IB 
Union Calendar No. 284 
116TH CONGRESS 
1ST SESSION H. R. 5430 
[Report No. 116–358, Part I] 
To implement the Agreement between the United States of America, the 
United Mexican States, and Canada attached as an Annex to the Protocol 
Replacing the North American Free Trade Agreement. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2019 
Mr. HOYER (for himself and Mr. MCCARTHY) (both by request) introduced 
the following bill; which was referred to the Committee on Ways and 
Means, and in addition to the Committees on Education and Labor, Nat-
ural Resources, Foreign Affairs, the Judiciary, the Budget, Transpor-
tation and Infrastructure, Financial Services, Agriculture, Energy and 
Commerce, and Oversight and Reform, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
DECEMBER 19, 2019 
Reported from the Committee on Ways and Means 
DECEMBER 19, 2019 
Committees on Education and Labor, Natural Resources, Foreign Affairs, the 
Judiciary, the Budget, Transportation and Infrastructure, Financial 
Services, Agriculture, Energy and Commerce, and Oversight and Reform 
discharged; committed to the Committee of the Whole House on the State 
of the Union and ordered to be printed 
VerDate Sep 11 2014 
20:30 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
A BILL 
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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] 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6211
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6211
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6211
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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, 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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.— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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). 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
‘‘(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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). 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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: 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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, 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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.— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
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-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
cles or lights trucks, as the case may be, 
in USMCA countries by the producer; 
(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; and 
(iii) the detailed and credible plan of 
the producer submitted under paragraph 
(1)(C)(iii) is based on substantial evidence 
and reasonably calculated to bring the pro-
duction 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 alternative staging regime period 
has expired. 
(3) PROCEDURES RELATED TO REVIEWING AND 
APPROVING REQUESTS.— 
(A) DEADLINE
FOR
REVIEW.—Not later 
than 120 days after receiving a request of a 
producer for the alternative staging regime, the 
Trade Representative, in consultation with the 
interagency committee, shall— 
(i) review the request; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(ii) make a determination with respect 
to whether to authorize the use of the al-
ternative staging regime; and 
(iii) provide to each producer a re-
sponse in writing stating whether the pro-
ducer may use the alternative staging re-
gime. 
(B) ESTABLISHMENT OF A PUBLIC LIST.— 
The Trade Representative shall maintain, and 
update as necessary, a public list of the pro-
ducers of covered vehicles that have been au-
thorized to use the alternative staging regime. 
(C) REPORTING.—Before a determination 
is made with respect to whether to authorize 
the use of the alternative staging regime, the 
Trade Representative shall provide to the ap-
propriate congressional committees a summary 
of requests for the alternative staging regime. 
(4) ALTERNATIVE
STAGING
REGIME
REVIEW 
AND MODIFICATION.— 
(A) 
MATERIAL
CHANGES
TO
CIR-
CUMSTANCES.— 
(i) NOTIFICATION.—If the request of 
a producer to use the alternative staging 
regime for more than 10 percent of the 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
total production of passenger vehicles or 
light trucks, as the case may be, in 
USMCA countries by the producer has 
been granted, the producer shall notify the 
Trade Representative and the interagency 
committee of any material changes to the 
information contained in the request, in-
cluding any supplemental information re-
lating to that request, and of any material 
changes to circumstances, that will affect 
the producer’s ability to meet any of the 
requirements set forth in articles 2 
through 7 of the automotive appendix after 
the alternative staging regime period has 
expired. 
(ii) REQUESTS FOR MODIFICATION OF 
PLANS.— 
(I) IN
GENERAL.—A producer 
that submits a notification under 
clause (i) with respect to a change de-
scribed in that clause may submit to 
the Trade Representative and the 
interagency committee a request for 
modification of its plan. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(II) DETERMINATION REGARDING 
MODIFICATION.—Not later than 90 
days after receiving a request sub-
mitted under subclause (I), the Trade 
Representative, in consultation with 
the interagency committee, shall— 
(aa) review the request; 
(bb) make a determination 
with respect to whether the modi-
fied plan is based on substantial 
evidence 
and 
reasonably 
cal-
culated to ensure that the pro-
ducer will still be able to meet 
the requirements set forth in ar-
ticles 2 through 7 of the auto-
motive appendix after the alter-
native staging regime period has 
expired; 
(cc) if the Trade Represent-
ative makes an affirmative deter-
mination under item (bb), ap-
prove the modified plan; and 
(dd) notify the producer in 
writing of the determination. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(iii) INABILITY
TO
MEET
REQUIRE-
MENTS.—If the Trade Representative, in 
consultation with the interagency com-
mittee, determines that the information 
provided by a producer under clause (i) 
demonstrates that the producer will no 
longer be able to meet the requirements set 
forth in articles 2 through 7 of the auto-
motive appendix after the alternative stag-
ing regime period has expired, the Trade 
Representative shall notify the producer in 
writing, and no claim for preferential tariff 
treatment may be made, on or after the 
date of the determination, with respect to 
a covered vehicle of the producer pursuant 
to the alternative staging regime. 
(5) FAILURE TO MEET REQUIREMENTS FOR AL-
TERNATIVE STAGING REGIME.— 
(A) IN
GENERAL.—If, at any time, the 
Trade Representative, in consultation with the 
interagency committee, makes a determination 
described in subparagraph (B) with respect to 
a producer of covered vehicles subject to the al-
ternative staging regime— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(i) any claim for preferential tariff 
treatment under the alternative staging re-
gime for any covered vehicle of that pro-
ducer shall be considered invalid; and 
(ii) notwithstanding the finality of a 
liquidation of an entry, the importer of any 
covered vehicle of that producer shall be 
liable for the duties, taxes, and fees that 
would have been applicable to that vehicle 
if preferential tariff treatment pursuant to 
the alternative staging regime had not ap-
plied when the vehicle was entered for con-
sumption, or withdrawn from warehouse 
for consumption, plus interest assessed on 
or after the date of entry and before the 
date of the determination. 
(B) DETERMINATION DESCRIBED.—A de-
termination described in this subparagraph is a 
determination that a producer of covered vehi-
cles subject to the alternative staging regime— 
(i) has failed to take the steps set 
forth in the producer’s request for the al-
ternative staging regime and, as a result of 
that failure, the producer will no longer be 
able to meet the requirements set forth in 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
articles 2 through 7 of the automotive ap-
pendix after the alternative staging regime 
period has expired; 
(ii) has provided false or misleading 
information in the producer’s request; or 
(iii) in the case of a producer author-
ized to use the alternative staging regime 
for more than 10 percent of the total pro-
duction of passenger vehicles or light 
trucks in USMCA countries by the pro-
ducer, has failed to notify the Trade Rep-
resentative under paragraph (4)(A) of ma-
terial changes to circumstances that will 
prevent the producer from meeting any of 
the requirements set forth in articles 2 
through 7 of the automotive appendix after 
the alternative staging regime period has 
expired. 
(e) VERIFICATION OF LABOR VALUE CONTENT RE-
QUIREMENTS.— 
(1) IN GENERAL.—As part of a verification con-
ducted under section 207, the Secretary of the 
Treasury, in conjunction with the Secretary of 
Labor, may conduct a verification of whether a cov-
ered vehicle complies with the labor value content re-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
quirements set forth in article 7 of the automotive 
appendix or, if the producer is subject to the alter-
native staging regime under subsection (d), articles 
7 and 8 of that appendix. 
(2) ROLE OF SECRETARY OF LABOR.—In co-
operation with the Secretary of the Treasury, the 
Secretary of Labor shall participate in any 
verification conducted under paragraph (1) by 
verifying whether the production of covered vehicles 
by a producer meets the high-wage components of 
the labor value content requirements, including the 
wage component of the high-wage material and man-
ufacturing expenditures, the high-wage technology 
expenditures, and the high-wage assembly expendi-
tures, within the meaning given those terms in arti-
cle 7 of that appendix. 
(3) ROLE OF SECRETARY OF THE TREASURY.— 
The Secretary of the Treasury shall participate in 
any verification conducted under paragraph (1) by 
verifying— 
(A) the components of the labor value con-
tent requirements not covered by paragraph 
(2), including the annual purchase value and 
cost components of the high-wage material and 
manufacturing expenditures, within the mean-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
ing given those terms in article 7 of that appen-
dix; and 
(B) whether the producer has met the 
labor value content requirements. 
(4) ACTIONS BY SECRETARY OF LABOR.— 
(A) IN GENERAL.—In participating in a 
verification conducted under paragraph (1), the 
Secretary of Labor shall assist the Secretary of 
the Treasury to do the following: 
(i) Examine, or cause to be examined, 
upon reasonable notice, any record (includ-
ing any statement, declaration, document, 
or electronically generated or machine 
readable data) described in the notice with 
reasonable specificity. 
(ii) Request information from any of-
ficer, employee, or agent of a producer of 
automotive goods, as necessary, that may 
be relevant with respect to whether the 
production of covered vehicles meets the 
high-wage components of the labor value 
content requirements set forth in article 7 
of the automotive appendix or, if the pro-
ducer is subject to the alternative staging 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
regime under subsection (d), articles 7 and 
8 of that appendix. 
(B) 
NATURE
OF
INFORMATION
RE-
QUESTED.—Records and information that may 
be examined or requested under subparagraph 
(A) may relate to wages, hours, job responsibil-
ities, and other information in any plant or fa-
cility relied on by a producer of covered vehicles 
to demonstrate that the production of such ve-
hicles by the producer meets the labor value 
content requirements set forth in article 7 of 
the automotive appendix or, if the producer is 
subject to the alternative staging regime under 
subsection (d), articles 7 and 8 of that appen-
dix. 
(5) WHISTLEBLOWER PROTECTIONS.— 
(A) UNLAWFUL ACTS.—It is unlawful to 
intimidate, threaten, restrain, coerce, blacklist, 
discharge, or in any other manner discriminate 
against any person for— 
(i) disclosing information to a Federal 
agency or to any person relating to a 
verification under this subsection; or 
(ii) cooperating or seeking to cooper-
ate in a verification under this subsection. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(B) ENFORCEMENT.—The Secretary of the 
Treasury and the Secretary of Labor are au-
thorized to take such actions under existing 
law, including imposing appropriate penalties 
and seeking appropriate injunctive relief, as 
may be necessary to ensure compliance with 
this subsection and as provided for in existing 
regulations. 
(6) PROTESTS OF DECISIONS OF U.S. CUSTOMS 
AND BORDER PROTECTION.— 
(A) IN GENERAL.—If a protest under sec-
tion 514 of the Tariff Act of 1930 (19 U.S.C. 
1514) of a decision of U.S. Customs and Bor-
der Protection with respect to the eligibility for 
preferential tariff treatment of a covered vehicle 
relates to the analysis of the Department of 
Labor relating to the high-wage components of 
the labor value content requirements described 
in paragraph (1), the Secretary of Labor 
shall— 
(i) conduct an administrative review 
of the portion of the decision relating to 
such requirements; and 
(ii) provide the results of that review 
to the Commissioner. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(B) NO ACCELERATED DISPOSITION.—An 
importer may not request the accelerated dis-
position under section 515(b) of the Tariff Act 
of 1930 (19 U.S.C. 1515(b)) of a protest 
against a decision of the Commissioner de-
scribed in subparagraph (A). 
(f) ADMINISTRATION BY DEPARTMENT OF LABOR.— 
The Secretary of Labor is authorized to establish or des-
ignate an office within the Department of Labor to carry 
out the provisions of this section for which the Depart-
ment is responsible. 
(g) REVIEW AND REPORTS.— 
(1) PERIODIC REVIEW ON AUTOMOTIVE RULES 
OF ORIGIN.— 
(A) IN GENERAL.—The Trade Representa-
tive, in consultation with the interagency com-
mittee, shall conduct a biennial review of the 
operation of the USMCA with respect to trade 
in automotive goods, including— 
(i) to the extent practicable, a sum-
mary of actions taken by producers to 
demonstrate compliance with the auto-
motive rules of origin, use of the alter-
native staging regime, enforcement of such 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
rules of origin, and other relevant matters; 
and 
(ii) whether the automotive rules of 
origin are effective and relevant in light of 
new technology and changes in the content, 
production processes, and character of 
automotive goods. 
(B) REPORT.— 
(i) IN
GENERAL.—The Trade Rep-
resentative shall submit to the appropriate 
congressional committees a report on each 
review conducted under subparagraph (A). 
(ii) INITIAL
REPORT.—The first re-
port required under clause (i) shall be sub-
mitted not later than 2 years after the 
date on which the USMCA enters into 
force. 
(iii) TERMINATION OF REPORTING RE-
QUIREMENT.—The requirement to submit 
reports under clause (i) shall terminate on 
the date that is 10 years after the date on 
which the USMCA enters into force. 
(2) REPORT BY INTERNATIONAL TRADE COM-
MISSION.—Not later than one year after the submis-
sion of the first report required by paragraph 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(1)(B), and every 2 years thereafter until the date 
that is 12 years after the date on which the USMCA 
enters into force, the International Trade Commis-
sion shall submit to the appropriate congressional 
committees and the President a report on— 
(A) the economic impact of the automotive 
rules of origin on— 
(i) the gross domestic product of the 
United States; 
(ii) exports from and imports into the 
United States; 
(iii) aggregate employment and em-
ployment opportunities in the United 
States; 
(iv) production, investment, use of 
productive facilities, and profit levels in the 
automotive industries and other pertinent 
industries in the United States affected by 
the automotive rules of origin; 
(v) wages and employment of workers 
in the automotive sector in the United 
States; and 
(vi) the interests of consumers in the 
United States; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(B) the operation of the automotive rules 
of origin and their effects on the competitive-
ness of the United States with respect to pro-
duction and trade in automotive goods, taking 
into account developments in technology, pro-
duction processes, or other related matters; 
(C) whether the automotive rules of origin 
are relevant in light of technological changes in 
the United States; and 
(D) such other matters as the Inter-
national Trade Commission considers relevant 
to the economic impact of the automotive rules 
of origin, including prices, sales, inventories, 
patterns of demand, capital investment, obsoles-
cence of equipment, and diversification of pro-
duction in the United States. 
(3) REPORT BY COMPTROLLER GENERAL.—Not 
later than 4 years after the date on which the 
USMCA enters into force, the Comptroller General 
of the United States shall submit to the Committee 
on Appropriations and the Committee on Ways and 
Means of the House of Representatives and the 
Committee on Appropriations and the Committee on 
Finance of the Senate a report assessing the effec-
tiveness of United States Government interagency 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
coordination on implementation, enforcement, and 
verification of the automotive rules of origin and the 
customs procedures of the USMCA with respect to 
automotive goods. 
(4) PUBLIC
PARTICIPATION.—Before submit-
ting a report under paragraph (1)(B) or (2), the 
agency responsible for the report shall— 
(A) solicit information relating to matters 
that will be addressed in the report from pro-
ducers of automotive goods, labor organizations, 
and other interested parties; 
(B) provide for an opportunity for the sub-
mission of comments, orally or in writing, from 
members of the public relating to such matters; 
and 
(C) after submitting the report, post a 
version of the report appropriate for public 
viewing on a publicly available internet website 
for the agency. 
(h) EFFECTIVE DATE.—This section shall— 
(1) take effect on the date of the enactment of 
this Act; and 
(2) apply with respect to goods entered, or 
withdrawn from warehouse for consumption, on or 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
after the date on which the USMCA enters into 
force. 
SEC. 203. MERCHANDISE PROCESSING FEE. 
(a) IN GENERAL.—Section 13031(b)(10) of the Con-
solidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(b)(10)) is amended by striking subparagraph 
(B) and inserting the following: 
‘‘(B) No fee may be charged under paragraph (9) or 
(10) of subsection (a) with respect to goods that qualify 
as originating goods under section 202 of the United 
States-Mexico-Canada Agreement Implementation Act or 
qualify for duty-free treatment under Annex 6–A of the 
USMCA (as defined in section 3 of that Act). Any service 
for which an exemption from such fee is provided by rea-
son of this paragraph may not be funded with money con-
tained in the Customs User Fee Account.’’. 
(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 or 
released on or after that date. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(2) TRANSITION FROM NAFTA TREATMENT.—In 
the case of a good entered or released before the 
date on which the USMCA enters into force— 
(A) the amendments made by subsection 
(a) to section 13031(b)(10)(B) of the Consoli-
dated Omnibus Budget Reconciliation Act of 
1985 (19 U.S.C. 58c(b)(10)(B)) shall not apply 
with respect to the good; and 
(B) section 13031(b)(10)(B) 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. 
(3) ENTERED OR RELEASED DEFINED.—In this 
subsection, the term ‘‘entered or released’’ has the 
meaning given that term in section 13031(b)(8)(E) 
of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)(8)(E)). 
SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; 
FALSE CERTIFICATIONS OF ORIGIN; DENIAL 
OF PREFERENTIAL TARIFF TREATMENT. 
(a) DISCLOSURE
OF INCORRECT INFORMATION.— 
Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) 
is amended— 
(1) in subsection (c), by striking paragraph (5) 
and inserting the following: 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
‘‘(5) PRIOR
DISCLOSURE
REGARDING
CLAIMS 
UNDER THE USMCA.—An importer shall not be sub-
ject to penalties under subsection (a) for making an 
incorrect claim that a good qualifies as an origi-
nating good under section 202 of the United States- 
Mexico-Canada Agreement Implementation Act if 
the importer, in accordance with regulations pre-
scribed by the Secretary of the Treasury, promptly 
makes a corrected declaration and pays any duties 
owing with respect to that good.’’; and 
(2) by striking subsection (f) and inserting the 
following: 
‘‘(f) FALSE CERTIFICATIONS OF ORIGIN UNDER THE 
USMCA.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
it is unlawful for any person to certify falsely, by 
fraud, gross negligence, or negligence, in a USMCA 
certification of origin (as such term is defined in sec-
tion 508 of this Act) that a good exported from the 
United States qualifies as an originating good under 
the rules of origin provided for in section 202 of the 
United States-Mexico-Canada Agreement Implemen-
tation Act. The procedures and penalties of this sec-
tion that apply to a violation of subsection (a) also 
apply to a violation of this subsection. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF 
INCORRECT INFORMATION.—No penalty shall be im-
posed under this subsection if, promptly after an ex-
porter or producer that issued a USMCA certifi-
cation of origin has reason to believe that such cer-
tification contains or is based on incorrect informa-
tion, the exporter or producer voluntarily provides 
written notice of such incorrect information to every 
person to whom the certification was issued. 
‘‘(3) EXCEPTION.—A person shall not be con-
sidered to have violated paragraph (1) if— 
‘‘(A) the information was correct at the 
time it was provided in a USMCA certification 
of origin but was later rendered incorrect due 
to a change in circumstances; and 
‘‘(B) the person promptly and voluntarily 
provides written notice of the change in cir-
cumstances to all persons to whom the person 
provided the certification.’’. 
(b) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 
1514) is amended— 
(1) in subsection (b), by striking ‘‘and article 
1904’’ and all that follows through ‘‘Free-Trade 
Agreement’’; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(2) in subsection (c)— 
(A) in paragraph (1), in the matter fol-
lowing subparagraph (D), by striking ‘‘section 
202 of the North American Free Trade Agree-
ment Implementation Act’’ and inserting ‘‘sec-
tion 202 of the United States-Mexico-Canada 
Agreement Implementation Act’’; and 
(B) in paragraph (2)(E)— 
(i) by striking ‘‘section 202 of the 
North American Free Trade Agreement 
Implementation Act’’ and inserting ‘‘sec-
tion 202 of the United States-Mexico-Can-
ada Agreement Implementation Act’’; and 
(ii) by striking ‘‘NAFTA Certificate 
of Origin’’ and inserting ‘‘USMCA certifi-
cation of origin (as such term is defined in 
section 508 of this Act)’’; 
(3) in subsection (e), by striking ‘‘section 202 
of the North American Free Trade Agreement Im-
plementation Act’’ and inserting ‘‘section 202 of the 
United States-Mexico-Canada Agreement Implemen-
tation Act’’; and 
(4) by striking subsection (f) and inserting the 
following: 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
‘‘(f) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT UNDER THE USMCA.—If U.S. Customs and Bor-
der Protection or U.S. Immigration and Customs Enforce-
ment of the Department of Homeland Security finds indi-
cations of a pattern of conduct by an importer, exporter, 
or producer of false or unsupported representations that 
goods qualify under the rules of origin provided for in sec-
tion 202 of the United States-Mexico-Canada Agreement 
Implementation Act, U.S. Customs and Border Protec-
tion, in accordance with regulations prescribed by the Sec-
retary of the Treasury, may suspend preferential tariff 
treatment under the USMCA (as defined in section 3 of 
that Act) to entries of identical goods covered by subse-
quent representations by that importer, exporter, or pro-
ducer until U.S. Customs and Border Protection deter-
mines that representations of that person are in con-
formity with such section 202.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
subsections (a) and (b) shall— 
(A) take effect on the date on which the 
USMCA enters into force; and 
(B) apply with respect to a good entered, 
or exported from the United States, as the case 
may be, on or after that date. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(2) TRANSITION FROM NAFTA TREATMENT.—In 
the case of a good entered, or exported from the 
United States, as the case may be, before the date 
on which the USMCA enters into force— 
(A) the amendments made by subsection 
(a) to section 592 of the Tariff Act of 1930 (19 
U.S.C. 1592) and the amendments made by 
subsection (b) to section 514 of such Act (19 
U.S.C. 1514) shall not apply with respect to the 
good; and 
(B) sections 592 and 514 of such Act, as 
in effect on the day before that date, shall con-
tinue to apply on and after that date with re-
spect to the good. 
(3) ENTERED
DEFINED.—In this subsection, 
the term ‘‘entered’’ includes a withdrawal from 
warehouse for consumption. 
SEC. 205. RELIQUIDATION OF ENTRIES. 
(a) IN GENERAL.—Section 520(d) of the Tariff Act 
of 1930 (19 U.S.C. 1520(d)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘section 202 of the North 
American Free Trade Agreement Implementa-
tion Act,’’; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(B) by striking ‘‘, or section 203’’ and in-
serting ‘‘, section 203’’; and 
(C) by striking ‘‘for which’’ and inserting 
‘‘, or section 202 of the United States-Mexico- 
Canada Agreement Implementation Act (except 
with respect to any merchandise processing 
fees), for which’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) copies of all applicable certificates or cer-
tifications of origin; and’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments 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 amendments made by subsection 
(a) to section 520(d) of the Tariff Act of 1930 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
(19 U.S.C. 1520(d)) shall not apply with re-
spect to the good; and 
(B) section 520(d) 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. 206. RECORDKEEPING REQUIREMENTS. 
(a) IN GENERAL.—Section 508 of the Tariff Act of 
1930 (19 U.S.C. 1508) is amended— 
(1) by striking subsection (b) and inserting the 
following: 
‘‘(b) EXPORTS AND IMPORTS RELATING TO USMCA 
COUNTRIES.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) USMCA; 
USMCA
COUNTRY.—The 
terms ‘USMCA’ and ‘USMCA country’ have the 
meanings given those terms in section 3 of the 
United States-Mexico-Canada Agreement Im-
plementation Act. 
‘‘(B) USMCA CERTIFICATION
OF
ORI-
GIN.—The term ‘USMCA certification of origin’ 
means the certification established under article 
5.2.1 of the USMCA that a good qualifies as an 
originating good under the USMCA. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
‘‘(2) EXPORTS
TO
USMCA
COUNTRIES.—Any 
person who completes a USMCA certification of ori-
gin or provides a written representation for a good 
exported from the United States to a USMCA coun-
try shall make, keep, and, pursuant to rules and reg-
ulations prescribed by the Secretary of the Treasury, 
render for examination and inspection, all records 
and supporting documents related to the origin of 
the good (including the certification or copies there-
of), including records related to— 
‘‘(A) the purchase, cost, value, and ship-
ping of, and payment for, the good; 
‘‘(B) the purchase, cost, value, and ship-
ping of, and payment for, all materials, includ-
ing indirect materials, used in the production of 
the good; and 
‘‘(C) the production of the good in the 
form in which it was exported or the production 
of the material in the form in which it was sold. 
‘‘(3) EXPORTS UNDER THE CANADIAN AGREE-
MENT.—Any person who exports, or who knowingly 
causes to be exported, any merchandise to Canada 
during such time as the United States-Canada Free- 
Trade Agreement is in force with respect to, and the 
United States applies that Agreement to, Canada 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
100 
shall make, keep, and render for examination and 
inspection such records (including certifications of 
origin or copies thereof) which pertain to the expor-
tations. 
‘‘(4) IMPORTS INTO THE UNITED STATES.— 
‘‘(A) IN
GENERAL.—Any importer who 
claims preferential tariff treatment under the 
USMCA for a good imported into the United 
States from a USMCA country shall make, 
keep, and, pursuant to rules and regulations 
prescribed by the Secretary of the Treasury of 
the Secretary of Labor, render for examination 
and inspection— 
‘‘(i) records and supporting docu-
mentation related to the importation; 
‘‘(ii) all records and supporting docu-
ments related to the origin of the good (in-
cluding the certification or copies thereof), 
if the importer completed the certification; 
and 
‘‘(iii) records and supporting docu-
ments necessary to demonstrate that the 
good did not, while in transit to the United 
States, undergo further production or any 
other operation other than unloading, re-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
101 
loading, or any other operation necessary 
to preserve the good in good condition or 
to transport the good to the United States. 
‘‘(B) VEHICLE
PRODUCER.—Any vehicle 
producer whose good is the subject of a claim 
for preferential tariff treatment under the 
USMCA shall make, keep, and, pursuant to 
rules and regulations promulgated by the Sec-
retary of the Treasury and Secretary of Labor, 
render for examination and inspection records 
and supporting documents related to the labor 
value content and steel and aluminum pur-
chasing requirements for the qualification of its 
vehicles for preferential treatment. 
‘‘(5) RETENTION PERIOD.— 
‘‘(A) EXPORTS TO USMCA COUNTRIES.—A 
person covered by paragraph (2) who completes 
a USMCA certification of origin or provides a 
written representation for a good exported from 
the United States to a USMCA country shall 
keep the records required by such paragraph re-
lating to that certification of origin for a period 
of at least 5 years after the date on which the 
certification is completed. 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
102 
‘‘(B) EXPORTS UNDER CANADIAN AGREE-
MENT.—The records required by paragraph (3) 
shall be kept for such periods of time as the 
Secretary shall prescribe, except that— 
‘‘(i) no period of time for the reten-
tion of the records may exceed 5 years 
from the date of entry, filing of a reconcili-
ation, or exportation, as appropriate; and 
‘‘(ii) records for any drawback claim 
shall be kept until the 3rd anniversary of 
the date of liquidation of the claim. 
‘‘(C) 
IMPORTS
INTO
THE
UNITED 
STATES.— 
‘‘(i) IN GENERAL.—An importer cov-
ered by paragraph (4)(A) shall keep the 
records and supporting documents required 
by such paragraph for a period of at least 
5 years after the date of importation of the 
good. 
‘‘(ii) VEHICLE PRODUCER.—A vehicle 
producer covered by paragraph (4)(B) 
shall keep the records and supporting doc-
uments required by paragraph (4)(B) for a 
period of at least 5 years after the date of 
filing the certifications required under 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
103 
paragraphs (1) and (2) of section 202A(c) 
of 
the 
United 
States-Mexico-Canada 
Agreement Implementation Act.’’; 
(2) by striking subsection (c); and 
(3) in the paragraph heading for subsection 
(e)(1), by striking ‘‘NAFTA’’ and inserting ‘‘USMCA’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
subsection (a) shall take effect on the date on which 
the USMCA enters into force. 
(2) APPLICABILITY.— 
(A) EXPORTS.—Paragraphs (2) and (5)(A) 
of section 508(b) of the Tariff Act of 1930, as 
amended by subsection (a), shall apply with re-
spect to a good exported from the United 
States on or after the date on which the 
USMCA enters into force. 
(B) IMPORTS.—Paragraphs (4) and (5)(C) 
of section 508(b) of the Tariff Act of 1930, as 
amended by subsection (a), shall apply with re-
spect to a good that is entered for consumption, 
or withdrawn from warehouse for consumption, 
on or after the date on which the USMCA en-
ters into force. 
(3) TRANSITION FROM NAFTA TREATMENT.— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
105 
(A) IN GENERAL.—The Secretary of the 
Treasury may, pursuant to article 5.9 of the 
USMCA, conduct a verification of whether a 
good is an originating good under section 202 
or 202A. 
(B) ADDITIONAL REQUIREMENTS.—If the 
Secretary conducts a verification under sub-
paragraph (A), the President may direct the 
Secretary— 
(i) during the verification process, to 
release the good only upon payment of du-
ties or provision of security; and 
(ii) if the Secretary makes a negative 
determination under subsection (b), to take 
action under subsection (c). 
(2) TEXTILE AND APPAREL GOODS.— 
(A) IN GENERAL.—The Secretary of the 
Treasury may, pursuant to article 6.6 of the 
USMCA, conduct a verification described in 
subparagraph (C) with respect to a textile or 
apparel good. 
(B) ADDITIONAL REQUIREMENTS.—If the 
Secretary conducts a verification under sub-
paragraph (A) with respect to a textile or ap-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
106 
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 verifi-
cation described in this subparagraph with re-
spect 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; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
107 
(ii) suspension of preferential tariff 
treatment under the USMCA with respect 
to— 
(I) the textile or apparel good 
that is the subject of a verification de-
scribed in subparagraph (C)(i), if the 
Secretary determines that there is in-
sufficient information to support the 
claim for preferential tariff treatment; 
or 
(II) any textile or apparel good 
exported or produced by a person that 
is the subject of a verification de-
scribed in subparagraph (C)(ii) if the 
Secretary of the Treasury determines 
that there is insufficient information 
to support the claim for preferential 
tariff treatment made with respect to 
that good; 
(iii) denial of preferential tariff treat-
ment under the USMCA with respect to— 
(I) the textile or apparel good 
that is the subject of a verification de-
scribed in subparagraph (C)(i) if the 
Secretary determines that incorrect 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
108 
information has been provided to sup-
port the claim for preferential tariff 
treatment; or 
(II) any textile or apparel good 
exported or produced by a person that 
is the subject of a verification de-
scribed in subparagraph (C)(ii) if the 
Secretary determines that the person 
has provided incorrect information to 
support the claim for preferential tar-
iff treatment that has been made with 
respect to that good; 
(iv) detention of any textile or apparel 
good exported or produced by a person 
that is the subject of a verification de-
scribed in subparagraph (C) if the Sec-
retary determines that there is insufficient 
information to determine the country of or-
igin of that good; and 
(v) denial of entry into the United 
States of any textile or apparel good ex-
ported or produced by a person that is the 
subject of a verification described in sub-
paragraph (C) if the Secretary determines 
that the person has provided incorrect in-
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
109 
formation regarding the country of origin 
of that good. 
(b) NEGATIVE DETERMINATION.— 
(1) IN GENERAL.—A negative determination de-
scribed in this subsection with respect to a good im-
ported, exported, or produced by an importer, ex-
porter, or producer is a determination by the Sec-
retary, based on a verification conducted under sub-
section (a), that— 
(A) a claim by the importer, exporter, or 
producer that the good qualifies as an origi-
nating good under section 202 is inaccurate; or 
(B) the good does not qualify for pref-
erential tariff treatment under the USMCA be-
cause— 
(i) the importer, exporter, or producer 
failed to respond to a written request for 
information or failed to provide sufficient 
information to determine that the good 
qualifies as an originating good; 
(ii) after receipt of a written notifica-
tion for a visit to conduct verification 
under subsection (a), the exporter or pro-
ducer did not provide written consent for 
that visit; 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
110 
(iii) the importer, exporter, or pro-
ducer does not maintain, or denies access 
to, records or documentation required 
under section 508(l) of the Tariff Act of 
1930 (19 U.S.C. 1508(l)); 
(iv) in the case of verification con-
ducted under subsection (a)(2)— 
(I) access or permission for a site 
visit is denied; 
(II) officials of the United States 
are prevented from completing a site 
visit on the proposed date and the ex-
porter or producer does not provide 
an acceptable alternative date for the 
site visit; or 
(III) the exporter or producer 
does not provide access to relevant 
documents or facilities during a site 
visit; or 
(v) the importer, exporter, or pro-
ducer— 
(I) otherwise fails to comply with 
the requirements of this section; or 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
111 
(II) based on the preponderance 
of the evidence, circumvents the re-
quirements of this section. 
(2) REQUESTS FOR INFORMATION.—The Sec-
retary shall not make a negative determination de-
scribed in paragraph (1)(B) unless— 
(A) in a case in which the Secretary con-
ducts a verification with respect to a good by 
written request or questionnaire submitted to 
the importer under article 5.9.1(a) of the 
USMCA and the claim for preferential tariff 
treatment under the USMCA is based on a cer-
tification of origin completed by the exporter or 
producer of the good, the Secretary requests in-
formation from the exporter or producer that 
completed the certification; or 
(B) in a case in which the Secretary con-
ducts a verification with respect to a textile or 
apparel good by requesting a site visit under ar-
ticle 6.6.2 of the USMCA, the Secretary re-
quests information from the importer and from 
any exporter or producer that provided informa-
tion to the Secretary to support the claim for 
preferential tariff treatment. 
(c) ACTION BASED ON DETERMINATION.— 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS
136 
(2) by inserting ‘‘or the USMCA, as the case 
may be,’’ after ‘‘the bilateral agreement’’. 
Subtitle B—Dispute Settlement 
[reserved] 
Subtitle C—Conforming 
Amendments 
SEC. 421. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND 
COUNTERVAILING DUTY CASES. 
Section 516A of the Tariff Act of 1930 (19 U.S.C. 
1516a) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(B)(vii), by striking 
‘‘the Tariff Act of 1930’’ and inserting ‘‘this 
Act’’; and 
(B) in paragraph (5)(D)(i), by striking 
‘‘article 1904 of the NAFTA’’ and inserting 
‘‘article 10.12 of the USMCA’’; 
(2) in subsection (b)(3)— 
(A) in the paragraph heading, by striking 
‘‘NAFTA OR UNITED STATES-CANADA’’ and in-
serting ‘‘UNITED STATES-CANADA OR USMCA’’; 
and 
(B) in the text, by striking ‘‘of the 
NAFTA or of the Agreement’’ and inserting ‘‘of 
VerDate Sep 11 2014 
20:06 Dec 19, 2019
Jkt 099200
PO 00000
Frm 00136
Fmt 6652
Sfmt 6201
E:\BILLS\H5430.RH
H5430
lotter on DSKBCFDHB2PROD with BILLS