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USMCA Issues Rules on USMCA Labor Value Content Requirements

Date: June 30, 2020

The Federal Register will publish on July 1 the Department of Labor’ Interim Final Rule (IFR) related to the High-wage Components of the LVC Requirements for the U.S.-Mexico-Canada Agreement (USMCA). Published on the same day the USMCA enters into force, this IFR is another key document for the auto sector and the new rules of origin.

The implementing legislation for USMCA, which was signed into law earlier this year, gave authority to the Department of Labor “to make, keep and render for … inspection, records and supporting documentation” for compliance with the high-wage components of the LVC requirements. Among other things, the IFR also provides for an administrative review process.

The IFR will be effective upon the date of publication with a 60-day comment period. The Labor Department’s Wage and Hour Division will accept written comments per the instructions described in the Federal Register notice. For instance, all comments must reference the must include the agency name and Regulatory Information Number (RIN 1235-AA36).

MEMA staff are reviewing the IFR will continue to work with member representatives on a response. Please contact Leigh Merino for more information.

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