MONTREAL — Exporters are stampeding to certify their goods under North America's free trade pact to avoid new tariffs imposed by the United States.
Despite being exempted from sweeping global duties last week, Canada and Mexico still face 25 per cent tariffs on most products that fail to comply with the United States-Mexico-Canada Agreement (USMCA).
BDO Canada customs director Charmaine Goddeeris says she has fielded up to 2,000 calls from exporters over the past two months about certification and cross-border trade, with a ramp-up in the past couple of weeks.
While the White House estimates that only 38 per cent of imports from Canada claimed a USMCA exemption last year, experts say the proportion of compliant cargo could rise to a large majority, since companies enjoying effectively free trade had little incentive to certify their wares until now.
To be exempted from tariffs now, an importer must make a customs declaration that their goods meet certain rules of origin — often requiring that more than half of the content is made on this continent — with documents such as a commercial invoice to certify compliance.
Trade lawyer Jesse Goldman says companies in aerospace, telecommunications, medical manufacturing and pharmaceuticals could struggle to meet origin rules, given their reliance on European and Asian supply chains.