What a free trade agreement is, how a preferential duty claim works, and which agreements are covered here.
A free trade agreement (FTA) is a treaty between two or more countries that offers preferential duty rates — reduced or duty-free — for goods that meet the agreement's rules of origin.
An FTA preferential rate is not a default entitlement. It's a claim made at the time of entry, backed by origin data, for goods that qualify under that agreement's rules of origin. Skip the claim, and the shipment is assessed at the standard MFN duty rate plus any additional tariffs — and that becomes the lawful duty owed.
Every claim needs documentation on hand
Every claim must be backed by documentation supporting the good's origin. That documentation doesn't have to be submitted with the entry, but it must exist at the time of the claim and be available if CBP asks for it — and CBP can verify a claim after entry.
Qualification is decided agreement by agreement. Each FTA has its own rules of origin and its own documentation requirements. "Shipped from" is not the same as "originating" — the goods have to meet the agreement's specific origin test, not just be exported from the partner country.
Whichever agreement applies, keep the documentation supporting the claim — generally five years. CBP can verify a preference claim after entry, and an unsupported claim can mean the duty gets reassessed, plus potential penalties.
Disclaimer
This guide is informational and does not constitute legal or customs advice. Consult a licensed customs broker or trade attorney for entry-specific determinations.
Free trade agreements
Free trade agreements
What a free trade agreement is, how a preferential duty claim works, and which agreements are covered here.
A free trade agreement (FTA) is a treaty between two or more countries that offers preferential duty rates — reduced or duty-free — for goods that meet the agreement's rules of origin.
An FTA preferential rate is not a default entitlement. It's a claim made at the time of entry, backed by origin data, for goods that qualify under that agreement's rules of origin. Skip the claim, and the shipment is assessed at the standard MFN duty rate plus any additional tariffs — and that becomes the lawful duty owed.
Every claim must be backed by documentation supporting the good's origin. That documentation doesn't have to be submitted with the entry, but it must exist at the time of the claim and be available if CBP asks for it — and CBP can verify a claim after entry.
Who this affects, and how to check
Qualification is decided agreement by agreement. Each FTA has its own rules of origin and its own documentation requirements. "Shipped from" is not the same as "originating" — the goods have to meet the agreement's specific origin test, not just be exported from the partner country.
Four agreements are covered here:
Whichever agreement applies, keep the documentation supporting the claim — generally five years. CBP can verify a preference claim after entry, and an unsupported claim can mean the duty gets reassessed, plus potential penalties.
This guide is informational and does not constitute legal or customs advice. Consult a licensed customs broker or trade attorney for entry-specific determinations.
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