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Customs Notice 20-14: Implementation of the Canada-United States-Mexico Agreement

Home News Customs Notice 20-14: Implementation of the Canada-United States-Mexico Agreement

This notice provides information on the changes to the Customs Tariff that will occur as a result of the implementation of the Canada-United States-Mexico Agreement (CUSMA) and summarizes the requirements in order to benefit from the CUSMA’s preferential rates of duty, once the CUSMA enters info force.

Implementation of the Canada – United States – Mexico Agreement (CUSMA)
1. The CUSMA’s implementing legislation, Bill C-4, received Royal Assent on March 13, 2020. Upon entry into force of the Agreement, with the exception of a few agricultural goods, all qualifying imports into Canada from a CUSMA country will be customs duty free.

2. More information regarding the CUSMA and the text of the agreement can be found on the Global Affairs Canada website.

3. Regulatory amendments and new regulations made under the Customs Act as a result of the CUSMA’s implementation will be announced in a separate customs notice.

Tariff Provisions
4. Entitlement to the CUSMA’s preferential tariff treatment is determined in accordance with the following provisions of the CUSMA: the rules of origin set out in Chapter 4 Rules of Origin, the origin procedures set out in Chapter 5 Origin Procedures, provisions of Chapter 6 Textile and Apparel Goods, and paragraphs 8 through 10 of the Tariff Schedule of Canada in Annex 2-B.

5. CUSMA’s preferential tariff treatments are: the United States Tariff (UST – tariff treatment code 10) and the Mexico Tariff (MXT – tariff treatment code 11).

6. The Mexico-United States Tariff (MUST – tariff treatment code 12) used under the North American Free Trade Agreement (NAFTA) cannot be used for the CUSMA, which has a simplified preferential tariff treatment provision without differing start dates for tariff commitments as there were in the NAFTA.

7. All eligible goods imported under the CUSMA are eligible for either the United States Tariff or the Mexico Tariff. The MUST will remain in place in the interim, for adjustments pertaining to importations that occurred while the NAFTA was in effect.

Read full Customs Notice here.

Source: Canada Border Services Agency (CBSA)

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