If you are just joining us, this is the third of a 4-part continuation on the previous 4-part series on the long awaited NAFTA 2.0 agreement between US - Canada - Mexico due to be implemented on July 1, 2020.
In Part 1 and Part 2 we explained the previous series mostly focused on rules that are the same for all three countries, and where different, the information was specific to CUSMA and the rules associated with entries into Canada. In these next parts we have been focusing on the rules associated with entries into the United States under USMCA.
Before we dive in, below is a quick recap of this series so far.
Part 1 Covered:
- Aren’t The Rules The Same For Each Country?
- What Can I Do In Preparation For The Transition To USMCA?
- How Will USMCA Impact My Day-To-Day Operations?
Part 2 Covered:
- Can I Make A USMCA Claim Without A Declaration?
- Who Can Complete The USMCA Declaration?
- What If I Am Not The Producer Of The Goods?
Can I Make A USMCA Claim For Reduced Duties After The Entry Has Already Been Filed?
Yes. If the goods qualify for USMCA, we can request a refund of duties paid within 1 year (365 days) from the date the goods enter the United States. This will result in a refund to the duties only. The current rules under USMCA advise that post entry refunds will not be extended to Merchandise Processing Fees. There has been talk that this may change at some point in the future.
Is There A Provision Under USMCA For Imports To Be Completely Duty And Tax Free?
Yes. Under the De Minimis rule, goods, not controlled or restricted by any special legislation or law, valued under $800.00 USD, are allowed to be entered into the United States without payment of duties or taxes under what is commonly known as a Section 321.
USMCA - Highlighting Notable Differences
- Certificate of Origin - No formal form required
- MPF Refunds - Post Entry Claims will not refund MPF
- Marking Rules - unlike NAFTA, USMCA does not have special marking rules
- Rules of Origin - Changes to many rules of origin
- De Minimis - 7% under NAFTA increased to 10% under USMCA
- Auto manufacturing
- Textile Rules of Origin
- Labor Laws
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