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CUSMA (Canada-United States-Mexico Agreement) (Customs Glossary) - Revision history
2026-05-31T16:52:26Z
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Admin: Created page with "{{note|This article is part of the Customs Glossary Guide|info}} <div class="bc-wrap"> <div class="bc-article-hero"> <h1>USMCA / CUSMA / T-MEC</h1> <p>The modernized free trade agreement between the United States, Mexico, and Canada that replaced NAFTA.</p> <div class="bc-article-meta"> <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">..."
2026-02-10T21:30:17Z
<p>Created page with "{{note|This article is part of the <a href="/index.php?title=Customs_Glossary_Guide" title="Customs Glossary Guide">Customs Glossary Guide</a>|info}} <div class="bc-wrap"> <div class="bc-article-hero"> <h1>USMCA / CUSMA / T-MEC</h1> <p>The modernized free trade agreement between the United States, Mexico, and Canada that replaced NAFTA.</p> <div class="bc-article-meta"> <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">..."</p>
<p><b>New page</b></p><div>{{note|This article is part of the [[Customs_Glossary_Guide|Customs Glossary Guide]]|info}}<br />
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<h1>USMCA / CUSMA / T-MEC</h1><br />
<p>The modernized free trade agreement between the United States, Mexico, and Canada that replaced NAFTA.</p><br />
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<span class="bc-article-pill"><i class="fas fa-handshake"></i> Type: Free Trade Agreement</span><br />
<span class="bc-article-pill"><i class="fas fa-calendar-alt"></i> Entry into Force: July 1, 2020</span><br />
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<h2 style="margin-top: 0;">Overview</h2><br />
[[Image:USMCA-CUSMA-TMEC-Flags.jpg|300px|right|thumb|The agreement has different acronyms in each member country.]]<br />
<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><br />
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<p><strong>Naming Conventions:</strong> The agreement is referred to differently in each jurisdiction:</p><br />
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* <strong>United States:</strong> USMCA (United States-Mexico-Canada Agreement)<br />
* <strong>Canada:</strong> CUSMA (Canada-United States-Mexico Agreement)<br />
* <strong>Mexico:</strong> T-MEC (Tratado entre México, Estados Unidos y Canadá)<br />
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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.<br />
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Key Changes from NAFTA</h2><br />
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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><br />
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<th style="width: 30%;">Sector</th><br />
<th>Key Updates</th><br />
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<td><strong>Automotive</strong></td><br />
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<strong>Regional Value Content (RVC):</strong> Raised to <strong>75%</strong> (up from 62.5% in NAFTA).<br><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><br />
<strong>Steel & Aluminum:</strong> Requires 70% North American purchasing.<br />
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<td><strong>Dairy & Agriculture</strong></td><br />
<td>Increased U.S. access to the Canadian dairy market (up to 3.6%) and eliminated Canada's "Class 7" milk pricing system.</td><br />
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<td><strong>De Minimis (Courier)</strong></td><br />
<td>Raised the threshold for low-value shipments to facilitate e-commerce:<br><br />
<strong>Canada:</strong> $150 CAD (Duty Free) / $40 CAD (Tax Free).<br><br />
<strong>Mexico:</strong> $117 USD (Duty Free) / $50 USD (Tax Free).<br><br />
<strong>USA:</strong> Remains at $800 USD.<br />
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<td><strong>Digital Trade</strong></td><br />
<td>Prohibits customs duties on digital products (e-books, music, software) and limits data localization requirements.</td><br />
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Certification of Origin</h2><br />
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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><br />
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<h3>The 9 Minimum Data Elements</h3><br />
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* <strong>1. Importer, Exporter, or Producer:</strong> Who is making the certification?<br />
* <strong>2. Certifier:</strong> Name, title, and contact info of the person certifying.<br />
* <strong>3. Exporter:</strong> Name and contact info.<br />
* <strong>4. Producer:</strong> Name and contact info.<br />
* <strong>5. Importer:</strong> Name and contact info.<br />
* <strong>6. Description & HS Code:</strong> Description and 6-digit Harmonized System code.<br />
* <strong>7. Origin Criteria:</strong> The rule the good qualifies under (A, B, C, or D).<br />
* <strong>8. Blanket Period:</strong> Date range (up to 12 months) if applicable.<br />
* <strong>9. Signature & Date:</strong> Authorized signature and statement of truth.<br />
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Usage in BorderConnect</h2><br />
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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><br />
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<h3>For Canadian Imports (ACI)</h3><br />
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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).<br />
* <strong>Documents:</strong> Upload the "Certification of Origin" in the Document Storage tab.<br />
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<h3>For U.S. Imports (ACE)</h3><br />
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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).<br />
* <strong>Replaces:</strong> Do not use "CA" or "MX" (the old NAFTA indicators).<br />
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Official Resources</h2><br />
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* <strong>CBP (USA):</strong> [https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA USMCA Implementation Guide]<br />
* <strong>CBSA (Canada):</strong> [https://www.cbsa-asfc.gc.ca/services/cusma-aceum/menu-eng.html CUSMA: What Importers Need to Know]<br />
* <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]<br />
* <strong>Template:</strong> [https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA/certification-origin-template CBP Optional Certification Template]<br />
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[[Category:Customs Glossary Guide]]</div>
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