The Canada-United States-Mexico Agreement (CUSMA) entered into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). There was no transition period.
Any claims for preferential tariff treatment must satisfy the rules of origin requirements of the CUSMA. For many goods, however, there are no differences between the NAFTA and the CUSMA rules of origin.
Key Takeaways
- The certification of origin under the CUSMA has no prescribed format.
- Either the exporter, producer, or importer of the goods may complete the certification of origin.
- Importers must have the CUSMA certification of origin that was filled out by either the exporter, the producer, or the importer at the time of importation in their possession in order to claim preferential tariff treatment under the CUSMA.
- For Canada, records must be kept for a period of six years from the date of importation.
The importer may claim preferential tariff treatment under the CUSMA for goods released on or after July 1, 2020. It is not possible to claim preferential tariff treatment under NAFTA for goods released after July 1, 2020.
The CBSA does not require a certification of origin to claim preferential tariff treatment where the value in duty does not exceed $3,300. Certain conditions apply, please refer to Customs Notice 20-15: Increase to the Low Value Shipment (LVS) Threshold and Simplification to the Proof of Origin Requirements for Goods Imported into Canada for details.
The certification of origin under the CUSMA has no prescribed format and only requires a set of minimum data elements that indicate that the good is an originating good. These elements include:
- identification and address of the certifier
- exporter
- producer
- importer
- description of the good
- rule of origin
The exporter, producer, or importer of the goods may complete the certification of origin and include it on an invoice or other document. Furthermore, the certification of origin may be completed, signed, and submitted electronically.
Importers must have the CUSMA certification of origin that was filled out by either the exporter, the producer, or the importer at the time of importation in their possession in order to claim preferential tariff treatment under the CUSMA.
Goods imported prior to July 1, 2020, for which NAFTA preferential tariff treatment was claimed, could be subject to compliance verification or be eligible for a refund in line with the provisions of NAFTA after July 1, 2020.
For goods that claimed NAFTA preferential tariff treatment, the CUSMA provides that the NAFTA Chapter Five Customs Procedures remain applicable, including NAFTA Article 505 for the record keeping period of the country of import. For Canada, records must be kept for a period of six years from the date of importation.