Getting the Rules Of Origin correct is one of the key aspects to successfully importing under the new USMCA/CUSMA trade agreement--and to receive preferential treatment.
What importers need to know about USMCA/CUSMA Rules Of Origin
The tariff classification for the finished manufactured good needs to be determined. Tariff classification can be tricky, so ask your customs broker for support. Read our Tariff Classification 101 post here.
Originating vs. non-originating materials
All components from the bill of materials need to be reviewed to determine if they are originating or non-originating materials.
- An originating material qualifies in its own right under CUSMA.
- A non-originating material is one that does not qualify as originating.
Specific rules of origin
In some cases, non-originating components or materials used in the manufacture of the finished good need to meet the applicable tariff shift for the rule of origin.
Other rules will allow qualification with a tariff shift, or a regional value content calculation based on a transaction value method or net cost method.
What has changed from NAFTA?
CBSA has put together a webpage to answer this question!
Important reference material
To determine if your goods qualify for preferential treatment, refer to:
- Bill of materials (BOM), an extensive list of raw materials and components making up a product.
- The agreement’s Rules Of Origin
You might also like to read up on USMCA/CUSMA Certification Of Origin here.
Navigating the new USMCA/CUSMA is complex, especially ensuring your goods quality under the new requirements. We’re here to help. Contact our Free Trade Agreement specialists today.
USMCA/CUSMA. It's what we do.