On July 1st, 2020, the U.S-Mexico-Canada Agreement (USMCA), Canada-U.S. Mexico Agreement (CUSMA), and Tratado entre México, Estados Unidos y Canadá (T-MEC) entered into force and replaced the current North American Free Trade Agreement (NAFTA).
As of June 30th, 2020 NAFTA are no longer valid.
As with NAFTA, the importer (resident or non-resident) is required to have a valid certification of origin in its possession at the time the CUSMA/USMCA/T-MEC preference claim is made. The importer may make a claim for preferential tariff treatment based on a certification of origin completed by the importer, the exporter or the producer, for the purpose of certifying that a good qualifies as an originating good.
What does this mean to Importers and Exporters?
In order to continue preferential duty treatment claims, Willson International recommends that importers review products for continued eligibility under CUSMA/USMCA and provide updated certifications to interested parties in advance of the July 1 effective date.
All three countries continue to provide the ability to file post entry claims for qualifying merchandise in which a claim was not originally made. While the timeframe remains the same at one year from the date of importation, a major change for the U.S. importer is that Merchandise Processing Fee (MPF) will no longer be refunded. If certifications are not made available to Willson International in advance of July 1 MPF will be lost during the post entry process
Canadian Importers
The Canada Border Services Agency (CBSA) will increase its Low Value Shipment (LVS) thresholds for all commercial importations (in addition to those for express shipments) to an estimated value for duty not exceeding $3,300 CAD. This means LVS shipments no longer require an origin certification from countries which Canada has a free trade agreement. However, the requirement on the importer to maintain records (e.g. commercial invoice, B3, etc.) still applies even though CBSA does not require a certification of origin at the time of entry.
U.S. Importers
U.S. Customs and Border Protection (CBP) has similarly waived the certificate requirement for importations of $2,500 USD or less, provided that the importation does not form part of a series in which the aggregate value exceeds $2,500 USD. If CBP has reason to believe that an importation is a part of a series that has been broken up with the intent of evading certification requirements, the importer may be required to submit a copy of the certification.
USCMA/CUSMA/T-Mec Forms Now Available!
To download a copy of our updated trade agreement templates please visit willsonintl.com and click on Resources (Forms and Schedules).
CUSMA forms are available under Canada Border Services Agency (CBSA) – Canadian Customs Forms.
USMCA form are available under US Customs and Border Protection (CB) – U.S. Customs Forms
Once your company has completed the forms, please email them to service@willsonintl.com.
The deadline for the U.S-Mexico-Canada Agreement (USMCA)/Canada-U.S. Mexico Agreement (CUSMA) Certificate of Origin†form is June 30th, 2020. Â
Forms received after that date may not receive preferential treatment and duty will be assessed. Please note that CBSA/CBP will require a copy of the CUSMA/USMCA certification for any refund claims submitted.