Customs Tweaks NAFTA 2.0 Rules for Cars and Clothes
Published Date: 1/17/2025
Rule
Summary
Starting March 18, 2025, new rules kick in to make trading textiles, apparel, and cars between the U.S., Mexico, and Canada smoother under the USMCA deal. These rules update how customs handles tariffs, paperwork, and certifications, with some vehicle-related certifications required by May 19, 2025. Businesses involved in these goods should get ready for clearer guidelines and new deadlines that could save time and money.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 4 costs, 1 mixed.
Three Vehicle Certifications Required
A covered vehicle (passenger vehicle, light truck, or heavy truck) is eligible for USMCA preferential tariff treatment only if the producer submits three properly filed vehicle certifications to CBP: the labor value content (LVC) certification, the steel purchasing certification, and the aluminum purchasing certification. CBP must ensure these certifications contain no omissions or errors before they are considered properly filed.
70% Steel and Aluminum Sourcing Rule
For a covered vehicle to qualify as originating, the producer generally must ensure that at least 70 percent, by value, of its corporate-level purchases of steel are originating goods and at least 70 percent, by value, of its corporate-level purchases of aluminum are originating goods during the applicable calculation period.
Alternative Staging Regime and Liability
Vehicle producers may petition USTR for an alternative staging regime to get more time or different phase-ins; passenger vehicles and light trucks may use such regimes for periods ending no later than five years after entry into force (July 1, 2025), and heavy trucks no later than seven years after entry into force (July 1, 2027). USTR will publish an approved list of producers; if a producer later fails to meet its regime's requirements, USTR can remove the producer and importers may become liable for duties, taxes, and fees that would have applied plus interest.
New USMCA Compliance Dates
The new CBP rules take effect on March 18, 2025. Vehicle-related certifications (labor value content, steel purchasing, and aluminum purchasing) are required only for certifications submitted to CBP on or after May 19, 2025.
Tariff Preference Levels for Textiles
The rule adds Tariff Preference Levels (TPLs) that let specified quantities of certain non-originating textile and apparel goods claim USMCA preferential tariff treatment up to annual limits measured in square meter equivalents (SME). Imports under a TPL are managed first-come, first-served, may be claimed for at least one year after import if limits remain, and goods entered under TPLs are exempt from merchandise processing fees; CBP will use a certificate of eligibility to administer TPLs.
Textile Site Visits and Verifications
CBP may perform verifications or site visits of textile and apparel exporters or producers to check whether goods qualify for USMCA preferential treatment. A site visit can request access to records and facilities, may be conducted without prior notice to the exporter or producer (though the visiting country must notify the host country 20 days before the first visit), and denial of access or findings can lead to denial or withholding of preferential treatment.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-17116, Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended
The U.S. Department of Labor publishes this final rule to revise its implementing regulations for the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (VEVRAA). These revisions will align the regulations with Executive Order 14173 and remove the VEVRAA regulations' cross-references to the Executive Order 11246 authority. Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025. This final rule also makes technical revisions to update the VEVRAA regulations' jurisdictional thresholds, which were adjusted for inflation by the Federal Acquisition Regulation Council on October 1, 2025.
2026-17115, Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended
The U.S. Department of Labor is revising its implementing regulations for Section 503 of the Rehabilitation Act of 1973, as amended (Section 503). The revisions align the regulations with applicable law and recent executive orders, including Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," and Executive Order 14219, "Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative."
2026-17114, Rescission of Executive Order 11246 Implementing Regulations
On January 21, 2025, President Trump issued Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which revoked Executive Order 11246. Accordingly, the U.S. Department of Labor publishes this final rule to rescind the implementing regulations for Executive Order 11246.
2026-17088, Carboxin; Pesticide Tolerances
This regulation establishes tolerances for residues of carboxin in or on multiple crops that are discussed later in this document. Under the Federal Food, Drug, and Cosmetic Act (FFDCA), UPL Delaware Inc. submitted a petition to EPA requesting that EPA establish a maximum permissible level for residues of this pesticide in or on the identified commodities.
2026-17120, Fisheries of the South Atlantic; 2026 Commercial Closure of Red Snapper in the South Atlantic
NMFS implements an accountability measure for red snapper in the exclusive economic zone (EEZ) of the South Atlantic. NMFS projects that commercial landings of red snapper will reach the commercial annual catch limit (ACL) for the 2026 fishing year. Therefore, NMFS is closing the commercial sector for red snapper in the South Atlantic EEZ. This closure is necessary to protect the red snapper resource.
2026-17113, Fisheries of the South Atlantic; Commercial Closure for Blueline Tilefish in the South Atlantic
NMFS implements an accountability measure for the commercial harvest of blueline tilefish in the exclusive economic zone (EEZ) of the South Atlantic. NMFS estimates that commercial landings of blueline tilefish will reach the commercial annual catch limit (ACL) for the 2026 fishing year. Accordingly, NMFS closes the commercial sector of blueline tilefish in the South Atlantic EEZ to protect the blueline tilefish resource from overfishing.
Previous / Next Documents
Previous: 2025-00496, Regulations for the Florida Keys National Marine Sanctuary Management Review: Blueprint for Restoration
NOAA is expanding the Florida Keys National Marine Sanctuary and updating its rules to better protect coral reefs, seagrasses, and other habitats. These changes affect everyone who visits or relies on the sanctuary, aiming to restore and preserve this special place. The new rules kick in after a 45-day review period starting January 17, 2025, with some state-level checks, and they’ll help keep the sanctuary healthy for years to come.
Next: 2025-00559, Air Plan Approval; Washington; Olympic Region Clean Air Agency, Recreational Fires
The EPA is giving the green light to Washington State to remove a ban on small backyard fires in Thurston County. This change means folks can enjoy their summer campfires again without breaking air quality rules, as studies show it won’t harm the air. The new rule kicks in on February 18, 2025, with no extra costs for residents or businesses.