INTERNATIONAL TRADE LAW
How to Import Under Free Trade Agreements
Importing under a free trade agreement (FTA) can reduce your duty rate to zero — but only if your goods actually meet the agreement’s rules of origin and you hold the documentation to prove it. The savings are real, and so is the audit risk: a preference claim you cannot support is an unpaid-duty bill waiting to happen. This guide explains which agreements exist, how qualification works, and what CBP expects you to keep on file.
Which Free Trade Agreements the US Has
The United States is party to 14 comprehensive free trade agreements covering 20 countries. The largest is the U.S.–Mexico–Canada Agreement (USMCA), which replaced NAFTA on July 1, 2020. The others are agreements with Australia, Bahrain, the CAFTA-DR countries (Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua), Chile, Colombia, Israel, Jordan, Korea, Morocco, Oman, Panama, Peru, and Singapore. If your supplier sits in one of these countries, an FTA rate may be available — but country of import is only the starting point.
A Free Trade Agreement Lowers the Rate; Rules of Origin Decide Eligibility
This is the part importers miss: an FTA does not give every product from a partner country a free pass. Each agreement contains rules of origin that decide whether a specific good “originates” in the FTA region and therefore qualifies for the preferential rate. A product merely shipped through a partner country does not qualify. The common tests are:
| Origin test | How a good qualifies |
|---|---|
| Wholly obtained | Grown, mined, or produced entirely in the region |
| Tariff shift | Non-originating inputs are transformed enough to change HTS classification |
| Regional value content | A required percentage of value comes from the region |
Which test applies depends on your product’s classification, so origin analysis always starts with getting the HTS classification right.
How to Claim Preferential Treatment
Claiming an FTA rate is a deliberate act at entry, supported by documentation. Under the USMCA, there is no required government form — CBP Form 434 is no longer used. Instead, the certification must contain nine specified data elements, which can appear on the commercial invoice or any other document. The certification can be completed by the importer, exporter, or producer, and the importer may also claim based on its own knowledge supported by records. The practical sequence:
- Classify the good and identify the rule of origin that applies to that classification.
- Confirm the good meets the rule — usually with information only the producer has.
- Obtain or prepare the certification with all required data elements.
- Make the claim at entry (or, where allowed, as a post-entry refund claim).
- Keep the supporting records in case CBP verifies the claim later.
Because the producer or exporter is usually the only party that knows whether the goods truly qualify, get their cooperation in writing before you rely on a preference.
You Make the Claim — and You Carry the Risk
The importer is responsible for the preference claim. If CBP later finds the goods did not qualify, the importer owes the duties that should have been paid, plus interest, and potentially penalties if the claim was not made with reasonable care. Treat an FTA claim like any other declaration: document it, keep the records for five years, and do not claim a preference you cannot defend.
What About GSP and Other Preference Programs?
Beyond reciprocal FTAs, the U.S. has used preference programs such as the Generalized System of Preferences (GSP), which grants duty-free treatment to many goods from developing countries. Note an important status point: GSP lapsed on December 31, 2020, and as of mid-2026 remains expired and awaiting congressional reauthorization. Programs like this come and go with legislation, so confirm a program is active before you build a sourcing decision around it.
Frequently Asked Questions
Does importing from an FTA country guarantee a lower duty? No. The country is only the threshold question. The goods must satisfy that agreement’s rules of origin, and you must hold a valid certification, to get the preferential rate.
What is a certification of origin under USMCA? It is a set of nine required data elements showing the goods qualify. There is no mandatory form — the information can sit on the commercial invoice — and the importer, exporter, or producer can complete it.
What happens if CBP disagrees with my origin claim? You owe the duties that would otherwise have applied, plus interest, and you may face penalties if the claim lacked reasonable care. That is why the supporting records matter as much as the claim itself.
Is GSP available right now? As of mid-2026, no. GSP expired at the end of 2020 and has not been reauthorized. Check current status before relying on it.
Claiming a trade-agreement rate? Reidel Law Firm helps importers run the origin analysis, assemble defensible certifications, and document preference claims that survive a CBP verification — flat-fee import/export compliance work with direct attorney access. Get an import compliance memo →
