CUSMA is scheduled to come into effect on July 1, 2020, replacing the 26-year old North American Free Trade Agreement (NAFTA). This updated agreement takes into account the technological advancements of trade as well as the recent shift to e-commerce.
Key features of the new CUSMA Agreement include:
- Changes to format of Certificate of origin, as well as who can complete the certificate;
- Exporter, producer or importer can complete the Certificate of Origin
- Updated Rules of Origin, Regional Value Content and a new Labor Value Content Rule in the automotive sector;
-40% of value of a passenger car (45% of a light truck) be made of materials, parts and labour (including final assembly) produced or carried out by workers in a plant where the average hourly wage is at least US$16.
- De Minims threshold increased to $150 CAD for duties;
- De Minims thresholds for express courier import shipments of C$150 for
duties and C$40 for taxes.
- More Robust Intellectual Property provisions;
- Removes a provision on the availability of patents for new uses, new methods or new processes of using a known product, as well as a provision on data protection for “new indications” of existing drugs, and
- Includes additional language on an exception related to regulatory reviews, and new language on how parties may meet obligations dealing with patent-term restoration, patent linkage and data protection for small molecule drugs.
If you have any questions, please contact our DSV Compliance Team first at: firstname.lastname@example.org or your local DSV representative.
For further information, please visit:
The Canada-United States-Mexico Agreement: What importers need to know
A New Canada-United States-Mexico Agreement