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My AccountIn continuing our series about CUSMA/USMCA/T-MEC, we’re taking a closer look at the orders and regulations published through the Canadian Government in the Canada Gazette at the end of July.
It’s been a little over a month since CUSMA’s official enactment, for which we’ve been covering various elements that those in the logistics/supply chain space need to be apprised of. For example, here are the pieces we’ve put out on the topic:
CUSMA/USMCA: Meet The New NAFTA
CUSMA: Rules Of Origin & Certifying Origin
The Benefits of CUSMA for SMEs
Transitioning to CUSMA: A Toolkit for Importers
It is of extreme importance that importers take note of all the changes — minor or major — in the FTAs they use to clear customs with their commercial goods. A misstep in understanding, and subsequent erroneous documentation/processes, can result in fines, seizures, and even a suspension. As such, we’ve been covering the shift away from NAFTA from many angles.
Today, we’re summarizing a report put out by Baker Mackenzie’s Stuart P. Seidel, International Trade Resource Lawyer.
Pulling from the following publications, Stuart P. Seidel pulls his findings on the release of new orders and regulations for CUSMA by the Canadian Government. His sources include:
Order Repealing Certain Orders Made Under the Customs Tariff (CUSMA) (SOR/2020-154, June 30, 2020)
1- CUSMA Rules of Origin Regulations is the implementation of the “Uniform Regulations Regarding the Interpretation, Application, and Administration”. In this regulation, they lay out the condition for shipped goods to be considered as originating from a party within CUSMA — and henceforth will benefit from the relevant agreements as the goods are imported into Canada.
2- CUSMA Rules of Origin for Casual Goods Regulations will act as a replacement for the NAFTA Rules of Origin for Casual Goods Regulations. In this regulation, it is established that non-commercial goods from a CUSMA party will be entitled for CUSMA treatment when imported into Canada as well.
3- CUSMA Tariff Preference Regulations (replacing NAFTA Tariff Preference Regulations) are the stipulations for goods under CUSMA to their entitlement for tariff treatment. In the case that the manufacturing occurred in more than one country, the tariff treatment will apply to the last CUSMA country where manufacturing happened. In addition, goods that are not shipped directly from a CUSMA party can also apply, provided that the goods remain under customs control.
4- Regulations Amending Certain Regulations and Orders Made Under the Customs Tariff these act as an amendment for a host of previously established regulations under the Customs Tariff (linked here.) This simply replaces all kinds of references to NAFTA with references to CUSMA.
5- And lastly: Order Repealing Certain Regulations and Orders Made Under the Customs Tariff and the Order Repealing Certain Orders Made Under the Customs Tariff — self explanatorily repeal the Customs Tariff orders that became irrelevant/obsolete/redundant under CUSMA.
It is no secret that there are a number of procedural changes that importers must be made aware of. The modification to customs administration under CUSMA will impact the supply chain/logistics space, primarily the importer and exporter relationship.
Pairing up with a customs broker that is well informed on CUSMA will help the transition process move more smoothly. For a no-commitment chat with a broker, click here.
