USMCA — North American Trade Agreement Compliance Automation

The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA on July 1, 2020. It modernizes rules of origin, tightens Regional Value Content (RVC) thresholds for key industries like automotive, introduces new digital trade provisions, and strengthens labor and environmental standards. Qualifying goods can be traded duty-free across the three countries. Regilient automates USMCA origin validation, certificate generation, and renewal tracking.

RVC measures the percentage of a product's value that originates within North America. USMCA allows two calculation methods: the Transaction Value method (based on transaction value minus non-originating materials) and the Net Cost method (based on total cost minus excluded costs). Specific RVC thresholds vary by product category. Regilient automates RVC calculations using supplier cost breakdowns and flags products that fall below required thresholds.

A tariff shift rule requires that non-originating materials undergo a specified change in HS code classification during manufacturing. For example, if raw materials classified in one HS chapter are transformed into a finished product classified in a different chapter, the tariff shift requirement is met. Regilient validates tariff shifts automatically using HS code logic linked to product and supplier data.

The USMCA Certificate of Origin (based on minimum data elements, not a fixed form) can be issued by the importer, exporter, or producer. It certifies that goods qualify for preferential tariff treatment under USMCA rules of origin. Certificates must be retained for at least five years. Regilient auto-generates certificates from validated supplier and product data with digital approval workflows.

USMCA certifications can cover a single shipment or a blanket period of up to 12 months. They must be renewed before expiry or whenever a product's origin status changes due to sourcing shifts. Regilient tracks renewal deadlines and sends automatic alerts, ensuring continuous compliance without manual calendar management.

False origin claims can result in denial of preferential duty rates, recovery of unpaid duties with interest, and civil penalties. CBP may also subject the importer to increased scrutiny and audits. Maintaining documented, verifiable origin data is essential. Regilient provides full audit trails with supplier declarations, RVC calculations, and approval histories.