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ARTICLE · 10 AUGUST 2021

USMCA Proposed Rule Change – Expanding Part 102 Marking Rules

U.S. Customs and Border Protection ("CBP" or "Customs") recently released a proposed rule (FR 86 35422) which would expand the usage of the U.S. – Canada – Mexico Agreement marking rules...

GlobalInternational Law

U.S. Customs and Border Protection ("CBP" or "Customs") recently released a proposed rule (FR 86 35422) which would expand the usage of the U.S. – Canada – Mexico Agreement marking rules found in 19 C.F.R. Part 102 (herein after "Part 102"). Under the proposed expansion of the rule, CBP will apply the Part 102 rules in determining non-preferential country of origin for imports from Canada and Mexico.  The "NAFTA marking rules" as they used to be called will be applied to all non-preferential scenarios when determining whether a good imported from Canada or Mexico has been substantially transformed which results in an article with a new name, character, or use1. Id. at 35422. Interested parties had an opportunity to comment on the proposed rule up and until August 5, 2021. Id.   Thereafter, the official rule should be published within the following 60-day period. This expansion is a significant shift away from the current rules in determining non-preferential country

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