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Uniform Regulations for USMCA Released

Posted June 04, 2020

The Office of the U.S. Representative yesterday published the final implementing regulations of the United States-Mexico-Canada Agreement (USMCA), covering the interpretation, application, and administration of rules of origin, textiles, and customs and trade facilitation.
Flags of Canada, USA, Mexico
Release of the long-awaited uniform regulations (click here and here), which still must go through a legal review and be translated to Spanish and French, clears one of the most challenging issues for USMCA implementation. 

Officials from U.S., Canada, and Mexico have been working since March to craft the regulations, which include specific formulas and information on how automakers must comply with the new Rules of Origin to qualify for duty-free treatment under USMCA. 


What’s in the Uniform Regulations?

The uniform regulations provide traders and others with detailed guidance regarding application of the complex origin requirements certain goods must meet to receive preferential duty treatment.

For example, the uniform regulations set out the intricate complexities of calculating the regional value content, including the amounts of non-allowable interest costs that may be subtracted from the net cost of good calculations. The uniform regulations may also provide for additional description or other classifications to the list of parts or components that are considered “core” and “super-core”.

The new guidelines are required to reflect the fact the USMCA provides for

  • tougher tariff shift rules;
  • increased regional value content requirements;
  • part-specific (core, principal, and complementary) regional value requirements;
  • labour value content requirements; and
  • steel and aluminum minimum purchase requirements for vehicles.

Note: To avoid any possible confusion arising from different names officially being used for the new NAFTA (e.g., in Canada it is called the Canada-US-Mexico Agreement or CUSMA), it should be clearly understood that the uniform regulations are equally applicable to importers/exporters in each of three countries involved. 


Need More Information

Should you have any questions about how the new USMCA/CUSMA unform regulations might impact the free trade status of your goods or if you have other concerns about implementation of the new NAFTA, don’t hesitate to contact one of our knowledgeable trade experts today.


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