Source: Canada US
Link: CUSMA/USMCA : U.S. issues Updated Interim Implementing Instructions: Automotive
The Canada-United States-Mexico Agreement (CUSMA or USMCA) will introduce new and complex requirements for the automotive industry. Not only will vehicle producers face increased Regional Value Content requirements starting July 1, 2020, but they will be required to meet the following requirements:
Both the CUSMA/USMCA Uniform Regulations posted on June 3, 2020 and the non-binding guidance issued by the U.S. Customs Authority (CBP) in the form of Interim Implementing Instructions have started to provide some clarification regarding how the new requirements will work, at least from the U.S. perspective. However, the Uniform Regulations are not yet final. The posted version includes the following statement: “Subject to Legal Review in English, Spanish and French for Accuracy, Clarity and Consistency Subject to Authentication of English, Spanish and French Versions”. We anticipate that the final Uniform Regulations will be published on or before July 1.
While Canada has provided helpful clarification on the new CUSMA certification of origin and certain other import requirements, there does not appear to be much information on their CUSMA Webpage regarding implementation of the new automotive rules. There remain questions about what is required under the new automotive rules, including what will be required from automotive parts makers to support a vehicle producer’s Labour Value Content certification.
The updated version of the U.S. issued Interim Implementing Instructions provides the following direction:
We expect to see final Uniform Regulations and a further updated CBP Interim Implementing Instructions before July 1 and with just over a week before CUSMA/USMCA comes into effect, we will continue to watch for developments and clarifications.
Please do not hesitate to contact Heather Innes (416) 350-1234 if you have questions or would like assistance managing any of these requirements.