CUSMA joint review and what it means for CAD filings on energy goods

The meeting and the timeline

Ministers LeBlanc and Hodgson sat down with oil and gas sector leaders last week to prep for the 2026 CUSMA joint review. The focus was maintaining preferential access for Canadian energy exports into the U.S. market, but the same integrated energy market means Canadian importers are bringing refined petroleum products, gas condensates, drilling equipment, and U.S.-origin machinery back across the border every day. The review won’t rewrite the treaty, but it will surface complaints and pressure points. If you’re filing CADs on energy-sector goods with CUSMA preference claims, the time to confirm your origin documentation is before the review cycle starts flagging inconsistencies.

What CUSMA preference means for petroleum products and machinery

CUSMA Chapter 6 Annex contains product-specific rules of origin. Refined petroleum products under HS 2710 typically qualify under a tariff-shift rule or regional value content test. Drilling equipment, pumps, and compressors under HS 8413, 8414, and 8431 often require 50% or 60% net cost regional value, depending on the tariff item. The problem is not the rule itself, it’s the supplier’s ability to prove it.

U.S. suppliers of oilfield equipment routinely issue blanket CUSMA certificates covering twelve months of shipments. Those certificates are valid, but they rely on the supplier’s own origin determination. If CBSA opens a verification under D11-4-2, the importer is the party on the hook. CBSA will issue a verification letter to you, and you forward it to the supplier. If the supplier does not respond within thirty days, or responds with incomplete cost roll-ups, CBSA denies the claim and re-rates the entry at MFN. The importer pays the difference, plus interest from the date of release.

We see this on machinery imports where the U.S. manufacturer assembles in Mexico using Asian-origin motors and hydraulics. The finished good ships from Texas, the supplier signs a CUSMA cert, and six months later CBSA asks for a net-cost breakdown. The supplier does not track regional content by SKU. The claim fails. The importer pays.

CAD filing and post-release corrections under CARM

Under CARM, preference claims are declared on the CAD at line level using the preference code (e.g., “10” for CUSMA). If you claim CUSMA preference, you must hold a valid certificate or have the supplier’s written origin declaration at time of filing. D11-4-2 allows importers to rely on the supplier’s statement, but “holding” it means you can produce it on request within two business days if CBSA asks during a portal audit.

If you file a CAD without a certificate and later obtain one, you can correct the entry under CARM correction rules within four years. The correction triggers a recalculation of duties and the release of any overpaid MFN amount held in your CARM account. But the correction must be filed through the CARM Client Portal, and you need the original transaction number and CCN. If the original CAD was filed by a previous broker and you do not have portal access to that file, the correction request has to go through CBSA’s manual process, which adds six to eight weeks.

The easier path is getting the certificate before filing the CAD. For regular suppliers, ask for a blanket certificate covering all shipments for the next twelve months. For one-off purchases, request a single-shipment declaration at time of purchase order. If the supplier will not provide either, file at MFN and move on. Claiming preference without documentation is a penalty risk under AMPS, and the administrative cost of a post-release correction usually exceeds the duty saved on a single entry.

NRI filings and GST registration for U.S. energy companies

U.S. oilfield service companies often import specialized equipment into Canada for short-term projects without establishing a Canadian entity. Those imports must be filed as non-resident importer (NRI) transactions. The U.S. company must obtain a Business Number from CRA, post financial security with CBSA, and either self-file the CAD or authorize a Canadian broker under power of attorney.

The financial security calculation for NRI accounts includes estimated duties, GST, and a risk buffer. For capital equipment under temporary import provisions (tariff item 9993.00.00), the security is based on the full commercial value because the goods may be sold or abandoned in Canada. If the U.S. company is importing consumables or spare parts with no intention of re-export, the security is cash or a standby letter of credit covering twelve months of estimated import value.

CUSMA preference can reduce the duty portion of that security calculation, but only if the U.S. company provides the origin certificate at the time of the security application. CBSA’s Trade and Anti-dumping Programs Directorate will not approve reduced security based on a promise to provide certificates later. If you are setting up an NRI account for a U.S. client, collect the origin documentation before you submit the security application. Amending security terms after approval requires a new application and a six-week review.

What changes during the review cycle

The CUSMA review is not a renegotiation, but it is a window for industry groups to flag non-tariff barriers, customs processing delays, and enforcement inconsistencies. For energy goods, the U.S. is likely to raise questions about Canadian preferential treatment of liquefied natural gas imports from non-CUSMA sources and Canadian enforcement of rules of origin on U.S.-origin drilling equipment that transits through Mexico.

CBSA does not typically change its verification procedures during a treaty review cycle, but it does increase the number of random audits to prepare data for the review report. If you have active CAD filings on petroleum products, gas compressors, or oilfield machinery with CUSMA claims, expect a higher probability of verification requests between now and mid-2026. The verifications themselves are routine, but the response deadlines are not flexible. Thirty days from the date on the letter, and CBSA counts weekends.

We handle origin verification responses for importers who do not want to chase U.S. suppliers through three rounds of incomplete cost statements. If your supplier has gone quiet on a CBSA letter, that is a problem you fix this week, not next month. Get in touch.

Source: CSCB