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When the current NAFTA ceases to exist on July 1st, will you be paying duty on your US, Canada or Mexico origin goods?
On July 1, 2020, NAFTA is no longer in effect and the new CUSMA/USMCA/T-MEC rules are in play. Here’s what you need to know:
- NAFTA Certificates of Origin are no longer valid as proof of origin on future shipments
- New Rules of Origin determine whether your goods will now qualify under the new agreement
- New origin certification is required to benefit from the preferential/duty free status of CUSMA/USMCA
- If you do not have new certifications in place on July 1, 2020 – duty will be applicable on all goods previously duty free with NAFTA!
To take advantage of the duty free status that CUSMA/USMCA offers, your goods must qualify as “originating” in the territory (applying the CUSMA/USMCA Rules of Origin) and you must have valid certification in place. Universal can help.
Certification can be completed on a single-shipment basis or with a blanket certification. Valid certification requires 9 data elements and a signed statement of verification for each commodity. The validation can be done on each commercial invoice (single-shipment basis) or with a blanket certification to cover multiple products for a 12-month validity period (similar to Blanket NAFTA Certificates).
To best ensure a compliant, duty-free entry and to minimize service fees, we recommend blanket certification over single-shipment certification. This way, our Customs Consulting team validates the certification only once and can manage the origin status for each product in our client tariff database. Also, the review can be completed in advance rather than in the rush of a live-shipment environment.
CUSMA/USMCA Management Service
If you require assistance in determining whether your product line will qualify under the new Rules of Origin, or if you would like assistance in managing your CUSMA/USMCA certification process, please contact your Client Care representative or Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
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