Share sensitive information only on official, secure websites. For each good described in Field 6, where you are the Producer of the good, indicate YES; otherwise indicate NO., For each good described in Field 6, where the good is subject to a Regional Value Content (RVC) requirement, indicate NC if the RVC was calculated according to the Net Cost method and TV if the good was calculated according to the Transaction Value method. %%EOF The OEM auto parts market represents USD 73 billion, making Mexico the fifth largest producer of auto parts, with over 2,500 companies in the sector. Article 4.2: Origin Criteria Except as otherwise provided for in this Chapter, a good shall qualify as an originating good of a Party where: (a) the good is wholly obtained or produced entirely in the Party, as defined in Article 4.3; (b) the good is produced entirely in the Party exclusively from originating materials of the Parties; or 9 The value of the non-originating goods in the set and the value of the set must be calculated in the same manner as the value of non-originating materials and the value of the goods. Copyright 2021-2023. 1721 0 obj <>/Filter/FlateDecode/ID[<78E3F11B581C2944820738FC1C8CC107>]/Index[1709 23]/Info 1708 0 R/Length 72/Prev 295189/Root 1710 0 R/Size 1732/Type/XRef/W[1 2 1]>>stream Jeff Geiger, Principal Commercial Officer - Automotive For certain goods there are unique and complex Rules of Origin in the USMCA (e.g. Among domestic vehicle sales, Nissan is the top seller, followed by General Motors, Volkswagen, Toyota, Kia, Honda, Stellantis, Mazda, Ford, Hyundai, and others. APDF readeris available from Adobe Systems Incorporated. It may cover a single importation or multiple importations of identical goods within a maximum 12-month period. Importer Name & Address and Tax ID No. The USMCA provides that such sets are originating only if each good in the set is originating and both the set and the goods meet all other applicable requirements of the USMCA rules of origin chapter. For purposes of calculating the LVC of passenger vehicles, light trucks, or heavy trucks, the producer may base the LVC calculation on the following periods: Producers were allowed until July 31, 2020, to submit RVC and LVC averaging elections for 2020. Canada Border Services Agency (CBSA) publishes Customs Notice on CUSMA implementation. For example, a bed frame made of Canadian lumber with nuts and bolts made from China. Parties wishing to import "originating goods" duty free into the United States, Canada, and Mexico utilizing the preferential benefits of the USMCA must have a valid certificate of origin on file at time of claim, completed by either the Exporter, the Producer, or the Importer. For U.S. exporters, Mexicos trade liberalization efforts mean that the Mexican market is one of the most open and competitive in the world. 13 The USMCA permits any good classified in Chapters 39-40 to qualify as originating if it satisfies one or more of seven new rules, pursuant to which specific production processes that occur within the region are sufficient to confer origin (with some exceptions): (1) the Chemical Reaction Rule; (2) the Purification Rule; (3) the Mixtures and Blends Rule; (4) the Change in Particle Size Rule; (5) the Standards Materials Rule; (6) the Isomer Separation Rule; and (7) the Biotechnological Processes Rule. While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always. U.S. manufacturers of auto parts operating in Mexico represent 18 percent of all companies, followed by Japan, Germany, Canada, France, and South Korea. Learn about the Harmonized System and find your HS No. Specify the origin criterion (A, B, C, or D) under which the good qualifies, as set out in Article 4.2 (Originating Goods): Origin Criteria A However, Mexico will have up to three years and six months after the USMCA's entry into force to implement this requirement. If the information is the same as the Certifier, you may state Same as Certifier., Provide the Producers name, address (including country), e-mail address, and telephone number, if different from the certifier or exporter. If errors found, CBPs USMCA Center will reply to the producer with a notification that certification rejected and a description of the errors or omissions for action. D Except for a good provided for in Chapter 61 to 63 of the Harmonized System: (i) produced entirely in the territory of one or more of the Parties; (ii) one or more of the non-originating materials provided for as parts under the Harmonized System used in the production of the good cannot satisfy the requirements set out in Annex 4-B (Product-Specific Rules of Origin) because both the good and its materials are classified in the same subheading or same heading that is not further subdivided into subheadings or, the good was imported into the territory of a Party in an unassembled or a disassembled form but was classified as an assembled good pursuant to rule 2(a) of the General Rules of Interpretation of the Harmonized System; and, (iii) the regional value content of the good, determined in accordance with Article 4.5 (Regional Value Content), is not less than 60 percent if the transaction value method is used, or not less than 50 percent if the net cost method is used. The Importer, Exporter, or Producer of the good(s). Starting July 1, 2020, and pending publication in the Federal Register Notice of a Modification to the Reconciliation Prototype to allow flagging for USMCA, importers are able to flag an entry summary at the time it is filed for the possibility of making a post-importation under 1520(d) claim for USMCA preference. Consulting with the executive branch on trilateral trade challenges, such as Mexico's potential ban on genetically modified corn, that are being addressed through dialogue and cooperation. *Selecting a default edition will set a cookie. Thank you! U.S. Trade Representative Robert Lighthizer today notified Congress that the United StatesMexicoCanada Agreement (USMCA) will enter into force on July 1, 2020. Importer, exporter or producer: Certification of origin The certifier of this certification of origin is the exporter and producer of the goods. Under USMCA, unless the importer is operating under an approved alternative staging regime, the RVC requirement for passenger vehicles and light trucks is: (a) 66% under the net cost method from July 1, 2020 to June 30, 2021; (b) 69% under the net cost method from July 1, 2021 to June 30, 2022; A Certifier is not the Producer, but has a certification or statement from the Producer, D Certifier is the Producer, Any good for which you are the Producer, always select Indicator D even if another indicator may apply. If there are multiple producers, you may state Various or provide a list of producers. Form must be signed and dated by the exporter or producer completing the form. This form of USMCA certification and the content of this website are based in part on guidance issued by the U.S. Customs and Border Protection (CBP) found in the USMCA Interim Implementing Instructions published April 20, 2020. The blanket period cannot exceed a period of one year. ORIGIN CRITERIA Specify the origin criterion (A, B, C or D) under which the good qualifies, as set forth in Article 4.2 (Originating Goods): A. Trade is tricky. The purchase, cost, value, and shipping of, and payment of, the good or material; The purchase, cost, value, and shipping of, and payment for, all materials, including indirect materials, used in the production of the good or material, and. In general, under the USMCA, a good is originating based on the following five ROO criteria A-E and if the good satisfies all other applicable requirements: Criterion A: The good is wholly obtained or produced entirely in the territory of one or more of the USMCA countries, as defined in Article 4.3 of the Agreement; Criterion B: The good is produced entirely in the territory of one or more of the USMCA countries using non-originating materials, provided the good satisfies all applicable requirements of product-specific rules of origin; Criterion C: The good is produced entirely in the territory of one or more of the USMCA countries exclusively from originating materials; or. By visiting this website and/or downloading the document(s) the USER agrees to bear the ultimate responsibility for deciding whether or not to use this document for their purposes and is further responsible for proper interpretation and application of the rules of origin and all other regulatory requirements, proper completion of the necessary document fields, and is responsible for any adverse government fines/penalties that may arise from use thereof. 30 percent, consisting of at least 15 percentage points of high-wage material and manufacturing expenditures, no more than ten percentage points of high-wage technology expenditures, and no more than five percentage points of high-wage assembly expenditures, which began on July 1, 2020, the date of entry into force of the Agreement; 33 percent, consisting of at least 18 percentage points of high-wage material and manufacturing expenditures, no more than ten percentage points of high-wage technology expenditures, and no more than five percentage points of high-wage assembly expenditures, beginning July 1, 2021. Illustrative List of Products Subject to Revised Rules of Origin Under USMCA, Chapters 40, 70, 83, 84, 85, 87, 90, and 94. The USMCA contains its own, specific Rules of Origin (ROO) and if a good qualified for NAFTA it does not mean it will qualify for USMCA. In order to be originating, light trucks and heavy trucks must also meet a LVC upon USMCA implementation of: Labor Value Content for light trucks and heavy trucks was implemented without a phase-in period. 1. Labor Value Content is a point system based on three different high-wage expenditures: A producer may satisfy the LVC requirement using only material and manufacturing expenditures or may claim credits of up to ten percentage points for its high-wage technology expenditures, and of up to five percentage points for its high-wage assembly expenditures. In order to determine the proper analysis of a good, you must know (and be confident in) the HTS Number of the good. If you are the shipper only, you may select Exporter. For example, the USMCA requires that certain specific components of an apparel item must be originating in order for the finished apparel item to qualify as originating. For guidance on reasonable care, please visit [Informed Compliance Publication: What Every Member of the Trade Community Should Know About: Reasonable Care (October 25, 2017)]. 40 percent, consisting of at least 25 percentage points of high-wage material and manufacturing expenditures, no more than ten percentage points of technology expenditures, and no more than five percentage points of high-wage assembly expenditures, beginning on July 1, 2023, or three years after the date of entry into force of the Agreement. If the good is an agricultural good, see also criterion F and Annex 703.2. USMCA Fact Sheet: Determinations of Origin, An official website of the U.S. Department of Homeland Security. Alternatively, goods classified in Chapters 28-38 retain the option to qualify as originating through a tariff change and/or regional value content requirement, though some of these specific requirements have also changed from the NAFTA. This tells the reviewer of the form who filled the document out. We provide below an overview of the key changes and our perspectives thereon. You have successfully set your edition to United States. A. In addition, investments by established automakers and new OEMs have attracted strong Tier 1 and Tier 2 supplier bases. This increase also was included in the TPP, and will provide additional flexibility for traders seeking to qualify for USMCA tariff preferences. The new rules applicable to electrical transformers and their parts will be phased in, taking effect 5 years after the USMCA enters into force. Like the NAFTA, the USMCA provides for "accumulation" (i.e., products of one Party can be further processed or added to products in another Party as if they had originated in the latter Party). : Full Legal name and address, including country, and tax identification number of the certifier. LockA locked padlock It must contain the nine data elements set out in Annex 5-A of the Agreement (Appendix II, Annex A of these instructions). Legislation. had significant labor cost, a complex manufacturing process, or the good included large amount of other, originating components). Select the preference criterion details of the origin of the current good. If this form covers a single shipment, indicate the invoice number related to the shipment. Origin Criterion: Determine Origin Criteria (A through D) to be entitled to preferential tariff treatment Certification Indicator: Specify Certifier's authority (in accordance with Article 5.2) for Certification of the good (A, B, C, or D) based on the following. 30 percentage points of high-wage material and manufacturing expenditures, no more than ten percentage points of high-wage technology expenditures, and no more than five percentage points of high-wage assembly. Alternatively, goods classified in Chapters 39-40 retain the option to qualify under a tariff change or regional value content requirement, though some of these specific requirements have also changed from the NAFTA. Mexico is the sixth largest manufacturer of heavy-duty vehicles for cargo and the largest tractor truck exporter worldwide, accounting for the most heavy-duty vehicle exports to the United States. For example, January 1st to December 31st of the same year. Remanufactured goods are products assembled in the territory of a USMCA Party that: Are entirely or partially comprised of recovered goods; Have similar life expectancies and meet similar performance standards as new goods; and. 4 For purposes of this provision, the transaction value is adjusted to exclude any costs incurred in the international shipment of the good. Companies engaged in trade in the NAFTA region should carefully review the USMCAs product-specific rules of origin and assess the impact of any relevant changes. "(A) For a petition for classification under section 203(b)(1)(C) of the Immigration and Nationality Act (8 U.S.C. Let us help you with your USMCA needs! ORIGIN CRITERION Specify the origin criterion (A, B, C, or D) under which the good qualifies, as set out in Article 4.2 (Originating Goods): A The good is wholly obtained or produced entirely in the territory of one or more of the USM A countries, as defined in Article 4.3 (Wholly Obtained or Produced Goods) Field 6b - Description Of The Good And Contact Information. Mapping properties Go to Shipping > Integrations > Properties The left column displays the courier property name, the right column is for selecting the item/order extended property in Linnworks the system should be looking at. For the period July 1, 2020, to June 30, 2023, the producer may calculate their RVC or LVC of passenger vehicles, light trucks, or heavy trucks for the following periods: Additionally, a producer may calculate their RVC or LVC of heavy trucks for the following periods: An importer will not be subject to penalties under U.S. law (19 U.S. Code 1592) for making an incorrect claim that a good qualifies as a USMCA originating good if the importer, in accordance with the prescribed regulations, makes a corrected claim within 30 days of discovery and pays any duties and/or fees (such as the Merchandise Processing Fee) owed with respect to that good. 45 percent of the value must meet high-wage expenditure requirements. Are you the exporter, producer, or importer of these goods? For each good described in Field 5, state which criterion (A through F) is applicable. If you are the Producer of all parts on the Eligible Continuation Page, you may select Producer. In accordance with CBPs Phase 1 Implementation Policy, automotive producers, exporters, and importers were allowed until December 31, 2020, to obtain and submit necessary certifications and documentation, including any documentation necessary to establish compliance with the RVC requirement for 2020. 6 For purposes of this provision, the transaction value is adjusted to exclude any costs incurred in the international shipment of the good. Agreement. This document may qualify as a "guidance document" as set forth in Executive Order 13891 and interpretations thereof; such guidance documents are not binding and lack the force and effect of law, except as authorized by law or as incorporated into a contract. As noted above, the USMCA provides that RVC may be calculated using the same methods (either net cost or transaction value) permitted under NAFTA. *Origin criteria under which the good qualifies, as set out in Article 4.2 (Originating Goods). They generally require that the product at issue: (1) undergoes a tariff shift from outside certain steel tariff headings in Chapters 72 and 73; (2) undergoes a tariff shift from only the designated steel tariff headings in Chapters 72 and 73, provided that at least 70% by weight of the inputs of those designated headings is originating; or (3) satisfies an RVC requirement of 70% (transaction value) or 60% (net cost). SELECT ONLY ONE: The certification of origin needs not be in a prescribed format; it may be provided on an invoice or any other document, except an invoice or commercial document issued in a non-USMCA Party country. The USMCA Center will inform the producer that further information or documentation is required and additional information is due to CBP in five business days. Importer/exporter or producer certification of origin (indicate which is certifier), Description and HTS classification of the good, Blanket period (how long the certification is valid up to 12 months). Click Share This Page button to display social media links. A USMCA Portal User Guide can be found on the CBP webpage, which includes the steps summarized above with screenshots and troubleshooting tips. A good listed in Appendix 703.2B.7 is also exempt from quantitative restrictions and is eligible for NAFTA preferential tariff treatment if it meets the definition of "qualifying good" in Section A of Annex 703.2. Exporter, producer, or importer of these goods 1st to December 31st the... Notice on CUSMA implementation will provide additional flexibility for traders seeking to qualify for USMCA preferences! Manufacturing process, or importer of these goods the producer of the good for USMCA tariff preferences good an. 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