USTR invoked USMCA RRM for a Mondelez Mexico facility and ordered suspension of liquidation for all unliquidated U.S. entries from that plant.

REGULATORY BRIEFING – USMCA RRM ACTION ON MONDELEZ MEXICO (PUEBLA) AND SUSPENSION OF LIQUIDATION

1. What changed

• The United States Trade Representative (USTR) has formally invoked the Rapid Response Labor Mechanism (RRM) under Annex 31-A of the USMCA with respect to a facility operated by Mondelez Mexico, S. de R.L. de C.V. in Puebla, Mexico.
• Concurrently, under Section 752(a) of the USMCA Implementation Act (Pub. L. 116-113), USTR has directed the Secretary of the Treasury (and thus CBP) to suspend liquidation of all unliquidated entries of goods from this specific Mondelez Puebla facility.
• This is an enforcement action tied to alleged denial of workers’ rights to freedom of association and collective bargaining at the facility, not a general tariff rate change. However, it directly affects the timing and potential conditions of duty assessment for imports from this plant.

2. Affected products and facilities

• Covered facility: Mondelez Mexico, S. de R.L. de C.V. facility located in the city and state of Puebla, Mexico (referred to in the documents as “the Facility”).
• Product scope: The facility manufactures confectionery goods, beverages, and other food products.

– Likely HTSUS chapters involved (illustrative, not specified in the notice):

• Chapter 17 – Sugars and sugar confectionery (e.g., chocolate bars, candies, chewing gum).
• Chapter 18 – Cocoa and cocoa preparations (e.g., chocolate confectionery).
• Chapter 19 – Preparations of cereals, flour, starch or milk; pastrycooks’ products (e.g., snack foods, biscuits).
• Chapter 20 – Preparations of vegetables, fruit, nuts (e.g., certain snack foods or fillings).
• Chapter 22 – Beverages, spirits and vinegar (e.g., non-alcoholic beverages produced at the facility).
• The action is facility-specific, not company-wide: only goods produced at the Puebla facility are covered by the suspension of liquidation. Other Mondelez facilities in Mexico or elsewhere are not implicated by this specific RRM request unless separately named in future actions.

3. Rate changes and financial impact

• No explicit change to MFN or preferential duty rates is announced in this action.
• The measure is a suspension of liquidation for “all unliquidated entries of goods from the Facility,” not a change in the statutory or negotiated duty rate.
• Practical financial implications:

– Final duty assessment is deferred: CBP will not liquidate (finalize) entries from the Puebla facility until USTR notifies Treasury that one of the statutory conditions in Section 752(b) has been met (e.g., Mexico’s remediation, panel decision, or termination of the matter).

– Potential for future remedial measures: Depending on the outcome of the RRM process, the United States may impose remedies that could include additional duties, denial of preferential tariff treatment, or other trade measures on goods from the facility.

– Cash deposits: Importers must continue to pay estimated duties, taxes, and fees at the time of entry at the current applicable rates, but final liquidation (and any refunds or additional assessments) will be delayed.

4. Key dates and procedural timeline

• Petition receipt: November 12, 2025 – The Interagency Labor Committee for Monitoring and Enforcement (ILC) received an RRM petition from Union General de Mexico (UGM), an independent Mexican union.
• ILC review period: Within 30 days of receipt – The ILC reviewed the petition and supporting information and determined there was sufficient, credible evidence of a Denial of Rights to invoke the RRM.
• U.S. request to Mexico: Date of USTR’s request (as reflected in the PDF “US Request for Review Mondelez – Web Copy”) – This is the formal invocation under USMCA Article 31-A.4.2.
• Suspension of liquidation: Effective as of the date of USTR’s letter to the Secretary of the Treasury (“Suspension of Liquidation Letter Mondelez – Web Copy”). From that date forward, CBP must suspend liquidation of all unliquidated entries of goods from the Puebla facility.
• Mexico’s response deadline: Under USMCA Article 31-A.4.2, Mexico has 10 days from the U.S. request to notify whether it intends to conduct the requested review.
• Mexico’s review and remediation period:

– If Mexico agrees to conduct a review, it has 45 days from the date of the U.S. request to complete the review.

– If Mexico determines that a Denial of Rights exists, the United States has requested that Mexico attempt to remediate within that same 45-day period.

• Duration of suspension: The suspension of liquidation 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)). No fixed end date is provided; it depends on the RRM process outcome.

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

5.1 Identify and segregate affected entries

• Determine whether your company imports any goods produced at the Mondelez Mexico facility in Puebla:

– Review supplier declarations, purchase orders, and contracts with Mondelez or intermediaries to confirm plant of production.

– Request written confirmation from Mondelez or your supplier specifying the exact facility (city/state and plant code) where your products are manufactured.

• In your internal systems and with your customs broker:

– Flag all SKUs and purchase orders sourced from the Puebla facility.

– Ensure that entry documentation (commercial invoices, packing lists, certificates of origin) clearly identifies the facility where possible, to support CBP inquiries.

5.2 Coordinate with customs brokers on suspended liquidation

• Inform your customs brokers that your company may have entries from the Mondelez Puebla facility subject to suspension of liquidation.
• Confirm that CBP is correctly applying the suspension to relevant entries and that your broker is tracking these entries as “suspended” in their systems.
• Plan for extended liquidation timelines:

– Do not expect normal 314-day liquidation cycles for these entries.

– Adjust internal duty accruals and financial reserves to account for potential future adjustments (e.g., additional duties or denial of preference) once the RRM process concludes.

5.3 Review origin and USMCA preference claims

• If you are claiming USMCA preferential treatment on goods from the Puebla facility:

– Verify that your certificates of origin and origin documentation are accurate and up to date.

– Be prepared for potential scrutiny of USMCA claims if remedial measures ultimately affect preferential treatment for this facility.

• Consider whether to continue making USMCA claims or to pay MFN duties while the RRM is pending, based on your risk tolerance and legal counsel’s advice.

5.4 Contractual and supply chain risk management

• Engage with Mondelez or your supplier:

– Request updates on the RRM process and any steps being taken to remediate alleged labor rights issues.

– Seek assurances regarding continuity of supply and any potential changes in facility sourcing.

• Review contracts for:

– Force majeure, change-in-law, and trade sanctions clauses that may be triggered by RRM-related trade measures.

– Allocation of responsibility for additional duties, penalties, or compliance costs arising from trade enforcement actions.

5.5 Compliance and documentation readiness

• Maintain detailed records for all entries from the Puebla facility, including:

– Entry summaries (CBP Form 7501), commercial invoices, bills of lading, and packing lists.

– Certificates of origin and any facility-level declarations.

– Internal communications and supplier correspondence confirming facility of production.

• Be prepared to respond promptly to any CBP requests for information (CF-28) or notices of action (CF-29) related to these entries.

6. Context: USMCA Rapid Response Labor Mechanism

• Legal basis:

– USMCA Annex 31-A (Facility-Specific Rapid Response Labor Mechanism) allows a Party to request a review by another Party when there is a good-faith basis to believe there is a Denial of Rights at a covered facility.

– A “Denial of Rights” is defined in Article 31-A.2 as a denial of the right of free association and collective bargaining under laws necessary to fulfill USMCA obligations.

• Allegations in this case (per the U.S. request for review):

– Interference by the company and the incumbent union in workers’ concerted activities for collective bargaining and union organization.

– Employer domination or interference in union activities, discrimination, or coercion against workers for union activity or support.

– Specific alleged conduct includes: misinforming workers about union rights, threats, denial of facility access to the independent union, pressure or coercion to refrain from supporting their preferred union, retaliatory firings, layoffs, and discriminatory job reassignments.

• Potential outcomes:

– If Mexico finds no Denial of Rights and the matter is not resolved, the case may proceed to a rapid response panel.

– If a Denial of Rights is found and not adequately remediated, the United States may impose remedies on goods from the facility, which can include suspension of preferential tariff treatment, the imposition of penalties, or denial of entry for covered goods.

7. Next steps and monitoring

• Monitor USTR and CBP communications:

– Watch for follow-up announcements on whether Mexico agrees to conduct the review within the 10-day window and the outcome of the 45-day review period.

– Monitor for any Federal Register notices or CBP guidance that may provide operational details on how the suspension of liquidation is being implemented and any subsequent remedial measures.

• Internal reporting:

– Provide periodic updates to internal stakeholders (trade compliance, legal, procurement, finance) on the status of the RRM case and any financial exposure.

– Update risk registers and compliance dashboards to reflect the suspended liquidation and potential for future trade measures.

8. References and source documents

• USTR Press Release: “United States Seeks Mexico’s Review of Alleged Denial of Workers’ Rights at Mondelez Mexico Facility” (USTR website – 2025).
• PDF – Suspension of Liquidation Letter:

– “Suspension of Liquidation Letter Mondelez – Web Copy”

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

• PDF – U.S. Request for Review under USMCA RRM:

– “US Request for Review Mondelez – Web Copy”

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

• USMCA Text (for Annex 31-A and Article 23-A.2):

– https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement

Importers and brokers dealing with Mondelez products from Puebla should immediately confirm facility sourcing, flag affected entries, and prepare for extended liquidation timelines and potential future remedial measures tied to the outcome of this RRM action.