USMCA Certificate of Origin

USMCA replaced NAFTA as the latter became outdated; USMCA modernizes NAFTA and addresses topics that were less relevant when NAFTA went into effect in 1994, such as e-commerce and the flow of international data. USMCA includes significant updates, including automotive industry regulations, intellectual property protections, digital trade provisions, environmental standards, labor standards, and agricultural access. Additionally, de minimis has increased from 7% under NAFTA to 10% under USMCA.

Three countries are involved in USMCA: the United States, Mexico, and Canada. USMCA officially replaced NAFTA on July 1, 2020.

To complete a USMCA certificate of origin, whichever party is certifying that the goods meet the rules of origin must provide, at minimum, certain data elements as outlined in the agreement to support the claim. That information can be provided on the invoice or on a separate attached document. Many companies create a blanket USMCA COO for their customers once a year; these certificates of origin indicate exactly how your products qualify for preferential treatment.

The best way to complete a USMCA certificate of origin is through Shipping Solutions export documentation software. Watch the video to learn more.

The only countries that qualify for USMCA are the United States, Mexico, and Canada. USMCA is one of about 20 free trade agreements the U.S. has entered into with other countries.

USMCA stands for the “United States-Mexico-Canada Agreement.” In Canada, this agreement is known as the “Canada-United States-Mexico Agreement’ (CUSMA). In Mexico, this agreement is known as “Tratado entre México, Estados Unidos y Canadá” (T-MEC). All three names refer to the same agreement, but each country puts their country’s name first, which is standard for most international treaties and agreements.

The purpose of the USMCA agreement is to allow qualifying products made in the United States, Mexico or Canada to be sold in those countries duty-free or at substantially reduced duty rates.

The producer or exporter of the goods is most likely the party who fills out the USMCA certificate of origin. While the importer is responsible for claiming preferential duty rates under USMCA, the producer or exporter of the goods is the one most likely to know whether or not their goods qualify. Therefore, they are often the party that completes the certificate.

In order to qualify, the product must comply with USMCA rules of origin, which distinguish between “origin of goods” versus “originating in a North American country.” The rules of origin specify that goods originate in North America if they are wholly North American; a product that’s made in the United States doesn’t automatically qualify for USMCA. (Learn more)

The USMCA is valid for 16 years from the date it entered into force, which was July 1, 2020. The agreement will expire on July 1, 2036, unless the U.S., Canada, and Mexico confirm in writing that they wish to extend it for another 16 years.

No, NAFTA certificates of origin are neither accepted nor required. The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA on July 1, 2020, and the USMCA does not mandate a specific "Certificate of Origin" format—this means NAFTA certificates are not valid for claiming preferential duties under the new agreement. Use a certification of origin based on USMCA rules instead.