A brief explanation of how to determine the "Rules of Origin" under several free trade agreements, including NAFTA. 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
North America Free Trade Agreement, Chile, Singapore, Australia, Central America Free Trade Agreement-Domican Republic, Colombia, Panama, Korea, and Peru Free Trade Agreements

All apply TS- and/or RVC-based rules of origin. The TS-based rules vary among FTAs, but the principle of the tariff classification change test remains the same.

However, the applicable RVC-based rules may be net cost–, transaction value–, builddown-, or buildup-based, depending on a particular FTA and the particular product.

For example, to qualify a product for NAFTA, an exporter may need to apply either the net cost–based RVC rule (requires minimum 50 percent FTA-origin content) or transaction value–based ROO (requires minimum of 60 percent FTA-origin content). 




CAFTA NAFTA US Australia Free Trade Agreement US Colombia Trade Promotion Agreement US Panama Trade Promotion Agreement US Peru Trade Promotion Agreement US Singapore Free Trade Agreement