Section 232 USMCA U.S. content: BIS guidance to CBP (Oct 2026)
BIS guidance defines how CBP should assess U.S. content for the Proclamation 11032 clause (2)(d) 25% Section 232 duty on non-U.S. content of USMCA-qualifying Canada and Mexico aluminum and steel articles, with a 15% floor.
The Bureau of Industry and Security published guidance to U.S. Customs and Border Protection on how to assess "U.S. content" for Proclamation 11032 clause (2)(d). The notice is FR Doc. 2026-20938 (Docket No. 260918-0056; XRIN 0694-XC163). It was on public inspection October 9, 2026, and is scheduled for Federal Register publication Wednesday, October 14, 2026.
Underlying proclamation: Proclamation 11032, "Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper Into the United States" (91 FR 34085, June 4, 2026). The Secretary delegated the guidance duty to the Deputy Assistant Secretary for Technology Security; Jessica Curyto signed the notice.
For USMCA-qualifying Canada and Mexico aluminum and steel Annex I-C articles, clause (2)(d) applies 25% Section 232 only to non-U.S. content, with a 15% total effective duty floor. BIS now defines what counts as U.S. content for CBP.
What Proclamation 11032 clause (2)(d) already required
Clause (2) is effective for entries for consumption (or warehouse withdrawals) on or after 12:01 a.m. eastern daylight time June 8, 2026, until 11:59 p.m. eastern standard time December 31, 2027. It sets the additional Section 232 rate for aluminum and steel articles listed in Annex I-C. The default under clause (2)(a) is 25%, unless a lower rate applies under (2)(b), (2)(c), or (2)(d).
- Clause (2)(d): for products of Canada and Mexico that qualify for USMCA preferential tariff treatment, a duty of 25% applies only to the non-U.S. content of the product.
- Non-U.S. content (proclamation definition): total value of the product minus the value attributable to parts produced in the United States.
- 15% floor: the total effective duty assessed under that subclause shall not be less than 15% ad valorem (Annex IV).
- Penalty risk: if CBP determines an importer engaged in fraud or deliberately misled the government about U.S. content, CBP shall impose penalties to the extent permitted by law.
BIS definition of "U.S. content"
(1) Value attributable to parts wholly obtained, entirely produced, or substantially transformed in the United States
(2) To the extent not otherwise accounted for in (1): steel melted and poured in the U.S.; aluminum smelted and cast in the U.S.; and/or copper smelted and cast in the U.S.
Effective: entered or withdrawn for consumption on/after 12:01 a.m. ET on the FR publication date (scheduled Oct 14, 2026)
Product-specific questions: direct to CBP. Signed: Jessica Curyto, Deputy Assistant Secretary for Technology Security
Watch for CBP implementation guidance (Chapter 99 reporting, valuation worksheets, and any CSMS). This BIS notice defines the assessment concept; it does not publish HTS Chapter 99 numbers or filing codes. Related reading: USMCA 2027 joint review comments and hearing; Section 232 UAS duties filing and drawback; Section 232 derivative inclusions process ended.
This is a Section 232 metals item, not AD/CVD. It is not covered by the 19 U.S.C. § 1677h AD/CVD drawback exclusion. Steel and aluminum Section 232 drawback remains proclamation- and product-specific (see the Library's Section 232 substitution and UAS pieces). The safe point for this notice: U.S. content valuation changes the amount of 232 duty actually paid on USMCA-qualifying Canada/Mexico entries, and drawback math can only be based on duty actually paid, so filers need the line-level 232 amount CBP actually assessed.
Action items
- Map USMCA-qualifying Canada/Mexico Annex I-C entries that rely on clause (2)(d). Confirm preferential treatment and the aluminum/steel Annex I-C line.
- Build value documentation for U.S.-origin parts (wholly obtained, entirely produced, or substantially transformed) and, where not already counted, U.S. melted-and-poured steel / smelted-and-cast aluminum or copper.
- Remember the 15% floor and the fraud / deliberate-misstatement penalty risk. Keep workpapers audit-ready.
- Watch CBP guidance for entry coding and valuation mechanics. Do not invent Chapter 99 numbers from this BIS notice alone.
- FR Doc. 2026-20938 (Docket 260918-0056; XRIN 0694-XC163): BIS guidance to CBP on assessing U.S. content under Proclamation 11032 clause (2)(d). Public inspection Oct 9, 2026; scheduled FR publication Oct 14, 2026.
- Clause (2)(d): USMCA-qualifying Canada/Mexico Annex I-C aluminum and steel get 25% Section 232 only on non-U.S. content; total effective duty under that subclause shall not be less than 15% ad valorem (Annex IV).
- U.S. content = (1) parts wholly obtained, entirely produced, or substantially transformed in the U.S., plus (2) to the extent not otherwise counted, U.S. melted/poured steel and U.S. smelted/cast aluminum or copper.
- Effective for entries/withdrawals on or after 12:01 a.m. ET on the FR publication date (scheduled Oct 14, 2026). Product-specific questions go to CBP.
- Drawback math (when otherwise available under the governing proclamation) follows duty actually paid: capture the line-level 232 amount CBP assessed after U.S. content valuation.
- Guidance to U.S. Customs and Border Protection Regarding the Assessment of "U.S. Content" for Purposes of Implementing Tariffs Pursuant to Clause (2)(d) of Proclamation 11032 of June 1, 2026 (FR Doc. 2026-20938; Docket No. 260918-0056; XRIN 0694-XC163) · Bureau of Industry and Security, Department of Commerce
- Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper Into the United States (Proclamation 11032; 91 FR 34085; FR Doc. 2026-11314) · The White House / Federal Register
This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.