USMCA Implementation Guidelines
USMCA Implementation Guidelines
On April 24, 2020, the United States Trade Representative announced that the United States intends to enter the United States–Mexico–Canada Agreement (USMCA) into force on July 1, 2020. Since then, U.S. Customs and Border Protection has informed the trade community its interim instructions for USMCA implementation including information on claiming USMCA preferential treatment for goods.
Note, a final implementation instruction guide will be released prior to the date USMCA enters into force. The following instructions are only intended to be proactive in information sharing, and are subject to change. Until USMCA enters into force, NAFTA requirements remain in effect. Specific questions can be directed to FTA@cbp.dhs.gov.
Once the USMCA enters into force, each country will apply a “joint review” every 6 years to ensure the agreements remains up to date.
The Big question:
Is a Certificate of Origin Required for USMCA?
According to CBP’s Guidance, “The U.S. – Mexico – Canada Agreement (USMCA) does not require a specific certificate of origin as does the North American Free Trade Agreement. CBP Form 434 is not mandatory under the USMCA.”
What is required to claim USMCA?
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). The data elements must indicate that the good claiming preferential treatment originates and meets the requirements of USMCA Chapter 5. This information may be provided on an invoice or any other document. The information must describe the originating good in sufficient detail to enable its identification and meet the requirements as set out in the Uniform Regulations.
Additional guidance materials will be published by U.S. Customs and Border Protection in advance of the USMCA’s entry into force.
Other USMCA Questions?
Scarbrough Consulting, Inc. offers a free 20-minute consultation in regards to guidance in USMCA preferential treatment. Email consulting@scarbrough-intl.com to get in touch with a Licensed U.S. Customs broker or fill out the form below.
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Scarbrough Global of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings. Scarbrough is widely known for its trade experts, training, personalized customer service, and customized solutions. Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.” Moreover, our team of experts is available at your disposal. We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade. Contact us now.
