This week will be a historic one in the history of international trade as the United States-Mexico-Canada Agreement (USMCA) goes into full effect on Wednesday, July 1st. This agreement takes over for NAFTA and will be the law defining North American trade for the long foreseeable future.
Importers and exporters have had some time to get ready for the new regulations, and must make sure they comply with new statutes such as the changes to rules for shipments to qualify for USMCA treatment. There are key differences in many areas from the old NAFTA rules and any shipper that does not amend their procedures to comply with the new rules risks penalties.
Manufacturers, especially those in the auto industry, will have a host of new rules to comply with. The rules involving what percentage of products have to be produced within the USMCA zone, as well as stipulations ensuring that the laborers in all countries are paid fair wages, will now need to be closely watched by these firms.
Customs has been gearing up for this change since the agreement was signed. Regulations have been in place and them along with the government have been giving every indication that they do not intend to allow a grace period for firms involved in import and export, so it is vitally important for anyone involved in cross-border trade to be fully prepared with partners that understand their supply chain.
Here at JM Rodgers, we have been preparing since the beginning. We have procedures in place to ensure that we are compliantly following with all-new rules for both import and export, and will be available to help move shipments as well as be a source of knowledge for our customers. If you’d like to discuss how these changes could affect your supply chain, please contact us at www.jmrodgers.com
Sincerely,
James Rodgers CEO
