CANADA AND THE USA TRADE
JULY 1, 2020
The “New NAFTA”, known as CUSMA (in Canada), USMCA (in the U.S.A.), and T-MEC (in Mexico) will enter into force throughout North America for goods shipped and released from Customs control on or after July 1, 2020.
Following is a brief review of the major changes that will affect all cross-border trade between the three countries effective July 1:
CERTIFICATION OF ORIGIN
The largest change by far is the rescinding of the requirement for a ‘NAFTA CERTIFICATE OF ORIGIN’. In its place is a signed statement that can be placed on commercial documents (invoices etc.) or on a separate sheet, referring to the shipment in question or covering a blanket period. This statement can now be signed by the producer, exporter or importer. (see below for instructions)
NAFTA certificates and CUSMA certifications must be kept on file for 5 years.
Refunds under NAFTA are still only allowed for 1 year, but CUSMA refunds are allowed for up to 4 years after import. (Paragraph 74(1)(c.11) of the Customs Act)
Proof of Origin:
Referred to as a certification of origin and consists of a set of minimum data elements
The certification of origin may also be completed and submitted electronically including with an electronic or digital signature.
Importers, exporters or producers of CUSMA-eligible goods may complete the certification of origin.
Importers are required to have the certification of origin in their possession at the time that the importer makes a claim for preferential tariff treatment.
Minimum data elements:
Certifier
Indicate whether the certifier is the exporter, producer or importer
Certifier’s name, title, address (including country), telephone number and e-mail address.
Provide the exporter’s name, address (including country), e-mail address, and telephone number if different from the certifier.
This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter.
The address of the exporter shall be the place of export of the good in a Party’s territory.
Provide the producer’s name, address (including country), e-mail address, and telephone number, if different from the certifier or exporter or, if there are multiple producers, state “Various” or provide a list of producers.
A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”.
Proof of Origin: (cont.)
The address of the producer shall be the place of production of the good of the Party’s territory.
Provide, if known, the importer’s name, address, e-mail address, and telephone number.
The address of the importer shall be in the Party’s territory.
Goods
Description and Harmonized System (HS) Tariff Classification of the Goods
Description of the good and the HS tariff classification of the good to the 6-digit level located in the Customs Tariff.
The description should be sufficient to relate it to the good covered by the certification;
If the certification of origin covers a single shipment of a good, indicate, if known, the invoice number related to the exportation.
If the certification of origin covers multiple shipments of identical goods show the date for a specified period of up to 12 months
(NB The earliest date of certification is July 1, 2020. Prior to that the ‘old’ NAFTA applies)
Origin Criteria
Specify the origin criterion under which the good qualifies
4.2 (a) wholly obtained or produced entirely in the territory of one or more of the Parties
4.2 (b) produced entirely in the territory of one or more of the Parties using non-originating materials provided the good satisfies all applicable requirements
4.2 (c) produced entirely in the territory of one or more of the Parties exclusively from originating materials; or
4.2 (d) except for a good provided for in Chapter 61 to 63 of the Harmonized System:
(i) produced entirely in the territory of one or more of the Parties;
(ii) one or more of the non-originating materials provided for as parts under the Harmonized System used in the production of the good cannot satisfy the requirements set out in Annex 4-B (Product-Specific Rules of Origin) because both the good and its materials are classified in the same subheading or same heading that is not further subdivided into subheadings or, the good was imported into the territory of a Party in an unassembled or a disassembled form but was classified as an assembled good pursuant to rule 2(a) of the General Rules of Interpretation of the Harmonized System; and
(iii) the regional value content of the good, determined in accordance with Article 4.5 (Regional Value Content), is not less than 60 percent if the transaction value method is used, or not less than 50 percent if the net cost method is used;
Authorized Signature and Date
The certification must be signed and dated by the certifier and accompanied by the following statement:
“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”
The following is a link to the full set of CUSMA Rules of Origin:
https://www.international.gc.ca/trade-commerce/assets/pdfs/agreements-accords/cusma-aceum/cusma-04.pdf