Customs Tariff Updated for CUSMA

Summary#

These are technical updates to several regulations made under the Customs Tariff to reflect the new Canada–United–States–Mexico Agreement (often called CUSMA). The changes mostly replace old references to NAFTA and its rules with CUSMA equivalents so the rules on duty relief, refunds/drawbacks, and a temporary import tariff item match the new trade agreement. The item was published on April 29, 2020 and registered as SOR/2020-64 on April 7, 2020.

What it does#

• Updates wording in the Goods Imported and Exported Refund and Drawback Regulations so references to NAFTA now refer to the Canada–United–States–Mexico Agreement and the appropriate CUSMA articles and parties.
• Changes the Duties Relief Regulations to replace references to the “NAFTA” and the “NAFTA Uniform Regulations” with CUSMA and the CUSMA Uniform Regulations.
• Amends the Temporary Importation (Tariff Item No. 9993.00.00) Regulations so the definition of “originating good” points to the CUSMA Rules of Origin Regulations (and keeps references to the other Canada free-trade agreements named in the regulations).
• Replaces a cross-reference to an old NAFTA article (Article 303(6)(b)) with the corresponding Article 2.5(6)(b) of CUSMA where relevant.
• Updates a heading to read “Manner of Reporting Exports to a Country that is Party to the Canada–United–States–Mexico Agreement.”
• The regulations say they come into force when section 183 of the Canada–United–States–Mexico Agreement Implementation Act comes into force, or on the day these regulations are registered if that is later.

Who's affected#

• Importers and exporters who use duty relief, refunds, or drawback programs under the Customs Tariff.
• Businesses that temporarily import goods under tariff item 9993.00.00, or that rely on rules of origin to qualify for preferential treatment.
• Companies and government entities involved in government-to-government projects or purchases from the United States or Mexico (for example, departments of the Government of Canada or certain Crown corporations acting for the government).
• The Canada Border Services Agency, which administers these programs and will use the updated wording.
• If it is unclear who exactly is affected in a specific case, affected parties should check how the revised cross-references apply to their situation.

Why it matters#

• These are housekeeping changes that align Canada’s customs regulations with the new trade agreement. That helps avoid confusion about which treaty text and rules of origin apply.
• For businesses, the practical effect is clarity: the same duty-relief, refund/drawback, and temporary-import rules remain, but they point to CUSMA provisions instead of NAFTA ones.
• That clarity matters for claims at the border, demonstrations of origin, and for planning imports and exports—especially in sectors that rely heavily on rules of origin (for example, automotive supply chains).