USMCA replaces NAFTA: SPEEDI covers new USMCA requirements

Abkürzung des Freihandelsabkommens zwischen USA, Mexico und Kanada


WSW Software has already integrated the requirements of the new free trade agreement between the USA, Mexico and Canada (United States-Mexico-Canada Agreement, USMCA) into the established SPEEDI solutions for customs and foreign trade.


Companies that use SAP ERP or SAP S/4HANA and maintain production facilities in Mexico and Canada or the USA will benefit greatly from this: Preference processing can thus be carried out consistently, USMCA-compliant and as a result efficiently and transparently in SAP software.


The experts at WSW Software have already implemented the new USMCA, including individual adaptations, at a well-known customer using SAP software and SPEEDI solutions for customs and foreign trade with great success.

The USMCA, which replaces the NAFTA agreement, has been effective since July 1, 2020. Since this date, much stricter regulations of origin apply to the duty-free delivery of products and goods from Mexico or Canada into the USA. In particular, for example, suppliers and manufacturers in the automotive industry who purchase and process steel and aluminum must annually prove that at least 70 percent of the materials are of US origin. At the same time, the Regional Value Content (RVC) will increase from 62.5 percent to 75 percent in the next three years. This complicates the origin calculations for European companies that maintain production sites in Mexico and often obtain raw materials or parts from their home markets outside North America.

The SPEEDI solutions for preference processing, which extend the SAP standard without modification, conform to the USMCA set of rules. All documents, such as those for the declaration of origin or the requesting and issuing of supplier declarations, are adapted to the USMCA requirements. This is important because there are major changes compared to the predecessor agreement NAFTA, especially with regard to forms and documents. For example, the NAFTA CoO form (Certificate of Origin) with the mandatory form requirement 434 for the declaration of origin has been replaced by a new certificate, which provides precise specifications in terms of content but not in terms of the form in which it is presented.

The SPEEDI solutions for customs and foreign trade are flexible enough to allow for the effortless representation of the preferential agreements of the EU or the North American Free Trade Agreement USMCA, as well as the agreements of other economic areas.

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