Key Regulatory Compliance for Canadian Exporters to the U.S. under CUSMA

Key regulatory compliance for Canadian exporters to the U.S. under the Canada-United States-Mexico Agreement (CUSMA) primarily involves meeting the rules of origin and providing a certification of origin to claim preferential duty-free tariff treatment.

To comply:

• Rules of Origin: Goods must meet CUSMA’s rules of origin, meaning a sufficient percentage of the product’s value or production must occur in North America (Canada, U.S., or Mexico). For example, automobiles must have at least 75% of their value originating in the region to qualify.

• Certification of Origin: The importer must have a certification of origin at the time of claiming preferential tariff treatment. This document certifies that the goods meet the rules of origin and can be completed by the exporter, producer, or importer. It must include specific data elements such as names and addresses of certifier, exporter, producer, importer, description and HS code of goods, origin criteria, and certifier’s signature and date. There is no prescribed format, but it can be on an invoice or any other document, including electronic forms.

• Tariff Treatment: If goods meet the rules of origin and the certification of origin is provided, they qualify for duty-free treatment under CUSMA. Without this, goods are subject to U.S. tariffs, including recent U.S. IEEPA tariffs on certain Canadian imports unless exempted.

• Record Keeping: Exporters and certifiers must maintain records substantiating the origin claim, such as invoices, bills of lading, and customs documents, to support the certification if requested by customs authorities.

• Additional Considerations: Some sectors, like autos, steel, aluminum, and copper, may still be subject to U.S. sectoral tariffs under other U.S. laws (e.g., Section 232 tariffs), which are not exempted by CUSMA.

In summary, Canadian exporters must ensure their goods meet CUSMA’s rules of origin, provide a proper certification of origin, and maintain supporting documentation to benefit from tariff exemptions when exporting to the U.S. under CUSMA.