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:
- USMCA — goods originating in Canada or Mexico
- AUFTA — goods originating in Australia
- KORUS — goods originating in South Korea
- ILFTA — goods originating in Israel
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.
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.