The USMCA and De Minimis
Oct 10 2018


The USMCA and De Minimis

The CSCB has contacted the Department of Finance regarding references to de minimis in the text of the USMCA. Two questions and answers follow and it’s important to keep in mind that the following information may change.

  • The de minimis amounts listed in the USMCA Agreement apply only to goods traded between Canada, the U.S., and Mexico or do they apply to goods imported into Canada from any country?
    Finance’s Response:
    The USMCA treaty commitment applies only to trade between the parties. Whether Canada decides to extend that treatment to direct shipments from other countries will be a question for domestic implementation (e.g., taking into account administrative practicality). I would, however, note that the commitment applies to all goods “of a party”, which requires the de minimis thresholds to apply to any products shipped from the other USMCA countries (i.e., it is not limited to “originating goods” in the traditional sense, such that Canada would be required to apply the threshold for a Chinese good imported to the U.S. for warehousing prior to shipping to Canada).
  • Is there a change to the $20 threshold for goods shipped by mail?
    Finance’s Response:
    Similar to your last question, the treaty commitment applies only in respect of express shipments, which are generally understood as those currently using the CLVS program. Whether the Government chooses to extend the same treatment to goods shipped by mail will be assessed during the domestic implementation process.

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