As Canada, the United States and Mexico have come together to form a new trade agreement known as the Canada-United States-Mexico Agreement (CUSMA or USMCA in the US and T-MEC in Mexico), businesses should be aware of the new rules and regulations that come with it. In particular, the certification of origin plays a significant role in ensuring compliance with the new agreement.
The purpose of the certification of origin is to verify the origin of the goods being traded under the CUSMA/USMCA/T-MEC. It helps ensure that the goods being traded meet the specific requirements set out in the agreement and are not subject to any additional tariffs or duties. Without proper certification of origin, goods may be subject to increased costs and delays at the border.
To qualify for preferential treatment under the agreement, a good must meet the specific rules of origin as outlined in the text. These rules determine the eligibility of goods for preferential tariff treatment based on certain criteria, such as the percentage of regional content or the level of transformation of the materials used. The certification of origin must be completed by the exporter, producer, or importer of the goods and must be signed and dated.
There are specific forms that must be used when completing the certification of origin. This includes the Certificate of Origin (Form B232), which is used in Canada for low-value shipments and the USMCA Certificate of Origin (Form 2021), which is used in the US and Mexico. These forms are available online and must be filled out correctly to ensure compliance with the new agreement.
It is important to note that goods that are not eligible for preferential treatment under the CUSMA/USMCA/T-MEC may still be subject to other tariffs or duties. This includes goods that are not made in North America or do not meet the specific rules of origin outlined in the agreement.
Overall, it is essential for businesses to understand the certification of origin requirements under the new trade agreement and to ensure that they are complying with them. Failure to do so could result in increased costs and delays at the border. Businesses should also stay up-to-date with any changes to the agreement that may impact their operations. By staying informed and adhering to the rules, businesses can take advantage of the benefits that come with the CUSMA/USMCA/T-MEC and ensure a smooth and successful trading experience.