USTR has invoked USMCA RRM and ordered suspension of liquidation for all unliquidated U.S. imports from Mondelez’s Puebla, Mexico facility.

1. What changed

USTR has invoked the Rapid Response Labor Mechanism (RRM) under Annex 31-A of the USMCA with respect to a Mondelez Mexico, S. de R.L. de C.V. facility located in Puebla, Mexico. In connection with this action, and pursuant to Section 752(a) of the USMCA Implementation Act (Pub. L. 116-113), the U.S. Trade Representative has formally directed the Secretary of the Treasury to suspend liquidation of all unliquidated entries of goods from this specific Mondelez facility.

This is an import-impacting measure: liquidation of covered entries is frozen until USTR later notifies Treasury that one of the statutory conditions in Section 752(b) has been met (e.g., Mexico’s review and any remediation are completed, or the matter is otherwise resolved).

2. Affected products

Facility: Mondelez Mexico, S. de R.L. de C.V., located in the city and state of Puebla, Mexico.

Product scope: The facility manufactures confectionery goods, beverages, and other food products. The USTR notice and letters do not list specific HTS subheadings, but based on the product descriptions, likely affected HTS chapters include, for example:

• Chapter 17: Sugars and sugar confectionery (e.g., HTS 1704 – sugar confectionery not containing cocoa)
• Chapter 18: Cocoa and cocoa preparations (e.g., HTS 1806 – chocolate and other food preparations containing cocoa)
• Chapter 19: Preparations of cereals, flour, starch or milk; pastrycooks’ products (e.g., biscuits, snack foods)
• Chapter 20: Preparations of vegetables, fruit, nuts (if applicable to any snack or food products made at the facility)
• Chapter 21: Miscellaneous edible preparations (e.g., certain beverage bases, flavorings)
• Chapter 22: Beverages, spirits and vinegar (non-alcoholic beverages produced at the facility)

Critical point: The suspension applies based on the facility of production, not solely on HTS classification. Any U.S. import entry that includes goods produced at the Mondelez Puebla facility is subject to suspended liquidation, regardless of the specific HTS code, as long as it is an “entry of goods from the Facility.”

3. Rate changes

At this stage, there is no explicit change to the applicable duty rates or to HTS classifications. Instead, the regulatory change is procedural but directly affects import processing:

• Liquidation status: All unliquidated entries of goods from the Mondelez Puebla facility are now subject to suspension of liquidation.
• Duty rates: Existing MFN/USMCA preferential rates continue to apply at the time of entry; however, final duty assessment is deferred until liquidation resumes.
• Potential future impact: If Mexico’s review confirms a Denial of Rights and remediation is not achieved, the USMCA RRM allows the United States to impose facility-specific remedies. These can include:
• Denial of preferential tariff treatment under USMCA for goods from the facility (i.e., loss of USMCA duty-free status, reverting to column 1 general MFN rates), or
• Additional penalties or restrictions on imports from the facility.

No specific percentage increases or new duty rates have yet been announced. Importers should, however, anticipate the possibility that USMCA preferential treatment for this facility’s goods could be suspended in a later phase.

4. Dates and procedural timeline

Key dates and timeframes:

• November 12, 2025: The Interagency Labor Committee (ILC) received the RRM petition from Union General de Mexico (UGM).
• Within 30 days of receipt: ILC reviewed the petition and determined there was sufficient, credible evidence of a Denial of Rights to invoke the RRM.
• Date of USTR request to Mexico (same date as suspension letter): USTR filed a request under USMCA Article 31-A.4.2 for Mexico to conduct a review of the alleged Denial of Rights at the Mondelez Puebla facility and simultaneously directed Treasury to suspend liquidation of all unliquidated entries from the facility. The suspension is effective immediately upon that direction.
• Mexico’s response deadline: Mexico has 10 days from the date of the U.S. request to notify whether it intends to conduct the requested review (USMCA Article 31-A.4.2).
• Mexico’s review period: If Mexico agrees to conduct the review, it has 45 days from the date of the U.S. request to complete the review.
• Remediation period: If Mexico determines that a Denial of Rights exists, the United States has requested that Mexico attempt to remediate within 45 days of the request.

Duration of suspension of liquidation:

• The suspension remains in place “until such time as the Trade Representative notifies the Secretary that a condition described in subsection (b) has been met” (Section 752(a) of the USMCA Implementation Act). Those conditions typically relate to completion of the review, agreement on remediation, or conclusion of any panel process.
• No explicit end date is provided in the documents; importers should assume an open-ended suspension until USTR issues a follow-up notice.

5. Required actions for importers, brokers, and compliance teams

5.1 Identify exposure

• Determine whether your company imports any goods produced by Mondelez Mexico, S. de R.L. de C.V. at the Puebla facility.
• Work with suppliers and procurement to obtain written confirmation of:
• Facility name and address for all Mondelez-produced goods imported into the United States.
• Whether any SKUs or product lines are manufactured at the Puebla facility.
• Flag all SKUs and purchase orders linked to the Puebla facility in internal systems.

5.2 Map affected entries

• For customs brokers and internal customs teams:
• Run reports of all unliquidated entries (open entries) that include Mondelez products potentially sourced from the Puebla facility.
• Coordinate with suppliers to confirm facility of origin for each entry line item.
• Expect that CBP will suspend liquidation for any entries identified as containing goods from the Puebla facility, consistent with USTR’s directive.

5.3 Prepare for financial and operational impacts

• Cash flow and duty exposure:
• While duties continue to be deposited at time of entry, final duty liability will not be fixed until liquidation occurs.
• If USMCA preferential treatment is later denied for this facility, importers may face retroactive duty assessments (difference between MFN and USMCA rates) on entries that were initially claimed under USMCA.
• Accounting and reserves:
• Consider establishing contingent reserves for potential additional duties on affected entries.
• Track the total customs value and duty impact of imports from the Puebla facility to quantify potential exposure.

5.4 Review USMCA claims and documentation

• For any entries from the Puebla facility where USMCA preferential treatment is claimed:
• Ensure that certificates of origin and supporting documentation are complete and accurate.
• Maintain robust records linking each entry to the specific facility of production.
• Be prepared for potential CBP inquiries or audits focused on:
• Facility of production
• Basis for USMCA claims
• Supplier representations regarding labor compliance

5.5 Contractual and supply chain management

• Review contracts with Mondelez or intermediaries to understand:
• Allocation of responsibility for additional duties or penalties arising from loss of USMCA benefits.
• Indemnity or price-adjustment clauses related to trade remedies or changes in preferential treatment.
• Consider supply chain adjustments if a significant portion of imports originates from the Puebla facility and potential loss of USMCA benefits would materially increase landed cost.

5.6 Monitor regulatory developments

• Monitor USTR and CBP communications for:
• Mexico’s decision on whether it will conduct the review (within 10 days of the request).
• Outcome of Mexico’s review (within 45 days if review proceeds).
• Any subsequent U.S. actions, including:
• Lifting of the suspension of liquidation, or
• Imposition of facility-specific remedies (e.g., denial of USMCA benefits, additional import restrictions).
• Assign internal responsibility (e.g., trade compliance or legal) to track this case and update stakeholders (finance, procurement, logistics) as developments occur.

6. Practical compliance notes

• Entry filing: Continue to file entries as normal, with accurate HTS classification and origin declarations. CBP will handle suspension of liquidation at the entry level based on USTR’s directive.
• Post-summary corrections (PSCs) and protests: For entries from the Puebla facility, be aware that suspended liquidation may affect timing and strategy for PSCs and protests. Coordinate with counsel if considering changes to USMCA claims or other material corrections.
• Communication with CBP: If CBP issues CF-28 (Request for Information) or CF-29 (Notice of Action) related to Mondelez Puebla-origin goods, respond promptly and ensure facility-of-origin documentation is ready.

7. References and source documents

Primary USTR announcement:

• USTR Press Release: “United States Seeks Mexico’s Review of Alleged Denial of Workers’ Rights at Mondelez Mexico Facility” (2025)

https://ustr.gov

Key PDFs:

• Suspension of Liquidation Letter to Treasury (Mondelez Puebla Facility):

https://ustr.gov/sites/default/files/files/Press/Releases/2025/Suspension%20of%20Liquidation%20Letter%20Mondelez%20-%20Web%20Copy.pdf

• U.S. Request for Review under USMCA Article 31-A.4.2 (Mondelez Puebla Facility):

https://ustr.gov/sites/default/files/files/Press/Releases/2025/US%20Request%20for%20Review%20Mondelez%20-%20Web%20Copy.pdf

Legal framework:

• USMCA, Annex 31-A (Facility-Specific Rapid Response Labor Mechanism)
• USMCA Article 31-A.4.2 (Request for Review and Response Timelines)
• USMCA Article 23-A.2(a) (Labor rights: freedom of association and collective bargaining)
• USMCA Implementation Act, Section 752(a)-(b), Pub. L. 116-113

Action summary for importers and brokers:

• Immediately identify whether you import goods produced at Mondelez’s Puebla, Mexico facility.
• Flag all unliquidated entries and future entries from this facility; expect suspension of liquidation.
• Assess potential financial exposure if USMCA benefits are later denied for this facility.
• Maintain strong documentation on facility of production and USMCA claims.
• Monitor USTR/CBP updates on Mexico’s review outcome and any resulting U.S. remedial measures that could alter duty treatment for these imports.