CARM: What all importers need to know about CARM

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New NAFTA deal to enter into force July 1, 2020

U.S. Trade Representative Robert Lighthizer

notified U.S. Congress

on Friday that the new NAFTA deal will enter into force July 1st, 2020, a month later than initially proposed. The deal is referred to as CUSMA (Canada-United States-Mexico Agreement) in Canada and USMCA (United States-Mexico-Canada Agreement) in the U.S..

Certain requirements need to be wrapped up in the next two months, but Lighthizer said his office would work to ensure a smooth implementation of the new rules. North American business leaders have been pushing for a delay until 2021, due to the COVID-19 pandemic.

Importers should begin obtaining valid Blanket Certifications of Origin (or ensure exporters are prepared to include the applicable certification of origin data elements on shipping documents) under the new regulations. This will ensure there is no lapse in preferential trade status prior to the new deal taking effect. Between now and July 1, 2020, NAFTA Certificates of Origin will still be required to obtain preferential trade status. Once the new trade agreement becomes effective, NAFTA Certificates of Origin will no longer be valid and must be replaced with CUSMA/USMCA Certifications of Origin or specified certification of origin data elements on shipping documents.

For clients who are currently enrolled in Universal’s NAFTA Project Management Program (Service Option 2 – Universal Logistics obtains Blanket Certificates for Client), we will contact your vendors directly to obtain the required Blanket CUSMA/USMCA Certifications of Origin. For those clients not enrolled in this Service Option and who would like Universal Logistics to obtain the required Blanket Certifications of Origin directly from your vendors, please let us know.

To download Universal’s CUSMA/USMCA Certification of Origin template

click here.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

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