Step-by-step guide to CUSMA compliance

What Canadian exporters need to know about the rules of origin and certification of origin.

As of March 7, 2025, United States (U.S.) International Emergency Economic Powers Act (IEEPA) tariffs on Canada and Mexico (25% for goods; 10% for energy products) have been paused for imports from Canada that qualify for preferential tariff treatment under the Canada-United States Mexico Agreement (CUSMA).^{Footnote 1}

For businesses, this means:

1. Canadian goods must be certified as compliant with the CUSMA rules of origin by the exporter or producer (this means the goods are eligible for preferential tariff treatment)
2. U.S. importers must claim the preference to benefit from duty-free treatment

The following is a list of steps that Canadian businesses could take to support a claim for preferential tariff treatment under the CUSMA.

Businesses affected by the ongoing U.S. tariff situation can also visit Supporting exporters through U.S. tariff challenges for additional resources.

On this page

1. Step 1: Understand the basics of the CUSMA
2. Step 2: Classify your product in the Harmonized Commodity Description and Coding System (HS)
3. Step 3: Determine if your product meets the CUSMA rules of origin
4. Step 4: Certification of origin
5. Step 5: Provide certification to the importer and be ready for a verification
6. Step 6: Keep your records
7. Additional information

Step 1: Understand the basics of the CUSMA

What is the CUSMA

The CUSMA is a free trade agreement between Canada, the United States, and Mexico that replaced NAFTA in July 2020. The CUSMA provides for preferential, duty-free treatment on over 98% of tariff lines and over 99.9% of bilateral trade between Canada and the United States.

Step 2: Classify your product in the Harmonized Commodity Description and Coding System (HS)

All goods are assigned a code based on where they are classified in the World Customs Organization's Harmonized Commodity Description and Coding System. This is known as the HS code.

The HS classifies all goods using HS codes that are organized by chapter (2 digits), heading (4 digits) and subheading (6 digits). HS codes are harmonized internationally up to the 6-digit level.

Much like a telephone book, traders can look up a rule of origin for their specific good by looking up its HS classification and finding the corresponding product-specific rule of origin under the CUSMA (Annex 4-B).

For help finding a good's HS code, use the Canada Tariff Finder or consult a customs broker.

For certainty, Canadian exporters or producers, or their U.S. importers may wish to request an advanced ruling from the U.S. CBP on the HS classification of the good and/or if it qualifies as originating (i.e., meets the rules of origin) when the good enters the United States.

Find a customs broker

• Permitted Customs Brokers Listing: United States
• Licensed customs brokers: Canada
• Customs broker search: Canada
• Offices in Canada: Reach out to a Trade Commissioner at a regional office who can provide a list of customs brokers.

Step 3: Determine if your product meets the CUSMA rules of origin

• Rules of origin are the criteria used to determine whether a good is eligible for preferential tariff treatment under the CUSMA.
• The CUSMA rules of origin ensure that only those goods that undergo sufficient production within North America benefit from preferential tariff treatment.
• The CUSMA rules of origin are found in Chapter 4 of the Agreement. Additional rules of origin related to textile and apparel goods can be found in Chapter 6.

A good only qualifies for CUSMA preferential tariff treatment if it meets the rules of origin. There are different ways to meet the CUSMA rules of origin.

The PSROs are based on different concepts that determine whether a good qualifies for preferential treatment under the CUSMA that vary depending on the good exported. These concepts include:

• Tariff shift: This means that imported materials used to make a good must be classified in a sufficiently different HS code than the final good.
• Regional value content (RVC): This rule requires that a certain percentage of the good's value be added in Canada, the U.S., or Mexico.
• Specific processing operations: Some goods, especially in sectors like textiles or chemicals, need to go through certain manufacturing steps in a CUSMA country to meet the PSROs

To determine if a good meets the PSROs, Canadian producers/exporters will need to know the HS code for the final good and the HS codes of the materials used to produce it. In the case of a rule of origin with an RVC requirement, it is necessary also to know the value of the final good and the value of the non-originating materials used in its production.

Tip: The country of origin for your materials is not always the same as the country where the goods were purchased.

In addition to the rules of origin, certain textile and apparel products may be eligible for preferential tariff treatment using the tariff preference levels (TPLs). More information on TPLs can be found at Textiles and clothing.

Certain agricultural products may be eligible for preferential tariff treatment under tariff rate quotas (TRQs). More information on TRQs can be found at Controlled products.

Step 4: Certification of origin

There is no official form, but specific data elements under Annex 5-A of the CUSMA must be included. The certification can appear on an invoice or any other document and must include:

• Certifier (Exporter, Producer, or Importer)
• Certifier's name, address, and contact info
• Exporter's name, address, and contact info
• Producer's name, address, and contact info (if different)
• Importer's name, address, and contact info (if known)
• Description and HS code of the good (6 digits)
• Origin criterion
• Blanket period (if applicable)
• Certifier's signature and date

While the U.S. importer is responsible for claiming the CUSMA tariff preference, the Canadian producer, exporter, or, in certain circumstances, the U.S. importer can all issue the certification of origin. The U.S. importer needs to have the certification of origin when claiming preferential tariff treatment.

While there is no requirement for this information to be provided on a specific form. It may be provided on an invoice or any other document, at the request of some stakeholders, the U.S. CBP has prepared an optional template for certification of origin.

If there is any uncertainty regarding the importation of a good into the U.S., Canadian traders should direct their questions to the U.S. CBP. Customs brokers are also a good resource for helping to make this determination. For certainty, traders may wish to request an advanced ruling from the U.S. CBP, which provide binding information on the HS classification and the tariff treatment of a good.

Tip: Goods not accompanied by a certification of origin are considered non-originating and do not qualify for preferential tariff treatment.

Learn more: Certifying the origin of goods (CBSA)

Advance rulings: Get certainty before you ship

Final determination of how a good will be treated upon entry into the United States (i.e., what duties may apply or what documents are required) is made by the U.S. CBP.

For certainty as to how a good will be treated upon entry into the United States, Canadian exporters/producers or their U.S. importers can request an advance ruling from U.S. CBP.

An advance ruling is a written decision from the U.S. CBP that confirms how they'll treat the product in question when it is imported into the United States. An advance ruling can be requested for:

• the correct HS code (tariff classification)
• whether your product meets the CUSMA rules of origin (origin)
• Marking rules for the product

Getting an advance ruling helps reduce the risk of delays, disputes, or extra duties paid at the border. It also gives buyers peace of mind, knowing they can claim the preferential tariff rate confidently.

Tip: Apply for a ruling early, before the Canadian goods are exported to the U.S., and make sure to include detailed product descriptions, production processes, and sourcing information. There is no need to request a new advance ruling each time you ship if your product stays the same, only if your sourcing or production patterns change.

Step 5: Provide certification to the importer and be ready for a verification

Exporters should include the certification of origin when sending the invoices and shipping documents to their U.S. importers. This will allow them to claim preferential treatment on their customs declaration.

The U.S. importer must claim the CUSMA benefit (preferential tariff treatment) when the goods are imported into the U.S.

Importing customs authorities may verify U.S. importers' claim. Be prepared to provide documents or for the importing customs authority to undertake a site visit if needed.

Step 6: Keep your records

Keep all documentation supporting the origin for at least 6 years after the exportation of the good. Traders may be audited by CBSA (for imports into Canada) or U.S. CBP (for imports into the U.S).

Suggested documents to keep include:

• Certifications of origin
• Purchase orders
• Bills of materials
• Supplier declarations
• Costing and production records
• All documents that relate to the export of goods

Update certifications annually (if issuing blanket certificates). If inputs, suppliers, or manufacturing processes change, reassess origin compliance.

Corrections

• If a Canadian exporter or a producer has provided a certification of origin to a U.S. importer and has reason to believe that it contains or is based on incorrect information, the CUSMA obligates that exporter or producer to promptly notify those affected.
• Penalties do not apply to an exporter or producer who makes a voluntary correction prior to a verification being initiated, but applicable duties will be owed by the importer.
• Penalties and duties will apply in the event that a certification of origin is found not to be valid upon verification by the customs authority.

In addition to determining if a good meets the rules of origin and certifying the origin of the good, there may be additional documentary and/or safety/health and wellness requirements that Canadian exporters or U.S. importers may have to meet when exporting goods from Canada or importing goods into the United States.

The following websites provide useful information to help determine what other requirements may apply:

• Exporters' guide to reporting: The Canada Border Services Agency outlines obligations of exporters of commercial Goods
• Step-by-Step Guide to Exporting by the TCS
• World Trade Organization's Rules of origin facilitator
• Introduction to the CBP import process: The U.S. CBP provides a helpful video for U.S. importers of commercial goods
• CBP Tips for new importers and exporters
• U.S. CBP's USMCA-specific frequently asked questions

Additional information

Tariff information by country and Harmonized System (HS) codes: Tariff info and applicable HS codes for your product.

Exporting commercial goods: Information on the obligations, guidelines and procedures for reporting goods to the Canada Border Services Agency (CBSA).

Diversify your exports with the Trade Commissioner Service