What USMCA is
The United States-Mexico-Canada Agreement is a free trade agreement between the three nations signed on November 30, 2018. The USMCA will replace the North American Free Trade Agreement (NAFTA) on July 1st, 2020, and the latter had been in effect since January of 1994. It creates a modernized free-trade system between the three parties that addresses recent and emerging critical trade issues, such as the harmonization of regulatory systems, ecommerce, and the protection of intellectual property.
De minimis changes
The transition from NAFTA to USMCA resulted in de minimis changes. These changes will increase cross-border ecommerce, which will benefit sellers in the U.S. but also buyers from Canada and Mexico. Canadian and Mexican consumers plus small and medium enterprises will be able to purchase low-value U.S. products with zero tariffs. Carriers such as UPS, FedEx, and DHL can also expedite delivery and lower their logistic costs of low-value shipments.
Importing to Canada
- Tax de minimis - 40 CAD
- Duty de minimis - 150 CAD
Importing to Mexico
- Tax de minimis - 50 USD
- Duty de minimis - 117 USD
Importing to the U.S.
- Both tax and duty de minimis remain at 800 USD.
Certification of Origin
Under the USMCA, importers will no longer be required to complete a formal certification document. Certification of Origin can be achieved using informal documentation and can be completed by the importer, exporter, or producer. The necessary data elements may be provided on any invoice and/or any other document and need not follow a prescribed format.
A commercial invoice may be used, provided it contains the required nine data elements below and the required certification 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."
Certification of Origin for low-value shipments
The certification statement below is all that is required on low-value shipments.
"I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA."
The low-value thresholds are as follows:
- Equal to or less than USD 2,500 USD - Imports into the U.S.
- Equal to or less than USD 1,000 USD - Imports into Mexico
- Equal to or less than CAD 3,300 USD - Imports into Canada
Claim for preferential treatment
A claim for preferential treatment under the USMCA should contain nine minimum data elements. These data elements are set out in the USMCA’s Annex 5-A (Minimum Data Elements).
Each Party shall provide that an importer may make a claim for preferential tariff treatment, based on a certificate of origin completed by the exporter, producer, or importer for the purpose of certifying that goods that are exported from the territory of a Party into the territory of another Party qualifies as an originating good.
The data elements must be provided to indicate that the goods claiming preferential treatment originates and meets the requirements of USMCA Chapter 5.
Minimum data elements to receive preferential treatment
A certification of origin that is the basis for a claim for preferential tariff treatment under this Agreement shall include the following elements:
Importer, exporter, or producer certification of origin
- Indicate whether the certifier is the exporter, producer, or importer in accordance with Article 5.2 (Claims for Preferential Tariff Treatment).
Certifier
- Provide the certifier’s name, title, address (including country), telephone number, and email address.
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.
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 a producer shall be the place of production of the good in a Party’s territory.
Importer
- Provide, if known, the importer’s name, address, e-mail address, and telephone number. The address of the importer shall be in a Party’s territory.
Description and HS tariff classification of the good
- Provide a description of the good and the HS tariff classification of the good to the 6-digit level. The description should be sufficient to relate it to the good covered by the certification.
Origin criteria
- Specify the origin criteria under which the good qualifies, as set out in Article 4.2 (Originating Goods).
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).
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.
Example USMCA certificate
Go to the following website to download a sample USMCA certificate.
USMCA
Learn about the United States-Mexico-Canada Agreement.