New U.S.-Mexico-Canada Agreement (USMCA)
Learn how the United States-Mexico-Canada Agreement (USMCA) affects your FedEx® shipping.
On July 1, 2020, the new trade agreement between the United States, Mexico, and Canada began. Each participating country has its own name for it, and collectively may be referred to as USMCA or USMCA/T-MEC/CUSMA.
- In the United States, it is the United States-Mexico-Canada Agreement (USMCA).
- In Mexico, it is the Tratado entre Mexico, Estados Unidos y Canada (T-MEC).
- In Canada, it is the Canada-United States-Mexico Agreement (CUSMA).
How is it different from the previous agreement? And how will it affect your FedEx shipments? Find answers to these questions and others,and learn what you need to do to prepare shipments under the new agreement.
Please note that all information is subject to change depending on, among other things, issuance of final regulations. Updates will be provided as more information becomes available.
What's on this page
Comparison of NAFTA vs. USMCA/T-MEC/CUSMA
What changed from the previous agreement to USMCA/T-MEC/CUSMA?
Shipments for customs clearance on and after July 1, 2020 are eligible for the USMCA/T-MEC/CUSMA.
Who can certify?
NAFTA
Shipper and importer
USMCA
Importer, exporter, and producer
Previous agreemet - NAFTA
Exporter and producer
USMCA/T-MEC/CUSMA
Importer, exporter, and producer
Low-value shipment
NAFTA
Canada: CAD $2500
Mexico: USD $1000
United States: USD $2500
USMCA
Canada: CAD $3300
Mexico: USD $2500
United States: USD $2500 (no change)
Canada: CAD $2,500
Mexico: USD $1,000
United States: USD $2,500
Canada: CAD $3,300
Mexico: USD $1,000
United States: USD $2,500 (no change)
De minimis
(value below which goods are not charged duties and taxes)
NAFTA
Canada: Less than CAD $20 subject to duties and taxes
Mexico: Less than USD $50 subject to duties and taxes
United States: Less than USD $800 subject to duties and merchandise processing fees (MPF)
USMCA
Canada: Less than CAD $40 subject to taxes and less than CAD $150 subject to customs duties and taxes
Mexico: Less than USD $50 subject to taxes and less than USD $117 subject to customs duties and taxes
United States: Less than USD $800 (no change)
Canada: CAD $20 and less not subject to duties and taxes
Mexico: USD $50 and less not subject to duties and taxes
United States: USD $800 and less not subject to duties and merchandise processing fees (MPF)
Canada: CAD $40 and less not subject to duties and taxes and CAD $40.01-$150 not subject to duties; taxes apply
Mexico: USD $50 and less not subject to duties and taxes and USD $50.01-$117 not subject to duties; taxes apply
United States: USD $800 and less (no change)
Proof of origin
NAFTA
NAFTA Certificate of Origin
USMCA
USMCA Certification of Origin
Set of 9 data elements including a statement on a commercial invoice or as a separate document
Certification is required* for:
- Shipments to Canada valued at greater than CAD $3,300
- Shipments to Mexico valued at greater than USD $1000
- Shipments imported to the U.S. valued at greater than USD $2,500
NAFTA Certificate of Origin
USMCA Certification of Origin
Set of 9 data elements that does not have to be in a particular format and can appear on a commercial invoice or separate document. Annual blanket certifications are permitted
Certification is required* for:
- Shipments to Canada valued at greater than CAD $3,300
- Shipments to Mexico valued at greater than USD $1,000
- Shipments imported to the U.S. valued at greater than USD $2,500
Automotive industry - content and components
NAFTA
No requirements specified
USMCA
Zero customs duties for qualifying goods
75% of auto content and components manufactured in one of the USMCA countries, and 40-50% of auto content made by workers earning at least $16 per hour
No requirements specified
Zero customs duties for qualifying goods
75% of auto content and components manufactured in one of the USMCA countries, and 40-50% of auto content made by workers earning at least $16 per hour
Even though a certification of origin may not be required for the above categories of goods to claim USMCA/T-MEC/CUSMA, it is still an importer's legal responsibility to maintain all valid proof of origin when using free trade agreements. You must ensure that all goods that benefit from the preferential tariff treatment do, in fact qualify - origin applicability can be requested/required by the applicable customs during a verification. Declaring preferential duty rates without a valid proof of origin at the time of import can expose your company to substantial retroactive duties, interest and penalties. Where CUSMA declarations are made in error, importers are required to file amending entries (corrections) post clearance. The audit trail (records) for the proof of origin for trade agreements are to be retained for seven years: the year of the import/clearance plus an additional six years.
*The agreement states that the value of the importation does not exceed USD $1,000 or the equivalent amount in the importing party's currency or any higher amount as the importing party may establish.
FedEx Trade Networks, when serving as Importer of Record (IOR), will require a certification statement on commercial invoices for shipments below USD $2,500.
USMCA benefits
USMCA makes North American trade easier and addresses recent and emerging critical issues, including compliance of regulatory systems, e-commerce and the protection of intellectual property. When it comes to day-to-day shipping for FedEx customers, USMCA offers several advantages over NAFTA:
- The de minimis, or duty and tax exemption threshold, increases for imports into Canada and Mexico, potentially reducing overall shipping costs.
- Value limits increase, reducing the amount of documentation necessary
- Volumes of full clearance decrease, lowering costs and increasing efficiencies
- Quicker clearance for more shipments will result in higher customer satisfaction
Maintaining higher integrated North American supply chains will continue to benefit all three economies and make them more competitive around the world.
USMCA rules and benefits also apply to U.S. businesses that are Canadian non-resident importers. Learn more about becoming a non-resident importer.
The new Certification of Origin
Requirements for Certification of Origin change with the new agreement. Here's what you need to know.
Data elements
The new USMCA Certification of Origin is a set of 9 mandatory data elements and a statement. This information may be provided on any existing shipping document (e.g., commercial invoice) or on a separate stand-alone document, not in any particular order. They include two new elements.
1. Indicate the certifier (importer, exporter, or producer) NEW
2. Certifier company name, name, title, address (including country) and contact information NEW
3. Exporter company name, name, address and contact information (add if different from certifier)
4. Producer company name, name, address and contact information (add if different from certifier)
5. Importer company name, name, address and contact information (add if different from certifier)
6. Description of goods
7. HS tariff classification number
8. Origin criterion
9. Blanket period (date range up to 12 months)
Must be signed and dated by the authorized certifier (i.e., the responsible official or any authorized agent of the certifier knowledgeable of the relevant facts) and include the certification statement, when required.
Certification of Origin
We have prepared an easy to use fillable PDF Certification of Origin form to use as a stand-alone document. All of the required data elements are included. The certifier should fill it out, sign and date it and then either upload it using Electronic Trade Documents or print and apply it directly to the shipment.
Blanket certification
The certification of origin can be applicable to a single shipment or can be a blanket certification for multiple shipments and be valid for up to 12 months.
Blanket certifications used for preferential tariff treatment under the previous agreement became invalid and expired on June 30, 2020.
As of July 1, to continue use of a blanket certification of origin, a new document will be required. Contact your FedEx Account Executive to begin using a blanket certification of origin or to arrange for a replacement.
Use of commercial invoices
The commercial invoice can be used as long as it contains the nine data elements and the required certification statement:
"I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification."
The certification statement for low value shipments is:
"I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA."
This statement can be included on the commercial invoice as long as shipment values fall below these thresholds:
- Equal to or less than USD $2,500 - Imports into the U.S.
- Equal to or less than USD $1,000 - Imports into Mexico
- Equal to or less than CAD $3,300 - Imports into Canada
Commodity restrictions
There are no commodity restrictions specific to USMCA. The current commodities prohibited from import into the US, Mexico and Canada still apply:
- Items prohibited by CBP (19 CFR Part 12, examples include threatened animal species, counterfeit money/coins and merchandise under economics sanctions.)
- Items prohibited by FedEx Express terms and conditions (examples include firearms, weaponry and parts, perishable foods, money, live animals, and items resembling a bomb.)
Shipping with FedEx under USMCA
Using an automation platform you can easily prepare shipping labels with the USMCA Certification of Origin information incorporated in a commercial invoice or prepare the Certification as a stand-alone document. This will help ensure your shipments benefit under USMCA/T-MEC/CUSMA. This section will be updated regularly, so check back often.
FedEx Ship Manager® (FSM) at fedex.com and FedEx Ship Manager® Lite
Beginning October 4, 2021:
1. When USMCA Certification of Origin is required, follow the prompts to create shipping labels
2. Enter the content required to certify the products origin.
3. Create a stand-alone USMCA/T-MEC/CUSMA Certification of Origin document or utilize the combined Commercial Invoice – Certification of Origin
If preferred, you can download and complete the USMCA/T-MEC/CUSMA Certification of Origin fillable PDF version document and complete it online.
4. Sign (electronic signatures accepted) and date the document. Upload the completed document using Electronic Trade Documents by selecting “attach additional trade documents”, or print and attach to your package.
FedEx Ship Manager® Software
Beginning July 1, 2020:
1. Dispose of the now invalid NAFTA Certificate document (prints automatically when auto generate is selected with shipping label)
2. Download and complete the USMCA/T-MEC/CUSMA Certification of Origin document online
3. Sign (electronic signatures accepted), and date the document
4. Upload the completed document using Electronic Trade Documents by selecting “attach additional trade documents”, or print and attach to your packages
Beginning with the 2022 FSMS General Release, FedEx will replace the NAFTA COO and generate the USMCA/T-MEC/CUSMA Certification of Origin document.
Beginning with the 2020 FSM General Release, FedEx will replace the NAFTA COO with an editable USMCA/T-MEC/CUSMA Certification of Origin document.
FedEx Web Services, FedEx Ship Manager Server® and ShipFast
Beginning September 28, 2021:
Access the FedEx Developer Resource Center’s (DRC) Web Services page for technical documentation, web help, sample code and sample transactions (WSDLs, XSDs).
Still using paper shipping labels and supporting documents?
Ship online
Save time by using one of our automated shipping tools.
Upload customs paperwork online
Upload and submit trade documents using our Electronic Trade Documents solution.
Join our USMCA webinar available on-demand.
Learn the new ins and outs of cross-border shipping by attending our USMCA Webinar-Borderline Genius-you, FedEx and USMCA available on-demand using your preferred device. We'll help you navigate the new regulations so you can ship smart and keep customers happy.
Join our USMCA webinar available on-demand.
Learn the new ins and outs of cross-border shipping by attending our recorded USMCA Webinar-Borderline Genius-you, FedEx and USMCA, available on-demand using your preferred device. We'll help you navigate the new regulations so you can ship smart and keep customers happy.
Stay informed with FedEx emails
Keep up with the latest regulatory alerts, trade-related rules, updates and learning opportunities
Additional resources
Agreement between the United States of America, the United Mexican States, and Canada 12/13/19 Text
USMCA fact sheet | Supporting America's Small and Medium-sized Businesses
USMCA fact sheet | Automobiles and Automotive Parts
U.S. - Mexico - Canada Agreement (USMCA)
The Canada-United States-Mexico Agreement: What importers need to know
Final texts of the Treaty between Mexico, United States and Canada (T-MEC) (Spanish and English)
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