Commerce Defines “U.S. Content” for USMCA Steel and Aluminum Articles Under Proclamation 11032 

On October 14, 2026, the Bureau of Industry and Security (BIS) published a Federal Register discover defining “U.S. content material” for merchandise of Canada and Mexico that qualify for preferential tariff remedy beneath the United States-Mexico-Canada Agreement (USMCA), for functions of the Section 232 duties beneath clause (2)(d) of Proclamation 11032. The steerage is efficient for merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 14, 2026.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 metal articles listed in Annex I-C to the Proclamation, and the customs brokers and filers who put together their entries, ought to assessment how they worth U.S. content material earlier than their subsequent entry. 

Key Takeaways 

• BIS defines U.S. content material in two components: (1) the worth attributable to components wholly obtained, solely produced, or considerably remodeled within the United States; and (2) to the extent not in any other case accounted for partly (1), the worth attributable to metal melted and poured, aluminum smelted and forged, and/or copper smelted and forged within the United States. 
• The steerage applies to entries on or after 12:01 a.m. Eastern Time on October 14, 2026. 
• Under clause (2)(d), the 25 % responsibility applies solely to the non-U.S. content material of USMCA-qualifying Annex I-C articles of Canada and Mexico, and the overall efficient responsibility will not be lower than 15 % advert valorem. 
• The discover is one web page. It incorporates no documentation or submission process, and it states that questions on a particular product could also be directed to CBP. 
• The Proclamation offers that if CBP determines an importer has engaged in fraud or has intentionally misled the United States Government relating to U.S. content material, CBP shall impose penalties to the extent permitted by regulation. 

A Duty Calculated on the Value You Report 

Proclamation 11032, signed June 1, 2026, modified the Section 232 tariff regimes for aluminum, metal, and copper established beneath Proclamation 11021 (91 FR 34085). For aluminum and metal articles listed in Annex I-C, entered on or after 12:01 a.m. jap daylight time on June 8, 2026, via 11:59 p.m. jap normal time on December 31, 2027, clause (2) units an extra advert valorem fee of 25 % until a decrease fee applies. We lined the complete 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 merchandise of Canada and Mexico that qualify for preferential tariff remedy beneath the USMCA. For these merchandise, the 25 % responsibility applies solely to the non-U.S. content material of the product. The Proclamation defines non-U.S. content material as the overall worth of the product minus the worth attributable to components produced within the United States, and offers that the overall efficient responsibility on the imported product will not be lower than 15 % advert valorem, as detailed in Annex IV. Clause (2)(d) additionally directed the Secretary of Commerce to problem steerage to CBP on assessing U.S. content material. 

CBP issued entry submitting directions on June 5, 2026, in CSMS #68855869. Under that message, HTSUS headings 9903.82.20 and 9903.82.21 apply to spinoff metal articles offered for in subdivision (c)(xi) of U.S. be aware 16 which can be merchandise of Canada and Mexico and eligible for particular tariff remedy beneath the USMCA. CBP said that the non-U.S. content material and the U.S. content material worth of those merchandise have to be reported on two strains, and instructed filers to not report greater than 40 % of the worth as U.S. content material beneath heading 9903.82.21. 

Until October 14, the operative description of U.S. content material was the one within the Proclamation and the CSMS: worth attributable to components produced within the United States. The BIS discover now provides the steerage that clause (2)(d) referred to as for. 

What the BIS Definition Says 

The discover, 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 responsibility. It advises that, for functions of implementing clause (2)(d), U.S. content material means: 

1. The worth of the product attributable to components wholly obtained, solely produced, or considerably remodeled within the United States; and 
2. To the extent not in any other case accounted for in (1), the worth of the product attributable to metal that was melted and poured within the United States, aluminum that was smelted and forged within the United States, and/or copper that was smelted and forged within the United States. 

The discover closes by stating that questions relating to its utility to a particular product could also be directed to CBP. It doesn’t set up a submission, pre-approval, or documentation process. 

How the Descriptions Compare 

DTL’s Read 

In our view, three options of the discover matter most for importers. 

• The first prong makes use of origin phrases (wholly obtained, solely produced, considerably remodeled) relatively than the Proclamation’s shorter phrase, components produced within the United States. Importers must be ready to indicate how every half they rely as U.S. content material meets a type of three phrases. 
• The second prong acknowledges the worth of U.S. melted and poured metal and U.S. smelted and forged aluminum or copper. We learn the phrase “to the extent not in any other case accounted for in (1)” to imply that worth counted beneath the primary prong isn’t counted a second time beneath the second prong. 
• The discover doesn’t change CBP’s June 5 reporting directions, together with the two-line construction and the 40 % restrict on the U.S. content material line. We anticipate CBP could replace its CSMS steerage, and importers ought to look ahead to it. 

Action Items for Importers of Canadian and Mexican Metal Articles 

In our expertise, U.S. content material claims are reviewed after entry, when the supporting data both exist or don’t. We suggest the next steps now. 

1. Confirm scope. Verify that every product is listed in Annex I-C, is a product of Canada or Mexico, and qualifies for USMCA preferential remedy, with a certification of origin on file. 
2. Map the invoice of supplies to each prongs. For every half claimed as U.S. content material, establish whether or not it was wholly obtained, solely produced, or considerably remodeled within the United States. Separately establish the worth of U.S. melted and poured metal and U.S. smelted and forged aluminum or copper not already counted. 
3. Collect provider data. Obtain mill certificates and provider declarations displaying nation of soften and pour for metal and nation of smelt and forged for aluminum, according to CBP’s current reporting directions for these fields. 
4. Align together with your customs dealer. Provide written directions on the U.S. content material worth for every entry line beneath 9903.82.20 and 9903.82.21, and make sure the dealer is making use of the 40 % restrict within the June 5 CSMS. 
5. Ask earlier than you file, the place the reply is unclear. For product-specific questions, the discover factors to CBP. CSMS #68855869 lists the Trade Remedy Branch ([email protected]) for Section 232 entry submitting questions. Aluminum article importers particularly ought to verify reporting, because the June 5 USMCA headings reference spinoff metal articles. 
6. Look again at entries since June 8, 2026. The discover applies to entries on or after October 14, 2026. For earlier entries, assessment whether or not U.S. content material claims had been supported beneath the Proclamation and the June 5 CSMS. If errors floor, consider a publish abstract correction or a previous disclosure beneath 19 C.F.R. 162.74 with counsel. 

The Penalty Exposure 

Clause (2)(d) offers that if CBP determines that an importer has engaged in fraud or has intentionally misled the United States Government relating to the U.S. content material of an imported product, CBP shall impose penalties to the extent permitted by regulation. That provision is tied to fraud and deliberate misstatement. Separately, 19 U.S.C. 1592 offers for penalties for materials false statements or omissions on entry made via fraud, gross negligence, or negligence, with penalty quantities that differ by culpability degree. DTL’s learn: an unsupported U.S. content material determine is a valuation and entry accuracy problem, and the documentation steps above are the importer’s major protection at each culpability degree. 

Canadian and Mexican items face different modifications this 12 months as nicely. See our USMCA coverage for associated developments. 

How Diaz Trade Law Can Help 

• Build a U.S. content material valuation file mapped to each prongs of the BIS definition. 
• Review dealer directions for 9903.82.20 and 9903.82.21 two-line reporting. 
• Conduct a look-back on entries since June 8, 2026, and consider publish abstract corrections or prior disclosures. 
• Respond to CBP Requests for Information (CF-28) and Notices of Action (CF-29) on U.S. content material claims. 

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