A brief explanation of the De Minimis Rule and how it affects exporting under a free trade agreement. This information is part of "A Basic Guide to Exporting", provided by the U.S. Commercial Service, to assist companies in exporting.
Last Published: 10/20/2016
De Minimis Rule

In general, the De Minimis Rule allows up to 10 percent (7 percent for NAFTA) of the selling price to be non-qualifying material even though the nonoriginating good may not meet the TS test. However, if a foreign input does not meet the ROO and does not qualify under the De Minimis Rule, then the good does not qualify under the FTA. Note: There are several exceptions to the De Minimis Rule. For example, the De Minimis Rule for textile products is calculated by weight. It is important to consult the text of the agreement for more details. 

 




Rules of Origin