INTERNATIONAL TRADE LAW
How to Export Under Free Trade Agreements
Exporting under a free trade agreement lets your foreign buyer claim reduced or zero tariffs on your goods — but only if the goods qualify under the agreement’s rules of origin and the claim is backed by a proper certification of origin. The tariff break is real money, and buyers often choose suppliers who can support a preference claim. The catch: the preference is a claim someone has to stand behind, and a wrong claim is the exporter’s and importer’s problem, not the customs authority’s.
What a Free Trade Agreement Actually Does
An FTA is a treaty that lowers or eliminates tariffs on originating goods traded between the member countries. It does not make your product duty-free everywhere — only between the parties, and only if the product meets the origin rules. The duty preference is claimed by the importer in the destination country at entry, but the exporter or producer usually supplies the document that supports it. So even though the buyer gets the tariff benefit, the exporter is the one who must know whether the goods qualify.
Rules of Origin: Does the Product Qualify?
“Originating” is a legal status, not just where the item shipped from. Goods generally qualify in one of these ways:
| Path | What it means |
|---|---|
| Wholly obtained | Entirely grown, produced, or made in the FTA region |
| Tariff shift | Non-originating inputs are transformed enough to change their tariff classification |
| Regional value content | A required percentage of the value comes from the region |
| De minimis | A small share of non-originating material is tolerated without disqualifying the good |
Determining origin means tracing your bill of materials against the specific rule for your product’s tariff classification. This is where most preference claims break down — an input you assumed was “domestic enough” may not satisfy the tariff-shift or value rule.
The Certification of Origin
Under the USMCA — the agreement that replaced NAFTA on July 1, 2020 — there is no government form. (The old NAFTA Certificate of Origin, CBP Form 434, was retired.) Instead, the certification can appear on an invoice or any document and must include nine required data elements: the certifier (importer, exporter, or producer); the certifier’s, exporter’s, producer’s, and importer’s details; a description and the 6-digit HS classification of the goods; the origin criterion; the blanket period if used; and an authorized signature and date. Other U.S. agreements have their own certification mechanics, but the principle is the same: a signed statement, supported by records, that the goods meet the rules of origin.
Keep the Proof
A certification is only as good as the records behind it. U.S. rules generally require keeping origin records — bills of materials, supplier certifications, cost data, and the certification itself — for five years, consistent with broader export recordkeeping practice. If the destination’s customs authority audits the claim, those records are what defend it. A false or unsupported claim can trigger duty assessments, penalties, and loss of preference eligibility.
Common U.S. Free Trade Agreements
The United States maintains free trade agreements with a range of partners, including:
- USMCA (Canada and Mexico)
- KORUS (South Korea)
- Bilateral agreements with countries such as Australia, Chile, Colombia, Israel, Singapore, and several others
Each has its own rules of origin and certification format, so confirm the specific agreement before you certify — qualifying under one does not mean qualifying under another.
Frequently Asked Questions
Who claims the tariff preference, the exporter or the importer?
The importer claims it at entry in the destination country. The exporter or producer typically provides the certification of origin and the underlying records that support the claim.
Is there an official USMCA certificate of origin form?
No. USMCA has no prescribed government form. The certification can be placed on an invoice or any document, as long as it contains the nine required data elements and a signature. CBP Form 434, used under NAFTA, was retired.
What makes a good “originating” under a free trade agreement?
It meets the agreement’s rule of origin for that product — typically by being wholly obtained in the region, undergoing a required tariff shift, or meeting a regional value-content threshold, sometimes with a de minimis allowance for minor non-originating inputs.
How long do I keep origin records?
Generally five years. Keep the bill of materials, supplier certifications, cost or value calculations, and the certification itself, so the claim can survive a customs audit.
A preference claim you cannot document is a liability, not a discount. Reidel Law Firm helps exporters determine origin, build certifications, and keep audit-ready records under USMCA and other agreements on flat-fee terms. Get an export compliance memo.
