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Richard Mojica Comments on Delayed Enforcement of the USMCA in Global Trade Review

Subtitle
"USMCA Enters Into Force, Sort Of"

Global Trade Review

Richard Mojica commented on the US-Mexico-Canada Agreement (USMCA) stating "a lot of unanswered questions" will delay enforcement of the agreement, which became effective July 1. "There are areas that have not been fully resolved and importers still have questions that have not been fully responded to," Mojica stated. One issue he noted is the lack of a standardized unified certificate of origin form under the USMCA, which was previously provided under the North American Free Trade Agreement. "There is no prescribed format. Companies are having to adjust and figure out the best way to do it," Mojica said. However, U.S. Customs and Border Protection (CBP) instructions on implementing the USMCA indicate CBP will allow companies time to become compliant with the new requirements. "What this means is that for the first six months of the agreement, customs will seek to educate traders on how to do things correctly rather than hitting them with penalties," Mojica said.