With the $800 de minimis exemption gone, one duty-free path still matters enormously for brands operating across the US, Canada, and Mexico: CUSMA. If your products qualify, you can move them across North American borders without paying duty — even after the 2025 customs changes. Here’s how it works and how to actually claim it.
What CUSMA is
CUSMA — the Canada-United States-Mexico Agreement (called USMCA in the US) — is the free-trade agreement that replaced NAFTA in July 2020. Its core promise for goods: products that originate in North America, under the agreement’s rules, get preferential (usually duty-free) treatment moving between the three countries.
The keyword is originate. CUSMA doesn’t give a free pass to anything shipped from the US, Canada, or Mexico. It gives duty-free treatment to goods that genuinely qualify as North American under its rules of origin.
Why this matters more now than a year ago
Before late 2025, US shipments under $800 entered duty-free under de minimis, so many brands never thought about CUSMA for small orders. Now that de minimis is gone (see The End of De Minimis), duties apply to US imports regardless of value — and CUSMA has become the primary way to legally avoid them on qualifying goods.
In practical terms: CUSMA is now one of the highest-leverage things on your landed cost. Qualify, and a duty line that hits every unit drops to zero.
How goods "qualify" under rules of origin
A product generally qualifies as originating if it meets one of these broad tests (the exact rule depends on your product’s HS classification):
- Wholly obtained or produced in North America (e.g., grown or fully made there), or
- Produced entirely from originating materials, or
- Substantially transformed in North America such that it meets the specific rule for its tariff classification — often a required "tariff shift" and/or a Regional Value Content threshold (commonly around 10% de minimis allowance for non-originating content on most goods, 7% for textiles).
The details get technical fast, and they’re HS-code-specific. The practical move is to check your specific products against their rules rather than assume.
Certification: how you actually claim it
Qualifying isn’t enough — you have to certify. Under CUSMA:
- A Certification of Origin must accompany qualifying shipments (it can go on the commercial invoice or as a separate document).
- For low-value shipments (commonly under about USD $2,500, though thresholds vary), a simplified low-value origin statement is often accepted instead of a full certificate.
- The certification needs accurate data — a bad or careless claim can bring penalties and back-assessed duties with interest, so this isn’t a box to tick blindly.
Get this right and your qualifying goods flow duty-free. Get it wrong and you’ve traded a duty bill for a compliance problem.
A note on what’s coming
CUSMA requires a review of its rules every three years. The second review is scheduled for July 1, 2026, and some rules of origin could change. That’s not a reason to wait — it’s a reason to have your classification and certification process solid and maintained, so you can adapt if rules shift.
How this fits your fulfillment
CUSMA certification pairs naturally with a bulk-import-plus-local-fulfillment model: you classify products once, certify origin on your bulk import, clear the border duty-free where eligible, and fulfill domestically. A fulfillment partner experienced with CUSMA handles the classification and certification so you capture the duty-free treatment you’re entitled to. TXG builds CUSMA origin certification into cross-border setups as part of managing the border.
FAQ
What is CUSMA and how is it different from USMCA?
They’re the same agreement — CUSMA is the Canadian name, USMCA the American one — the free-trade deal that replaced NAFTA in 2020. It gives duty-free treatment to goods that qualify as originating in North America under its rules of origin.
How do my products qualify for CUSMA duty-free treatment?
Goods generally qualify if they’re wholly obtained in North America, made entirely from originating materials, or substantially transformed there to meet the specific rule for their tariff classification. The exact test depends on your product’s HS code.
Do I need a Certification of Origin?
Yes, to claim CUSMA treatment. Qualifying shipments need a Certification of Origin, which can appear on the commercial invoice or as a separate document. Low-value shipments often accept a simplified origin statement.
Can CUSMA make my shipments completely duty-free after the end of de minimis?
For qualifying goods, yes. CUSMA is the main remaining path to duty-free movement within North America now that de minimis is gone — provided your products meet the rules of origin and you certify correctly.
What happens if I certify origin incorrectly?
Inaccurate certification can lead to penalties and back-assessed duties with interest. Certification requires accurate classification and origin data, which is why many brands rely on a customs-experienced partner rather than guessing.
Want to capture CUSMA duty-free treatment on your North American shipments? TXG handles classification and origin certification as part of clearing the border. Get a fulfillment quote →
This is general information, not customs or legal advice. Rules of origin are product-specific and subject to review; confirm your eligibility with a licensed customs broker.
