Practice Area · Trade & USMCA
USMCA Compliance for U.S. Companies
Trade compliance, on the corridor
What is USMCA compliance?
USMCA compliance means ensuring your goods and operations qualify for preferential treatment under the United States–Mexico–Canada Agreement — meeting the rules of origin, regional value content, and labor requirements, and maintaining the certifications and records to prove it. KNR USMCA helps U.S. companies operating across the Mexico corridor stay qualified, documented, and audit-ready.
USMCA preserved tariff-free trade — but it raised the bar to qualify and added real enforcement, from stricter automotive rules to the Rapid Response Labor Mechanism. The difference between a duty-free supply chain and an unexpected duty bill plus penalties usually comes down to whether the origin analysis, certifications, and records were done correctly, before customs asks.
Where exposure comes from
Six places USMCA
claims fall apart
Rules-of-origin errors
Get the origin determination wrong and you lose preferential treatment — owing normal duties, plus penalties and interest, often retroactively.
Regional value content
Products must meet RVC thresholds to qualify. A change in suppliers or inputs can quietly push a previously-qualifying good below the line.
Automotive-specific rules
Autos and parts face higher RVC (75%), Labor Value Content requirements, and steel and aluminum purchasing rules that are easy to fall short of.
Certification of origin
A certification must carry the required data elements and be supportable by records. A defective or unsupported certification is itself a liability.
Rapid Response Labor Mechanism
The RRM lets U.S. authorities target a specific facility over alleged denials of workers’ rights — with real, facility-level penalties for manufacturers in Mexico.
Records & verification
You must keep records to support origin claims. A customs verification you cannot substantiate means the benefit is denied and duties apply after the fact.
What we handle
Qualified and
audit-ready
The origin analysis, certifications, records, and labor-compliance work that keep your goods qualifying under USMCA — and keep a customs verification or Rapid Response petition from becoming a costly surprise.
Request a USMCA review- Rules-of-origin and tariff-shift analysis
- Regional Value Content (RVC) calculations
- Automotive compliance (RVC, Labor Value Content, steel/aluminum)
- Certification of origin preparation and review
- Rapid Response Labor Mechanism risk and response
- Customs records, verification, and audit support
- USMCA terms in supplier and customer contracts
- Dispute and penalty mitigation
How we work
Assess. Certify.
Document. Defend.
Assess origin
We analyze whether your goods qualify under the applicable USMCA rules of origin and value-content thresholds.
Certify
We prepare or review your certifications of origin, ensuring the required data elements and a defensible basis.
Document
We build the recordkeeping that supports your claims, so a verification is a formality rather than a liability.
Defend
We respond to customs verifications, Rapid Response Labor petitions, and penalty exposure when they arise.
Common questions
USMCA,
answered
What U.S. trade, legal, and operations teams ask us most about qualifying and staying compliant under USMCA.
The United States–Mexico–Canada Agreement (USMCA) replaced NAFTA and entered into force on July 1, 2020. It preserves tariff-free trade for qualifying goods but tightens the rules of origin — especially for automobiles — adds significantly stronger labor provisions including the Rapid Response Labor Mechanism, and updates areas such as digital trade. For U.S. companies operating across the Mexico corridor, the practical effect is stricter qualification requirements and more enforcement.
Rules of origin are the criteria that determine whether a good "originates" in North America and therefore qualifies for preferential, tariff-free treatment under USMCA. They look at where inputs come from, whether there is a required tariff shift, and/or whether the good meets a regional value content threshold. If a good does not meet the applicable rule, normal (most-favored-nation) duties apply.
The Rapid Response Labor Mechanism (RRM) is a USMCA enforcement tool that lets the United States seek review of alleged denials of workers’ freedom of association and collective bargaining rights at a specific facility in Mexico, and impose facility-level penalties such as suspended tariff benefits. It is a direct, operational risk for manufacturers, and it makes labor compliance a trade-compliance issue, not just an HR one.
Yes — to claim preferential treatment, you need a valid certification of origin. USMCA does not require a specific government form, but the certification must contain the required data elements and be supportable by your records. The importer, exporter, or producer can complete it. The flexibility is helpful, but it also means the responsibility for getting it right sits with you.
Customs authorities can verify an origin claim by requesting records and information supporting it. If you cannot substantiate the claim, the preferential treatment is denied and duties — potentially with penalties and interest — apply retroactively. This is why documentation matters as much as the original origin analysis: a correct determination you cannot prove is worth little in an audit.
Trading across the corridor?
Stay Qualified
Stay Audit-Ready
Tell us about your products and supply chain. We'll pressure-test your USMCA position — origin, certifications, records, and labor — in a focused review.