USMCA Freight Shipping Guide

The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA in 2020, providing duty-free treatment for qualifying goods traded between Canada, the US, and Mexico. Learn how to benefit from USMCA for your freight shipments.

USMCA Benefits

Duty-free treatment for qualifying goods manufactured in Canada, US, or Mexico. Reduced customs processing for certified shipments. Simplified origin procedures compared to other trade agreements. Significant cost savings by eliminating customs duties on eligible products.

Qualification Requirements

Products must meet rules of origin requirements showing sufficient North American content and processing. Different product categories have specific content requirements (e.g., automotive products require 75% regional content). Products must be shipped directly between USMCA countries.

Certification Process

Exporters certify origin with a certificate of origin document. Certification can be completed by exporter, producer, or importer. No specific form required but must contain required data elements. Certification valid for multiple shipments up to 12 months.

Documentation

Certificate of origin with required data elements. Supporting documentation showing product qualifies. Commercial invoice referencing USMCA claim. Records must be kept for 5 years (Canada) or 5 years (US).

USMCA Rules of Origin

To qualify for USMCA preferential duty treatment, products must meet specific rules of origin demonstrating sufficient North American content and processing. Three basic tests determine originating status: products wholly obtained or produced entirely in Canada, US, or Mexico (agricultural products, minerals, wild fish), products produced entirely from originating materials, and products meeting product-specific rules of origin showing transformation or regional value content. Product-specific rules vary by HS chapter and include regional value content requirements (percentage of North American content), tariff shift rules (change in HS classification through processing), and specific manufacturing processes. Common examples include automotive products requiring 75% regional value content (increased from 62.5% under NAFTA), textiles and apparel needing yarn-forward processing in North America, and steel and aluminum requirements for various products. Our USMCA expertise helps determine if your products qualify, calculate regional value content, and prepare proper documentation for preferential duty claims.

USMCA Certification and Documentation

Unlike NAFTA which required government-issued certificates of origin, USMCA uses importer, exporter, or producer certification without specific forms. Certifications must include specific data elements: certifier details (name, address, contact), importer/exporter/producer details, product descriptions, HS classifications, origin criteria (A, B, C, D for different qualification methods), and blanket period if covering multiple shipments. Certifications can be prepared in English, French, or Spanish and can be standalone documents or included on commercial invoices. Blanket certifications cover multiple shipments of identical goods for up to 12 months, simplifying administration for regular shipments. Documentation supporting origin must be maintained for 5 years in Canada or 5 years in the US including materials purchase records, production records, product costing information, and supplier certifications. Our team assists with certification preparation, record-keeping systems, and supplier management programs ensuring USMCA compliance while maximizing duty savings.

USMCA Verification and Compliance

Customs authorities can verify USMCA origin claims through various procedures. CBSA or CBP may request origin documentation from importers, send verification questionnaires to exporters or producers, conduct verification visits to production facilities, or request voluntary cooperation from exporters. Responding to verification requests requires comprehensive documentation including bills of materials, production records, purchase invoices, supplier certifications, cost accounting records, and other evidence supporting origin claims. Failure to respond or insufficient evidence can result in denial of preferential treatment, assessment of duties retroactively, penalties for false or unsupported claims, and increased scrutiny of future shipments. Proper record-keeping and documentation from the start prevents verification issues. Our USMCA compliance services include documentation review and organization, supplier certification programs, preparation for verification requests, and response coordination with customs authorities ensuring your USMCA claims withstand scrutiny while maintaining the duty savings.

Key Features

Product qualification checker
Certificate of origin template
Industry-specific requirements
Record-keeping guidelines
Verification procedures
Cost savings calculator

Frequently Asked Questions

How much can I save with USMCA?

Savings depend on product category and duty rates. Some products face duties of 5-10% or higher without USMCA. Qualifying for duty-free treatment eliminates these costs entirely.

Do I need to certify every shipment?

One certification can cover multiple shipments to the same importer for up to 12 months, simplifying the process for regular shipments.

What if my product doesn't qualify?

Non-qualifying products are subject to regular customs duties based on tariff classification. We can help explore other duty reduction programs or free trade agreements.