CUSMA certification of origin

How CUSMA preference works

The Canada–United States–Mexico Agreement (CUSMA, called USMCA in the United States) replaced NAFTA on July 1, 2020. Qualifying goods can enter each country at preferential — often duty-free — rates, but the treatment is claimed by the importer, not applied automatically.

Two things must both be true: the goods must originate under the agreement’s rules of origin, and the claim must be supported by a valid certification of origin available at the time of the claim.

What makes goods originate

• Wholly obtained or producedGoods entirely grown, mined, fished or produced in Canada, the United States or Mexico.
• Produced from originating materialsGoods made in the region exclusively from materials that themselves qualify as originating.
• Product-specific rulesGoods with non-originating inputs can qualify by meeting the product-specific rule of origin for their HS heading, commonly a tariff-classification change, a regional value content threshold, or both.

The certification of origin

CUSMA does not prescribe a form. The certification may appear on an invoice or any other document, but it must contain the minimum data elements set out in the agreement together with the prescribed certification statement:

• CertifierWhether the certifier is the exporter, producer or importer.
• Certifier detailsName, title, address, telephone and email.
• ExporterName and contact details, if different from the certifier.
• ProducerName and contact details, or an authorized statement such as “available upon request by the importing authorities.”
• ImporterName and contact details, if known.
• Description and HS classificationA description sufficient to relate the certification to the good, with its HS classification to six digits.
• Origin criterionThe specific criterion under which the good qualifies.
• Blanket periodIf the certification covers multiple shipments of identical goods, the period covered, up to 12 months.
• Signature and dateThe certifier’s authorized signature, the date and the required certification statement.

Small shipments and record keeping

• Low-value shipmentsCanada does not require a certification of origin for commercial importations valued at CAD 3,300 or less, though origin can still be verified and other conditions apply. The United States applies its own threshold.
• Record retentionKeep the certification and all records demonstrating origin for the required period — in Canada, generally six years. Certifiers must be able to substantiate the analysis behind every certification.
• VerificationCustoms administrations can verify claims after importation. A claim that cannot be substantiated can lead to denied preference, retroactive duties, interest and penalties.

Errors that sink claims

1. Reusing an old NAFTA Certificate of Origin form or its origin criteria — the two agreements’ rules differ.
2. Certifying origin without checking the current product-specific rule for the good’s HS code.
3. Leaving out the origin criterion, blanket period dates or the certification statement.
4. Assuming purchased-in-the-USA goods originate — foreign-made goods do not qualify merely by being shipped from a CUSMA country.
5. Claiming preference with no certification in hand at the time of the claim.