USMCA RVC can be calculated under transaction value method (typically 60% threshold) or net cost method (typically 50% threshold). Auto goods require net cost method only with 75% threshold. RVC = (Total Value − Value of Non-Originating Materials) / Total Value. Higher threshold under transaction value reflects that some excluded items (interest, royalties, profit) are part of total value.
This guide covers USMCA RVC Calculation Methods. USMCA (called CUSMA in Canada) provides preferential tariff treatment for goods qualifying under specific rules of origin among the United States, Mexico, and Canada.
In 2026, USMCA-qualifying goods are also exempt from Section 122 – making qualification work directly value-creative for cross-border trade.
Transaction value method
Total Value = transaction value of the good. Non-Originating Materials = value of foreign components. Threshold: typically 60%. Easier calculation; preferred for goods with low foreign content.
Net cost method
Total Value = total production cost less excluded items (interest, royalties, sales promotion, packing). Non-Originating Materials = foreign components plus tracing. Threshold: typically 50%. Required for autos.
When net cost is required
Auto goods must use net cost. Some other categories (motor vehicle parts, certain chemicals) require net cost in specific configurations.
Worked example – non-auto good
Total transaction value $100. Non-originating materials $35. RVC = (100-35)/100 = 65%. Qualifies under transaction value (60% threshold).
Frequently asked questions
How does USMCA differ from NAFTA?
USMCA replaced NAFTA in July 2020. Key differences include stricter auto rules of origin (75% RVC vs 62.5%), Labor Value Content rules, and updated rules for digital trade, IP, and dispute settlement.
When does USMCA come up for review?
The 2026 review is now narrowly scoped to U.S.-Mexico production and non-market inputs. The agreement continues; specific provisions may be updated.
Are USMCA goods exempt from Section 122?
Yes. USMCA-qualifying goods are exempt from the Section 122 surcharge. This is the central commercial advantage in 2026.
How do I know if my product qualifies?
USMCA qualification depends on rules of origin specific to your HS classification. We run RVC stress-tests as a fixed-fee engagement.
What does USMCA qualification work cost?
Per-product RVC stress-test: $4,500-$8,500. Multi-product engagements priced by SKU count.
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