The North American Free Trade Agreement (NAFTA) has been in effect for more than 25 years, allowing for free trade between the United States, Canada, and Mexico. In order to qualify for NAFTA benefits, businesses must provide a NAFTA Certificate of Origin for their goods. With the recent signing of the United States-Mexico-Canada Agreement (USMCA), there have been updates and changes to the NAFTA Certificate of Origin for the year 2020.
The purpose of the NAFTA Certificate of Origin is to certify that goods being exported from one NAFTA country to another qualify for the reduced or eliminated tariffs under the agreement. It is the responsibility of the exporter to obtain and complete the certificate, which must be provided to the importer as evidence of the goods’ eligibility for NAFTA benefits. Without a valid NAFTA Certificate of Origin, the importer may be subject to higher customs duties.
The USMCA has made some changes to the NAFTA Certificate of Origin for 2020. Firstly, the name of the agreement has been changed, so the new certificate is now called the USMCA Certificate of Origin. The form and content of the certificate remain largely the same, but there are a few important updates to note.
One notable change is the addition of a field for the exporter to provide their tax identification number (TIN) or business number. This is required for all exporters who wish to claim USMCA preferential treatment and is necessary for the importer to claim the benefits when clearing the goods through customs.
Another change is the requirement for the country of origin to be provided in a specific format. The country of origin should now be listed as follows:
– “CA” for goods originating in Canada
– “MX” for goods originating in Mexico
– “US” for goods originating in the United States
It is important to note that a USMCA Certificate of Origin is not always required for every shipment. If the shipment is valued at less than $1,000 USD and is not a textile or apparel good, a certificate may not be necessary. However, it is always best to check with the importer to confirm their specific requirements.
In summary, the NAFTA Certificate of Origin has been updated to the USMCA Certificate of Origin for 2020, with changes including the addition of a TIN field and a specific format for the country of origin. As always, it is important for businesses involved in cross-border trade to stay up-to-date with the latest requirements and regulations to ensure a smooth and successful trade process.