The U.S.-Mexico-Mexico Agreement (USMCA) is a trade agreement between these parties. The USMCA replaced the North American Free Trade Agreement (NAFTA). On July 1, 2020, the U.S.-Mexico-Canada Agreement (USMCA) replaced NAFTA as a free trade agreement between the three countries. Under the USMCA, qualified products exported to Mexico and Canada are exempt from tariffs and quotas. To qualify for this preferential rate, you must determine whether your products are eligible in accordance with the USMCA`s rules of origin. The U.S.-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020. Parties wishing to import duty-free “original products” into the United States, Mexico and Canada that benefit from the preferential benefits of the USMCA Free Trade Agreement must have a valid certificate of origin at the time of application, which is completed either by the exporter, the manufacturer or the importer. Under NAFTA, there was a mandatory format for the provision of a certificate of origin. Form CBP 434 is not required according to the USMCA. According to the USMCA, a certificate of origin form is not strictly required, but data elements are required and can be provided by shippers in different formats. This can be provided by various documents, including commercial invoices, returns or the sender`s shipping certificate.
Shippers can use the IncoDocs model to create and download a USMCA model containing the required data elements. Certification can be carried out on a single shipping basis or with a flat-rate certification to cover products for a period of 12 months. They must be able to present the certificate that applies for duty-free preferential benefits when they apply to the appropriate customs authorities in the United States, Mexico or Canada. They must also be able to provide support to demonstrate the status of “native products” that served as the basis for their certification. Customs authorities may impose penalties or fines for non-compliance. Please note that after July 1, 2020, NAFTA certificates of origin will no longer be used as proof of origin for the lots. To qualify for the duty-free status of the USMCA/CUSMA/T-MEC agreement, the products shipped must be considered originating in each of the three areas that can be proven by providing specific information. There are new rules of origin that determine whether goods are covered by the new agreement.
U.S. Customs and Border Protection (CBP) has created a USMCA centre that will serve as a one-stop shop for information on the USMCA. The USMCA Center coordinates CBP`s implementation of the USMCA agreement and ensures a smooth transition through consistent and comprehensive guidelines for our internal and external stakeholders. In this video, you will present the new requirements for rules of origin for manufacturers and importers. Unlike the NAFTA Certificate of Origin requirement, the USMCA does not need a specific form. An application for preferential treatment under the USMCA should contain nine minimum data elements indicating that the product requiring preferential treatment is originating and meeting the requirements of Chapter 5 of the USMCA.