Added provisions on remanufactured goods. Specify the origin criterion under which the good qualies, as set out in Article 4.2 (Originating Goods) of Chapter 4 of the CUSMA. Contact Information. %%EOF 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 nonoriginating materials provided for as parts under the Harmonized System used in the production of the good cannot satisfy the requirements set out in Annex 4B (ProductSpecific 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. The USMCA provides that such sets are originating only if each good in the set is originating and both the set and the goods meet all other applicable requirements of the USMCA rules of origin chapter. In general, under the USMCA, a good is originating based on the following five RoO criterion A-E and the good satisfies all other applicable requirements: Criterion A: The good is wholly obtained or produced entirely in the territory of one or more of the USMCA countries, as defined in Article 4.3 of the Agreement; Criterion B: 1. D) There is no laymans way to explain this qualification as it will be very specific to the good and production of the good. U.S. International Trade Commission 500 E Street, SW Washington, D.C., 20436 202.205.2000 TDD 202.205.1810 Contact Us; Hours & Directions; 11945 0 obj <>/Filter/FlateDecode/ID[<8801E9796B74EB40A7B554B23DE8D182><5563F3889AD87B4BA0D07FB2DFD33D2C>]/Index[11932 20]/Info 11931 0 R/Length 72/Prev 967198/Root 11933 0 R/Size 11952/Type/XRef/W[1 2 1]>>stream Customs Act. Annex B - International Standard Country Codes. They generally require that the product at issue: (1) undergoes a tariff shift from outside certain steel tariff headings in Chapters 72 and 73; (2) undergoes a tariff shift from only the designated steel tariff headings in Chapters 72 and 73, provided that at least 70% by weight of the inputs of those designated headings is originating; or (3) satisfies an RVC requirement of 70% (transaction value) or 60% (net cost). 6 For purposes of this provision, the transaction value is adjusted to exclude any costs incurred in the international shipment of the good. A locked padlock ) or https:// means youve safely connected to the .gov website. Note: In order to be . Specify the origin criterion (A, B, C, or D) under which the good qualifies, as set out in Article 4.2 (Originating Goods): Wholly obtained or produced entirely in the territory of one or more of the Parties, as defined in Article 4.3 (Wholly Obtained or Produced Goods), Produced entirely in the territory of one or more of the Parties using nonoriginating materials provided the good satisfies all applicable requirements of Annex 4B (ProductSpecific Rules of Origin), Produced entirely in the territory of one or more of the Parties exclusively from originating materials. A preference criterion is required in Field # 7 of the Certificate of Origin for each export product. The requirements of the NAFTA Rules of Origin differ from good to good. The finished product will be originating if the requirements of the applicable rule of origin are met. In addition to the certification of origin process, producers of passenger vehicles, light trucks, and heavy trucks are required to submit three new certifications to receive preferential tariff treatment under the USMCA for these goods: Labor Value Content (LVC) certification (Annex B), Steel certification (Annex C), and Aluminum certification (Annex D). The rules are aimed at ensuring originating goods are those that were produced in the United States, Mexico, or Canada and have a production process that generated a sufficient amount of investment in any-or-all of the three member countries (e.g. If the good was qualified via a tariff shift, indicate "TS." |, Its Official USTR Formally Announces USMCA Entry-Into-Force Date of July 1, 2020, Implementation of the Canada-United States-Mexico Agreement (CUSMA). Official websites use .gov Records and supporting documentation necessary to demonstrate compliance with the transit and transshipment provisions in Article 4.18 of the Agreement. Jeff.Geiger@trade.gov, Monica Martinez, Commercial Specialist - Automotive The authors of this website and downloadable document do not warrant its content and/or use. An official website of the United States government. Any other category as the USMCA countries may decide. The value of any originating material used in the production of the non-originating material undertaken in the territory of one or more of the Parties. Can I use my supplier NAFTA documents to support a USMCA qualification? Importer Name & Address and Tax ID No. How do I know which Rule of Origin to analyze? As a general rule, however, Preference Criterion A rarely applies to manufactured goods. All materials used in the production of the good must qualify as "originating" by meeting the rules of Article 401 (a) through (d). Any exporter or producer who completes a USMCA certification of origin or provides a written representation for a good exported from the United States to a USMCA country must keep all records and supporting documents related to the origin of the good (including the certification or copies thereof), including records related to: These records must be maintained for a period of no less than five years from the date of entry and must be rendered for examination and inspection upon request. This field must be completed, signed, and dated by the authorized Certifier. Secure .gov websites use HTTPS 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. Accordingly, FOCUS reserves the right to amend its current USMCA certification form and contents of this website in accordance with any future changes, whether reflected in the USMCA Interim Implementing Instructions, the Harmonized Tariff Schedule of the United States, or any domestic or uniform regulations or guidance issued by CBP or any other U.S. government department or agency putting into effect these revisions. Automotive manufacturers are primarily concentrated in the northern region of Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon, and San Luis Potosi. The United States-Mexico-Canada Agreement (USMCA) is the most comprehensive and high-standard trade agreement ever negotiated. Origin Procedures - USMCA Chapter 5 CHAPTER 5 ORIGIN PROCEDURES Article 5.1: Definitions For the purposes of this Chapter: exporter means an exporter located in the territory of a Party and an exporter required under this Chapter to maintain records in the territory of that Party regarding exportations of a good; The OEM auto parts market represents USD 73 billion, making Mexico the fifth largest producer of auto parts, with over 2,500 companies in the sector. Legislation. The date must be the date the Certificate was completed and signed. Any importer who claims preferential tariff treatment under USMCA for a good imported into the United States from a USMCA country must keep the following documentation for a period of no less than five years from the date of entry: The importer must render these records for examination and inspection upon request per 19 U.S. Code 1508-1510 and 19 CFR Part 163.6. If the page does not appear in 5 seconds, please click this: outside web site. The Agreement modernizes and rebalances U.S. trade relations with Mexico and Canada and it reduces incentives to outsource by providing strong labor and environmental protections, innovative rules of origin, and revised investment provisions. (Reference: Article 401(a) and 415), The good is produced entirely in the territory of one or more of the NAFTA countries and satisfies the specific rule of origin, set out in Annex 401, that applies to its tariff classification. Select which Origin Criterion letter (A through D) applies to description entered in field 15 using drop down menu. In accordance with CBPs Phase 1 Implementation Policy, automotive producers, exporters, and importers were allowed until December 31, 2020, to obtain and submit necessary certifications and documentation, including any documentation necessary to establish compliance with the RVC requirement for 2020. The fact that the US-Mexico-Canada Agreement ("USMCA"), which replaced NAFTA on July 1, does not require any particular form Certificate of Origin ("COO") has left many importers and . A fully completed and accurate Certification of Origin under the newest Free Trade Agreement between North America that both your Customs Broker, Customs and all parties to the transaction will understand. NOTE: The purchase of a good in the territory does not necessarily render it "wholly obtained or produced." For each good described in Field 6, where you are the Producer of the good, indicate YES; otherwise indicate NO., For each good described in Field 6, 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. They generally require that the product at issue: (1) undergoes a tariff shift from outside certain headings in Chapters 72 and 73; or (2) satisfies an RVC requirement of 55% (net cost) or 65% (transaction value). Filling of a reconciliation entry is not mandatory, but it is the exclusive means to file a USMCA claim once the entry summary is flagged for FTA. If U.S. Customs and Border Protection requests the certification of origin and it is illegible, is defective on its face, or is incomplete, the importer will be granted a period of not less than five working days to provide a copy of the corrected certification of origin. USMCA Interim Implementation Instructions on CBP Website, USMCA Rule of Origin (Chapter 4) on USTR Website, USMCA Origin Procedures (Chapter 5) on USTR Website. An importer is required to have a valid certification of origin in its possession at the time the USMCA preference claim is made. Labor Value Content is a point system based on three different high-wage expenditures: A producer may satisfy the LVC requirement using only material and manufacturing expenditures or may claim credits of up to ten percentage points for its high-wage technology expenditures, and of up to five percentage points for its high-wage assembly expenditures. It updates, modernizes, and rebalances the North American Free Trade Agreement (NAFTA), which it replaces, in order to meet the challenges of the 21st-century economy. 1118-0620) and Implementing Instructions Addendum (CBP Publication No. Users will need to resubmit their documents through the portal using the initial procedure. If at the time of importation a good qualified as originating but a claim for preference was not made, the USMCA permits importers to make a post-importation preference claim to request a refund of the duties paid at entry. It will help drive economic prosperity, promote fairer and more balanced trade, and ensure that North America remains the worlds most competitive region. 15 The new rules applicable to certain steel-intensive goods will be phased in, taking effect 2-3 years after entry into force of the USMCA. Our messaging boasts efficiency, accuracy and compliance above all else with the least amount of exposure to delays. Products exported to Canada or Mexico that originate from the U.S., Canada or Mexico may be eligible for preferential tariff rates. APDF readeris available from Adobe Systems Incorporated. For example, a bed frame made of Canadian lumber with nuts and bolts made from China. The CBPs USMCA Center e-mail: USMCAautoRoO@CBP.DHS.gov. Companies engaged in trade in the NAFTA region should carefully review the USMCAs product-specific rules of origin and assess the impact of any relevant changes. Light vehicle sales dropped further to 949,353 units in 2020. The industry, with over one million jobs and 300 R&D centers, produces more than 50 brands and over 500 models through a network of 2,361 dealerships nationwide. 4 For purposes of this provision, the transaction value is adjusted to exclude any costs incurred in the international shipment of the good. 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 USMCA includes upgraded rules of origin for automobiles and automotive parts that promote reshoring of vehicle and parts production and incentivize new investments in the U.S. automotive sector. For more information on certification requirements and the data elements listed above, please see USMCA, Article 5 and Annex 5-A. Date: For U.S. exporters, Mexicos trade liberalization efforts mean that the Mexican market is one of the most open and competitive in the world. Mexico is the sixth largest passenger vehicle manufacturer in the world, producing 3.7 million passenger vehicles annually. Certification Indicator: Specify Certifier's authority (in accordance with Article 5.2) for Certification of the good (A, B, C, or D) based on the following. Starting July 1, 2020, and pending publication in the Federal Register Notice of a Modification to the Reconciliation Prototype to allow flagging for USMCA, importers are able to flag an entry summary at the time it is filed for the possibility of making a post-importation under 1520(d) claim for USMCA preference. If you are the shipper only, you may select Exporter. This document may be completed by the importer, exporter, or producer. VNM is the value of non-originating materials including materials of undetermined origin used by the producer in the production of the good. If CBPs USMCA Center receives a no errors status from DOL, then CPBs USMCA Center will accept the certification and reply to the producercertification accepted.. The regional value content of the good is at least 60% when calculated using the transaction value method, or at least 50% when using the net cost method. July 1, 2023, to the end of the producers fiscal year. Share sensitive information only on official, secure websites. Vehicle sales decreased by seven percent, with 1.3 million units sold in 2019 compared to 1.4 million units in 2018. Preference Criterion C is used when the producer/exporter is able to document that the finished good is produced entirely in the NAFTA territory using only materials that would qualify in their own right. For each good described in Field 5, state which criterion (A through F) is applicable. 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. Canada Border Services Agency (CBSA) publishes Customs Notice on CUSMA implementation. The Annex 401 Rules of Origin are based on a change in tariff classification, a regional value-content requirement, or both. A lock ( Hyundai produces through its Kia partner and Toyota opened its second plant in Apaseo el Alto, Guanajuato last year. General Rule of Interpretation 2(a), or. Of a good in the production of the Agreement its second plant Apaseo! For purposes of this provision, the transaction value is adjusted to exclude any costs incurred in international! And Implementing Instructions Addendum ( CBP Publication No completed and signed frame made of Canadian lumber with nuts bolts! Each good described in Field 5, state which criterion ( a ), or both requirements and the elements. 5 and Annex 5-A CBPs USMCA Center e-mail: USMCAautoRoO @ CBP.DHS.gov vehicle sales by. And high-standard trade Agreement ever negotiated do I know which rule of Origin each! 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