CUSMA Casual Goods Rules of Origin

Summary#

The CUSMA Rules of Origin for Casual Goods Regulations set out when small, personal purchases made in the United States or Mexico count as originating in that country for tariff purposes under CUSMA. The rules base origin on country-of-origin marks on the goods and on whether goods are unmarked. The instrument was registered on June 30, 2020 and published in the Canada Gazette on July 22, 2020.

What it does#

• Defines “casual goods” as items not bought for sale or for industrial, occupational, commercial, institutional or similar use.
• For casual goods bought in the United States:
  • They are treated as originating in the United States and entitled to the benefit of the United States Tariff if the marking (under U.S. marking laws) says the goods are a product of the United States or Canada, or if the goods have no mark and there is no indication they are not from the United States or Canada.
  • They are treated as originating in Mexico and entitled to the benefit of the Mexico Tariff if the marking (under U.S. marking laws) indicates the goods are a product of Mexico.
• For casual goods bought in Mexico:
  • They are treated as originating in Mexico and entitled to the benefit of the Mexico Tariff if the marking (under Mexican marking laws) says the goods are a product of Mexico or Canada, or if the goods have no mark and there is no indication they are not from Mexico or Canada.
  • They are treated as originating in the United States and entitled to the benefit of the United States Tariff if the marking (under Mexican marking laws) indicates the goods are a product of the United States.
• Comes into force on the day section 190 of the Canada–United States–Mexico Agreement Implementation Act comes into force, but if the regulations were registered after that day they come into force on the registration day (registered June 30, 2020).

Who's affected#

• Individuals who buy goods in the United States or Mexico for personal use (tourists, cross-border shoppers).
• Border and customs officials who decide which tariff treatment applies to returned personal purchases.
• Retailers and manufacturers in the United States and Mexico whose country-of-origin markings may determine tariff treatment for casual sales.
• It is unclear whether any other groups are affected beyond personal buyers and customs authorities; the regulations focus on non-commercial “casual” goods.

Why it matters#

• These rules decide whether small, personal purchases qualify for preferential tariff treatment under CUSMA based largely on the country-of-origin label on the item.
• For travelers, that can mean a different tariff outcome depending on the mark on the item (or lack of a mark), which can affect how much duty is owed when bringing goods back to Canada.
• The approach makes origin determinations for casual goods simpler and quicker by relying on ordinary country-of-origin markings instead of more complex commercial origin tests.