MAIN CUSTOMS CHANGES BY THE USMCA
On April 24th, the Secretary of Economy reported in a statement that the new Treaty between the United States, Mexico and Canada will be implemented on July 1st, 2020.
The agreement contemplates some changes in customs matters compared to NAFTA and seeks to boost trade in the three countries, after the COVID-19 pandemic.
These are the most relevant settings:
· THERE WILL BE NO OFFICIAL FORMAT
The USMCA establishes the elimination of the certificate of origin format, allowing the three countries to endorse the provenance of the merchandise with any commercial document that indicates that the merchandise is native, describes it and meets the necessary requirements.
The certification of origin may be issued by the exporter, producer or importer; however, in Mexico the implementation of the certification of origin by the importer should be no later than three years and six months after the start of the treaty.
· CUSTOMS ADMINISTRATION AND TRADE FACILITATION
Unlike NAFTA, the USMCA added a chapter 7 on measures that facilitate trade between the three countries, which include:
- Online publication of customs procedures, laws, regulations, links to all tariffs, among others.
- Advance publication of general customs regulations, so that those interested can comment on them before they are adopted.
- Information service to answer questions about import, export and transit.
- Each party will issue written resolutions prior to an import, regarding:
- Tariff classification.
- Customs valuation criteria for particular cases.
- Origin of merchandise.
- If the merchandise is subject to a tariff quota.
- Other matters that the parties may agree on.
- One-stop window for electronic documents required for importation.
· TRANSITION FROM NAFTA TO USMCA
For entities or individuals claiming preferential treatment under NAFTA, Article 34.1 number 6 states that the parties will make arrangements for it to continue to apply once the USMCA comes into force.
Among the norms that existed in the previous treaty and that will continue to be valid are those referring to language, acceptance, subsequent application, transfer, return, procedure, among others.
The new pact will help maintain free import and export among the three countries that make up the largest block of economic and commercial integration in the West.
News made easy.
Source: Gobierno de México