How Amfas Mexico helps your parts qualify for duty-free movement across the U.S., Mexico, and Canada
USMCA replaced NAFTA and updated the rules for when goods move duty-free within North America. Many teams are unsure how “origin,” “tariff shift,” and “regional value content” actually work in real life.
- What is USMCA and why it matters
- USMCA = the trade agreement setting the rules for duty-free entry among the U.S., Mexico, and Canada.
- Core focus areas: correct origin, the right documentation, and solid record-keeping.
- Policy goal: increase North American content and value-added manufacturing.
- Bottom line: if your product meets the USMCA origin rule for its HS code and you hold the right paperwork, it can move duty-free.
- What gives a product USMCA origin
- A product qualifies for USMCA origin if either:
- 1. It is wholly obtained or produced in the U.S., Mexico, or Canada, or
- 2. It meets the specific rule of origin assigned to its HS code, which will require one or more of the following tests:
- • Tariff shift rule
- • Regional Value Content (RVC) rule
- Important: You must have the correct HS code first. The origin test depends on it. Assembly in Mexico by itself does not guarantee origin. The part must pass the rule tied to its HS code.
- Tariff shift basics
- The HS code of the finished good must be different from the HS codes of its non-originating materials.
- Good example: foreign raw steel formed into a new bracket in Mexico typically creates a tariff shift.
- Weak example: importing a finished foreign part and doing only minor finishing often does not create a tariff shift.
- Regional Value Content (RVC) basics
- Some HS codes require a minimum share of North American value added. Two accepted formulas:
- • Transaction Value Method
- • Net Cost Method
- You will need to track the value of non-originating materials versus the total value of the finished good to show you clear the threshold.
- What counts as value added in Mexico
- Direct labor performed in Mexico.
- Manufacturing processes performed in Mexico: tooling, stamping, welding, molding, machining, casting, assembly, labeling, kitting, and packaging.
- Materials sourced from the U.S., Mexico, or Canada.
- External North American services like plating, painting, or heat treat billed within North America.
- What does not count
- Foreign materials that do not undergo the required tariff shift.
- Minor processing that does not change the product’s classification.
- Pass-through trade where a part is simply shipped through Mexico without qualifying transformation.
- How assemblies qualify
- The HS code of the full assembly controls the origin rule.
- An assembly can qualify even with some foreign components, as long as the tariff shift requirement is met.
- If the rule requires RVC, you must show enough North American value added from your Mexican assembly operations to meet the percentage.
- Practical pattern: many mechanical and metal parts have relatively clear tariff shift rules, which makes Mexican fabrication strong for qualification. Electronics and mixed component assemblies often have stricter rules, so planning matters.
- Required documents your customer will ask for
- USMCA Certificate of Origin issued by the manufacturer or exporter.
- • Shows supplier legal name and address, HS code, origin criterion, and the certification statement.
- • May be issued as a blanket certificate covering a full calendar year.
- Supporting cost and process records to survive an audit: bills of materials, suppliers of origin materials, process records, and RVC workpapers if applicable.
Why teams choose Amfas Mexico for USMCA
- True manufacturing in Mexico – not simple touch labor.
- Processes that drive origin: stamping, machining, molding, casting, welding, assembly, labeling, and kitting.
- Origin paperwork handled: we maintain HS code mapping, cost breakdowns, and certification files to support USMCA audits.
- Commercial impact: duty avoidance, stable supply in North America, and competitive landed cost.
- What we actually do for you
- Confirm the HS code and read the exact rule of origin.
- Design the routing in Mexico to achieve tariff shift and, if needed, RVC.
- Source North American inputs where it moves the needle.
- Track value add and non-originating inputs with clean documentation.
- Issue a yearly blanket USMCA certificate and keep records ready for audits.
- How we engage – from assessment to certificate
- Discovery and HS code confirmation
- Qualification plan: tariff shift and RVC model, North American sourcing options
- Launch in Mexico: stamping, machining, molding, casting, assembly, labeling, kitting
- Proof and paperwork: costed BOMs, origin tracking, annual blanket certificate
- Ongoing compliance: audit-ready records and change control when BOMs evolve
- Results you can expect
- Duty savings where origin is achieved
- Shorter supply lines inside North America
- Predictable schedules with Mexican production and U.S. distribution
- Audit-ready documentation for your compliance team
- Talk to an Amfas Mexico origin specialist
- Send your BOM and current HS code for a fast read-out on qualification paths.
- We will outline a Mexico value-add plan that meets your rule of origin and prepares your USMCA certificate.
- Micro-glossary
- HS Code: the product classification that controls which origin test applies.
- Tariff Shift: finished good’s HS code must change from non-originating inputs.
- RVC: required minimum share of North American value under some HS codes.
- Originating Material: sourced in the U.S., Mexico, or Canada, or already qualifying.
- Blanket Certificate: a certificate of origin covering shipments for a full year.
We know how to ensure your parts qualify under the correct rule of origin. We control the value-add steps in Mexico, which is what creates real USMCA benefit. And we maintain the documentation your compliance team needs for any audit. From HS code confirmation to final certificate, Amfas handles the process so your product moves duty-free with confidence.
Frequently Asked Questions
Does “assembled in Mexico” automatically mean duty-free under USMCA?
No. You must meet the rule of origin for the product’s HS code. Assembly alone may not be enough.
Do we have to change suppliers to qualify?
Not always. Often we can design a tariff-shift-friendly process or add specific value-add steps in Mexico so the finished good qualifies without changing every component source. If RVC applies, we may recommend targeted North American sourcing to meet the required regional value percentage.
How do we choose between Transaction Value and Net Cost for RVC?
The rule and your commercial structure guide the choice. We model both and pick the method that creates the clearest, defensible path above the regional value threshold.
What proof will customs want if there is an audit?
Expect a request for the certificate, BOMs, supplier declarations, production records, and RVC workpapers if applicable. Amfas maintains these files so your team is covered.
Can sub-assemblies qualify separately?
Yes, if their HS codes and rules are met. In practice we map the entire BOM tree and plan where each tariff shift occurs, then roll it up to the finished assembly’s rule.
Compliance note: This page is for general guidance only. Always rely on the exact rule of origin for your HS code and the governing legal text. We help you document a position that stands up to review. In some instances, we may recommend to obtain binding classification and USMCA rulings from US Customs and Border Protection (CBP), which we can help prepare and submit via eRuling process.
