What is Regional Value Content (RVC)?
Regional Value Content (RVC) is the percentage of a product's value that originates from USMCA countries (USA, Mexico, Canada). Products must meet minimum RVC thresholds (50-75% depending on industry) to qualify for duty-free treatment under USMCA.
How do you calculate RVC?
RVC can be calculated using two methods: Transaction Value method: RVC = ((Sale Price - Non-originating Materials) / Sale Price) × 100. Net Cost method: RVC = ((Net Cost - Non-originating Materials) / Net Cost) × 100. You can use whichever method gives you a higher RVC.
What RVC threshold does my product need?
RVC thresholds vary by industry: Agriculture 50%, Textiles 55%, Furniture 55%, Machinery 60%, Chemicals 62%, Electronics 65%, Medical Devices 65%, and Automotive 75%. Our calculator automatically applies the correct threshold based on your HS code.
What counts as "non-originating" materials?
Non-originating materials are components, parts, or raw materials that come from countries outside the USMCA region (not USA, Mexico, or Canada). For example, a PCB from China or fabric from Vietnam would be non-originating.
Can I qualify for USMCA with China-sourced components?
Yes! Even with China-origin components, your finished product can qualify if you add enough regional value through manufacturing, labor, and other USMCA-origin inputs to meet the RVC threshold. This is exactly what our calculator helps you determine.