Page 21 - March-April 2025 - REPORTER v2 - web optimized

ver the past few months all of us in the
Obuilding industry are learning more
about tariffs and trade sanctions than we
ever thought we would want or need to
know. Those tariffs for Ontario companies
that export product to the United States have
become a giant concern. What can be done
to help alleviate or reduce the possible trade
barriers that have recently appeared? One
area that has been suggested is to make sure
that Canadian made products going south are
claimed under the USMCA rules. The USMCA
is the free trade agreement that went into
effect July 1, 2020 (the new North American
free trade agreement) It was set up so that
goods could flow from Canada, the US or
Mexico without duties.
The current US government changed the
rules in January and is now looking at ways to
“even” up trade policies with countries who
they have a trade deficit with, or who they
believe trade unfairly with the United States. have specific rules of origin that must or consignee) may not require a broker.
The rules and the current versions of who is be met, outlined in Annex 4-B of the
paying what tariffs and when keep changing. USMCA. 4. Other Important Considerations:
They will probably have changed a few times
between the time this is written and when it 2. Provide a Certification of Origin: • Tariff Rate Quotas: The USMCA may
is published). create new market access opportunities
One method that looks like it may have • Data Elements: The USMCA requires for Canadian exporters, particularly in
some benefit for Canadian exporters is to nine minimum data elements to be certain agricultural sectors, through
have their goods USMCA compliant. Currently included in the certification, outlined in tariff rate quotas.
only about 38% of our exports to the United Annex 5-A. • De Minimis Levels: The USMCA raises
States fall under the USMCA agreement but a • No Specific Form Required: the de minimis levels for shipments into
significant majority could go compliant with While there’s no official USMCA the US and Canada, reducing paperwork
some work to become certified. To fall under certificate of origin, U.S. Customs for smaller shipments.
the USMCA the product is required to be and Border Protection (CBP) has • USMCA Professional (TN) Visas:
between 50 and 75% made on this continent provided a suggested template for Canadian and Mexican citizens can
– with documents such as a commercial convenience, says the International apply for USMCA professional (TN)
invoice to certify compliance. It is believed Trade Administration. visas to work in the US as USMCA
that 38% of goods now certified could easily • Any Format Acceptable: The professionals in certain business
grow to 50% of our exports with some work. certification can be in any format, activities.
With the help of the US and Canadian as long as it includes the nine data • Export Solutions: Leverage the federal
government records we have put together elements. government’s Export Solutions portal
some steps to become a USMCA certified • Blanket Periods: You can obtain a for tailored export counseling and
exporter. blanket period of up to 6 months for services.
multiple shipments of identical goods. • Contact the Trade Commissioner
1. Determine if your goods qualify for USMCA: Service: The Trade Commissioner
3. Engage a US Customs Broker (for formal Service can provide further assistance
• Rules of Origin: Goods must generally entries): and guidance on navigating USMCA.
be produced entirely in the territory of
one or more of the USMCA parties (US, • Formal vs. Informal Entries: Most The rules and guidelines are changing
Canada, Mexico) or meet certain criteria exports to the US are formal entries, quickly and seem to be written on the
involving originating materials and which require a US Customs broker, says driveway in sidewalk chalk, so you need to
production processes. the Trade Commissioner Service. check with multiple government levels to
• Regional Value Content: A significant • Broker Role: A broker will handle ensure that you are compliant. We have been
portion of the value of the good must customs declarations, payments, and actively working with the Province of Ontario
be derived from the region (e.g., at least other requirements for importing goods to help put members on the correct road.
60%). into the US. Please feel free to reach out if you have
• Product-Specific Rules: Some products • Informal Entries: Informal entries (e.g., questions: Trevor Small tsmall@lbmao.on.ca
shipments accompanied by the exporter
www.lbmao.on.ca LBMAO Reporter - March-April 2025 21