USMCA Rules of Origin 2026: What Qualifies for 0% Duty?
USMCA replaced NAFTA in July 2020 and offers 0% duty plus MPF exemption on qualifying goods from Mexico and Canada. But "qualifying" is the operative word — the agreement has specific, product-category rules of origin that must be met, and claiming USMCA without meeting them exposes you to retroactive duties and penalties. This guide explains the three main origin tests, how they work by sector, and what documentation you need.
Replaces the MFN base rate for qualifying goods
No 0.3464% Merchandise Processing Fee
Mexico and Canada are not subject to Section 301 China tariffs
The three USMCA origin tests
To qualify as originating under USMCA, goods must satisfy one of three tests. Which test applies depends on the product-specific rule of origin for your HTS code, found in Annex 4-B of the USMCA agreement.
Goods grown, raised, hunted, fished, or extracted entirely within USMCA territory. No non-originating inputs allowed. Applies primarily to agricultural commodities, minerals, and natural resources.
Non-originating inputs used in production must undergo a specified change in HTS classification during USMCA-territory manufacturing. The required shift is defined in the product-specific rule — it can be a change at the chapter, heading (4-digit), or subheading (6-digit) level.
A minimum percentage of the good's value must originate within USMCA territory. Two calculation methods exist:
RVC = (TV − VNM) ÷ TV × 100
TV = transaction value; VNM = value of non-originating materials
RVC = (NC − VNM) ÷ NC × 100
NC = net cost of the good; used when transaction value cannot be determined
Rules of origin by sector
The product-specific rules in USMCA Annex 4-B vary significantly by industry. Here are the rules for the most commonly imported categories:
Regional Value Content (RVC)
75% RVC net cost method
Steel & aluminum: 70% USMCA-origin. LVC requirement: 40%+ wages in US/Canada at $16+/hr
Yarn forward rule
Yarn spun, fabric woven, garment cut & sewn in USMCA territory
Tariff Preference Levels (TPLs) allow limited non-originating content for some categories
Tariff shift + RVC
Tariff shift at chapter, heading, or subheading level; or 60% RVC (transaction value)
Many electronics components have no Section 301 at MFN level — verify whether USMCA preference is worth claiming
Wholly obtained or specific tariff shift
Grown/produced in USMCA territory; or specific transformation rules by chapter
Sugar, dairy, and poultry have TRQs. Most fresh produce from Mexico qualifies easily.
Melt and pour rule
Steel must be melted and poured in USMCA territory; aluminum must be smelted and cast
USMCA does not provide Section 232 exemption — steel/aluminum from Canada and Mexico still subject to Section 232 unless country-specific exemptions apply
The de minimis rule: small amounts of non-originating content
USMCA includes a de minimis exception: if non-originating materials that do not satisfy the required tariff shift represent 10% or less of the transaction value of the good, they can be ignored for the purpose of the tariff shift test. This gives manufacturers some flexibility when 90%+ of value is genuinely USMCA-origin.
Important exception: The de minimis rule does not apply to textiles and apparel (Ch. 50–63). Apparel products must strictly satisfy the yarn forward rule — a Chinese-fabric shirt cannot use de minimis to qualify, even if the fabric is only 8% of value.
Claiming USMCA: what documentation you need
Unlike NAFTA, USMCA does not require a specific certificate of origin form. Instead, you need a written certification containing the following fields, which can appear on any commercial document:
Name, title, address, phone, and email of the importer, exporter, or producer making the certification
Name and address of the exporter and producer (if different from certifier)
Description of the goods, including HS tariff classification (6-digit at minimum)
A (wholly obtained), B (tariff shift only), C (tariff shift + RVC), D (RVC only), E (automatic data processing equipment list), or F (unassembled goods)
Optional — a blanket certification can cover multiple shipments within a 12-month period
Declaration that the information is accurate and the goods qualify as originating under USMCA
Importers, exporters, and producers must retain all records supporting a USMCA preference claim for at least 5 years. CBP can conduct post-entry audits and request documentation. If you cannot substantiate the origin claim, the duty preference is disallowed and retroactive duties, interest, and penalties apply.
The most common USMCA claim mistakes
Chinese inputs must undergo sufficient tariff shift or the product must meet RVC thresholds. Re-assembly alone rarely satisfies the rules.
De minimis does not apply to Ch. 50–63. Apparel must meet yarn forward rule strictly — no exceptions for small Chinese fabric inputs.
USMCA preference does not exempt goods from Section 232 steel and aluminum duties unless a specific country exemption applies separately. Verify current Section 232 status for Mexican steel.
USMCA replaced NAFTA. NAFTA certificates of origin are invalid for entries after July 1, 2020. Use the USMCA certification format.
The Tariff Desk shows your MFN rate and FTA preferential rate side by side — including USMCA 0% status and MPF exemption — for any HTS code. Compare sourcing from Mexico, Canada, and other countries in one lookup.