View source for CUSMA (Canada-United States-Mexico Agreement) (Customs Glossary)

{{note|This article is part of the [[Customs_Glossary_Guide|Customs Glossary Guide]]|info}}

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<h1>USMCA / CUSMA / T-MEC</h1>
<p>The modernized free trade agreement between the United States, Mexico, and Canada that replaced NAFTA.</p>
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<span class="bc-article-pill"><i class="fas fa-handshake"></i> Type: Free Trade Agreement</span>
<span class="bc-article-pill"><i class="fas fa-calendar-alt"></i> Entry into Force: July 1, 2020</span>
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<h2 style="margin-top: 0;">Overview</h2>
[[Image:USMCA-CUSMA-TMEC-Flags.jpg|300px|right|thumb|The agreement has different acronyms in each member country.]]
<p>The <strong>United States-Mexico-Canada Agreement (USMCA)</strong> is a trilateral free trade agreement that modernized the 25-year-old NAFTA. It entered into force on <strong>July 1, 2020</strong>, governing the vast majority of trade between the three nations.</p>

<p><strong>Naming Conventions:</strong> The agreement is referred to differently in each jurisdiction:</p>
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* <strong>United States:</strong> USMCA (United States-Mexico-Canada Agreement)
* <strong>Canada:</strong> CUSMA (Canada-United States-Mexico Agreement)
* <strong>Mexico:</strong> T-MEC (Tratado entre México, Estados Unidos y Canadá)
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<strong>Sunset Clause:</strong> Unlike NAFTA, USMCA has a 16-year "sunset" clause. The three countries must meet every <strong>6 years</strong> to review the agreement and decide whether to extend it.
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Key Changes from NAFTA</h2>

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<p>While USMCA maintains the core duty-free status for qualifying goods, it introduced stricter rules of origin and new chapters on digital trade.</p>

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<th style="width: 30%;">Sector</th>
<th>Key Updates</th>
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<td><strong>Automotive</strong></td>
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<strong>Regional Value Content (RVC):</strong> Raised to <strong>75%</strong> (up from 62.5% in NAFTA).<br>
<strong>Labor Value Content (LVC):</strong> Requires 40-45% of auto content be made by workers earning at least <strong>$16 USD/hour</strong>.<br>
<strong>Steel & Aluminum:</strong> Requires 70% North American purchasing.
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<td><strong>Dairy & Agriculture</strong></td>
<td>Increased U.S. access to the Canadian dairy market (up to 3.6%) and eliminated Canada's "Class 7" milk pricing system.</td>
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<td><strong>De Minimis (Courier)</strong></td>
<td>Raised the threshold for low-value shipments to facilitate e-commerce:<br>
<strong>Canada:</strong> $150 CAD (Duty Free) / $40 CAD (Tax Free).<br>
<strong>Mexico:</strong> $117 USD (Duty Free) / $50 USD (Tax Free).<br>
<strong>USA:</strong> Remains at $800 USD.
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<td><strong>Digital Trade</strong></td>
<td>Prohibits customs duties on digital products (e-books, music, software) and limits data localization requirements.</td>
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Certification of Origin</h2>

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<p>Under USMCA, the formal "Certificate of Origin" (CBP Form 434) was eliminated. It was replaced by a flexible <strong>Certification of Origin</strong> that can be placed on <em>any</em> document (e.g., Commercial Invoice) as long as it contains the <strong>9 Minimum Data Elements</strong>.</p>

<h3>The 9 Minimum Data Elements</h3>
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* <strong>1. Importer, Exporter, or Producer:</strong> Who is making the certification?
* <strong>2. Certifier:</strong> Name, title, and contact info of the person certifying.
* <strong>3. Exporter:</strong> Name and contact info.
* <strong>4. Producer:</strong> Name and contact info.
* <strong>5. Importer:</strong> Name and contact info.
* <strong>6. Description & HS Code:</strong> Description and 6-digit Harmonized System code.
* <strong>7. Origin Criteria:</strong> The rule the good qualifies under (A, B, C, or D).
* <strong>8. Blanket Period:</strong> Date range (up to 12 months) if applicable.
* <strong>9. Signature & Date:</strong> Authorized signature and statement of truth.
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Usage in BorderConnect</h2>

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<p>To claim preferential treatment under USMCA/CUSMA in BorderConnect, users must select the correct Tariff Treatment codes, as "NAFTA" codes are obsolete.</p>

<h3>For Canadian Imports (ACI)</h3>
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* <strong>Tariff Code:</strong> Use <strong>Tariff Treatment 10</strong> (United States Tariff) or <strong>Tariff Treatment 11</strong> (Mexico Tariff).
* <strong>Documents:</strong> Upload the "Certification of Origin" in the Document Storage tab.
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<h3>For U.S. Imports (ACE)</h3>
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* <strong>SPI Code:</strong> The Special Program Indicator (SPI) for USMCA is <strong>"S"</strong> (Ordinary) or <strong>"S+"</strong> (Ag/Textile).
* <strong>Replaces:</strong> Do not use "CA" or "MX" (the old NAFTA indicators).
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Official Resources</h2>

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* <strong>CBP (USA):</strong> [https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA USMCA Implementation Guide]
* <strong>CBSA (Canada):</strong> [https://www.cbsa-asfc.gc.ca/services/cusma-aceum/menu-eng.html CUSMA: What Importers Need to Know]
* <strong>Government of Canada:</strong> [https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cusma-aceum/index.aspx?lang=eng CUSMA Full Text & Summary]
* <strong>Template:</strong> [https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA/certification-origin-template CBP Optional Certification Template]
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[[Category:Customs Glossary Guide]]