The United States-Mexico-Canada Agreement is the treaty that replaced NAFTA on July 1st, 2020. this article will give a brief overview of the de minimis threshold and Origin Procedures.
De Minimis Threshold
De minimis is the minimum value of goods in which no duties and/or taxes are assessed by customs.
De minimis thresholds for each country:
Shipments Entering Canada
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Postal Shipments -USPS delivery to Canada Post
Goods valued over $20 CAD will have both duty and tax applicable
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Express/commercial carrier shipments
Goods valued over $40 CAD will have tax applicable
Goods valued over $150 CAD will have both duty and tax applicable
Shipments Entering Mexico
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Postal Shipments USPS delivery to Correos de México
Goods valued over $300 USD will have both duty and tax applicable
-
Express/commercial carrier shipments
Goods valued over $50 USD will have tax applicable
Goods valued over $117 USD will have both duty and tax applicable
**Items with a declared value between $50 USD and $117 USD that are of Canadian or US Origin* are subject to a Global Tax of 17%.
Shipments Entering the US from Mexico or Canada
US threshold for the importation of goods
Goods valued over $800 USD
Certificate of Origin
A Certificate of Origin is a document that attests that the product listed therein has met certain criteria to be considered as originating in a particular country.
The USMCA certificate of origin must be attached to an invoice if the shipment is valued at greater than:
$1,000 USD for goods destined to Mexico from Canada or the US
$2,500 USD for goods destined to the US from Canada or Mexico
$3,300 CAD for goods destined to Canada from the US or Mexico
The USMCA certification of origin may be completed by the importer, exporter, or producer of the goods, and may be in any form/format as long as it contains 9 minimum data elements, as outlined below:
Which party is making the certification (importer, exporter, or producer)
Certifier details: name, title, address, phone#, email
Exporter details: name, address, email, phone#
Producer details: name, address, email, phone#
Importer details: name, address, email, phone#
Description and HTSUS# (to, at least, the 6-digit level)
Origin Criteria
Blanket period (if applicable)
Signature and date, including the following statement: “I certify that the goods described in this document qualify as originating, and the information contained in this document is true and accurate. I assume responsibility for proving such representations, and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”
Low Value Thresholds
For goods under a certain low-value threshold (subject to certain exemptions), a certification of origin with the nine data elements is not required; however, a written representation certifying that the good(s) qualifies as an USMCA originating good(s) (such as “I hereby certify that the good covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under the USMCA”) must still be provided and it is still your responsibility to confirm that the relevant goods qualify for USMCA preferential treatment under the USMCA rules of origin (and maintain all necessary back-up origin verification documentation).
Low-value thresholds for each country are:
$1,000 USD for goods destined to Mexico from the US or Canada
$2,500 USD for goods destined to the US from Canada or Mexico
$3,300 CAD for goods destined to Canada from the US or Mexico