TRANSITIONS AND ALTERNATIVE STAGING REGIMES of the automotive appendix provides that a passenger vehicle or light truck may be originating pursuant to an alternative staging regime during a period ending no later than January 1, 2025 or five years after entry into force of the USMCA, whichever is later [see FRN 2020- 08405 (to be published on 04/21/2020)]. In addition to the other requirements contained in Article 8 of the automotive appendix, an alternative staging regime for eligible passenger vehicles or light trucks must meet the following requirements:
TRANSITIONS AND ALTERNATIVE STAGING REGIMES. Article 8 of the automotive appendix provides that a passenger vehicle or light truck may be originating pursuant to an alternative staging regime during a period ending no later than January 1, 2025 or five years after entry into force of the USMCA, whichever is later [update from FRN if necessary]. In addition to the other requirements contained in Article 8 of the automotive appendix, an alternative staging regime for eligible passenger vehicles or light trucks must meet the following requirements:
a) the regional value content for such vehicles must not be lower than 62.5 percent, under the net cost method, and must be 75 percent by no later than January 1, 2025 or five years after entry into force of this Agreement, whichever is later;
b) the regional value content for a good listed in Table A.1 of the automotive appendix, except for a battery of subheading 8507.60,83 that is for use in a passenger vehicle or light truck must not be lower than 62.5 percent under the net cost method or 72.5 percent under the transaction value method, if the corresponding rule includes a transaction value method, and must be 75 percent under the net cost method or 85 percent under the transaction value method, if the corresponding rule includes a transaction value method by no later than January 1, 2025 or five years after entry into force of this Agreement, whichever is later;
c) the steel and aluminum requirement under Article 6 of the automotive appendix must be met, unless the Parties agree to change that requirement for vehicles subject to this alternative regime; and
d) the LVC requirements under Articles 7.1 or 7.2 of the automotive appendix must not be reduced by more than 5 percentage points for high wage material and manufacturing expenditures unless the Parties agree to change that requirement for vehicles subject to this alternative staging regime. In [citation to FRN], the United States Trade Representative published requirements, procedures, and guidance required to implement the USMCA alternative staging regime. TABLE A.1 - Description and HTSUS Codes for Steel and Aluminum SUBJECT TO USMCA STEEL AND ALUMINIUM PURCHASING REQUIREMENTS (ARTICLE 6 OF THE APPENDIX TO CHAPTER 4) 1 The following provides guidance on the HS codes, at the 6-digit level, for steel and aluminum subject to the USMCA steel and aluminum purchasing requirements. These codes and descriptions are for guidance only and may change based on changes in nomenclature or other classification i...
