USMCA Rules of Origin: Auto Sector Compliance Deadline
Effective Jan 1, 2026
Full USMCA automotive rules of origin now in effect. Vehicles must meet 75% regional value content to qualify for duty-free treatment under USMCA.
Overview
The USMCA automotive rules of origin have reached full implementation. All passenger vehicles and light trucks must now meet the 75% regional value content (RVC) requirement to qualify for preferential duty treatment.
Requirements
Regional Value Content
- 75% of vehicle content must originate in North America
- Core parts (engine, transmission, body) require 75% RVC
- Principal parts require 70% RVC
- Complementary parts require 65% RVC
Labor Value Content
- 40% of vehicle value must be produced with wages of at least $16/hour
- 45% for pickup trucks
Impact on Importers
Vehicles that do not meet USMCA requirements are subject to:
- 2.5% MFN duty rate for passenger vehicles
- 25% duty rate for light trucks
Compliance
Importers must maintain detailed records demonstrating compliance with RVC calculations and be prepared for CBP verification audits.