CUSMA Overview

CUSMA (aka the New NAFTA) Commenced July 1, 2020

The Canada-United States-Mexico Agreement took effect July 1st, 2020 and fully replaced the North American Free Trade Agreement. Canada Border Services Agency (CBSA) has posted information for importers on their website. Click to view the link.

The CUSMA is reflective of some minor changes to certain rudimentary elements such as the Certificate of Origin and the namesake itself (referred to as USMCA in the U.S), while other changes to certain rules of origin require importers to re-certify products under the new agreement.
Our FAQ page can be found Here.

Some noteworthy highlights:

  • Customs form B232 “North American Free Trade Agreement – Certificate of Origin” will expire June 30th, 2020, and a new Certificate of Origin will be required in its place for any eligible product. Click for the Omnitrans’ template. Certificate of Origin.
  • Major Rules of Origin changes affect the automotive, dairy, agriculture and chemical industries.
  • New requirements for textile apparel goods:
    • De minimis increases from 7 to 10%
    • Requirement for component parts to be originating in a phased in schedule:
      • Sewing thread July 1, 2021
      • Pocketing fabric January 1, 2022
      • etc.
  • TPL levels for cotton or manmade fiber apparel imported into Canada from the U.S will double the current NAFTA limits.
  • Canada agreed to apply de minimis thresholds for courier shipments imported from the US or Mexico:
    • Up to $40: duty and tax free
    • Above $40 to $150: duty free, but taxes still apply
    • Above $150: duties and taxes apply
  • Low-value shipment (LVS) threshold increases to $3,300.  LVS allows goods to benefit from simplified report, release, accounting and documentation requirements.
  • Post importation claims are still permitted but the time frame to file will be extended to provide importers with a period of four years from the date the goods were accounted for in which to claim the CUSMA preferential tariff treatment.

Omnitrans will be reaching out to our Blanket NAFTA holders to acquire new CUSMA Certificates and review product eligibility. 

For additional information, please contact our Technical Department.