CBP Issues Interim Final Rule on USMCA Rules of Origin; Rest of Regulations Coming by Mid-2021

CBP is issuing an interim final rule to implement rules of origin provisions for the U.S.-Mexico-Canada Agreement that will take effect July 1. The interim rule creates new Part 182 to the customs regulations for USMCA, and amends existing NAFTA regulations under 19 CFR Part 181 so that they no longer apply to entries on or after July 1. Most of 19 CFR Part 182 is vacant, but CBP says it will fill out the regulations over the coming year. Comments on the interim regulations are due Aug. 31.

The bulk of the regulations included in the interim final rule are found in Appendix A to 19 CFR Part 182, which reproduces the rules of origin provisions of the Uniform Regulations agreed upon by the U.S., Mexico and Canada and released in early June (see 2006040003). “This appendix contains the uniform regulations for the interpretation, application, and administration of the rules of origin of Chapter Four of the USMCA and the rules of origin of Chapter Six of the USMCA related to textiles and apparel goods,” CBP said. The agency is not accepting comments on these provisions of its interim final rule.

The interim final rule does create the framework for the rest of 19 CFR Part 182, but most of the paragraphs include a title only and are reserved for future regulatory text. “CBP expects to publish additional regulations by July 1, 2021, one year from when the USMCA enters into force, to set forth any remaining USMCA implementing regulations, and to request public comments on those implementing regulations,” it said.

As for the existing NAFTA regulations, the interim final rule amends the scope paragraph in 19 CFR 181.0 “to indicate that Part 181 is not applicable to goods entered for consumption, or withdrawn from warehouse for consumption, on or after July 1, 2020. The USMCA provisions, not the NAFTA provisions, are applicable to goods entered for consumption.” Part 181 continues to apply to goods entered or withdrawn before that date, CBP said.

“Claims for preferential tariff treatment under the USMCA may be made as of July 1, 2020,” CBP said. “The United States International Trade Commission has modified the Harmonized Tariff Schedule of the United States (HTSUS) to include the addition of a new General Note 11, incorporating the USMCA rules of origin, and the insertion of the special program indicator 'S or S+' for the USMCA in the HTSUS 'special' rate of duty subcolumn,” it said.