Jo-Anne Daniels discusses the changes at hand and what impact it will have on businesses and trade .
On 1 July 2020, The United States-Mexico-Canada Agreement (USMCA) became effective, where previously the North American Free Trade Agreement (NAFTA) requirements were in effect. USMCA made several key regulatory changes as opposed to the NAFTA, it aims to help reduce costs and administrative burden for cross-border transactions. However, the ignorance towards USMCA rules and subsequent violations can result in importer/ exporter liabilities, such as, customs penalties.
“Since the implementation of USMCA, customs will no longer accept the NAFTA Certificate of Origin to claim preferential treatment.”