H.R. 5430 — what changed
United States-Mexico-Canada Agreement Implementation Act
From Reported in House to Engrossed in House. 4 sections amended between Reported in House and Engrossed in House.
Sec. 202A Special rules for automotive goods
Definitions— In this section:
Alternative staging regime— The term alternative staging regime means the application, pursuant to subsection (d), of the requirements of article 8 of the automotive appendix to the production of covered vehicles to allow producers of such vehicles to bring such production into compliance with the requirements of articles 2 through 7 of that appendix.
Alternative staging regime period— The term alternative staging regime period means the period during which the alternative staging regime is in effect.
Automotive appendix— The term automotive appendix means the Appendix to Annex 4–B of the USMCA (relating to the product-specific rules of origin for automotive goods).
Automotive good— The term automotive good means—
a covered vehicle; or
a part, component, or material listed in table A.1, A.2, B, C, D, or E of the automotive appendix.
Automotive rules of origin— The term automotive rules of origin means the rules of origin for automotive goods set forth in the automotive appendix.
Commissioner— The term Commissioner means the Commissioner of U.S. Customs and Border Protection.
Covered vehicle— The term covered vehicle means a passenger vehicle, light truck, or heavy truck.
Interagency committee— The term interagency committee means the interagency committee established under subsection (b)(1).
Passenger vehicle; light truck; heavy truck— The terms passenger vehicle, light truck, and heavy truck have the meanings given those terms in article 1 of the automotive appendix.
USMCA country— The term USMCA country means the United States, Canada, or Mexico for such time as the USMCA is in force with respect to Canada or Mexico, and the United States applies the USMCA to Canada or Mexico.
Establishment of interagency committee—
In general— Not later than 30 days after the date of the enactment of this Act, the President shall establish an interagency committee—
to provide advice, as appropriate, on the implementation, enforcement, and modification of provisions of the USMCA that relate to automotive goods, including the alternative staging regime; and
to review the operation of the USMCA with respect to trade in automotive goods, including—
the economic effects of the automotive rules of origin on the United States economy, workers, and consumers; and
the impact of new technology on such rules of origin.
Members— The members of the interagency committee shall be the following:
The Trade Representative.
The Secretary of Commerce.
The Commissioner.
The Secretary of Labor.
The Chair of the International Trade Commission.
Any other members determined to be necessary by the Trade Representative.
Chair— The chair of the interagency committee shall be the Trade Representative.
Use of information—
Information sharing— Notwithstanding any other provision of law, the members of the interagency committee may exchange information for purposes of carrying out this section.
Confidentiality of information— The interagency committee and any Federal agency represented on the interagency committee may not disclose to the public any confidential documents or information received in the course of carrying out this section, except information aggregated to preserve confidentiality and used in the reports described in subsection (g).
Certification requirements—
Certification relating to labor value content requirements—
In general— A covered vehicle shall be eligible for preferential tariff treatment only if the producer of the covered vehicle—
provides a certification to the Commissioner that the production of covered vehicles by the producer meets the labor value content requirements, including the high-wage material and manufacturing expenditures, high-wage technology expenditures, and high-wage assembly expenditures, as set forth in article 7 of the automotive appendix or, if the producer is subject to the alternative staging regime, articles 7 and 8 of that appendix, and includes the calculations of the producer related to the labor value content requirements; and
has information on record to support those calculations.
Implementation— For purposes of meeting the requirements under subparagraph (A)—
the Secretary of Labor, in consultation with the Commissioner, shall ensure that the certification of a producer under subparagraph (A)(i) does not contain omissions or errors before the certification is considered properly filed; and
a calculation described in subparagraph (A)(i) based on a producer’s preceding fiscal or calendar year is valid for the producer’s subsequent fiscal or calendar year, as the case may be, as set forth in articles 7 and 8 of the automotive appendix.
Regulations required— The Secretary of the Treasury, in consultation with the Secretary of Labor, shall prescribe regulations to carry out this paragraph, including regulations setting forth the procedures and requirements for a producer of covered vehicles to establish that the producer meets the labor value content requirements for preferential tariff treatment.
Certification relating to steel and aluminum purchase requirements—
In general— A covered vehicle shall be eligible for preferential tariff treatment only if the producer of the covered vehicle—
provides a certification to the Commissioner that the production of covered vehicles by the producer meets the steel and aluminum purchase requirements set forth in article 6 of the automotive appendix or, if the producer is subject to the alternative staging regime, articles 6 and 8 of that appendix; and
has information on record to support the calculations relied on for the certification.
Implementation— For purposes of meeting the requirements under subparagraph (A)—
the Commissioner shall ensure that the certification of a producer under subparagraph (A)(i) does not contain omissions or errors before the certification is considered properly filed; and
a calculation described in subparagraph (A)(ii) based on a producer’s preceding fiscal or calendar year is valid for the producer’s subsequent fiscal or calendar year, as the case may be, as set forth in articles 6 and 8 of the automotive appendix.
Regulations required— The Secretary of the Treasury shall prescribe regulations to carry out this paragraph, including regulations setting forth the procedures and requirements for a producer of covered vehicles to establish that the producer meets the steel and aluminum purchase requirements for preferential tariff treatment.
Alternative staging regime—
Publication of requirements— Not later than 90 days after the date of the enactment of this Act, the Trade Representative, in consultation with the interagency committee, shall publish in the Federal Register requirements, procedures, and guidance required to implement the alternative staging regime, including with respect to the following:
The procedures, calculation methodology, timeframe, specific regional value content thresholds, and other minimum requirements, consistent with article 8 of the automotive appendix, with which a producer of covered vehicles subject to the alternative staging regime is required to comply during the alternative staging regime period for such vehicles to be eligible for preferential tariff treatment pursuant to the alternative staging regime.
The date by which requests for the alternative staging regime are required to be submitted.
The information a producer of passenger vehicles or light trucks is required to provide, in the producer’s request to use the alternative staging regime, to demonstrate the actions that the producer will take to be prepared to meet all the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired, including the following:
A statement identifying which of the requirements set forth in articles 2 through 7 of the automotive appendix that the producer expects it will be unable to meet upon entry into force of the USMCA based on current business plans.
A statement indicating whether the passenger vehicles or light trucks for which the producer seeks to use the alternative staging regime account for 10 percent or less, or more than 10 percent, of the total production of passenger vehicles or light trucks, as the case may be, in USMCA countries by the producer during the 12-month period preceding the date on which the USMCA enters into force, or the average of such production during the 36-month period preceding that date, whichever is greater.
In the case of a producer that seeks to use the alternative staging regime for more than 10 percent of the producer’s total production of passenger vehicles or light trucks, as the case may be, in USMCA countries—
a detailed and credible plan describing with specificity the actions the producer intends to take to bring production of the passenger vehicles or light trucks, as the case may be, into compliance with the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period expires; and
a statement indicating the time period for which the producer is requesting to use the alternative staging regime, if that time period is greater than 5 years after the USMCA enters into force.
The procedures for accepting and reviewing requests for the alternative staging regime, including that the Trade Representative will—
notify a producer of any deficiencies in the request of the producer that would result in a denial of the request not later than 30 days after the request is submitted; and
provide producers the opportunity to submit supplemental information.
The criteria the Trade Representative, in consultation with the interagency committee, will consider when determining whether to approve a request for the alternative staging regime. Such criteria shall only include elements necessary for the producer to demonstrate the producer's ability to meet the requirements specified in subparagraphs (A) and (B). The criteria shall also describe the information to meet those requirements in sufficient detail to allow the producer to identify the information necessary to complete a request for the alternative staging regime.
The opportunity for a producer described in subparagraph (C)(iii) to modify the producer’s request for the alternative staging regime.
Review of requests for alternative staging regime—
In general— In reviewing the request of a producer of passenger vehicles or light trucks for the alternative staging regime, the Trade Representative, in consultation with the interagency committee, shall determine—
whether the request covers 10 percent or less, or more than 10 percent, of the production of passenger vehicles or light trucks in USMCA countries by the producer; and
whether the producer has identified with specificity which of the requirements set forth in articles 2 through 7 of the automotive appendix the producer is unable to meet based on current business plans.
Approval of alternative staging regime for passenger vehicle or light truck production not exceeding 10 percent of North American production— The Trade Representative shall authorize the use of the alternative staging regime if the Trade Representative, in consultation with the interagency committee, determines that—
the request for the alternative staging regime covers passenger vehicles or light trucks that do not exceed 10 percent of the production of passenger vehicles or lights trucks, as the case may be, in USMCA countries by the producer; and
the producer has identified with specificity which of the requirements set forth in articles 2 through 7 of the automotive appendix the producer is unable to meet based on current business plans.
Approval of alternative staging regime for passenger vehicle or light truck production exceeding 10 percent of north american production— The Trade Representative shall authorize the use of the alternative staging regime if the Trade Representative, in consultation with the interagency committee, determines that—
the request for the alternative staging regime covers more than 10 percent of the production of passenger vehicles or lights trucks, as the case may be, in USMCA countries by the producer;
the producer has identified with specificity which of the requirements set forth in articles 2 through 7 of the automotive appendix the producer is unable to meet based on current business plans; and
the detailed and credible plan of the producer submitted under paragraph (1)(C)(iii) is based on substantial evidence and reasonably calculated to bring the production of the passenger vehicles or light trucks, as the case may be, into compliance with the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired.
Procedures related to reviewing and approving requests—
Deadline for review— Not later than 120 days after receiving a request of a producer for the alternative staging regime, the Trade Representative, in consultation with the interagency committee, shall—
review the request;
make a determination with respect to whether to authorize the use of the alternative staging regime; and
provide to each producer a response in writing stating whether the producer may use the alternative staging regime.
Establishment of a public list— The Trade Representative shall maintain, and update as necessary, a public list of the producers of covered vehicles that have been authorized to use the alternative staging regime.
Reporting— Before a determination is made with respect to whether to authorize the use of the alternative staging regime, the Trade Representative shall provide to the appropriate congressional committees a summary of requests for the alternative staging regime.
Alternative staging regime review and modification—
Material changes to circumstances—
Notification— If the request of a producer to use the alternative staging regime for more than 10 percent of the total production of passenger vehicles or light trucks, as the case may be, in USMCA countries by the producer has been granted, the producer shall notify the Trade Representative and the interagency committee of any material changes to the information contained in the request, including any supplemental information relating to that request, and of any material changes to circumstances, that will affect the producer’s ability to meet any of the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired.
Requests for modification of plans—
In general— A producer that submits a notification under clause (i) with respect to a change described in that clause may submit to the Trade Representative and the interagency committee a request for modification of its plan.
Determination regarding modification— Not later than 90 days after receiving a request submitted under subclause (I), the Trade Representative, in consultation with the interagency committee, shall—
review the request;
make a determination with respect to whether the modified plan is based on substantial evidence and reasonably calculated to ensure that the producer will still be able to meet the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired;
if the Trade Representative makes an affirmative determination under item (bb), approve the modified plan; and
notify the producer in writing of the determination.
Inability to meet requirements— If the Trade Representative, in consultation with the interagency committee, determines that the information provided by a producer under clause (i) demonstrates that the producer will no longer be able to meet the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired, the Trade Representative shall notify the producer in writing, and no claim for preferential tariff treatment may be made, on or after the date of the determination, with respect to a covered vehicle of the producer pursuant to the alternative staging regime.
Failure to meet requirements for alternative staging regime—
In general— If, at any time, the Trade Representative, in consultation with the interagency committee, makes a determination described in subparagraph (B) with respect to a producer of covered vehicles subject to the alternative staging regime—
any claim for preferential tariff treatment under the alternative staging regime for any covered vehicle of that producer shall be considered invalid; and
notwithstanding the finality of a liquidation of an entry, the importer of any covered vehicle of that producer shall be liable for the duties, taxes, and fees that would have been applicable to that vehicle if preferential tariff treatment pursuant to the alternative staging regime had not applied when the vehicle was entered for consumption, or withdrawn from warehouse for consumption, plus interest assessed on or after the date of entry and before the date of the determination.
Determination described— A determination described in this subparagraph is a determination that a producer of covered vehicles subject to the alternative staging regime—
has failed to take the steps set forth in the producer’s request for the alternative staging regime and, as a result of that failure, the producer will no longer be able to meet the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired;
has provided false or misleading information in the producer’s request; or
in the case of a producer authorized to use the alternative staging regime for more than 10 percent of the total production of passenger vehicles or light trucks in USMCA countries by the producer, has failed to notify the Trade Representative under paragraph (4)(A) of material changes to circumstances that will prevent the producer from meeting any of the requirements set forth in articles 2 through 7 of the automotive appendix after the alternative staging regime period has expired.
Verification of labor value content requirements—
In general— As part of a verification conducted under section 207, the Secretary of the Treasury, in conjunction with the Secretary of Labor, may conduct a verification of whether a covered vehicle complies with the labor value content requirements set forth in article 7 of the automotive appendix or, if the producer is subject to the alternative staging regime under subsection (d), articles 7 and 8 of that appendix.
Role of Secretary of Labor— In cooperation with the Secretary of the Treasury, the Secretary of Labor shall participate in any verification conducted under paragraph (1) by verifying whether the production of covered vehicles by a producer meets the high-wage components of the labor value content requirements, including the wage component of the high-wage material and manufacturing expenditures, the high-wage technology expenditures, and the high-wage assembly expenditures, within the meaning given those terms in article 7 of that appendix.
Role of Secretary of the Treasury— The Secretary of the Treasury shall participate in any verification conducted under paragraph (1) by verifying—
the components of the labor value content requirements not covered by paragraph (2), including the annual purchase value and cost components of the high-wage material and manufacturing expenditures, within the meaning given those terms in article 7 of that appendix; and
whether the producer has met the labor value content requirements.
Actions by Secretary of Labor—
In general— In participating in a verification conducted under paragraph (1), the Secretary of Labor shall assist the Secretary of the Treasury to do the following:
Examine, or cause to be examined, upon reasonable notice, any record (including any statement, declaration, document, or electronically generated or machine readable data) described in the notice with reasonable specificity.
Request information from any officer, employee, or agent of a producer of automotive goods, as necessary, that may be relevant with respect to whether the production of covered vehicles meets the high-wage components of the labor value content requirements set forth in article 7 of the automotive appendix or, if the producer is subject to the alternative staging regime under subsection (d), articles 7 and 8 of that appendix.
Nature of information requested— Records and information that may be examined or requested under subparagraph (A) may relate to wages, hours, job responsibilities, and other information in any plant or facility relied on by a producer of covered vehicles to demonstrate that the production of such vehicles by the producer meets the labor value content requirements set forth in article 7 of the automotive appendix or, if the producer is subject to the alternative staging regime under subsection (d), articles 7 and 8 of that appendix.
Whistleblower protections—
Unlawful acts— It is unlawful to intimidate, threaten, restrain, coerce, blacklist, discharge, or in any other manner discriminate against any person for—
disclosing information to a Federal agency or to any person relating to a verification under this subsection; or
cooperating or seeking to cooperate in a verification under this subsection.
Enforcement— The Secretary of the Treasury and the Secretary of Labor are authorized to take such actions under existing law, including imposing appropriate penalties and seeking appropriate injunctive relief, as may be necessary to ensure compliance with this subsection and as provided for in existing regulations.
Protests of decisions of U.S. Customs and Border Protection—
In general— If a protest under section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) of a decision of U.S. Customs and Border Protection with respect to the eligibility for preferential tariff treatment of a covered vehicle relates to the analysis of the Department of Labor relating to the high-wage components of the labor value content requirements described in paragraph (1), the Secretary of Labor shall—
conduct an administrative review of the portion of the decision relating to such requirements; and
provide the results of that review to the Commissioner.
No accelerated disposition— An importer may not request the accelerated disposition under section 515(b) of the Tariff Act of 1930 (19 U.S.C. 1515(b)) of a protest against a decision of the Commissioner described in subparagraph (A).
Administration by Department of Labor— The Secretary of Labor is authorized to establish or designate an office within the Department of Labor to carry out the provisions of this section for which the Department is responsible.
Review and reports—
Periodic review on automotive rules of origin—
In general— The Trade Representative, in consultation with the interagency committee, shall conduct a biennial review of the operation of the USMCA with respect to trade in automotive goods, including—
to the extent practicable, a summary of actions taken by producers to demonstrate compliance with the automotive rules of origin, use of the alternative staging regime, enforcement of such rules of origin, and other relevant matters; and
whether the automotive rules of origin are effective and relevant in light of new technology and changes in the content, production processes, and character of automotive goods.
Report—
In general— The Trade Representative shall submit to the appropriate congressional committees a report on each review conducted under subparagraph (A).
Initial report— The first report required under clause (i) shall be submitted not later than 2 years after the date on which the USMCA enters into force.
Termination of reporting requirement— The requirement to submit reports under clause (i) shall terminate on the date that is 10 years after the date on which the USMCA enters into force.
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Report by International Trade Commission— Not later than one 1 year after the submission of the first report required by paragraph (1)(B), and every 2 years thereafter until the date that is 12 years after the date on which the USMCA enters into force, the International Trade Commission shall submit to the appropriate congressional committees and the President a report on—
the economic impact of the automotive rules of origin on—
the gross domestic product of the United States;
exports from and imports into the United States;
aggregate employment and employment opportunities in the United States;
production, investment, use of productive facilities, and profit levels in the automotive industries and other pertinent industries in the United States affected by the automotive rules of origin;
wages and employment of workers in the automotive sector in the United States; and
the interests of consumers in the United States;
the operation of the automotive rules of origin and their effects on the competitiveness of the United States with respect to production and trade in automotive goods, taking into account developments in technology, production processes, or other related matters;
whether the automotive rules of origin are relevant in light of technological changes in the United States; and
such other matters as the International Trade Commission considers relevant to the economic impact of the automotive rules of origin, including prices, sales, inventories, patterns of demand, capital investment, obsolescence of equipment, and diversification of production in the United States.
Report by Comptroller General— Not later than 4 years after the date on which the USMCA enters into force, the Comptroller General of the United States shall submit to the Committee on Appropriations and the Committee on Ways and Means of the House of Representatives and the Committee on Appropriations and the Committee on Finance of the Senate a report assessing the effectiveness of United States Government interagency coordination on implementation, enforcement, and verification of the automotive rules of origin and the customs procedures of the USMCA with respect to automotive goods.
Public participation— Before submitting a report under paragraph (1)(B) or (2), the agency responsible for the report shall—
solicit information relating to matters that will be addressed in the report from producers of automotive goods, labor organizations, and other interested parties;
provide for an opportunity for the submission of comments, orally or in writing, from members of the public relating to such matters; and
after submitting the report, post a version of the report appropriate for public viewing on a publicly available internet website for the agency.
Effective date— This section shall—
take effect on the date of the enactment of this Act; and
apply with respect to goods entered, or withdrawn from warehouse for consumption, on or after the date on which the USMCA enters into force.
Sec. 206 Recordkeeping requirements
In general— Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended—
by striking subsection (b) and inserting the following:
“(b) Exports and imports relating to USMCA countries
“(1) Definitions—In this subsection:
“(A) USMCA; USMCA country—The terms USMCA and USMCA country have the meanings given those terms in section 3 of the United States-Mexico-Canada Agreement Implementation Act.
“(B) USMCA certification of origin—The term USMCA certification of origin means the certification established under article 5.2.1 of the USMCA that a good qualifies as an originating good under the USMCA.
“(2) Exports to USMCA countries—Any person who completes a USMCA certification of origin or provides a written representation for a good exported from the United States to a USMCA country shall make, keep, and, pursuant to rules and regulations prescribed by the Secretary of the Treasury, render for examination and inspection, all records and supporting documents related to the origin of the good (including the certification or copies thereof), including records related to—
“(A) the purchase, cost, value, and shipping of, and payment for, the good;
“(B) the purchase, cost, value, and shipping of, and payment for, all materials, including indirect materials, used in the production of the good; and
“(C) the production of the good in the form in which it was exported or the production of the material in the form in which it was sold.
“(3) Exports under the Canadian Agreement—Any person who exports, or who knowingly causes to be exported, any merchandise to Canada during such time as the United States-Canada Free-Trade Agreement is in force with respect to, and the United States applies that Agreement to, Canada shall make, keep, and render for examination and inspection such records (including certifications of origin or copies thereof) which pertain to the exportations.
“(4) Imports into the United States
“(A) In general—Any importer who claims preferential tariff treatment under the USMCA for a good imported into the United States from a USMCA country shall make, keep, and, pursuant to rules and regulations prescribed by the Secretary of the Treasury of the Secretary of Labor, render for examination and inspection—
“(i) records and supporting documentation related to the importation;
“(ii) all records and supporting documents related to the origin of the good (including the certification or copies thereof), if the importer completed the certification; and
“(iii) records and supporting documents necessary to demonstrate that the good did not, while in transit to the United States, undergo further production or any other operation other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the United States.
“(B) Vehicle producer—Any vehicle producer whose good is the subject of a claim for preferential tariff treatment under the USMCA shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury and Secretary of Labor, render for examination and inspection records and supporting documents related to the labor value content and steel and aluminum purchasing requirements for the qualification of its vehicles for preferential treatment.
“(5) Retention period
“(A) Exports to USMCA countries—A person covered by paragraph (2) who completes a USMCA certification of origin or provides a written representation for a good exported from the United States to a USMCA country shall keep the records required by such paragraph relating to that certification of origin for a period of at least 5 years after the date on which the certification is completed.
“(B) Exports under Canadian agreement—The records required by paragraph (3) shall be kept for such periods of time as the Secretary shall prescribe, except that—
“(i) no period of time for the retention of the records may exceed 5 years from the date of entry, filing of a reconciliation, or exportation, as appropriate; and
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“(ii) records for any drawback claim shall be kept until the 3rd third anniversary of the date of liquidation of the claim.
“(C) Imports into the United States
“(i) In general—An importer covered by paragraph (4)(A) shall keep the records and supporting documents required by such paragraph for a period of at least 5 years after the date of importation of the good.
“(ii) Vehicle producer—A vehicle producer covered by paragraph (4)(B) shall keep the records and supporting documents required by paragraph (4)(B) for a period of at least 5 years after the date of filing the certifications required under paragraphs (1) and (2) of section 202A(c) of the United States-Mexico-Canada Agreement Implementation Act.”
by striking subsection (c); and
in the paragraph heading for subsection (e)(1), by striking “nafta” and inserting “usmca”.
Effective date—
In general— The amendments made by subsection (a) shall take effect on the date on which the USMCA enters into force.
Applicability—
Exports— Paragraphs (2) and (5)(A) of section 508(b) of the Tariff Act of 1930, as amended by subsection (a), shall apply with respect to a good exported from the United States on or after the date on which the USMCA enters into force.
Imports— Paragraphs (4) and (5)(C) of section 508(b) of the Tariff Act of 1930, as amended by subsection (a), shall apply with respect to a good that is entered for consumption, or withdrawn from warehouse for consumption, on or after the date on which the USMCA enters into force.
Transition from NAFTA treatment—
Exports— In the case of a good exported from the United States before the date on which the USMCA enters into force—
the amendments made by subsection (a) to paragraphs (2) and (5)(A) of section 508(b) of the Tariff Act of 1930 (19 U.S.C. 1508) shall not apply with respect to the good; and
section 508 of such Act, as in effect on the day before that date, shall continue to apply on and after that date with respect to the good.
Imports— In the case of a good that is entered for consumption, or withdrawn from warehouse for consumption, before the date on which the USMCA enters into force, the amendments made by subsection (a) to paragraphs (4) and (5)(C) of section 508(b) of the Tariff Act of 1930 (19 U.S.C. 1508) shall not apply with respect to the good.
Sec. 207 Actions regarding verification of claims under the USMCA
Verification—
Origin verification—
In general— The Secretary of the Treasury may, pursuant to article 5.9 of the USMCA, conduct a verification of whether a good is an originating good under section 202 or 202A.
Additional requirements— If the Secretary conducts a verification under subparagraph (A), the President may direct the Secretary—
during the verification process, to release the good only upon payment of duties or provision of security; and
if the Secretary makes a negative determination under subsection (b), to take action under subsection (c).
Textile and apparel goods—
In general— The Secretary of the Treasury may, pursuant to article 6.6 of the USMCA, conduct a verification described in subparagraph (C) with respect to a textile or apparel good.
Additional requirements— If the Secretary conducts a verification under subparagraph (A) with respect to a textile or apparel good, the President may direct the Secretary—
during the verification process, to take appropriate action described in subparagraph (D); and
if the Secretary makes a negative determination described in subsection (b), to take action under subsection (c).
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Verification described— A verification verification described in this subparagraph with respect to a textile or apparel good is—
a verification of whether the good qualifies for preferential tariff treatment under the USMCA; or
a verification of whether customs offenses are occurring or have occurred with respect to the good.
Action during verification— Appropriate action described in this subparagraph may consist of—
release of the textile or apparel good that is the subject of a verification described in subparagraph (C) upon payment of duties or provision of security;
suspension of preferential tariff treatment under the USMCA with respect to—
the textile or apparel good that is the subject of a verification described in subparagraph (C)(i), if the Secretary determines that there is insufficient information to support the claim for preferential tariff treatment; or
any textile or apparel good exported or produced by a person that is the subject of a verification described in subparagraph (C)(ii) if the Secretary of the Treasury determines that there is insufficient information to support the claim for preferential tariff treatment made with respect to that good;
denial of preferential tariff treatment under the USMCA with respect to—
the textile or apparel good that is the subject of a verification described in subparagraph (C)(i) if the Secretary determines that incorrect information has been provided to support the claim for preferential tariff treatment; or
any textile or apparel good exported or produced by a person that is the subject of a verification described in subparagraph (C)(ii) if the Secretary determines that the person has provided incorrect information to support the claim for preferential tariff treatment that has been made with respect to that good;
detention of any textile or apparel good exported or produced by a person that is the subject of a verification described in subparagraph (C) if the Secretary determines that there is insufficient information to determine the country of origin of that good; and
denial of entry into the United States of any textile or apparel good exported or produced by a person that is the subject of a verification described in subparagraph (C) if the Secretary determines that the person has provided incorrect information regarding the country of origin of that good.
Negative determination—
In general— A negative determination described in this subsection with respect to a good imported, exported, or produced by an importer, exporter, or producer is a determination by the Secretary, based on a verification conducted under subsection (a), that—
a claim by the importer, exporter, or producer that the good qualifies as an originating good under section 202 is inaccurate; or
the good does not qualify for preferential tariff treatment under the USMCA because—
the importer, exporter, or producer failed to respond to a written request for information or failed to provide sufficient information to determine that the good qualifies as an originating good;
after receipt of a written notification for a visit to conduct verification under subsection (a), the exporter or producer did not provide written consent for that visit;
the importer, exporter, or producer does not maintain, or denies access to, records or documentation required under section 508(l) of the Tariff Act of 1930 (19 U.S.C. 1508(l));
in the case of verification conducted under subsection (a)(2)—
access or permission for a site visit is denied;
officials of the United States are prevented from completing a site visit on the proposed date and the exporter or producer does not provide an acceptable alternative date for the site visit; or
the exporter or producer does not provide access to relevant documents or facilities during a site visit; or
the importer, exporter, or producer—
otherwise fails to comply with the requirements of this section; or
based on the preponderance of the evidence, circumvents the requirements of this section.
Requests for information— The Secretary shall not make a negative determination described in paragraph (1)(B) unless—
in a case in which the Secretary conducts a verification with respect to a good by written request or questionnaire submitted to the importer under article 5.9.1(a) of the USMCA and the claim for preferential tariff treatment under the USMCA is based on a certification of origin completed by the exporter or producer of the good, the Secretary requests information from the exporter or producer that completed the certification; or
in a case in which the Secretary conducts a verification with respect to a textile or apparel good by requesting a site visit under article 6.6.2 of the USMCA, the Secretary requests information from the importer and from any exporter or producer that provided information to the Secretary to support the claim for preferential tariff treatment.
Action based on determination—
Denial of preferential tariff treatment— Upon making a negative determination described in subsection (b)(1) with respect to a good, the Secretary may deny preferential tariff treatment under the USMCA with respect to the good.
Withholding of preferential tariff treatment based on pattern of conduct— If verifications of origin relating to identical goods indicate a pattern of conduct by an importer, exporter, or producer of false or unsupported representations relevant to a claim that a good imported into the United States qualifies for preferential tariff treatment under the USMCA, U.S. Customs and Border Protection, in accordance with regulations prescribed by the Secretary, may withhold preferential tariff treatment under the USMCA for entries of those goods imported, exported, or produced by that person until U.S. Customs and Border Protection determines that person has established compliance with requirements for claims for preferential tariff treatment under the USMCA.
Prevention of circumvention— In making a determination under this section, including whether to accept or reject a claim for preferential tariff treatment under the USMCA, the Secretary shall interpret the requirements of this section in a manner to avoid and prevent circumvention of those requirements.
Sec. 816 Report to Congress
In general— The Trade Representative, in consultation with the head of any Federal agency described in this subtitle, shall submit to the appropriate congressional committees a report on the implementation of this subtitle, including—
a description of efforts of the USMCA countries to implement their environmental obligations; and
a description of additional efforts to be taken with respect to USMCA countries that are failing to implement their environmental obligations.
Timing of report— The report required by subsection (a) shall be submitted—
changed
not later than one 1 year after the date on which the USMCA enters into force;
changed
annually for each of the next four 4 years; and
biennially thereafter.
Additional matters To be included in the fifth annual report— The report required by subsection (a) that is submitted in the fifth year after the USMCA enters into force shall also include the following:
The updated assessment required by section 812(d).
A comprehensive determination regarding USMCA countries’ implementation of their environmental obligations.
An explanation of how compliance with environmental obligations will be taken into consideration during the “joint review” conducted pursuant to article 34.7.2 of the USMCA on the sixth anniversary of the entry into force of the USMCA.