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A new Canada–United States–Mexico Agreement (CUSMA)

CUSMA will enter into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). There will be no transition period.  Currently used NAFTA Certificates of Origin will no longer be valid for imports after June 30, 2020.

As of July 1, any commercial shipments imported into Canada which do not contain a valid CUSMA Certification of Origin (blanket form or single shipment use) will have the appropriate MFN duty rate applied based on the product’s HS tariff classification.  All CUSMA qualifying imports into Canada will enter customs duty free under the appropriate preferential tariff treatment, except for a few agricultural products. 

What do Importers need to know and do to be prepared for CUSMA on July 1?

  1. Reach out to your exporters in the US or Mexico to ensure that they understand the new Rules of Origin for each of your products and can re-qualify your goods under CUSMA.
  2. The Bills of Material (BOMs) should be reviewed for any component or sourcing changes, which may determine qualification under the CUSMA Rules of Origin
  3. Send us your newly qualified CUSMA Certificates of Origin, so we can update your parts databases accordingly
  4. If you have any NAFTA Origin Advance Rulings, you will need to re-apply to CBSA for revised rulings under CUSMA.
  5. For those importers currently on our Acquisition Free Trade Agreement Service Option, our Schenker FTA team has begun active solicitations of Vendors/clients to obtain CUSMA Certificates of Origin.
  6. If you have any questions or require assistance, please contact your KAM or Client Services representative for more information or email schenkercustoms.cs@dbschenker.com

For more information, visit the Customs Brokerage page.