On November 30, 2018, Canada, the United States, and Mexico signed the new Canada-United States-Mexico Agreement (CUSMA) / United States-Mexico-Canada Agreement (USMCA) / Tratado entre México, Estados Unidos y Canadá (T-MEC).
The new agreement will replace the current NAFTA and come into effect on July 1, 2020.
CUSMA will maintain the tariff-free market access from NAFTA, and includes updates and new chapters to address modern-day trade challenges and opportunities. The new agreement may require additional information from shippers to ensure proper customs clearance and duty treatment.
CUSMA Changes
- Certification of Origin
There is no official certificate of origin for CUSMA, as there was for NAFTA. CUSMA requires a “certification of origin.” Any format is acceptable, provided it contains the following nine minimum data elements as set out in CUSMA Annex 5-A:
- Importer, Exporter, or Producer Certification of Origin
- Certifier
- Exporter
- Producer
- Importer
- Description and HS Classification of the Good
- Origin Criteria
- Blanket Period (if applicable)
- Authorized Signature and Date
- New de minimis thresholds for duty-free low-value goods:
- United States – $800 USD
- Mexico – $117 USD for customs duties and $50 USD for taxes
- Canada – $150 CAD for customs duties and $40 CAD for taxes
- Sunset Clause
CUSMA terms will remain in effect for 16 years, at which time the parties may revisit and/or renegotiate terms, or withdraw from the agreement.
- Intellectual Property
Copyright terms are extended from 50 years to 70 years after an author’s death. In Canada, there is a 2.5 years transition period of copyright protection.
Additional Resources:
Government of Canada – Canada-United States-Mexico-Agreement (CUSMA)
Office of the United States Trade Representative – USMCA Issue-Specific Fact Sheet
CBSA – CUSMA De Minimis Thresholds
CBSA – Implementation of CUSMA
Go To Top