NEWS

KEY QUESTIONS ABOUT THE USMCA

Friday, June 12, 2020

Although the official text has not yet been published in the Official Gazette of the Federation, the implementation of the USMCA is scheduled from July 1st.

However, there are some doubts about the changes that will take place and the way in which exporters and importers will continue to operate.

Some of these questions are:

What will happen to the certificates of origin issued under NAFTA?

From July 1st, 2020, certificates of origin issued under NAFTA will not be valid to request preferential tariff treatment under the USMCA.

Will customers have to comply with this new treaty from July 1st, or will they have an extension?

Both the USMCA and NAFTA are not obligations. Those who do have to comply with the new provision are those who wish to obtain the benefits in application of tariff preferences.

What are the basic requirements for the declaration of origin?

These requirements are grouped into 7 basic elements that must be included.

  1. The Certification of Origin must be issued by the Importer, Exporter or Producer.
  2. The certifier, exporter, producer and importer must be identified.
  3. Description and tariff classification.
  4. Origin criteria
  5. Global period.
  6. Authorized signature.
  7. Date.

These requirements are specified in Annex 5-A, of Chapter 5 of the USMCA.

Who can issue a USMCA Certificate of Origin?

It may be the exporter, producer or importer; but in Mexico the implementation of the certification of origin by the importer should be no later than three years and six months after the implementation of the Agreement.

How can a good be considered as native?

For the product to be considered native, it must meet the requirements set in Chapter 4, including that it be obtained or produced in the territory of one or more parties and that the regional content value is calculated under the transaction value method, among others.

Does the declaration have to comply with a Legend of certification and responsibility?

Yes. And in addition to the data indicated in Annex 5-A, it must have the following legend: “I certify that the goods described in this document qualify as native and that the information contained in this document is true and exact. I assume the responsibility of verifying what has been declared here and I promise to preserve and present, if required or to make available during a verification visit, the necessary documentation that supports this certification.”

 What is the validity time of a declaration of origin?

The validity time may be per shipment, in which case the invoice number will be established, or for a period not exceeding 12 months.

Will the certificate be in original or copy like NAFTA?

Although it is not clearly mentioned that it must be the original, it does mention that the importer must have the certification of origin and provide a copy to the customs administration if required.

Regarding who signs the declaration; must this person have a power of attorney? Or can anyone who knows that the product qualifies as native, sign it?

Any official document must be signed by the person who has power of attorney for this.

Will the identifiers at the request level be the same as NAFTA?

Although it is most likely that this will be the case, it will only be confirmed once the treaty is published, its operating rules and any modification to the current General Rules on Foreign Trade and its Annexes.

Will Customs Processing Fee be paid?

In accordance with Article 2.16 number 3, no party shall adopt or maintain a Customs Processing right on merchandise.

It will be a short time before these renovations begin, which seek to update the commercial relationship between Mexico, the United States and Canada, in order to achieve the benefit of thousands of companies, in the context of the COVID-19 pandemic.

Dicex.

News made easy.

Source: Gobierno de México.