The United States–Mexico–Canada Agreement (USMCA) is the free-trade agreement that replaced NAFTA on July 1, 2020. Goods that qualify under its rules of origin can be imported among the three countries free of duty or at preferential rates.

How does a good qualify for USMCA duty-free treatment?

A good qualifies if it meets the USMCA rules of origin: it is wholly obtained in the region; it satisfies the product-specific tariff-shift rule (non-originating inputs change HTS classification through processing); or it meets a regional value content (RVC) threshold. Some products, notably automobiles, have additional rules including labor value content.

What is regional value content (RVC)?

Regional value content is the percentage of a product’s value that must originate in the USMCA region for it to qualify. It is calculated using either the transaction-value method or the net-cost method, depending on the product-specific rule of origin. If the RVC meets the threshold, the good originates.

What is a tariff shift?

A tariff shift rule treats a good as originating when its non-originating inputs are processed enough to change their Harmonized System classification by a specified amount (e.g., a change of chapter, heading, or subheading). It is a way to confer origin without measuring value.

Do I need a certificate of origin for USMCA?

USMCA does not require a prescribed government form, but a claim must be supported by a certification of origin containing nine required data elements. The certification can be completed by the importer, exporter, or producer and can appear on an invoice or a separate document.

How do I claim USMCA preference on an entry?

The importer claims preference at entry by using the Special Program Indicator "S" (or "S+") with the HTS code on the CBP entry summary, and must hold a valid certification of origin and supporting records.

Can I claim USMCA after import if I missed it?

Yes. Under 19 U.S.C. §1520(d), an importer can make a post-importation USMCA claim and recover the duties paid within one year of the date of importation, provided the good qualified and the required certification and records exist.

How long must I keep USMCA records?

USMCA records — including the certification of origin and the documents supporting the origin determination — must be kept for at least five years, consistent with general customs recordkeeping requirements.

What happens if a USMCA claim is wrong?

An unsupported USMCA claim means the duty was underpaid, exposing the importer to back duties, interest, and potential penalties. CBP can verify origin claims, so claims should rest on a documented, defensible origin analysis — exercising reasonable care.

Guide

USMCA & FTA qualification

Qualifying goods can move duty-free among the U.S., Mexico, and Canada under USMCA — but only if they meet the rules of origin. Here's how qualification works, how to certify it, and how to claim it.

What USMCA is

USMCA replaced NAFTA in July 2020. It grants duty-free or preferential treatment to goods that originate in the region under its rules of origin — so qualification, not just shipment from Mexico or Canada, is what unlocks the benefit.

Three ways a good originates

Wholly obtained

Goods entirely grown, mined, or produced in the USMCA region (e.g., minerals, live animals, crops).

Tariff shift

Non-originating inputs are transformed enough to change their HTS classification under the product-specific rules.

Regional value content (RVC)

A required percentage of the good’s value originates in the region, computed by the transaction-value or net-cost method.

Certify and claim

USMCA needs no government form, but your claim must be backed by a certification of origin with nine required data elements, completed by the importer, exporter, or producer. Claim preference at entry with the “S” indicator on the HTS line. Missed it? You can file a post-importation claim under 19 U.S.C. §1520(d) and recover the duty within one year — one of several duty-refund routes. Origin drives everything, so confirm the HTS classification first.

USMCA FAQ

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