Question 1

What is USMCA qualification?

Accepted Answer

USMCA (United States-Mexico-Canada Agreement) is the trade agreement between the US, Mexico, and Canada that replaced NAFTA in 2020. Products that qualify under USMCA rules of origin receive preferential tariff treatment, often duty-free entry. Qualification depends on meeting Regional Value Content (RVC) thresholds and tariff shift rules specific to each product's HS code.

Question 2

What is Regional Value Content (RVC)?

Accepted Answer

RVC measures the percentage of a product's value that originates in USMCA countries (US, Mexico, or Canada). There are two calculation methods: Transaction Value (TV) method, which uses the transaction price minus non-originating materials, and Net Cost (NC) method, which uses total cost minus excluded costs. Most products require 60-75% RVC depending on the industry and HS code.

Question 3

Why does USMCA matter for Section 122?

Accepted Answer

Products that qualify under USMCA are exempt from the Section 122 tariff (10%, effective February 24, 2026). This means qualifying goods from Mexico or Canada enter the US without the broad-based tariff that applies to most other countries. For high-volume importers, this exemption can represent significant savings.

Question 4

What industries have special USMCA rules?

Accepted Answer

The automotive sector has the strictest rules, requiring 75% RVC for vehicles and key components. Textiles require yarn-forward rules (yarn must be spun in a USMCA country). Steel and aluminum have melt-and-pour requirements under Section 232. Agricultural products, chemicals, and electronics each have product-specific rules defined in the USMCA Annex.

Question 5

What documents does CBP require for USMCA claims?

Accepted Answer

CBP requires a USMCA Certificate of Origin (self-certification allowed), supporting documentation showing RVC calculation or tariff shift analysis, and records of component sourcing. Under USMCA, the importer, exporter, or producer can certify origin. Records must be kept for 5 years. CBP can verify claims through the foreign government or directly with the producer.