Tariffs
De Minimis Clause
Also known as: De minimis rule, Origin tolerance
A rules of origin provision that allows goods containing a minimal percentage of non-originating materials (generally 7-10% of total value) to still qualify as originating.
Also known as: De minimis rule, Origin tolerance
A rules of origin provision that allows goods containing a minimal percentage of non-originating materials (generally 7-10% of total value) to still qualify as originating.
The de minimis clause is an exception in free trade agreement rules of origin that allows goods not strictly meeting the required tariff classification change to qualify as originating if non-originating materials do not exceed a minimum percentage of total value. Under USMCA, the general threshold is 10% of the transaction value. For textile products, a weight criterion applies instead of value. This clause prevents insignificant amounts of non-originating materials from blocking preferential tariff access.
Rules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
TariffsRegional Value Content
The percentage of a product's value that must originate within a free trade agreement's region for the goods to qualify as originating and access preferential tariff treatment.
TradeUSMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
DocumentsCertificate of Origin
Document certifying that goods originate in a specific country, required to claim preferential tariff rates under trade agreements.