Rather, a minimum set of data elements must be submitted to prove origin. producers." Agreement. USMCA is a 21st century, high-standard trade agreement supporting mutually beneficial trade resulting in freer markets, fairer trade, and robust economic growth in North America. The Transaction Value Method: RVC=(TV-VNM)/TV x 100 where: The Net Cost Method: RVC=(NC-VNM)/NC x 100 where: The USMCAs Labor Value Content criteria require vehicle producers seeking USMCA preferential treatment to certify that a certain percentage of the imported automobiles content (by value) is sourced from manufacturing facilities in the USMCA parties that pay workers at least USD 16 per hour. A creative at heart, she loves challenging herself, and thus is consistently known for growing her multi-disciplined training, responsibilities, and expanding her knowledge. D Except for a good provided for in Chapter 61 to 63 of the Harmonized System: (i) produced entirely in the territory of one or more of the Parties; (ii) one or more of the non-originating materials provided for as parts under the Harmonized System used in the production of the good cannot satisfy the requirements set out in Annex 4-B (Product-Specific Rules of Origin) because both the good and its materials are classified in the same subheading or same heading that is not further subdivided into subheadings or, the good was imported into the territory of a Party in an unassembled or a disassembled form but was classified as an assembled good pursuant to rule 2(a) of the General Rules of Interpretation of the Harmonized System; and, (iii) the regional value content of the good, determined in accordance with Article 4.5 (Regional Value Content), is not less than 60 percent if the transaction value method is used, or not less than 50 percent if the net cost method is used. Importer/exporter or producer certification of origin (indicate which is certifier), Description and HTS classification of the good, Blanket period (how long the certification is valid up to 12 months). The Appendix to Annex 4-B of Chapter 4 of the USMCA includes the rules of origin requirements that apply to automotive goods. 1358-0121), USMCAs Uniform Regulations [85 FR 39690 (7/1/2020)] and U.S. Customs and Border Protections USMCA Implementing Instructions (CBP Publication No. No. For item properties, s elect the appropriate property from the dropdown. Alternatively, goods classified in Chapters 39-40 retain the option to qualify under a tariff change or regional value content requirement, though some of these specific requirements have also changed from the NAFTA. <>5'z n/Lkk(d~0|L-R$xt'dTr^qg`CAQ5rluBo2l. Disassembly of a used part or component to recover a core part or recovered material; Cleaning, verifications, inspection, tests, repairing, reconditioning of the recovered material; Incorporation of the recovered material in the production of a remanufactured good (it can include new parts). If the producer and exporter are the same, write "SAME." Select Mxico, Estados Unidos y Canad (T-MEC) if this certificate covers imports into the Mexico. This field is for validation purposes and should be left unchanged. As a general rule, however, Preference Criterion A rarely applies to manufactured goods. The certification indicator and origin criterion have one of the following values: "A", "B", "C", "D" The country of origin has one of the following values: "US", "CA", "MX" Click the following link to download a template that can be used to get your started. Section 202 of the USMCA Implementation Act specifies the rules of origin used to determine whether a good qualifies as an originating good under the Agreement. However, the USMCA replaces the NAFTA accumulation rules with updated language that is nearly identical to that found in the TPP. As opposed to NAFTA (read USMCA vs NAFTA. 9 The value of the non-originating goods in the set and the value of the set must be calculated in the same manner as the value of non-originating materials and the value of the goods. Origin criteria stipulate conditions or requirement for a good to be considered as 'originating'. . In laymans terms, the good on this line was made, grown, or produced completely within North America. Mexico is also a member of the Pacific Alliance, a trade bloc formed in 2011 by Mexico, Chile, Colombia, and Peru. Canada Border Services Agency (CBSA) publishes Customs Notice on CUSMA implementation. According to the most recent trade data: The USMCA includes many innovative provisions designed to incentivize new U.S. investments in the automotive sector, to promote additional purchases of U.S.-produced auto parts, to advance U.S. leadership in automotive R&D, to support additional high-paying U.S. jobs in the automotive sector, and to encourage automakers and suppliers to locate future production of electric and autonomous vehicles in the United States. Exporter Name & Address and Tax ID No. It may be completed and submitted electronically. Explore the USMCA's impact on the automotive sector. Under the USMCA, an originating good is one that meets the rules of origin set forth in General Note 11 and all other requirements of the Agreement. Preference Criterion B is used when the good being certified is produced using materials that the producer/exporter is unable to prove qualify as originating goods in their own right. Mexico is the sixth largest manufacturer of heavy-duty vehicles for cargo and the largest tractor truck exporter worldwide, accounting for the most heavy-duty vehicle exports to the United States. Chapter 4 of the USMCA (see Resources & Helpful Links) contains product specific Rules of Origin, these will be reflected in the General Note 11 of the Harmonized Tariff Schedule of the United States (HTSUS) when updated. 2744 Views Jun 30, 2020 Knowledge. 0 APDF readeris available from Adobe Systems Incorporated. Export.gov is managed by the International Trade Administration and For guidance on reasonable care, please visit [Informed Compliance Publication: What Every Member of the Trade Community Should Know About: Reasonable Care (October 25, 2017)]. The sector is divided between passenger vehicles and heavy vehicles for cargo, construction, and agriculture. (B2Q Hh$zzX"b 3,p&aZ@CE']>pq`~^:fm>y)o2jv8NlzGKDansNzeA# Mexico is the sixth largest passenger vehicle manufacturer in the world, producing 3.7 million passenger vehicles annually. Facing a Foreign Trade AD/CVD or Safeguard Investigation? The Agreement provides for two Regional Value Content (RVC) calculation methods: (1) Transaction Value and (2) Net Cost. USMCA upgrades NAFTA in a number of key areas. Specify the origin criterion under which the good qualies, as set out in Article 4.2 (Originating Goods) of Chapter 4 of the CUSMA. Mexico is a member of the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), the G-20, and the Organization for Economic Cooperation and Development (OECD). Contact our trade advisors if you have any questions. All reconciliation entries must follow the reconciliation process and be accepted. 6rsKqp_~['Og0W[fwn0rGr_d}SeKKhHGFFl In addition to the recordkeeping requirements denoted above, any vehicle producer whose good is the subject of a claim for preferential tariff treatment under the USMCA must keep records and supporting documents related to the labor value content and steel and aluminum purchasing requirements. The Preference Criteria are referred to with the letters shown below. This should be in a per-unit amount and be in USD. For purposes of calculating the LVC of passenger vehicles, light trucks, or heavy trucks, the producer may base the LVC calculation on the following periods: Producers were allowed until July 31, 2020, to submit RVC and LVC averaging elections for 2020. Certain monitors and projectors will be able to qualify as originating without undergoing a change in tariff classification, provided they satisfy an RVC requirement of 60% (transaction value) or 50% (net cost). If this certification covers multiple shipments of identical goods, include the date range for that specified period which can be up to 12 months. The new rules applicable to electrical transformers and their parts will be phased in, taking effect 5 years after the USMCA enters into force. (Reference: Annex 308.1). Parties wishing to import "originating goods" duty free into the United States, Canada, and Mexico utilizing the preferential benefits of the USMCA must have a valid certificate of origin on file at time of claim, completed by either the Exporter, the Producer, or the Importer. What's New. If the information is the same as the Certifier, you may state Same as Certifier., Provide the Producers name, address (including country), e-mail address, and telephone number, if different from the certifier or exporter. (a) has a similar life expectancy and performs the same as or similar to such a good when new; and Any other category as the USMCA countries may decide. Reactions within the US business community, however, have been mixed. It is acceptable to write "UNKNOWN" or "VARIOUS.". For example, January 1st to December 31st of the same year. Use this guide to determine which preference criteria to use when completing a NAFTA form. For certain products, the USMCA also modifies the tariff preference levels set forth in the NAFTA (which permit specified quantities of non-originating yarns, fabrics, apparel and made-up textile goods to receive NAFTA tariff treatment, provided that they have undergone processing in one or more NAFTA countries). The United States Mexico Canada Agreement ("USMCA") was entered into effect in July 2020. Click Share This Page button to display social media links. If the information is the same as the Certifier, you may state Same as Certifier., Provide, if known, the Importers name, address, e-mail address, and telephone number. If CBPs USMCA Center receives an errors found status from DOL, then CBP will reject the LVC certification, and the USMCA Center will reply to the producer with certification not properly filed.. The description should be sufficient enough to identify the goods covered by this form. A final packaging/re-packaging operation in the US does not constitute production.. external links are covered by its website disclaimer statement. 1709 0 obj <> endobj Illustrative List of Products Subject to Revised Rules of Origin Under USMCA, Chapters 40, 70, 83, 84, 85, 87, 90, and 94. They must also be able to provide the support proving originating goods status that formed the basis of their certification. The importer is responsible for exercising reasonable care concerning the accuracy of the certification of origin and all documentation submitted to CBP. 7 A "recovered material" is defined as a material in the form of one or more individual parts that results from: (a) the disassembly of a used good into individual parts; and (b) the cleaning, inspecting, testing or other processing of those parts as necessary for improvement to sound working condition. For example: The good is an originating agricultural good under preference criterion A, B, or C above and is not subject to a quantitative restriction in the importing NAFTA country because it is a "qualifying good" as defined in Annex 703.2, Section A or B (please specify). In order to be originating, light trucks and heavy trucks must also meet a LVC upon USMCA implementation of: Labor Value Content for light trucks and heavy trucks was implemented without a phase-in period. The Office of the US Trade Representative (USTR) has touted the updated rules of origin, including those for non-automotive goods, as a "key achievement" in the USMCA that will "ensure that only producers using sufficient and significant North American parts and materials receive preferential tariff benefits." The high-wage technology expenditure provision allows producers to claim a credit for expenditures for research and development or information technology wages. Hyundai produces through its Kia partner and Toyota opened its second plant in Apaseo el Alto, Guanajuato last year. %%EOF If the fiscal year of a producer begins after July 1, 2020, but before July 1, 2021, the producer may calculate their RVC or LVC of passenger vehicles, light trucks, or heavy trucks for the period beginning on July 1, 2020, and ending at the end of the following fiscal year. It is generally reserved for basic products such as those harvested, mined, or fished in the NAFTA territory, although it would include a manufactured good with no non-NAFTA inputs. *Selecting a default edition will set a cookie. The purchase, cost, value, and shipping of, and payment of, the good or material; The purchase, cost, value, and shipping of, and payment for, all materials, including indirect materials, used in the production of the good or material, and. "(A) For a petition for classification under section 203(b)(1)(C) of the Immigration and Nationality Act (8 U.S.C. For subsequent LVC certification, steel certification, and aluminum certification, CBP will provide additional guidance on the timing and submission of such certifications. Any user of the USMCA certification form and this website is solely responsible for its use and for monitoring to ensure awareness of any revisions. The certification of origin may be submitted in English, Spanish, or French. Under the USMCA, an originating good that is transported outside the territories of the parties will retain its originating status if the good (1) remains under customs control in the territory of a non-Party; and (2) does not undergo an operation other than unloading; reloading; separation from a bulk shipment; storing; labeling or marking TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. The USMCAs Annex 4-B contains significant revisions to many of the product-specific rules of origin found in Annex 401 of the NAFTA. Importer, exporter or producer: Certification of origin The certifier of this certification of origin is the exporter and producer of the goods. : Full Legal name and address, including country, and tax identification number of the producer. This criterion applies to certain automatic data processing goods and their parts, specified in Annex 308.1. The new de minimis rules are as follows: Like the NAFTA, the USMCA contains a list of products that are ineligible for these de minimis exemptions (including many food and agricultural products). Several of these changes would provide additional flexibility for traders seeking to qualify for preferential tariff treatment, compared to the existing NAFTA rules. Increased Regional Value Content (RVC) requirements; New requirements for vehicle producers procurement of North American-sourced steel and aluminum; Eliminates loopholes that undermine RVC thresholds; Introduces a first-of-its-kind Labor Value Content (LVC) rule; Reduces the administrative burden on vehicle and parts producers. NOTE 1: This criterion does not apply to goods that wholly originate in Canada or the United States and are imported into either country. (b) has a factory warranty similar to that applicable to such a good when new. Certifier Pedro Sanchez, President Belt-R-Up Company 123 Buckle Street El Paso, Texas USA39812 (111) 111-1111 pedrosanchez@beltrup.com 3. The rules of origin are contained in Chapter Four, Article 4.2 of the USMCA / CUSMA. Can I use my supplier NAFTA documents to support a USMCA qualification? Possible choices are A, B, C, D, and E. You should be familiar with these USMCA designations before making a . 30 percent, consisting of at least 15 percentage points of high-wage material and manufacturing expenditures, no more than ten percentage points of high-wage technology expenditures, and no more than five percentage points of high-wage assembly expenditures, which began on July 1, 2020, the date of entry into force of the Agreement; 33 percent, consisting of at least 18 percentage points of high-wage material and manufacturing expenditures, no more than ten percentage points of high-wage technology expenditures, and no more than five percentage points of high-wage assembly expenditures, beginning July 1, 2021. The NAFTA preference criteria designated by the letters A through F show how your product qualifies for a NAFTA tariff rate. Qualifying goods and services which had zero tariffs under NAFTA will remain at zero under USMCA. After more than 25 years of the North American Free Trade Agreement (NAFTA), Canada, Mexico and the United States signed a new free trade agreement between the three countries called the United States-Mexico-Canada Agreement (USMCA) that went into effect on July 1, 2020, and replaced NAFTA. The four origin criteria classifications define how a good qualifies. |, Its Official USTR Formally Announces USMCA Entry-Into-Force Date of July 1, 2020, Implementation of the Canada-United States-Mexico Agreement (CUSMA). If a producer received a certification not properly filed status, a new certification package must be submitted to CBP via the USMCA Center Portal. : Full Legal name and address, including country, and tax identification number of the exporter. The address of the importer shall be in a Partys territory. Note: In order to be . Date: However, a new rule in the USMCA provides that, where a non-originating material is used in the production of a good, the following may be counted as originating content for purposes of calculating RVC under either method: This provision also was included in the TPP, and will provide additional flexibility for traders seeking to satisfy RVC requirements under the USMCA. CBPs USMCA Center will forward the LVC certification information to the U.S. Department of Labor (DOL) Wage and Hour Division (WHD) for review for omissions and errors within five business days from acknowledging receipt of the producer certification. C) Produced entirely in the territory of one or more of the Parties exclusively from originating materials. Additional guidance is available via the U.S. Trade Representatives Federal Register notice on this subject [85 FR 22238 (4/21/20)]. Include the total page count of the cover page + continuation page(s) containing eligible parts only. Although most of the public discussion of the USMCAs rules of origin has focused on automotive goods, the Agreements general and specific (non-automotive) rules also could have substantial implications for manufacturers and traders operating in North America. The Annex 401 Rules of Origin are based on a change in tariff classification, a regional value-content requirement, or both. automotive goods, textiles, textile apparel products, etc.). In laymans terms, the good on this line was made completely within North America but have parts from somewhere else. Marketing Coordinator & Asst. For each good described in Field 5, state which criterion (A through F) is applicable. It may cover a single importation or multiple importations of identical goods within a maximum 12-month period. A comprehensive description of USMCA criteria and other compliance guidance for claiming USMCA preferential treatment for goods being entered into the United States can be found in U.S. Customs and Border Protections USMCA Implementing Instructions (CBP Publication No. Promoting fundamental changes in the North American auto industry to incentivize regional production. The six preference criteria classifications define how a good qualifies. 2. It is intended this website and downloadable document may, at the USERS discretion and own risk, be utilized for reference purposes and is not intended as definitive and/or authoritative for claiming USMCA benefits. The US-Mexico-Canada Agreement (USMCA) announced on September 30, 2018 envisions significant changes to the rules of origin established under the North American Free Trade Agreement (NAFTA). To qualify for preferential treatment under the USMCA, goods must comply with the USMCA Rules of Origin. In a very few cases a good that has not undergone the required tariff transformation can still qualify for preferential NAFTA treatment if a regional value content requirement is met. If you prefer to watch a video, you can find the visual guide here. SELECT ONLY ONE: Method of Qualification: For each good described in Field #5, where the good is subject to a Regional Value Content (RVC) requirement, indicate "NC" if the RVC was calculated according to the Net Cost method and "TV" if the good was calculated according to the Transaction Value method. Last but not least is your autograph. The ROO also prevents items of non-North American origin, undergoing only minor production, from claiming the duty-free benefits. Updates included in the Customs Administration and Trade Facilitation Chapter will help reduce costs and bring greater predictability to cross-border transactions. 5 Tips To Manage Your Country Of Origin Certificates (And Why Its Imperative To Your Bottom Line That You Do! There are new rules of Certification of Origin under the new FTA which means you can't use a NAFTA Certificate of Origin under the old agreement. Major differences between USMCA and NAFTA in key chapters), USMCA doesn't require a specific format of a certificate of origin. Trade is tricky. Other product-specific rules in the USMCA, such as those applicable to chemicals, might be more flexible than the existing NAFTA rules. Annex B - International Standard Country Codes. Parts of non-US, MX, CA origin can only have accumulated value if the last country in which they underwent production was the US, CA, or MX. Select the files you wish to upload and click next to submit. The general principles for determining origin under the USMCA are similar to those found in the NAFTA. The importer may make a claim for preferential tariff treatment based on a certification of origin process, completed by the importer, the exporter, or the producer, for purposes of certifying that the good qualifies as an originating good. Preference Criteria A A good is considered originating if that good is wholly obtained or produced in one or more of the NAFTA countries, such as items that are mined or farmed. We provide below an overview of the key changes and our perspectives thereon. Preference Criteria A The producer should submit a revised certification to CBP via the USMCA Center. CRITERION Specify the Origin Criterion under which the good qualifies, as set Criterion A: the territory of one or more of the USMCA/T-MEC/CUSMA countries, as defined in Article 4.3 of the Agreement; Criterion B: The good is produced entirely in the territory of one or more of the USMCA/T-MEC/CUSMA countries using non- external links are covered by its website disclaimer statement. 6 For purposes of this provision, the transaction value is adjusted to exclude any costs incurred in the international shipment of the good. The requirements of the NAFTA Rules of Origin differ from good to good. %PDF-1.5 % All materials used in the production of the good must qualify as "originating" by meeting the rules of Article 401 (a) through (d). 11951 0 obj <>stream You can, however, upload three separate files in one submission. On July 1, 2020, NAFTA was replaced with the new Free Trade Agreement (FTA) also known as CUSMA, USMCA or T-MEC. 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