Resolution establishing the General Rules regarding the application of the customs provisions of the United States, Mexico and Canada Agreement and its annexes.
Edmundo Elías-Fernández
On June 30, 2020, one day before the entry into force of the United States, Mexico and Canada Agreement (“T-MEC” or “USMCA”), the Secretary of Finance and Public Credit published in the Federal Official Gazette, the General Rules regarding the application of the customs provisions established under the T-MEC and its annexes (“T-MEC Implementing Rules”), with a minimum of content, in order to comply with the requirement set forth in article 5.16 of the T-MEC, so that it became effective.
What is the purpose of the T-MEC Implementing Rules?
The T-MEC Implementing Rules are intended to provide practical and useful guidance for better compliance of the rules and procedures set forth in the T-MEC and provide certainty and clarity in the application of its provisions regarding the following chapters:
· National Treatment and Market Access
· Rules of Origin
· Origin Procedures
· Textiles and Apparel
· Customs Administration and Trade Facilitation
What is the content of the T-MEC Implementing Rules?
The T-MEC Implementing Rules are composed of 5 titles and 16 sections, including the following:
1. Treatment of Customs Duties
2. Drawback and Duty Deferral Programs
3. Rules of origin (only transshipment)
4. Origin Certifications
5. Obligations Regarding Importations
6. Exceptions to Certification of Origin
7. Obligations Regarding Exportations
8. Errors and Discrepancies in the Certifications of Origin
9. Record Keeping Requirements
10. Origin Verification
11. Textile and Apparel Verification
12. Drawback
13. Anticipated Resolutions
14. Advice or Information regarding Drawback or Duty Deferral Programs
15. Review and Appeal
16. Administrative Guidance
Are there pending topics to be regulated within the T-MEC Implementing Rules?
Yes, as previously mentioned, the T-MEC Implementing Rules were published with a minimum of content, with the purpose to comply with the obligations established in the T-MEC, so that it became effective.
Considering the topics that have been regulated by the NAFTA implementing rules, it is pending to “exemplify” and clarify, among others, the following topics:
· Rules of origin:
o Interpretation of the rules of origin.
o De minimis provision.
o Regional value content.
o Originating, non-originating, direct, indirect and intermediate materials, accessories and packing.
o Automotive sector (wages, transition period, steel, regional value content).
o Accumulation.
o Chemical industry.
· Implementation of the certifications of origin by the importer:
o In accordance with the T-MEC, Mexico has a three years and six months transition period as of the entry into force of the T-MEC, for the implementation of the certification of origin by the importer.
· Textiles and Apparel.
It is very important to maintain constant monitoring of the official publications (Federal Official Gazette) by the competent authority, with the purpose of applying the new provisions established in the T-MEC for the exchange of goods between Mexico, United States and Canada.
Below please find the link of the publication of the T-MEC Implementing Rules, which were published in the Federal Official Gazette.
We are at your service with any questions regarding the new United States, Mexico and Canada Agreement.
For more information in this regard, please do not hesitate to contact us.
Edmundo Elías-Fernández eelias@rrs.com.mx
