FROM NCBFAA ALERT JULY 2, 2021 – Customs and Border Protection (CBP) on July 1 issued two of its three highly anticipated U.S.-Mexico-Canada Agreement (USMCA) regulatory packages setting forth requirements on a range of issues.
Trade attorney Lenny Feldman (Sandler, Travis, and Rosenberg) advises customs brokers and freight forwarders should review, comment, and track the final outcome of these regulations and their application to North American cross-border trade to ensure compliance within their daily operations.
CBP’s interim final rule includes implementing regulations for the preferential tariff treatment and related customs provisions of the USMCA.
These rules, subject to comment within 60 days from publication, apply to goods from Canada and Mexico entered for consumption, or withdrawn from warehouse for consumption, on or after July 1, 2020.
The interim final rule specifically implements the provisions in Chapters 1, 2, 5, and 7 of the USMCA related to general definitions, confidentiality, import requirements, export requirements, post importation duty refund claims, drawback and duty-deferral programs, general verifications and determinations of origin, commercial samples, goods re-entered after repair or alteration in Canada or Mexico, and penalties.
The interim final rule also provides amendments to apply the 19 CFR Part 102 non-preferential rules of origin in determining the country of origin for marking purposes.
In addition, the interim final rule includes amendments to add: i.) the sugar-containing products subject to a tariff-rate quota under Appendix 2 to Annex 2-B of Chapter 2 of the USMCA to the CBP regulations governing the requirement for an export certificate, ii.) conforming amendments for the declaration required for goods re-entered after repair or alteration in Canada or Mexico; iii.) recordkeeping provisions and iv.) the modernized drawback provisions.
Concurrently with this interim final rule, CBP is publishing a notice of proposed rulemaking that proposes to apply the rules for all non-preferential origin determinations made by CBP for goods imported from Canada or Mexico. The rules are subject to comment within 30 days from publication.
This would include origin determinations for safeguard measures, trade remedies (section 301), origin marking requirements, discriminatory quantitative restrictions on tariff quotas, rules of origin for trade statistics and eligibility for government procurement. Although antidumping and countervailing (AD/CVD) duty would reflect another non-preferential origin determination, merchandise within the scope of such a proceeding may be associated with a country of origin for AD/CVD purposes that is different from the country of origin determined by CBP for other purposes.
CBP said it will also issue additional USMCA implementing regulations in an interim final rule addressing automotive goods to be published in the Federal Register soon.