14.10.2026 Regulation #USA #Import #Duties #Trade agreements

BIS defines U.S. content for USMCA goods under Section 232 from Oct 14

The Commerce Department's Bureau of Industry and Security (BIS) has issued guidance to U.S. Customs and Border Protection on how to assess "U.S. content" in USMCA-qualifying goods from Canada and Mexico. The notice was filed with the Federal Register on October 9, 2026 and is due to be published on October 14, 2026. It applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on the publication date.

How BIS defines U.S. content

The guidance implements clause (2)(d) of Proclamation 11032 of June 1, 2026. According to the notice, "U.S. content" has two components:

the value of the product attributable to parts wholly obtained, entirely produced or substantially transformed in the United States;
to the extent not already counted above, the value attributable to steel melted and poured in the United States, and to aluminum and copper smelted and cast in the United States.

The notice is signed by Jessica Curyto, Deputy Assistant Secretary for Technology Security (Docket No. 260918-0056). BIS directs questions about the application of the guidance to a specific product to CBP.

How it fits into the Proclamation 11032 scheme

The Proclamation was published in the Federal Register as 91 FR 34085 (June 4, 2026). For USMCA-qualifying goods from Canada and Mexico, clause (2)(d) sets a 25% duty that applies only to non-U.S. content, meaning total value minus the value of parts produced in the United States. The total effective duty may not fall below 15% ad valorem; details are in Annex IV to the Proclamation. Clause (2), including clause (2)(d), covers the aluminum and steel articles listed in Annex I-C; copper is mentioned in the U.S. content definition but is not part of that clause. If CBP determines that an importer engaged in fraud or deliberately misled the government about U.S. content, CBP must impose penalties to the extent permitted by law.

Clause (1) of the Proclamation takes effect for goods entered on or after 12:01 a.m. EDT on June 8, 2026. Clause (2), with the rates for aluminum and steel articles listed in Annex I-C, runs until 11:59 p.m. EST on December 31, 2027.

How to declare: two lines in the CBP bulletin

The CBP CSMS bulletin requires separate declaration on two lines:

9903.82.20 covers non-U.S. content at an additional 25%, plus U.S. content above 40% of the value of the article;
9903.82.21 covers U.S. content at an additional 0%. The value of U.S. content reported on this line is up to 40% of the value of the goods.

One caveat: the bulletin describes these headings for derivative steel articles (subdivision (c)(xi)) from Canada and Mexico that are eligible for USMCA treatment. It does not set out separate lines for aluminum or copper. It also notes that entries under 9903.82.21 are not eligible for the Section 122 exemption under 9903.03.06.

When the guidance applies and what changes in 2028

The BIS guidance applies from October 14, 2026. Under the CSMS, for goods entered on or after 12:01 a.m. ET on January 1, 2028, articles under headings 9903.82.20 through 9903.82.26 become subject to the duty rates under headings 9903.82.05, 9903.82.06, 9903.82.09, 9903.82.15 and 9903.82.16. CBP says it will provide additional guidance before that date. Clause (3) of the Proclamation likewise provides for a change of rates from January 1, 2028.

Primary sources

This material is for information only and does not constitute legal advice or customs consulting. Verify changes against the primary sources before acting.