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New Textile Regs for USMCA Take Effect Next Month

Law firm ArentFox noted that the regulations promulgated by CBP on USMCA regarding textiles will take effect March 18, and cover the certificate of eligibility, rather than certificate of origin for tariff preference level imports, so CBP can track how much of the TPL has been used. The regulations also authorize CBP to visit exporters or textile producers in Mexico and Canada to see if they meet rules of origin, or "to determine the customs offenses that are occurring or have occurred at the facility." These site visits can be unannounced, but government authorities in the home country will be notified.

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The automotive regulations have a 120-day delayed compliance period. They clarify requirements on how to submit data on labor value content and steel and aluminum purchasing certifications.

"The [interim final rule (IFR)] outlines specific data elements that must be included in each certification, the timeline for submission, and the process related to the government’s review of the certifications to confirm that they contain no omissions or errors. In addition, the IFR also contains provisions related to vehicle averaging elections, averaging for automotive parts, year-end reconciliation submissions, and certifications for vehicle producers making use of the alternative staging regime," ArentFox wrote Feb. 14.