Customs Notice 20-14
Implementation of the Canada-United States-Mexico Agreement (CUSMA)
Ottawa,
This notice provides information on the changes to the Customs Tariff that will occur as a result of the implementation of the Canada-United States-Mexico Agreement (CUSMA) and summarizes the requirements in order to benefit from the CUSMA’s preferential rates of duty, once the CUSMA enters info force.
Implementation of the Canada – United States – Mexico Agreement (CUSMA)
1. The CUSMA’s implementing legislation, Bill C-4, received Royal Assent on . Upon entry into force of the Agreement, with the exception of a few agricultural goods, all qualifying imports into Canada from a CUSMA country will be customs duty free.
2. More information regarding the CUSMA and the text of the agreement can be found on the Global Affairs Canada website.
3. Regulatory amendments and new regulations made under the Customs Act as a result of the CUSMA’s implementation will be announced in a separate customs notice.
Tariff Provisions
4. Entitlement to the CUSMA’s preferential tariff treatment is determined in accordance with the following provisions of the CUSMA: the rules of origin set out in Chapter 4 Rules of Origin, the origin procedures set out in Chapter 5 Origin Procedures, provisions of Chapter 6 Textile and Apparel Goods, and paragraphs 8 through 10 of the Tariff Schedule of Canada in Annex 2-B.
5. CUSMA’s preferential tariff treatments are: the United States Tariff (UST - tariff treatment code 10) and the Mexico Tariff (MXT - tariff treatment code 11).
6. The Mexico-United States Tariff (MUST – tariff treatment code 12) used under the North American Free Trade Agreement (NAFTA) cannot be used for the CUSMA, which has a simplified preferential tariff treatment provision without differing start dates for tariff commitments as there were in the NAFTA.
7. All eligible goods imported under the CUSMA are eligible for either the United States Tariff or the Mexico Tariff. The MUST will remain in place in the interim, for adjustments pertaining to importations that occurred while the NAFTA was in effect.
Advance Rulings
8. Advance rulings for origin issued under NAFTA, will only remain valid for goods imported under NAFTA’s preferential tariff treatment. Therefore, an applicant wishing to have an advance ruling for origin under CUSMA, will need to submit a new application to the Canada Border Services Agency. For more information, please consult Memorandum D11-4-16, Advance Rulings for Origin under Free Trade Agreements.
Proof of Origin
9. The required proof of origin is referred to as a certification of origin and consists of a set of minimum data elements contained in Annex 5-A of Chapter 5 of the CUSMA, that may be placed on an invoice or any other document. The certification of origin may also be completed and submitted electronically including with an electronic or digital signature. Additional information concerning CUSMA’s certification of origin is contained in Article 5.2 of Chapter 5 of the CUSMA. Information concerning the electronic submission can be found in Memorandum D11-4-14, Certification of Origin Under Free Trade Agreements.
10. 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.
11. A certification of origin shall include the following minimum data elements:
i. Importer, Exporter, or Producer - Certification of Origin
Indicate whether the certifier is the exporter, producer or importer in accordance with Article 5.2 of Chapter 5 of the CUSMA.
ii. Certifier
Provide the certifier’s name, title, address (including country), telephone number and e-mail address.
iii. Exporter
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.
iv. Producer
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”. The address of the producer shall be the place of production of the good of the Party’s territory.
v. Importer
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.
vi. Description and Harmonized System (HS) Tariff Classification of the Good
a) Provide a 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;
b) If the certification of origin covers a single shipment of a good, indicate, if known, the invoice number related to the exportation.
vii. Origin Criteria
Specify the origin criterion under which the good qualifies, as set out in Article 4.2 (Originating Goods) of Chapter 4 of the CUSMA.
viii. Blanket Period
Include the period if the certification covers multiple shipments of identical goods for a specified period of up to 12 months as set out in Article 5.2 (Claims for Preferential Tariff Treatment) of Chapter 5 of the CUSMA.
ix. 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.”
Shipment Requirements
12. Goods may be shipped from a CUSMA country, with or without transshipment, to Canada. The transshipment conditions are contained in Article 4.18 of Chapter 4 of the CUSMA and the associated documentation requirements are contained in Article 5.4(3) of Chapter 5 of the CUSMA.
Exemption from the requirements of 35.1 (1) of the Customs Act
13. If the benefit of preferential tariff treatment under CUSMA is claimed for locomotives classified under heading No. 86.01 or 86.02, or railway freight cars classified under heading No. 86.06 of the List of Tariff Provisions set out in the schedule to the Customs Tariff, the importer and owner of the goods are exempt from the requirements of subsection 35.1(1) of the Customs Act with respect to those goods if they are transported overland from the United States into Canada.
Refunds
14. An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), in respect of goods that were imported from the United States or Mexico on or after the date of entry into force of CUSMA.
Additional Information
15. For more information, please call the Border Information Service line from within Canada at 1-800-461-9999 or from abroad at 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.
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