A new Canada-United States-Mexico Agreement which came into effect on 1st July, 2020
Canada has raised its de minimis level, the threshold within which low-value
More US businesses are able to export to the Canadian market more freely
Allow small Canadian businesses access to international supply chains
The New NAFTA (CUSMA)The Impact on Your Business’ Supply Chain
1. X
The New NAFTA (CUSMA)
The Impact on Your Business’ Supply Chain
2. Speakers
Vice President of Sales and
Marketing at eShipper
Export Help Advisor,
Export Development Canada
IMTIAZ KERMALI EMILIANO INTROCASO
eShipper.com edc.ca
3. Agenda
On July 1, 2020, the new
Canada-United States-Mexico
Agreement (CUSMA) entered into force.
✓ What is the New NAFTA?
✓ Who is impacted?
✓ How Canadian Businesses Can Stay
Competitive Through Their Supply Chain
Strategy
✓ Certification of Origins: No more NAFTA
Certificates!
✓ The New De Minimis Thresholds
How they can help your Export Business?
4. • A new Canada-United States-Mexico Agreement which
came into effect on 1st July, 2020
• Canada has raised its de minimis level, the threshold
within which low-value
• More US businesses are able to export to the Canadian
market more freely
• Allow small Canadian businesses access to international
supply chains
What is the New NAFTA?
5. Who is Impacted?
• Positives:
- Online Shopping for Consumers
• Impact on Canadian retailers
• Solutions for Canadian retailers:
- Expanding your business to the US
• Impact on US businesses selling to Canadians
• Impact on Canadian eCommerce sellers as
competition in he Canadian market increases
6. • Offer free shipping
• Offer low flat-rate shipping
• Lower shipping costs to make free and
flat rate shipping more accessible
• Minimize shipping times
• Use a fulfillment centre
• Create a stellar shipping & returns policy
How Canadian Businesses Can Stay Competitive
Through Their Supply Chain Strategy
7. How to Certify a Canadian
Product in CUSMA?
NAFTA CUSMA
NAFTA Certificate of Origin Certification of Origin
• Under the NAFTA, a Certificate of
Origin (single shipment or blanket)
used to be completed by the exporter
or producer
• Needed before a claim for
preferential tariff treatment
• Usually required by your customs
broker to process import declarations
• Nafta solicitations
• No specific Certificate of Origin form
• Importer, exporter or producer must provide a certification
(i.e., on the commercial invoice or document accompanying
the shipment)
• Data to include for the certification:
A. Certifier name (exporter, producer, or importer)
B. Certifier address
C. Exporter name and address
D. Producer name and address
E. Importer name and address
F. Product description
G. Origin criteria
H. Blanket period covered
I. Authorized signature and date
J. + signature statement
8. How does the certification look
like in an actual document?
CUSMA
Certification of Origin
• Certifier name (exporter,
producer, or importer)
• Certifier address
• Exporter name and address
• Producer name and address
• Importer name and address
• Product description
• Origin criteria
• Blanket period covered
• Authorized signature and date
• + signature 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."
Click here or on the document to learn
more!
9. How Can the New De Minimis Thresholds Help
Your Export Business?
Old New De Minimis - NAFTA New De Minimis - CUSMA
Thresholds for Low-Value Goods:
NAFTA thresholds which low-value goods enter
NAFTA countries duty-free:
• Canada: $20 for taxes - $40 for customs.
• Mexico: $50 for taxes - $100 for customs.
• United States: $800.
Thresholds for Low-Value Goods:
CUSMA thresholds for low-value goods enter
Canada, Mexico and the USA duty-free:
• Canada: $40 for taxes, $150 for customs.
• Mexico: $50 for taxes, $117 for customs.
• United States: Remains $800
• De Minimis applicable to Low-Value Goods
• Updated under CUSMA
• Benefitting small exporter or SMEs shipping consumer goods
• Warehouse in Canada, ship to USA, and take advantage of one of the largest markets!
10. Appendix
FITTSkills Lite
How to leverage
CUSMA to enter new
markets
eShipper’s Blog -
Intelligence
Trade Commissioner’s
CUSMA insights
EDC’s Export
Help Hub
Canada Border Service
Agency (CBSA) - Proof
of Origin
Own an eCommerce business?
Join our Facebook group Shopify - eCommerce store owners for
resources, discussions, and the latest eCommerce tips and best practices