On October 14, 2026, the Bureau of Industry and Security (BIS) published a Federal Register notice defining “U.S. content” for products of Canada and Mexico that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), for purposes of the Section 232 duties under clause (2)(d) of Proclamation 11032. The guidance is effective for products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 14, 2026. Importers of Canadian and Mexican aluminum and steel articles listed in Annex I-C to the Proclamation, and the customs brokers and filers who prepare their entries, should review how they value U.S. content before their next entry. 

Key Takeaways 

  • BIS defines U.S. content in two parts: (1) the value attributable to parts wholly obtained, entirely produced, or substantially transformed in the United States; and (2) to the extent not otherwise accounted for in part (1), the value attributable to steel melted and poured, aluminum smelted and cast, and/or copper smelted and cast in the United States. 
  • The guidance applies to entries on or after 12:01 a.m. Eastern Time on October 14, 2026. 
  • Under clause (2)(d), the 25 percent duty applies only to the non-U.S. content of USMCA-qualifying Annex I-C articles of Canada and Mexico, and the total effective duty may not be less than 15 percent ad valorem. 
  • The notice is one page. It contains no documentation or submission procedure, and it states that questions about a specific product may be directed to CBP. 
  • The Proclamation provides that if CBP determines an importer has engaged in fraud or has deliberately misled the United States Government regarding U.S. content, CBP shall impose penalties to the extent permitted by law. 

A Duty Calculated on the Value You Report 

Proclamation 11032, signed June 1, 2026, modified the Section 232 tariff regimes for aluminum, steel, and copper established under Proclamation 11021 (91 FR 34085). For aluminum and steel articles listed in Annex I-C, entered on or after 12:01 a.m. eastern daylight time on June 8, 2026, through 11:59 p.m. eastern standard time on December 31, 2027, clause (2) sets an additional ad valorem rate of 25 percent unless a lower rate applies. We covered the full June framework in our prior article, New Section 232 Action: What the June 2026 Aluminum, Steel & Copper Proclamation Means for Your Imports, and the April framework in New Executive Order Adjusting Imports of Aluminum, Steel, and Copper Into the United States. 

Clause (2)(d) addresses products of Canada and Mexico that qualify for preferential tariff treatment under the USMCA. For those products, the 25 percent duty applies only to the non-U.S. content of the product. The Proclamation defines non-U.S. content as the total value of the product minus the value attributable to parts produced in the United States, and provides that the total effective duty on the imported product may not be less than 15 percent ad valorem, as detailed in Annex IV. Clause (2)(d) also directed the Secretary of Commerce to issue guidance to CBP on assessing U.S. content. 

CBP issued entry filing instructions on June 5, 2026, in CSMS #68855869. Under that message, HTSUS headings 9903.82.20 and 9903.82.21 apply to derivative steel articles provided for in subdivision (c)(xi) of U.S. note 16 that are products of Canada and Mexico and eligible for special tariff treatment under the USMCA. CBP stated that the non-U.S. content and the U.S. content value of these products must be reported on two lines, and instructed filers not to report more than 40 percent of the value as U.S. content under heading 9903.82.21. 

Until October 14, the operative description of U.S. content was the one in the Proclamation and the CSMS: value attributable to parts produced in the United States. The BIS notice now supplies the guidance that clause (2)(d) called for. 

What the BIS Definition Says 

The notice, FR Doc. 2026-20938 (91 FR 65162), was issued by BIS and signed by the Deputy Assistant Secretary for Technology Security, to whom the Secretary delegated this duty. It advises that, for purposes of implementing clause (2)(d), U.S. content means: 

  1. The value of the product attributable to parts wholly obtained, entirely produced, or substantially transformed in the United States; and 
  2. To the extent not otherwise accounted for in (1), the value of the product attributable to steel that was melted and poured in the United States, aluminum that was smelted and cast in the United States, and/or copper that was smelted and cast in the United States. 

The notice closes by stating that questions regarding its application to a specific product may be directed to CBP. It does not establish a submission, pre-approval, or documentation procedure. 

How the Descriptions Compare 

DTL’s Read 

In our view, three features of the notice matter most for importers. 

  • The first prong uses origin terms (wholly obtained, entirely produced, substantially transformed) rather than the Proclamation’s shorter phrase, parts produced in the United States. Importers should be prepared to show how each part they count as U.S. content meets one of those three terms. 
  • The second prong recognizes the value of U.S. melted and poured steel and U.S. smelted and cast aluminum or copper. We read the phrase “to the extent not otherwise accounted for in (1)” to mean that value counted under the first prong is not counted a second time under the second prong. 
  • The notice does not change CBP’s June 5 reporting instructions, including the two-line structure and the 40 percent limit on the U.S. content line. We expect CBP may update its CSMS guidance, and importers should watch for it. 

Action Items for Importers of Canadian and Mexican Metal Articles 

In our experience, U.S. content claims are reviewed after entry, when the supporting records either exist or do not. We recommend the following steps now. 

  1. Confirm scope. Verify that each product is listed in Annex I-C, is a product of Canada or Mexico, and qualifies for USMCA preferential treatment, with a certification of origin on file. 
  2. Map the bill of materials to both prongs. For each part claimed as U.S. content, identify whether it was wholly obtained, entirely produced, or substantially transformed in the United States. Separately identify the value of U.S. melted and poured steel and U.S. smelted and cast aluminum or copper not already counted. 
  3. Collect supplier records. Obtain mill certificates and supplier declarations showing country of melt and pour for steel and country of smelt and cast for aluminum, consistent with CBP’s existing reporting instructions for those fields. 
  4. Align with your customs broker. Provide written instructions on the U.S. content value for each entry line under 9903.82.20 and 9903.82.21, and confirm the broker is applying the 40 percent limit in the June 5 CSMS. 
  5. Ask before you file, where the answer is unclear. For product-specific questions, the notice points to CBP. CSMS #68855869 lists the Trade Remedy Branch (TradeRemedy@cbp.dhs.gov) for Section 232 entry filing questions. Aluminum article importers in particular should confirm reporting, as the June 5 USMCA headings reference derivative steel articles. 
  6. Look back at entries since June 8, 2026. The notice applies to entries on or after October 14, 2026. For earlier entries, review whether U.S. content claims were supported under the Proclamation and the June 5 CSMS. If errors surface, evaluate a post summary correction or a prior disclosure under 19 C.F.R. 162.74 with counsel. 

The Penalty Exposure 

Clause (2)(d) provides that if CBP determines that an importer has engaged in fraud or has deliberately misled the United States Government regarding the U.S. content of an imported product, CBP shall impose penalties to the extent permitted by law. That provision is tied to fraud and deliberate misstatement. Separately, 19 U.S.C. 1592 provides for penalties for material false statements or omissions on entry made through fraud, gross negligence, or negligence, with penalty amounts that differ by culpability level. DTL’s read: an unsupported U.S. content figure is a valuation and entry accuracy issue, and the documentation steps above are the importer’s primary defense at every culpability level. 

Canadian and Mexican goods face other changes this year as well. See our USMCA coverage for related developments. 

How Diaz Trade Law Can Help 

  • Build a U.S. content valuation file mapped to both prongs of the BIS definition. 
  • Review broker instructions for 9903.82.20 and 9903.82.21 two-line reporting. 
  • Conduct a look-back on entries since June 8, 2026, and evaluate post summary corrections or prior disclosures. 
  • Respond to CBP Requests for Information (CF-28) and Notices of Action (CF-29) on U.S. content claims. 

Contact Diaz Trade Law at 305-456-3830 or diaztradelaw.com.

Print Friendly, PDF & EmailPrint