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USMCA Qualification — Rules of Origin, RVC Calculator & Duty Savings
USMCA (United States-Mexico-Canada Agreement) provides preferential duty rates (0–5%) for qualifying goods from Canada and Mexico. To qualify, goods must meet both a tariff classification change rule and a Regional Value Content (RVC) threshold. Use our trade agreement qualification tool to check whether your product qualifies, calculate the duty savings vs. MFN rates, and get a full documentation checklist for claiming USMCA preference at CBP.
Tariff classification change analysis (Chapter 4–A rules)
RVC calculator — 65% net cost method or 60% transaction value method
Duty savings calculation: USMCA rate vs. MFN base rate
Required documentation checklist (USMCA Certificate of Origin)
Next steps and compliance timeline for CBP filing
OriginDocumentation vs. change of tariff classification rule mapping
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Check your USMCA qualification →Frequently Asked Questions
What is USMCA and who qualifies for preferential rates?
USMCA (United States-Mexico-Canada Agreement) is the trilateral free trade agreement that replaced NAFTA on July 1, 2020. Preferential rates under USMCA are available to: (1) Goods wholly obtained or produced entirely in the US, Canada, or Mexico; (2) Goods that undergo a change in tariff classification (CTC) in a USMCA country, meeting the specific rule of origin for that HTS code; (3) Goods that meet the Regional Value Content (RVC) requirement (typically 65% net cost or 60% transaction value). Both the CTC requirement and RVC requirement must be met unless the specific rule allows one or the other.
How is Regional Value Content (RVC) calculated under USMCA?
USMCA offers two RVC calculation methods: (1) Net Cost Method (RVC = (Net Cost - VNM) / Net Cost × 100). Net Cost is the total cost of the good minus selling expenses, royalties, shipping costs, and packing. VNM (Value of Non-Originating Materials) is the value of any non-originating components. This method is required for automotive products and preferred for complex goods. (2) Transaction Value Method (RVC = (TV - VNM) / TV × 100). TV is the price actually paid for the good, including all charges. Simpler but may not be used if selling expenses are embedded. Most non-automotive products can use either method.
What is required on a USMCA Certificate of Origin?
A USMCA Certificate of Origin must contain: (1) Exporter name and address (including country); (2) Producer name and address (if different from exporter); (3) Importer name and address (if known); (4) Blanket period (if covering multiple shipments); (5) HS tariff classification (6-digit minimum, 10-digit recommended); (6) Description of originating goods and applicable origin criterion; (7) Certifier declaration with authorized signature, title, and date. The Certificate can be completed by the exporter, producer, or importer — no official form is required, but all mandatory fields must be present. Keep records for 5 years.
What is the difference between originDocumentation and last transformation rule?
Under USMCA, the primary rule of origin is a Change in Tariff Classification (CTC) — the non-originating materials must undergo a change in tariff classification in the USMCA country. For example, steel sheet (HTS 7208) imported into Mexico and processed into auto body parts (HTS 8708) undergoes a CTC from Chapter 72 to Chapter 87, satisfying the CTC requirement. The "last transformation" concept is relevant when determining where the qualifying process occurred — the last substantial transformation must be in a USMCA country. This is verified through Bill of Materials and production records.
How does USMCA compare to other US FTAs for duty savings?
USMCA offers the most comprehensive coverage for North American supply chains, with 0% duty on most goods from Canada and Mexico. Key comparisons: USMCA vs. MFN: saves 2.5–25% on most products. USMCA vs. no-FTA: saves the full MFN rate (e.g., 25% on steel, 12% on many textiles). USMCA vs. other FTAs (KORUS, US-Peru, etc.): covers more product categories and countries, but USMCA rates are generally as good or better. The main alternative is GSP (Generalized System of Preferences) for eligible developing countries — 0% duty but not for all products and requires more documentation.
Educational estimates only — final classification determined by CBP at time of entry. Tariff rates and program eligibility verified against USITC HTS 2026 and Commerce trade remedy databases. Consult a licensed customs broker for binding classification advice. AI Disclaimer · Terms