On 13 August 2021, the secretary of economy issued in the Federal Official Gazette (DOF) an accord to publish the chapters of the Canada, United States and Mexico Agreement (CUSMA) Uniform Regulations regarding the interpretation, application and administration of the rules of origin, origin procedures, textile and apparel goods, customs administration and trade facilitation.
What are CUSMA Uniform Regulations?
The CUSMA Uniform Regulations set out the rules for the interpretation (practical examples) and application of the chapters on rules of origin, origin procedures, textile and apparel goods, customs administration and trade facilitation, which seek to standardise the procedures applicable under the CUSMA, including the following information:
- rules of origin chapter;
- originating goods;
- treatment of recovered materials;
- de minimis;
- sets of goods, kits or composite goods;
- regional value content;
- materials;
- accumulation;
- transshipment;
- non-qualifying operations;
- automotive goods;
- rules of origin by product for vehicles and certain auto parts;
- further requirements relating to regional value content for passenger vehicles, light trucks, heavy trucks and their parts;
- averaging for passenger vehicles, light trucks and heavy trucks;
- steel and aluminium;
- labour value content;
- regional value content for other vehicles;
- chapters on origin procedures, textile and apparel goods, customs administration and trade facilitation;
- preferential duty treatment request;
- basis for an origin certification;
- obligations regarding imports;
- exceptions to the certification of origin;
- obligations regarding exports;
- record-keeping requirements;
- verification of origin;
- anticipated resolutions regarding the origin;
- minimum elements for the certification of origin;
- verification for textiles and apparel “surprise visits”;
- anticipated resolutions; and
- review and appeal of customs determinations.
Where are the Uniform Regulations contained?
Article 5(16) of the CUSMA provides that the parties shall adopt or maintain uniform regulations for the interpretation, application and administration of Chapters 4, 5, 6 and 7 of the CUSMA.
Also, it is established that a Committee for Rules of Origin and Procedures shall be created, to review possible modifications or additions to the Uniform Regulations to reduce their complexity and ensure better compliance.
How was the modification of the Uniform Regulations agreed?
These modifications to the Uniform Regulations were adopted through Decision No. 2 of the CUSMA Free Trade Commission dated 18 May 2021.
When did these new Uniform Regulations become effective?
For Mexico, the accord entered into force on 16 August 2021. The accord abrogates the previous Uniform Regulations (published in the DOF on 9 July 2020).
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SYMBIOSIS is actively advising Canadian companies with operations in Mexico on all aspects of the broad Legal Compliance and Corporate Governance. We are tracking developments and are available to assist foreign investors with questions about Mexico’s legal framework and strict compliance options. For further information please contact us, the Partners and lawyers of Symbiosis are more than willing to work together with you to support you in analysing the impact of this criterion on your company’s operations in Mexico, as well as in any regularization activity.
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- Source: Ramos, Ripoll & Schuster
