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USMCA (T-MEC) rules of origin from Mexico: when goods qualify, the auto rules, certifications of origin, records and the annual reviews

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Last verified: 2026-10-26 · Status: Changing

A good made in Mexico enters the United States and Canada at the USMCA preferential rate only if it is originating: wholly obtained in the region, made only from originating materials, or made with non originating materials that meet the product specific rule in Annex 4-B, with a 10 percent de minimis allowance for non originating materials that fail the tariff shift. Passenger vehicles and light trucks face stricter rules: 75 percent regional value content under the net cost method, 70 percent of the producer's steel and aluminum purchases originating, and a labor value content of 40 percent for cars and 45 percent for trucks tied to high wage production of at least US$16 an hour. Preference is claimed on a certification of origin by the exporter, producer or importer that may cover shipments for up to 12 months, records must be kept five years, and since the 1 July 2026 joint review the treaty runs to 2036 with annual reviews.

USD conversions use MXN 18.5026 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 16 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Mexican customs converts foreign currency values at the rate set under the customs rules, which differs slightly. Conversions are for orientation only.

Key facts

USMCA entry into force	2020-07-01 dateDecreto promulgatorio DOF 29 June 2020, as of 2026-10-26 · in force
End of current USMCA term absent extension	2036-07-01 dateUSMCA art. 34.7, as of 2026-10-26 · in force
Joint review cycle after the 2026 review	Annual USMCA art. 34.7, paragraph 4; SE statement 1 July 2026, as of 2026-10-26 · in force
USMCA de minimis for non originating materials	10 %USMCA art. 4.12, as of 2026-10-26 · in force
USMCA regional value content where art. 4.2(d) applies, transaction value method	60 %USMCA art. 4.2(d), as of 2026-10-26 · in force
USMCA regional value content for passenger vehicles and light trucks (net cost)	75 %USMCA Appendix to Annex 4-B, art. 3, as of 2026-10-26 · in force
Share of vehicle producer's steel and aluminum purchases that must be originating	70 %USMCA Appendix to Annex 4-B, art. 6, as of 2026-10-26 · in force
Labor value content for passenger vehicles	40 %USMCA Appendix to Annex 4-B, art. 7, as of 2026-10-26 · in force
High wage threshold for the assembly credit	16 USD per hourUSMCA Appendix to Annex 4-B, art. 7, as of 2026-10-26 · in force
Maximum period of a blanket certification of origin	12 monthsUSMCA art. 5.2.5, as of 2026-10-26 · in force
Record keeping for preference claims	5 yearsUSMCA art. 5.8, as of 2026-10-26 · in force
Import value below which no certification of origin is needed	1000 USDUSMCA art. 5.5, as of 2026-10-26 · in force

The rule

1. When a good is originating. A good is originating if it is (a) wholly obtained or produced in one or more USMCA countries; (b) produced in the region using non originating materials and it meets the product specific rule of origin in Annex 4-B (usually a change in tariff classification, sometimes with a regional value content); (c) produced in the region exclusively from originating materials; or (d) except for textiles of chapters 61 to 63, produced in the region with non originating parts that cannot meet the tariff shift because they share a heading or subheading with the good, if the regional value content is at least 60 percent under the transaction value method or 50 percent under the net cost method.USMCA (T-MEC), promulgated in Mexico by decree DOF 29 June 2020, in force 1 July 2020, USMCA art. 4.2 and Annex 4-B, 2020-07-01 official text · verified 2026-10-26

2. De minimis. A good is originating even if some non originating materials do not undergo the required tariff shift, provided their value is not more than 10 percent of the transaction value of the good (adjusted to exclude international shipping) or of its total cost, and the good meets all other requirements; a good whose total non originating materials are within 10 percent is also excused from a regional value content requirement. Annex 4-A lists exceptions, for example certain dairy, sugar and citrus products.
Example: A Mexican made appliance with a transaction value of MXN 1,850,260 can include up to MXN 185,026 of non originating materials that fail the tariff shift. / On a USD 100,000 good, up to USD 10,000 of such materials.USMCA (T-MEC), in force 1 July 2020, USMCA art. 4.12 and Annex 4-A, 2020-07-01 official text · verified 2026-10-26

3. Automotive rules. A passenger vehicle or light truck must reach 75 percent regional value content under the net cost method (phased in from 66 percent in 2020, 75 percent from 1 January 2023); core parts listed in Table A.1 need 75 percent net cost or 85 percent transaction value. A passenger vehicle, light truck or heavy truck is originating only if at least 70 percent of the producer's purchases of steel and of aluminum in the region are originating. The vehicle producer must also certify a labor value content of 40 percent for passenger vehicles (from 1 January 2023) and 45 percent for light and heavy trucks, built from high wage material and manufacturing, technology and assembly expenditures; the assembly credit requires engine, transmission or advanced battery plants with an average production wage of at least US$16 per hour.USMCA (T-MEC), Appendix to Annex 4-B (Provisions Related to the Product-Specific Rules of Origin for Automotive Goods), Appendix to Annex 4-B, arts. 3, 6 and 7, 2020-07-01 official text · verified 2026-10-26

4. Certification of origin. The importer may claim preferential treatment based on a certification of origin completed by the exporter, producer or importer; for Mexico, importer certification was phased in within three years and six months after entry into force. A certification may cover a single shipment or multiple shipments of identical goods within a period of up to 12 months, and is accepted for four years after it was completed. No certification is required for imports valued at US$1,000 or less unless they form part of a series meant to evade the rules.USMCA (T-MEC), in force 1 July 2020, USMCA arts. 5.2 and 5.5, 2020-07-01 official text · verified 2026-10-26

5. Records, late claims and verification. An importer claiming preference must keep for at least five years from importation the import documents including the certification and, if it certified itself, all records showing the good is originating; exporters and producers who certify keep their records for five years from the certification. If no claim was made at import, the importer may still claim a refund of excess duties within one year after importation, or longer if the importing country's law allows. The importing country may verify origin by questionnaires, visits or written requests, and deny preference. In Mexico, failing to correct the tax position after a denial of preferential treatment in an origin verification is a ground for suspension from the importers register.USMCA (T-MEC), in force 1 July 2020; Reglas Generales de Comercio Exterior para 2026, DOF 27 December 2025, USMCA arts. 5.8, 5.9 and 5.11; RGCE rule 1.3.3, section XLVI, 2020-07-01 official text · verified 2026-10-26

6. Term and reviews. The USMCA ends 16 years after entry into force (that is, on 1 July 2036) unless the parties confirm in writing an extension for a new 16 year term; if a party does not confirm at the sixth year joint review, the Free Trade Commission meets every year for the rest of the term and the parties may extend at any time. At the joint review held on 1 July 2026 the three countries agreed to hold annual reviews and the treaty continues in force until 2036; the Ministry of Economy stated that the parties may agree at any annual review to extend it for another sixteen years.USMCA (T-MEC), in force 1 July 2020; Ministry of Economy statement of 1 July 2026, USMCA art. 34.7, 2026-07-01 official text · verified 2026-10-26 · changed: At the joint review of 1 July 2026 the parties did not all confirm a 16 year extension; annual joint reviews now apply under art. 34.7, paragraph 4, with the current term running to 2036.

Rule	Threshold	Article
De minimis for materials failing the tariff shift	10 percent of adjusted transaction value or total cost	4.12
Regional value content, general (art. 4.2(d) and many Annex 4-B rules)	60 percent transaction value or 50 percent net cost	4.2(d), 4.5
Passenger vehicles and light trucks	75 percent net cost	Appendix art. 3.1
Core parts for those vehicles (Table A.1)	75 percent net cost or 85 percent transaction value	Appendix art. 3.2
Steel and aluminum purchases	70 percent originating	Appendix art. 6
Labor value content	40 percent cars, 45 percent trucks	Appendix art. 7
Blanket certification	Up to 12 months	5.2.5
No certification needed	Imports of US$1,000 or less	5.5
Records	5 years	5.8

USMCA origin thresholds, verified 26 October 2026 against USMCA chapters 4 and 5 and the Appendix to Annex 4-B (ustr.gov texts).

Worked example

A Mexican maker of steel furniture uses Mexican steel tubes, US fabric and Chinese fittings. Its product specific rule is a change in tariff heading; the Chinese fittings, worth MXN 92,513 on a production lot sold for MXN 1,850,260 (5 percent), do not shift heading.
Because the non qualifying fittings are within the 10 percent de minimis of art. 4.12, the furniture is originating and enters the United States at the USMCA preferential rate on a certification of origin issued by the Mexican producer, which can cover identical shipments for up to 12 months (art. 5.2).
The producer keeps bills of materials, supplier declarations and cost records for five years (art. 5.8), because a US origin verification can deny preference retroactively. If the furniture was produced under IMMEX, Mexican duty on the Chinese fittings is due under USMCA art. 2.5.

Step by step

1. Classify the finished good and every input under the Harmonized System and find the Annex 4-B rule for the good.
2. Build a bill of materials showing origin and value of each input; get supplier certifications or written representations for regional inputs.
3. Test the tariff shift, apply de minimis, and compute regional value content where the rule requires it.
4. Issue certifications of origin with the minimum data elements of Annex 5-A, single or blanket up to 12 months.
5. Keep the records for five years and be ready for verification questionnaires and visits (arts. 5.8 and 5.9).
6. For IMMEX operations, model the art. 2.5 duty on non originating inputs in goods sent to the United States or Canada.
7. Track the annual joint reviews under art. 34.7, since rule changes can be agreed at each review.

Common traps

Confusing made in Mexico with originating. Assembly in Mexico of mostly non North American parts often fails the Annex 4-B rule.
Forgetting the steel and aluminum and labor value tests for vehicles. Meeting 75 percent regional value content is not enough on its own (Appendix arts. 6 and 7).
Blanket certifications that outlive the facts. A change of supplier during the 12 month period can make the certification wrong.
Relying on the treaty's long term without planning for reviews. Since July 2026 the USMCA is reviewed every year and runs to 2036 unless extended.
Ignoring denial follow up in Mexico. Not correcting after a negative origin verification can suspend the importer from the Padrón de Importadores (RGCE rule 1.3.3, section XLVI).

Sources

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