On March 13, 2020, Bill C-4 (Canada US Mexico Agreement) passed through both the House of Commons and the Senate. It is anticipated to receive Royal Assent shortly.
Once the CUSMA comes into effect, preferential tariff treatment will be based on satisfying the rules of origin requirements of the new agreement. That said, for many goods, there will be no difference between the NAFTA and CUSMA rules of origin.
Therefore, when CUSMA comes into force, the importer will be able to claim preferential treatment for goods released on or after the date of entry into force of CUSMA and the CUSMA rules of origin will apply; the NAFTA rules of origin will no longer apply.
CUSMA will require a certification of origin that is the basis for a claim for preferential tariff treatment under the Agreement (CUSMA). The certification can be completed by the Importer, Exporter, or Producer.
There will not be a transition period where both the NAFTA Certificate of Origin and the CUSMA Certification of Origin may be used. For any importations on or after the entry into force date of the CUSMA, the CUSMA preferential tariff treatment may be claimed and the CUSMA provisions will apply, including provisions on the CUSMA certification of origin.
That said, the Protocol to replace NAFTA ensures a time period whereby the CUSMA can only enter into force on the first day of the third month after the last of all three Parties has notified in writing its ratification of the CUSMA, thereby providing traders with a period in which to prepare for the CUSMA requirements.