CSMS 45309245·Operational·December 29, 2020·View on csms.cbp.gov ↗

USMCA

Plain-English explanation

CSMS 45309245 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin (operational), published on December 29, 2020. It carries the official CBP guidance brokers and importers must follow for the topic — "USMCA". CSMS messages are the operational layer between Commerce determinations and at-the-border collections: when Commerce publishes a new rate, scope ruling, or instruction, CBP turns it into a CSMS that ACE/ACS systems and brokers act on.

Message body

Full text as published by U.S. Customs and Border Protection

CSMS #45309245 - USMCA - Consolidated Appropriations Act 2021 & End of Restrained Enforcement U.S. Customs and Border Protection sent this bulletin at 12/29/2020 04:01 PM EST Cargo Systems Messaging Service CSMS #45309245 - USMCA - Consolidated Appropriations Act 2021 & End of Restrained Enforcement This message is to inform the Trade Community of the following U.S. – Mexico – Canada Agreement (USMCA) updates: Consolidated Appropriations Act of 2021 On December 27, 2020, the Consolidated Appropriations Act of 2021 [H.R.133 — 116th Congress (2019-2020), Pub. Law No. citation pending, herein after “the Appropriations Act”] became law. It includes updates to the U.S. – Mexico – Canada Agreement’s (USMCA) treatment of goods entered through foreign trade zones (FTZ) and merchandise processing fee (MPF) refunds on post-importation claims (i.e. 520(d) and reconciliation claims). These changes, contained in the Appropriations Act’s Title VI, USMCA Implementation Act Technical Corrections, Sec. 601, are retroactively effective as of July 1, 2020. (1) Foreign Trade Zones Under NAFTA, non-originating goods used in production processes in FTZs could not qualify as originating as a result of that processing. Specifically, the special rule applicable to FTZs prohibited non-originating goods used in production processes within FTZs from ever qualifying as originating goods even if all conditions under the general rules were otherwise satisfied. Initially, this prohibition was not incorporated into the USMCA Implementation Act [ Pub. Law No: 116-113 (January 29, 2020) ]. Title VI, Sec. 601(b) of the Appropriations Act now applies this FTZ prohibition to USMCA preferential treatments claims. (2) Merchandise Processing Fees Title VI, Sec. 601(e) of the Appropriations Act authorizes CBP to refund merchandise processing fees (MPF) for post-importation claims (i.e. 520(d) and reconciliation claims) for USMCA preferential treatment. End of Restrained Enforcement CBP elected to exercise a period of restrained enforcement, from July 1 through December 31, 2020, on USMCA preferential treatment claims. This was done in order to provide the trade sufficient time to adjust to the new requirements of the Agreement, and in consideration of the business process changes necessary to achieve full compliance. Notice of the restrained enforcement period was included on page 3 of CBP’s USMCA Implementation Instructions, which was posted on June 30, 2020 [CBP Pub. No. 1118-0620; https://www.cbp.gov/document/guidance/usmca-implementation-instructions ]. This period of restrained enforcement will conclude on December 31, 2020. Automobiles – Additional Time for Verifications Please note that while the USMCA’s restrained enforcement period will end on December 31, 2020, CBP also announced in its USMCA Implementing Instructions that from July 1, 2020 to June 30, 2021, for automotive goods, CBP may allow additional time to respond to a verification (CBP Form 28, Request for Information). Automotive goods are defined as all goods under Harmonized Tariff Schedule of the United States headings 87.01 through 87.08, and the following miscellaneous headings : 40.09; 4009.12; 4009.22; 4009.32; 4009.42; 4010.31; 4010.32; 4010.33; 4010.34; 4010.39; 40.11; 4016.93; 4016.99; 7007.11; 7007.21; 7009.10; 9031.80; 9032.89, per the USMCA Ch. 4 – Rules of Origin – Annex 4B. The USMCA contains no distinction between new and used automotive goods. All importers seeking USMCA preferential treatment for automotive goods must meet the USMCA's automotive rules of origin provisions. Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page . You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com . This service is provided to you at no charge by U.S. Customs and Border Protection . Privacy Policy | GovDelivery is providing this information on behalf of U.S. Department of Homeland Security, and may not use the information for any other purposes. Powered by Privacy Policy | Cookie Statement | Help

Frequently asked questions

What is CSMS 45309245?

CSMS 45309245 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin titled "USMCA". CSMS bulletins are the operational instructions CBP issues to brokers, importers, and ACE filers covering rate changes, system updates, scope guidance, and other day-to-day customs-operations changes.

When was CSMS 45309245 published?

CBP published CSMS 45309245 on December 29, 2020. The bulletin's instructions are typically operative as of the publication date unless the body specifies a different effective date.

Is the CBP CSMS the legally binding instruction?

Yes — for at-the-border filing and entry collection. CSMS messages translate Commerce's Federal Register determinations into operational CBP instructions that ACE/ACS systems and brokers execute. The Federal Register notice is the underlying legal authority; the CSMS is the operational implementation. Both should be read together when reconciling a rate or scope change.

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