Canada’s exporters rush to be CUSMA-compliant, but how hard is it? – The Canadian Press Canada’s exporters rush to be CUSMA-compliant, but how hard is it? – The Canadian Press

As companies try to avoid escalating tariffs imposed by the United States, there has been a surge of exporters having to certify their products under North America’s free trade pact. This endeavour has accentuated the true origins of their shipments, as border authorities evaluate the goods under the new tariff regime.

Canada and Mexico face 25% duties on most products that contravene the USMCA, also known as CUSMA. To qualify for an exemption, importers must make a customs declaration to certify compliance of their wares. It is estimated by the White House that only 38% of Canadian imports claimed a USMCA exemption in 2024. Experts believe this number will be higher this year as more companies are incentivized to certify their goods.

“A lot of potentially CUSMA-compliant goods that are manufactured in Canada don’t certify as CUSMA because they didn’t need to,” said Jesse Goldman, partner in the Competition, International Trade and Foreign Investment Group, in an interview with The Canadian Press.

“Why go to the trouble of providing all this information, keeping the records and documents, potentially subjecting ourselves to a verification audit from U.S. customs authorities when we can just sell the good on an MFN basis, which also has a zero rate of duty?”

Goldman says that while a “significant majority” of Canadian exports to the U.S. could be USMCA-compliant, not all are.

While it is necessary for an importer to maintain proper documentation in case of an audit, Goldman suggests that a product’s origin is declared through “self-certification”, rather than by a government body. According to the Canada Border Services Agency, documentation includes a commercial invoice, product descriptions and classification numbers, and the “origin criterion” associated with the good under the USMCA rules of origin.

Read the full article published on April 7, 2025, by Christopher Reynolds on The Canadian Press website.