Shipping from Mexico Doesn’t Mean Your Goods Automatically Qualify for USMCA

When businesses ship goods from Mexico to the U.S. or Canada, they often assume those goods automatically qualify for the benefits of the United States-Mexico-Canada Agreement (USMCA). After all, they’re shipping from within North America, right? Unfortunately, it’s not that simple. While shipping from a USMCA country is a critical factor, it’s only part of the equation when it comes to duty-free access. Failing to understand the details of this agreement could lead to unexpected tariffs, fines, or penalties for non-compliance.

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Here’s why just shipping from Mexico doesn’t mean your products automatically qualify for USMCA benefits—and how Kendrick Trade can help ensure you get it right.

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Understanding the Rules of Origin

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Under USMCA, it’s not enough for goods to be shipped from a USMCA country; they must also meet specific rules of origin to qualify for preferential treatment. These rules ensure that goods produced within the member countries—Mexico, the U.S., or Canada—receive the benefits of the agreement, like reduced or eliminated tariffs. For example, a product assembled in Mexico using components from China may not meet the necessary Regional Value Content (RVC) thresholds or other rules of origin required by USMCA​ (Wolters Kluwer; Foley & Lardner LLP).

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To put it simply, just because your goods are leaving aMexican facility doesn’t mean they’ll automatically qualify as "Made in Mexico" under the strict requirements of the agreement.

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The Consequences of Non-Compliance

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Assuming your goods qualify for USMCA without verifying their origin can be costly. Inaccurate claims can lead to significant penalties, delays at customs, or the loss of duty-free privileges entirely. Customs authorities are increasingly scrutinizing USMCA claims, especially as supply chains evolve and more Chinese companies move operations to Mexico​ (Thomson Reuters Tax Solutions). The goal is to ensure that companies are genuinely following the rules of origin, not just routing goods through Mexico to take advantage of USMCA benefits.

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Why Accurate Qualification Matters

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The process of qualifying goods under USMCA involves more than just labeling them as Mexican-made. Companies must carefully review the content and origin of all components and raw materials to ensure they meet the agreement’s requirements. This means tracking inputs, performing calculations, and maintaining proper documentation—tasks that can be complex, especially for businesses unfamiliar with trade compliance​ (Home | Plante Moran).

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At Kendrick Trade, we help businesses ensure their products meet these qualifications, eliminating the guesswork. Our software simplifies the qualification process, allowing you to determine if your goods truly meet the criteria for USMCA without spending hours digging through trade rules.You’ll know right away whether your goods qualify, and you’ll have the documentation to back it up in case of an audit.

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Avoiding Common Pitfalls

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One common misconception is that goods assembled in Mexico from foreign parts are automatically considered USMCA-compliant. However, under the agreement, there are specific content requirements for goods to qualify. For example, the auto industry must meet strict Regional Value Content rules, and products must reach a certain threshold of parts sourced from within North America​ (U.S. Chamber of Commerce; Foley & Lardner LLP).

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Other industries have similarly detailed rules. Without a tool like Kendrick Trade’s USMCA compliance software, businesses can easily overlook key details, leading to disqualified shipments and unnecessary duties.

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How Kendrick Trade Can Help

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Kendrick Trade’s USMCA qualification tool is designed to streamline this process. Unlike generic AI tools, our software focuses on the specifics of USMCA rules and ensures your goods meet the necessary qualifications. We guide businesses step by step through the process, from analyzing rules of origin to generating documentation for customs. Our goal is to help companies of all sizes navigate the complexities of USMCA while avoiding costly compliance mistakes.

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By automating the qualification process, Kendrick Trade saves you time and reduces the risk of non-compliance. Our software isn’t just for large corporations—it’s a solution for businesses of all sizes that want to capitalize on the benefits of USMCA while ensuring full compliance with the law.

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Final Thoughts

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Just because your products are shipped from Mexico doesn’t mean they automatically qualify for USMCA benefits. As the enforcement of trade rules increases, businesses must take proactive steps to ensure their goods meet the agreement’s requirements. Whether you’re a small business or a large corporation, Kendrick Trade offers an easy-to-use solution that ensures compliance without the headaches.

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Don’t leave your USMCA qualifications to chance—get in touch with Kendrick Trade today and start saving on duties the right way.