April 27, 2020 – Global Affairs Canada issued an advisory for the automotive industry on the Notice to Producers of Passenger Vehicles, Light Trucks and Heavy Trucks on the eligibility to apply for alternative staging regime under Canada-United States-Mexico Agreement (CUSMA). Application deadline is July 1, 2020.
Article 8 (Transitions) of the Appendix (Provisions Related to the Product-Specific Rules of Origin for Automotive Goods) to Chapter 4 (Rules of Origin) of the Canada-United States-Mexico Agreement (CUSMA) provides for alternative staging regimes, during which eligible passenger vehicles and light trucks would be subject to a longer period of transition for a specified period of time (“transition period”). Producers of heavy trucks may also request an alternative staging regime.
To be eligible for an alternative staging regime, vehicle producers must submit a request to each of the CUSMA parties. If the request covers more than ten percent of the producer’s total North American production, the Agreement requires that a ‘detailed and credible plan’ be submitted. Such plan should describe the changes the producer intends to make to its operations, sourcing, and vehicle content to meet the CUSMA rules of origin at the end of the transition period. In accordance with CUSMA, all three parties must agree to the granting of an alternative staging regime to a vehicle producer.
To facilitate trilateral agreement, producers are encouraged to ensure that all submissions meet the information requirements outlined above and in the related U.S. Federal Register notice on alternative staging regimes available.
Approved staging plans would allow North American producers a five-year period to transition to the USMCA regional content rules, rather than three years under the standard regime.
Submissions must be received by July 1, 2020. Submissions and requests for further information should be conveyed to Martin Thornell, Senior Advisor, Tariffs and Goods Market Access, Global Affairs Canada, at martin.thornell@international.gc.ca, or Nadine Charest, Senior Officer, Tariffs and Goods Market Access, Global Affairs Canada, at nadine.charest@international.gc.ca