FTA Provisions for De Minimis Rule
- In general, the de minimis Rule allows up to 10 percent of adjusted value (Australia, Chile, Colombia, DR-CAFTA, Panama, Peru, S. Korea, Singapore and USMCA). However, if a foreign input does not meet the rule of origin and does not qualify under the De Minimis Rule, then the good does not qualify under the FTA.
- Note that since Israel and Jordan FTAs do not contain tariff shift provisions in their rules of origin, they do not have a de minimis rule. While Bahrain, Morocco and Jordan FTAs have a few specific rules of origin that have a tariff shift element, these FTAs still do not have a de minimis provision.
- Each FTA has exceptions to the de minimis rule (e.g. for agricultural or textile shipments), so if your company is using the de minimis rule to claim your good is originating, please consult the specific FTA to ensure your good is not one of the goods listed that cannot use the de minimis rule.