good. 
(3) NET COST METHOD.— 
(A) IN GENERAL.—An importer, exporter, 
or producer of a good may calculate the re-
gional value content of the good on the basis of 
the following net cost method: 
NC¥VNM 
RVC = ————— × 100 
NC 
(B) DEFINITIONS.—In this paragraph: 
(i) NC.—The term ‘‘NC’’ means the 
net cost of the good.
(ii) RVC.—The term ‘‘RVC’’ means 
the regional value content of the good, ex-
pressed as a percentage. 
(iii) VNM.—The term ‘‘VNM’’ means 
the value of nonoriginating materials used 
by the producer in the production of the 
good. 
(4) VALUE OF NONORIGINATING MATERIALS.— 
(A) IN GENERAL.—The value of nonorigi-
nating materials used by the producer in the 
production of a good shall not, for purposes of 
calculating the regional value content of the 
good under paragraph (2) or (3), include the 
value of nonoriginating materials used or con-
sumed to produce originating materials that are 
subsequently used or consumed in the produc-
tion of the good. 
(B) SPECIAL RULE FOR CERTAIN COMPO-
NENTS.—The following components of the value 
of nonoriginating materials used by the pro-
ducer in the production of a good may be 
counted as originating content for purposes of 
determining whether the good meets the re-
gional value content requirement set forth in 
Annex 4–B of the USMCA:
(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