***ATTENTION CARRIERS AND IMPORTERS*** As you can imagine, the volatility of the tariff situation has created a significant backlog of entries to be filed. In addition, the programming implemented by CBP for processing entries subject to the USMCA exemption requires additional data. Unfortunately, we anticipate delays in processing for the time being so please ensure we receive your customs documentation with as much lead time as possible. Thank you for your anticipated patience during this difficult time.

U.S. CUSTOMS ALERT: Executive Order Issued Exempting USMCA Products of Canada

  • by BCB International

    • The President has signed an Executive Order exempting products of Canada that qualify for duty free treatment pursuant to the terms of the USMCA agreement EFFECTIVE MARCH 7, 2025 at 12:01 am.

    **Notably, the effective date of the exemption is March 7, 2025 at 12:01 am. Accordingly, and unfortunately, any shipments that have crossed the border between March 4, 2025 at 12:01 am and the aforementioned effective date, will still be subject to the tariffs and the same will be owed to U.S. Customs. If you have shipments pending that have not yet crossed the border, and you are claiming USMCA treatment on those shipments, the shipments will be subject to duty if they cross the border this evening and prior to 12:01 am tomorrow, March 7, 2025.**

    The Executive Order states as follows: 

    “(a) Articles that are entered free of duty as a good of Canada under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada, shall not be subject to the additional ad valorem rate of duty described in section 2(a) or section 2(b) of Executive Order 14193.

    (b) The additional rate of duty on potash that is not subject to subsection (a) of this section shall be reduced to 10 percent in lieu of 25 percent. 

    (c) The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.”

     General Note 11 referenced above contains the applicable “rules of origin” under the USMCA agreement for determining whether your good qualifies for preferential treatment.

     In summary, if you claim USMCA duty free treatment on products of Canada, your entries will not be subject to the 25% duty. If you ship goods for which you do not claim USMCA treatment, your entries will still be subject to the 25% duty.

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