© [2020], Sandler, Travis & Rosenberg, P.A. Originally published in the [04/24/2020] issue of the Sandler, Travis & Rosenberg Trade Report. Reprinted by permission.

U.S. Customs and Border Protection has issued interim instructions (see attached) providing early guidance on the new requirements under the U.S.-Mexico-Canada Agreement. A large part of these instructions deals with the USMCA’s rules of origin for automotive goods and textiles and apparel. Other topics covered include origination, regional value content calculation, treatment of sets, transshipment, origin marking, making preference claims, certification and other documentation requirements, recordkeeping, and verification.

CBP states that in support of USMCA implementation it is developing 19 CFR 182 to include the USMCA uniform regulations, USMCA domestic regulations, and appendix. Further, the HTSUS is to be amended to include General Note 11 with information on the USMCA rules of origin. As such, the interim implementing instructions are subject to change pending the issuance of GN11 and 19 CFR 182 regulations. The final instructions will be released prior to the date the USMCA enters into force (which has not yet been determined but could be as early as July 1) and will provide additional details on entry, compliance, and other requirements.

Separately, the Office of the U.S. Trade Representative has set a July 1 deadline for North American producers of passenger vehicles or light trucks to submit draft plans for using an alternative staging regime that would give them up to five years to transition to the stricter USMCA rules of origin for automotive goods. Final plans are due by Aug. 31. Procedures and guidance for submitting petitions to use an alternative staging regime are set forth in the attached notice.

For more information, please contact customs attorney Mark Tallo.

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