Qualify for preferential tariff rates of 0-10% on goods from Mexico and Canada by meeting USMCA rules of origin. Here is how to certify and claim benefits.
USMCA rules of origin determine whether a product qualifies for preferential tariff treatment. The rules use three primary tests: tariff shift (the product must undergo a change in HS code classification during manufacturing), regional value content (a minimum percentage of the product's value must originate in the USMCA region), and specific processing requirements for certain products. Each product category has its own set of origin rules, making compliance a product-by-product determination rather than a blanket qualification.
USMCA uses a self-certification system rather than requiring government-issued certificates. The importer, exporter, or producer can complete the certification using prescribed data elements. The certificate must include the certifier's information, product description, HS classification, origin criterion, and blanket period if applicable. Certifications can cover a single shipment or a blanket period of up to 12 months for identical goods. Records must be maintained for five years.
With Chinese goods facing 30-45% combined tariff rates and the Section 122 surcharge applying universally, USMCA qualification represents a significant competitive advantage. Products manufactured or substantially transformed in Mexico can enter the US at 0-10% versus 40%+ for the same product from China. This cost differential is driving a wave of nearshoring investment, with manufacturers establishing production in Mexico specifically to qualify for USMCA benefits. MarginHub helps you identify which products in your catalog could qualify under USMCA if sourced from Mexico or Canada.
USMCA (United States-Mexico-Canada Agreement) is the free trade agreement that replaced NAFTA in 2020. Goods that meet USMCA rules of origin can qualify for preferential tariff rates ranging from 0% to significantly reduced rates. With the Section 122 surcharge applying universally, USMCA qualification is more valuable than ever for reducing import costs.
Goods must meet specific rules of origin which typically require that a certain percentage of the product's value is produced in the US, Mexico, or Canada, or that the product undergoes a substantial transformation in one of these countries. Requirements vary by product category and HS code. You must also complete a USMCA Certificate of Origin to claim preferential treatment.
Qualifying USMCA goods may receive partial exemptions from the Section 122 surcharge, but the exemption is not automatic. Products must fully comply with rules of origin and have a valid certificate of origin on file. Some product categories have received full exemptions while others receive reduced rates.
Goods that do not meet rules of origin are treated as non-USMCA imports and face standard MFN tariff rates plus the Section 122 surcharge. Transshipment, which involves routing Chinese goods through Mexico to claim USMCA benefits, is illegal and subject to severe penalties including retroactive duties and fines.
Potentially, but only if the assembly constitutes a substantial transformation under the specific rules of origin for that product. Simply repackaging or performing minor assembly does not qualify. The regional value content must meet minimum thresholds, typically 40-75% depending on the product category.
Find out which of your products could qualify for preferential tariff rates under USMCA and how much you could save.
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