Trade update under the CUSMA compliance rule for Canada-US market

The Canada-United States-Mexico Agreement (aka CUSMA) is a free trade agreement between the 3 countries in North America, as the Most Favored Nation (MFN) status with the US is no longer enough to face the additional duties. Hence, CUSMA is essential for Canadian businesses.

𝐓𝐡𝐞 𝐫𝐮𝐥𝐞𝐬 𝐨𝐟 𝐨𝐫𝐢𝐠𝐢𝐧 𝐮𝐧𝐝𝐞𝐫 𝐂𝐔𝐒𝐌𝐀:

Each good has a product-specific rule of origin (PSRO) and must be classified into the correct Harmonized System code to receive duty-free treatment.

Different ways to know if it can receive duty-free when shipping to the US:

▪️ Wholly obtained goods

▪️ The non-originating/imported materials take less than 10% of the goods’ value

▪️ If more than 10%, consult the Annex-4B in PSROs to determine its origin.

𝐃𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐓𝐫𝐚𝐝𝐞 𝐮𝐩𝐝𝐚𝐭𝐞 𝐮𝐧𝐝𝐞𝐫 𝐂𝐔𝐒𝐌𝐀 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐫𝐮𝐥𝐞 𝐮𝐧𝐭𝐢𝐥 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟐𝟎𝟐𝟓 (𝐬𝐰𝐢𝐩𝐞 𝐢𝐦𝐚𝐠𝐞𝐬 𝐭𝐨 𝐬𝐞𝐞 𝐝𝐞𝐭𝐚𝐢𝐥𝐬)

Expanding business in Canada will bring significant benefits, and under CUSMA, it will be a foundation for businesses to improve competitiveness and foster cooperation to attract investment in SMEs in Canada.

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