Effective today, July 1st, NAFTA terminates, and the USMCA enters into force. The Final Implementing Instructions for USMCA (aka CUSMA) were released yesterday.
The Background section states:
“CBP understands that the trade may need time to adjust business practices to comply with the new requirements under the USMCA, particularly relating to the preferential tariff treatment of goods.
In accordance with principles established under the Customs Modernization Act (Pub. L. 103-182, 107 Stat. 2057), during the first six months after entry into force, CBP will focus on supporting the trade’s efforts to fully comply with USMCA requirements, including providing webinars and other outreach efforts to educate the trade on the new Agreement.”
These instructions replace the interim guidelines issued on June 16th and provide guidance on new USMCA requirements, such as compliance, rules of origin, origin certifications, new auto and textile requirements, and other information for claiming preferential treatment under USMCA.
Additionally, an interim final rule to implement USMCA rules of origin provisions will take effect today. Many paragraphs are reserved for regulatory text to be added in the future, which CBP anticipates releasing through July 1st, 2021.
Deringer published some of the significant changes from NAFTA in a June 15th trade alert. Of note is that USMCA does not currently provide for a merchandise processing fee (MPF) refund for post-entry claims. However, a bill was introduced to remedy that on June 5th. Under the current regulation, an importer who fails to claim preferential tariff treatment at the time of entry, will not be able to recoup their MPF through a post summary correction or reconciliation later. Importers may continue submitting post-import NAFTA claims for goods entered before July 1st.