BDO Corporate Tax News Issue 60 - November 2021

Tags

Top Highlights

• hey may notice some of their suppliers can no longer qualify their goods as duty-free under the new agreement. However, while trade treaties are a key factor to consider when reviewing the procurement decision tree, they are just one of several factors.

• With their legacy input no longer exempt from duties, they may explore procurement routes in other countries worldwide. As a result, the new sourcing model may not qualify as duty-free.

• CUSMA came into force during the heart of the COVID pandemic. As a result, importers and exporters could be forgiven for overlooking CUSMA’s impact on their supply chains.

• The concern has caused some businesses to reassess tried-and-true supply chain strategies such as just-in-time manufacturing—for the long term. Whatever the future holds, all businesses that import or export will need to layer CUSMA into their sourcing decisions.

• agreement does not require companies to complete a formal CUSMA certificate of origin.

• They still need to analyze their supply chains. They need to ensure they comply with the details of the treaty.

• CUSMA was born into a world of trade far different from its predecessor and it has rewritten the rules for Canadian importers and exporters

• The business world has shrunk, and supply chains have grown longer and more complex.

• . Proximity still counts, as do shared language and business culture in the case of the U.S.