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Understanding CUSMA Compliance

Understanding CUSMA Compliance

Understanding CUSMA compliance & claiming preferential treatment:

  • Canada-United States-Mexico Agreement (CUSMA) is a free trade agreement between the three countries.
  • Since July 1, 2020, CUSMA has replaced the North American Free Trade Agreement (NAFTA) as the main trade agreement for North America. It lays out the key rules for trading goods between the three countries.
  • As of March 7, 2025, tariffs have been paused on goods coming into the U.S. from Canada if they qualify for duty-free treatment under CUSMA.
  • Qualifying goods must meet the "rules of origin" under CUSMA. This means that enough of the product must be made or assembled in North America to benefit from the deal.

What does CUSMA “compliant” mean?

To ship your goods to the U.S. without paying tariffs under CUSMA, they need to meet what's called the rules of origin. That means enough of the product must be made or assembled in North America.

If your goods don’t meet these rules, they won’t qualify for the duty-free benefits. Even if they do qualify, the benefit isn’t automatic — the importer must claim it using a certification of origin.

How do I determine if a product meets the rules of origin and complete a certification of origin?

There are a few key steps to follow if you want to take advantage of duty-free shipping to the U.S. under CUSMA. While we’re happy to guide you through the basics, we strongly recommend checking with a certified customs broker or U.S. Customs and Border Protection (CBP) before you ship. Please note: We can’t provide product-specific advice, and we can’t guarantee how the U.S. will classify or treat your goods.

Here’s how to get started:

  1. Find your HS code.
    This is a global code used to classify goods. You can use the Canada Tariff Finder to help identify your product’s code and see what tariffs apply.
  2. Check the product-specific rules of origin.
    Once you know your HS code, look at Chapter 4 of the CUSMA agreement to see if your product qualifies for duty-free treatment. The rules explain how much of the product needs to be made in North America.
  3. Complete a certification of origin.
    There’s no official form required — it can even be included on an invoice — but it must include specific details. To make things easier, you can use CBP’s Certification of Origin template to avoid errors[1].
  4. Send the certification to your U.S. buyer/importer.
    They’ll need this document to claim the duty-free benefit when the goods enter the U.S.
  5. Consider requesting an advance ruling from CBP.
    If you want peace of mind, you can ask the U.S. to confirm how your product will be treated before it ships. Details are available on the CBP website.

How does an importer claim preferential treatment under the CUSMA?

To get duty-free treatment under CUSMA when exporting to the U.S., the importer must submit a certification of origin. This document can be prepared by the exporter, the producer, or in some cases, the importer.

There’s no official form you need to use, but certain details (called “data elements” in Annex 5-A of the agreement) must be included. You can put this information right on the invoice or in a separate document — just make sure all the required information is there.

Important: Keep your records for at least five years in case customs authorities ask for them later.

What are the rules of origin under CUSMA?

The CUSMA rules of origin help determine whether your product qualifies for duty-free access to the U.S. or Mexico. There are two types of rules: general rules and product-specific rules of origin (PSROs).

If your product is entirely made or grown in Canada — like vegetables, fish, or minerals — it’s considered “wholly obtained” and automatically qualifies as originating under the agreement.

If your product is made using imported materials, or a mix of imported and North American parts, it can still qualify — but only if it meets the specific rule for that product. These rules are based on the HS code (a number used to classify goods for customs).

There are three main types of rules:

  1. Change in tariff classification:
    The final product must fall under a different HS code than the materials used to make it.
  2. Value-added requirement:
    A certain percentage of the product’s value must come from work or materials within North America.
  3. Process requirement:
    Some products must go through a specific process in North America — for example, a shirt must be cut and sewn in North America.

You can check the full details for your product in CUSMA Chapter 4 – Rules of Origin.

How do I know what rules of origin apply to my product under CUSMA?

Every product has its own product-specific rule of origin (PSRO) under CUSMA. These rules are based on where the product falls in the Harmonized System (HS) — the international system used to classify goods for trade.

Here’s a quick breakdown of how HS codes work:

  • Chapters (2 digits) group products by type.
  • Headings (4 digits) narrow them down further.
  • Subheadings (6 digits) give a more detailed description.

The first 6 digits of an HS code are the same in most countries — so a product with that code means the same thing whether you’re exporting to the U.S., Europe, or elsewhere.

To find the rule of origin for your product, look up its HS code and corresponding PSRO in Annex 4-B of the CUSMA agreement. This tells you what your product needs to qualify as North American under the deal.

If you're exporting to the U.S., remember that U.S. Customs and Border Protection (CBP) makes the final call on how your product is classified and whether it qualifies for duty-free treatment.

What can I do if my product doesn’t meet the CUSMA rules of origin?

Certain goods, including those that use a high amount of materials imported from outside of North America, may not qualify under the Agreement. To meet the CUSMA rules of origin, producers may need to explore alternative sourcing options that increase the North American content of their products.

Where can I get help understanding CUSMA compliance?
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