[Federal Register Volume 90, Number 171 (Monday, September 8, 2025)]
[Rules and Regulations]
[Pages 43155-43157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17122]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 10, 113, and 163
[USCBP-2024-0017; CBP Dec. 25-12]
RIN 1685-AA00 (Formerly RIN 1515-AE65)
Agreement Between the United States of America, the United
Mexican States, and Canada (USMCA) Implementing Regulations Related to
Textile and Apparel Goods, Automotive Goods, and Other USMCA
Provisions; Correcting Amendments
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Correcting amendments.
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SUMMARY: On January 17, 2025, U.S. Customs and Border Protection (CBP)
published an interim final rule in the Federal Register amending the
CBP regulations to add implementing regulations for the preferential
tariff treatment and related customs provisions of the Agreement
Between the United States of America, the United Mexican States, and
Canada (USMCA) related to general definitions, drawback and duty-
deferral programs, textile and apparel goods, and automotive goods,
among others. Errant amendatory instructions resulted in the
inadvertent omission of two conforming amendments and the removal of
two paragraphs that were unrelated to the USMCA amendments. This action
corrects those errors.
DATES: This document is effective on September 8, 2025.
FOR FURTHER INFORMATION CONTACT:
Operational Aspects and Audit Aspects: Lea-Ann B. Bigelow,
Director, Textiles and Trade Agreements Division, Trade Policy and
Programs, Office of Trade, U.S. Customs and Border Protection, (202)
339-7371 or [email protected].
Legal Aspects: Yuliya A. Gulis, Director, Commercial and Trade
Facilitation Division, Regulations and Rulings, Office of Trade, U.S.
Customs and Border Protection, (202) 325-0042 or
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On January 17, 2025, U.S. Customs and Border Protection (CBP)
published an interim final rule (IFR) in the Federal Register (90 FR
6456) titled ``Agreement Between the United States of America, the
United Mexican States, and Canada (USMCA) Implementing Regulations
Related to Textile and Apparel Goods, Automotive Goods, and Other USMCA
Provisions'' (the ``USMCA IFR''), which amended the CBP regulations to
add implementing regulations for the preferential tariff treatment and
related customs provisions of the USMCA with respect to general
definitions, drawback and duty-deferral programs, textile and apparel
goods, and automotive goods. The IFR also amended the regulations to
implement the temporary admission of goods, to delineate recordkeeping
and protest requirements, to clarify the fee provisions, and to make
conforming amendments.
[[Page 43156]]
The USMCA IFR became effective on March 18, 2025. Compliance with
the labor value content (LVC) certification, steel purchasing
certification, and aluminum purchasing certification provisions in
Sec. Sec. 182.95, 182.96, and 182.97 of title 19 of the Code of
Federal Regulations (CFR) (19 CFR 182.95, 182.96, and 182.97) is only
required for those vehicle certifications submitted to CBP on or after
May 19, 2025. The IFR's comment period closed on March 18, 2025. CBP
will publish a final rule in the Federal Register addressing the public
comments received from the IFRs \1\ implementing the USMCA at a later
date.
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\1\ CBP previously published two other IFRs addressing USMCA. On
July 1, 2020, CBP published an IFR, entitled ``Implementation of the
Agreement Between the United States of America, the United Mexican
States, and Canada (USMCA) Uniform Regulations Regarding Rules of
Origin,'' (CBP Dec. 20-11) in the Federal Register (85 FR 39690).
CBP also published an IFR on July 6, 2021, entitled, ``Agreement
Between the United States of America, the United Mexican States, and
Canada (USMCA) Implementing Regulations Related to the Marking
Rules, Tariff-rate Quotas, and Other USMCA Provisions,'' (CBP Dec.
21-10) in the Federal Register (86 FR 35566), which was effective on
July 1, 2021. Any final rule published at a later date would address
the public comments received from all three of these IFRs.
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The USMCA IFR inadvertently omitted one conforming amendment,
removed two paragraphs unrelated to the USMCA amendments, and contained
an inaccurate amendatory instruction. Specifically, the amendatory
instructions for 19 CFR 10.224 were inadvertently omitted from the IFR.
CBP inadvertently removed two paragraphs unrelated to the USMCA from 19
CFR 10.237 and 113.62. Finally, an inaccurate amendatory instruction
resulted in the omission of an intended amendment to the Appendix to 19
CFR part 163 that was addressed and explained within the preamble but
not added to the regulation. This document amends these four sections
of the CBP regulations to correct these discrepancies and omissions.
II. Correcting Amendments
Section 10.224
The implementing legislation for the Caribbean Basin Economic
Recovery Act (CBERA), as amended by the United States-Caribbean Basin
Trade Partnership Act (CBTPA), trade preference program contained the
North American Free Trade Agreement (NAFTA) rules of origin. See 19
U.S.C. 2702. Accordingly, the implementing regulations for these
programs in 19 CFR part 10, which followed the statutory language,
contain numerous references to NAFTA.
On July 1, 2020, section 601 of the United States-Mexico-Canada
Agreement Implementation Act (USMCA Implementation Act), Public Law
116-113, 134 Stat. 11 (19 U.S.C. Chapter 29) repealed the NAFTA
Implementation Act and references to NAFTA became outdated. On December
27, 2020, the Consolidated Appropriations Act, 2021, Public Law 116-
260, was enacted with Title VI of the Act containing technical
corrections to other laws, including the CBTPA, to correct the relevant
trade preference programs using the NAFTA rules of origin. With the
repeal of the NAFTA Implementation Act, section 602(a) and (b) of Title
VI of the Appropriations Act amended these other laws to include the
USMCA rules of origin.
Subpart E of 19 CFR part 10 contains the textile and apparel
articles and the non-textile articles under the CBTPA provisions (see
19 CFR 10.221-10.237). Accordingly, CBP is amending Sec. 10.224(b) to
replace the current reference to NAFTA with a reference to the USMCA in
accordance with the technical corrections made to 19 U.S.C. 2702. While
the USMCA IFR amended several 19 CFR part 10 provisions of the CBTPA,
including Sec. 10.224(c)(12), the amendment to Sec. 10.224(b) was
inadvertently not included. Thus, CBP is including the minor, non-
substantive amendment to Sec. 10.224(b) in this document.
Sections 10.237 and 113.62
Due to an inadvertent error in the amendatory instructions in the
USMCA IFR, 19 CFR 10.237 and 113.62 were not revised as CBP intended.
As described in the USMCA IFR, Sec. 10.237(b) was amended to replace
the current references to NAFTA with references to the USMCA in
accordance with the technical corrections made to 19 U.S.C. 2702.
However, the amendatory instructions in the USMCA IFR revised Sec.
10.237(b) while only including revisions to (b) and (b)(1). Thus, CBP
inadvertently omitted the existing Sec. 10.237(b)(2), (3), and (4).
Accordingly, CBP is amending Sec. 10.237(b) in this document to add
paragraphs (b)(2), (3), and (4) to correct this inadvertent omission.
This amendment is non-substantive as it reinstates the previous
regulatory language that existed prior to the USMCA IFR's effective
date, with only one minor nomenclature change in Sec. 10.237(b)(4)
changing ``Customs'' to ``CBP''.
Similarly, the amendatory instructions in the USMCA IFR revised
Sec. 113.62(a)(1) while only including revisions to paragraph (a)(1)
when adding the appropriate cross-references to the USMCA drawback and
duty-deferral program provisions alongside existing references to NAFTA
duty-deferral and drawback provisions. Thus, CBP inadvertently omitted
Sec. Sec. 113.62(a)(1)(i) and (ii). Accordingly, CBP is amending Sec.
113.62(a)(1) in this document to add paragraphs (a)(1)(i) and (ii) to
correct this inadvertent omission. This amendment is also non-
significant as it reinstates the previous regulatory language that
existed prior to the USMCA IFR's effective date, with no changes.
Appendix to Part 163
Section 509(a)(1)(A) of the Tariff Act of 1930, as amended by title
VI of Public Law 103-182, commonly referred to as the Customs
Modernization Act (19 U.S.C. 1509(a)(1)(A)), requires the production of
records, within a reasonable time after demand by CBP if such record is
required by law or regulation for the entry of the merchandise, whether
or not CBP required its presentation at the time of entry. Pursuant to
19 U.S.C. 1509(e), CBP is required to identify and publish a list of
the records and entry information that is required to be maintained and
produced under subsection (a)(1)(A) of section 509 (19 U.S.C.
1509(a)(1)(A)). This list is commonly referred to as ``the (a)(1)(A)
list.''
As described in the USMCA IFR's preamble, CBP is amending section
IV of Appendix to 19 CFR part 163 under the Sec. 10.307 listing in the
(a)(1)(A) list to clarify that the United States-Canada Free Trade
Agreement (CFTA) provisions continue to be suspended while USMCA
remains in effect. However, due to an inaccurate amendatory
instruction, this regulatory amendment could not be incorporated into
the CFR when the USMCA IFR became effective. Thus, CBP is correcting
the amendatory instruction in this document to accurately reflect the
correction to the daggered footnote following the entry for Sec.
10.307, as intended in the USMCA IFR.
III. Administrative Procedure Act
Under the Administrative Procedure Act (APA) (5 U.S.C. 553(b)),
agencies generally are required to publish a notice of proposed
rulemaking in the Federal Register that solicits public comment on the
proposed regulatory amendments, consider public comments when deciding
on the content of the final amendments, and publish the final
amendments at least 30 days prior to their effective date. The APA,
however, provides exceptions from the prior notice and the public
comment and the
[[Page 43157]]
delayed effective date requirements, when an agency for good cause
finds that such procedures are ``impracticable, unnecessary, or
contrary to the public interest.'' See 5 U.S.C. 553(b)(B), (d)(3).
For this action, CBP finds that good cause exists to forgo Section
553's notice and comment requirement because the amendments to the
regulations are merely technical, correcting inaccurate amendatory
instructions, correcting inadvertent omissions, and adding a minor,
non-substantive conforming amendment implementing a technical
correction to the CBTPA, as set forth in the Consolidated
Appropriations Act, 2021. For the same reasons, CBP finds that good
cause exists to forgo Section 553's 30-day delayed effective date
requirement.
Signing Authority
In accordance with Treasury Order 100-20, the Secretary of the
Treasury delegated to the Secretary of Homeland Security the authority
related to the customs revenue functions vested in the Secretary of the
Treasury as set forth in 6 U.S.C. 212 and 215, subject to certain
exceptions. This regulation is being issued in accordance with DHS
Directive 07010.3, Revision 03.2, which delegates to the Commissioner
of CBP the authority to prescribe and approve/sign regulations related
to customs revenue functions.
Rodney S. Scott, Commissioner, having reviewed and approved this
document, has delegated the authority to electronically sign the
document to the Director (or Acting Director, if applicable) of the
Regulations and Disclosure Law Division of CBP, for purposes of
publication in the Federal Register.
List of Subjects
19 CFR Part 10
Bonds, Exports, Imports, Reporting and recordkeeping requirements,
Trade agreements.
19 CFR Part 113
Common carriers, Exports, Freight, Laboratories, Reporting and
recordkeeping requirements, Surety bonds.
19 CFR Part 163
Administrative practice and procedure, Exports, Imports, Penalties,
Reporting and recordkeeping requirements.
Amendments to the CBP Regulations
For the reasons stated above, amend parts 10, 113, and 163 of title
19 of the Code of Federal Regulations (19 CFR parts 10, 113, and 163)
as set forth below.
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
0
1. The general and specific authority citations for part 10 continue to
read as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484,
1498, 1508, 1623, 1624, 4513.
* * * * *
Sections 10.221 through 10.228 and Sec. Sec. 10.231 through
10.237 also issued under 19 U.S.C. 2701 et seq.
* * * * *
Sec. 10.224 [Amended]
0
2. Amend Sec. 10.224(b) by removing the word ``NAFTA'' from the table
and add, in its place, the word ``USMCA''.
0
3. In Sec. 10.237 add new paragraphs (b)(2), (3), and (4) to read as
follows:
Sec. 10.237 Verification and justification of claim for preferential
tariff treatment.
* * * * *
(b) * * *
(2) Must establish and implement internal controls which provide
for the periodic review of the accuracy of the Certificate of Origin or
other records referred to in paragraph (b)(1) of this section;
(3) Must have shipping papers that show how the article moved from
the CBTPA beneficiary country to the United States. If the imported
article was shipped through a country other than a CBTPA beneficiary
country and the invoices and other documents from the CBTPA beneficiary
country do not show the United States as the final destination, the
importer also must have documentation that demonstrates that the
conditions set forth in Sec. 10.233(d)(3)(i) through (iii) were met;
and
(4) Must be prepared to explain, upon request from CBP, how the
records and internal controls referred to in paragraphs (b)(1) through
(3) of this section justify the importer's claim for preferential
tariff treatment.
PART 113--CBP BONDS
0
4. The general authority citation for part 113 continues to read as
follows:
Authority: 19 U.S.C. 66, 1623, 1624.
* * * * *
0
5. In Sec. 113.62 add new paragraphs (a)(1)(i) and (ii) to read as
follows:
Sec. 113.62 Basic importation and entry bond conditions.
* * * * *
(a) * * *
(1) * * *
(i) Deposit, within the time prescribed by law or regulation, any
duties, taxes, and charges imposed, or estimated to be due, at the time
of release or withdrawal; and
(ii) Pay, as demanded by CBP, all additional duties, taxes, and
charges subsequently found due, legally fixed, and imposed on any entry
secured by this bond.
* * * * *
PART 163--RECORDKEEPING
0
6. The general authority citation for part 163 continues to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510,
1624.
* * * * *
0
7. Amend Appendix to part 163 by revising the daggered footnote
following the entry for Sec. 10.307 to read as follows:
Appendix to Part 163--Interim (a)(1)(A) List
* * * * *
IV. * * *
[dagger] [Sec. 10.307 Documents, etc. required for entries under
CFTA Certificate of origin of CF 353]
[[dagger] CFTA provisions are suspended while USMCA remains in
effect. See part 182.]
* * * * *
Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings,
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2025-17122 Filed 9-5-25; 8:45 am]
BILLING CODE 9111-14-P