USMCA 2026-11-06 ammex.org.mx editorial team

USMCA Origin Criteria (A, B, C, D): Determining Eligibility & Completing Annex 5-A Element 7

Element 7 of the USMCA Certification of Origin (USMCA Annex 5-A and 19 CFR § 182.12) requires the certifier to identify the origin criterion under which each listed good qualifies for preferential tariff treatment. While our Certification of Origin Guide covers the nine minimum data elements, signature authority, and voluntary correction rules under 19 CFR §§ 182.12–182.124, this guide covers the underlying Bill of Materials (BOM) analysis used to determine which of the four origin criteria applies.

Under USMCA Article 4.2 (19 CFR § 182.61 and HTSUS General Note 11(b)), there are four general pathways—commonly designated in customs brokerage and Automated Commercial Environment (ACE) workflows as Criteria A, B, C, and D—through which a good produced in Mexico qualifies as originating. Selecting a criterion in Element 7 that does not match the actual BOM and supporting records can complicate a CBP Form 28 origin verification under 19 CFR § 182.73.

1. Comparison of Origin Criteria A, B, C, and D (`Article 4.2` & `General Note 11(b)`)

Criterion	Statutory Citation (`USMCA` / `HTSUS` / `19 CFR`)	Statutory Definition	Permitted Inputs in the BOM	Supporting Records (`19 CFR §§ 182.12(f) & 182.15` / `USMCA Art. 5.8`)
Criterion `A`	`USMCA Art. 4.2(a)` & `Art. 4.3(a)–(l)` `General Note 11(b)(i)` & `11(l)` `19 CFR § 182.61` & `App. A Part II § 2(1)(a)`	A good wholly obtained or produced entirely in the territory of one or more USMCA Parties as defined in Article 4.3(a)–(l).	Goods listed in Article 4.3(a)–(k) (minerals extracted, plants harvested, live animals born and raised, waste or scrap derived in one or more Parties, etc.) and, under Article 4.3(l) (`GN 11(l)`), goods produced in one or more Parties exclusively from the goods referred to in paragraphs (a)–(k).	Extraction, harvest, birth and raising, or waste/scrap derivation records, or production records showing the good was produced exclusively from Article 4.3(a)–(k) materials within one or more USMCA Parties.
Criterion `B`	`USMCA Art. 4.2(b)` & `Annex 4-B` `General Note 11(b)(iii)` & `11(o)` `19 CFR § 182.61` & `App. A Part II § 2(1)(b)`	A good produced entirely in the territory of one or more Parties using non-originating materials, provided the good satisfies all applicable requirements of Annex 4-B (Product-Specific Rules of Origin) and all other applicable Chapter 4 requirements. (Codified in HTSUS at `General Note 11(b)(iii)`).	North American inputs combined with non-originating third-country inputs (or undetermined-origin inputs treated as non-originating).	Classified BOM showing HS classifications (`6-digit` or more as required by the rule) for non-originating inputs, plus the tariff shift, Regional Value Content (RVC), process rule, or 10% de minimis (`Art. 4.12`) calculation.
Criterion `C`	`USMCA Art. 4.2(c)` `General Note 11(b)(ii)` `19 CFR § 182.61` & `App. A Part II § 2(1)(c)`	A good produced entirely in the territory of one or more Parties exclusively from originating materials, provided it satisfies all other applicable requirements. (Codified in HTSUS at `General Note 11(b)(ii)`).	Exclusively originating materials. Every component and material incorporated into the good must itself qualify as an originating good under USMCA Chapter 4 (including intermediate materials that qualified under Criterion B).	Information and documentation under `19 CFR § 182.12(f)` (such as supplier certifications of origin, written producer representations, or origin documentation) demonstrating that all materials used in production are originating.
Criterion `D`	`USMCA Art. 4.2(d)` `General Note 11(b)(iv)(A)–(C)` `19 CFR § 182.61` & `App. A Part II § 2(1)(d)`	Except for a good of Chapters 61–63, a good produced entirely in the territory of one or more Parties where one or more non-originating materials cannot satisfy Annex 4-B because (1) both the good and its materials are classified in the same subheading or in an undivided heading, and the good was imported into a Party’s territory in an unassembled or disassembled form but classified as an assembled good pursuant to `GRI 2(a)`, or (2) the heading for the good provides for and specifically describes both the good itself and its parts and is not further subdivided into subheadings, or the subheading provides for and specifically describes both the good itself and its parts—provided the RVC is not less than 60% Transaction Value or 50% Net Cost and all other applicable requirements are met.	Non-originating parts or materials falling within one of the two alternatives in `GN 11(b)(iv)(B)(1)–(2)` (excluding Chapters 61–63) where the finished good meets `60% TV` or `50% NC` RVC (`GN 11(b)(iv)(C)`), territorial production (`GN 11(b)(iv)(A)`), and all other applicable requirements in the concluding clause.	Classification and production records showing the good is outside Chapters 61–63, satisfies Alternative (1) (`GRI 2(a)` unassembled/disassembled import) or Alternative (2) (undivided heading or subheading describing both the good and its parts), and achieves an RVC of at least 60% TV or 50% NC.

2. BOM Decision Sequence for Goods Manufactured in Mexico

The four-step sequence below outlines how compliance teams evaluate a finished part number (SKU) exported from Mexico:

================================================================================
         USMCA ORIGIN CRITERION DECISION FLOW (ARTICLE 4.2 / GN 11(b))
================================================================================

[STEP 1] Is the good wholly obtained or produced entirely in one or more USMCA
         Parties within the categories of Article 4.3(a)–(k), OR produced
         exclusively from those Article 4.3(a)–(k) wholly obtained goods under
         Article 4.3(l) / GN 11(l)?
         │
         ├── YES ──► CRITERION A  (USMCA Art. 4.2(a) / GN 11(b)(i))
         │
         └── NO
              │
              ▼
[STEP 2] Do you possess information/documents under 19 CFR § 182.12(f)
         demonstrating that 100% of every material in the BOM is originating?
         │
         ├── YES ──► CRITERION C  (USMCA Art. 4.2(c) / GN 11(b)(ii))
         │
         └── NO (BOM contains non-originating inputs OR undetermined-origin inputs)
              │
              ▼
[STEP 3] Do all non-originating (and undetermined-origin) materials satisfy the
         Annex 4-B / GN 11(o) product-specific rule (tariff shift, RVC, process
         rule, or 10% de minimis under Article 4.12 / GN 11(e))?
         │
         ├── YES ──► CRITERION B  (USMCA Art. 4.2(b) / GN 11(b)(iii))
         │
         └── NO (Fails Annex 4-B tariff shift)
              │
              ▼
[STEP 4] Is the good outside Chapters 61–63, satisfies Alternative (1) (GRI 2(a)
         unassembled/disassembled import in same subheading or undivided heading)
         OR Alternative (2) (undivided heading or subheading specifically
         describing both the good and its parts), AND meets RVC >= 60% TV or
         >= 50% NC plus all other Chapter 4 requirements?
         │
         ├── YES ──► CRITERION D  (USMCA Art. 4.2(d) / GN 11(b)(iv))
         │
         └── NO  ──► DOES NOT QUALIFY UNDER ARTICLE 4.2
                     (Enter under MFN tariff or evaluate HTSUS 9802.00.80 / GN 11(p))
================================================================================

3. Applying the Four Criteria to Mexican Manufacturing

3.1 Scope of Criterion `A` (`USMCA Article 4.3(a)–(l)` & `GN 11(l)`)

Under USMCA Article 4.3 and HTSUS General Note 11(l), Criterion A (“wholly obtained or produced entirely”) covers primary goods extracted, harvested, born and raised, or derived in one or more USMCA Parties (Art. 4.3(a)–(k)), as well as goods produced in one or more Parties exclusively from those (a)–(k) goods (Art. 4.3(l)).

Criterion A does not apply to an industrial assembly merely because final assembly took place in a Mexican facility if the BOM incorporates any non-originating material or any intermediate material that qualified via an Annex 4-B tariff shift.
Where a manufacturer purchases processed components from third-party suppliers (which may themselves have qualified as originating under Criterion B), the finished good is evaluated under Criterion C (if all inputs are substantiated as originating materials under Art. 4.2(c)) or Criterion B (if any input is non-originating or of undetermined origin and satisfies the Annex 4-B product-specific rule).

3.2 Choosing Between Criterion `B` and Criterion `C` on Multi-Tier BOMs

Exporters sometimes select Criterion C (“produced exclusively from originating materials”) whenever all components on a BOM were purchased from U.S. or Mexican vendors. In practice, three evidentiary points govern that choice:

Domestic Purchase Invoices and V1 Transfers Do Not Prove Origin: Purchasing fasteners, electronic components, or castings from a distributor in Texas or Querétaro does not establish that those items were manufactured in North America. Likewise, receiving a subassembly from another Mexican IMMEX facility via a Virtual Pedimento (Clave V1) records a domestic customs transfer, not USMCA originating status. Under 19 CFR § 182.12(f), a certifier must possess information, including documents, demonstrating origin (or, for a non-producing exporter, reasonably rely on the producer’s written representation). In addition, 19 CFR § 182.12(f)(2) notes that CBP cannot require a producer or exporter to provide a certification to another person, so Tier-2 vendors are not legally required to issue certifications for minor hardware.
Criterion C Requires Substantiation Across the Entire BOM: In a verification of a Criterion C claim, CBP reviews whether all materials in the BOM are originating. If an incorporated component is non-originating or lacks origin substantiation, the good does not meet the “exclusively from originating materials” standard of Article 4.2(c).
Treating Unverified Minor Inputs as Non-Originating Under Criterion B: Under Criterion B, any component for which the producer does not hold origin documentation can be treated as non-originating. If that component undergoes the required Annex 4-B tariff shift (for example, shifting from heading 3926 plastic articles to heading 8413 pumps) or falls within the 10% de minimis allowance (Article 4.12), and any applicable RVC requirement is met, the finished good qualifies under Criterion B without requiring supplier origin documentation for those minor items.

3.3 Illustrative BOM Examples: Criteria `B`, `C`, and `D`

The table below presents three [Hypothetical Illustrative BOM Examples] for goods manufactured in Mexico and exported to the United States, applying the 2026 HTSUS General Note 11(o) product-specific rules for 7326.90 and 8414.59 (Chapter 84, Rule 47(B)):

Product & Finished HTSUS	Illustrative BOM Breakdown	Applicable Rule (`General Note 11(o)` / `11(b)`)	Element 7 Criterion	Analysis
Example 1: Stamped Steel Mounting Bracket (`HTSUS 7326.90`)	100% cold-rolled steel coil (`7209.16`) purchased from a U.S. mill, supported by mill origin documentation under `19 CFR § 182.12(f)`.	Shift to heading `7326` from any other heading except `7325`.	`C` (or `B` if treated as unverified)	Because 100% of the BOM consists of a U.S.-originating material substantiated in the producer’s records, the bracket is produced exclusively from originating materials (`Article 4.2(c)` / `GN 11(b)(ii)`).
Example 2: Commercial Blower Assembly (`HTSUS 8414.59`)	U.S. stamped steel housing (`8414.90`, substantiated originating: $45); Chinese electric motor (`8501.31`, non-originating: $30); Mexican impeller (`8414.90`, no origin substantiation: $10); Mexican production labor and allocable overhead ($35). Net Cost = $120.	`GN 11(o) Ch. 84, Rule 47`: Shift to `8414.59` from any other heading; or shift from `8414.90` (parts) provided RVC is ≥ 60% TV or ≥ 50% Net Cost.	`B`	Incorporates a Chinese motor (`8501.31` shifts to `8414.59`) and an unsubstantiated impeller (`8414.90` shifts to `8414.59` under `Rule 47(B)`). Total non-originating value (`VNM`) = `$30 + $10 = $40`. Net Cost RVC = `(($120 − $40) / $120) × 100 = 66.7% ≥ 50%`. Qualifies under `Article 4.2(b)` (`GN 11(b)(iii)`).
Example 3: Non-Textile Apparatus in an Undivided Subheading	Imported non-originating parts classified in the same undivided subheading that specifically describes both the good and its parts (outside Chapters 61–63), with Mexican production achieving 62% Net Cost RVC.	Annex 4-B requires a change from any other subheading, which the parts cannot meet because the subheading is undivided and covers both the good and its parts.	`D`	Qualifies under `Article 4.2(d)` (`GN 11(b)(iv)` Alternative 2): the subheading provides for and specifically describes both the good and its parts, the good is outside Chapters 61–63, and it satisfies the ≥ 50% Net Cost RVC threshold and all other applicable requirements.

4. Coordinating Criterion `B` Claims with Mexican Customs Records

When a Mexican manufacturer certifies a good under Criterion B (reflecting non-originating materials in the BOM), review three related compliance areas:

USMCA Article 2.5 Duty Deferral Limits and Exceptions: When non-originating materials are imported into Mexico under a duty-deferral program (IMMEX) and incorporated into a good exported to the United States or Canada, USMCA Article 2.5.1 limits any refund, waiver, or reduction of Mexican import duties (IGI) to the lesser-of-two-duties formula, subject to the exceptions in Article 2.5.6(a)–(g) and Mexican domestic rules (Ley Aduanera Art. 63-A and SAT RGCE Rules 1.6.11–1.6.15, or tariff reductions under PROSEC or Regla Octava).
Section 301 Substantial Transformation Analysis: If any non-originating input originates in China (CN), USMCA preferential tariff eligibility (General Note 11 / GN 3(c)(i)) and Section 301 China origin (Chapter 99, U.S. Note 20) are governed by separate legal tests (HQ H313369). As covered in our USMCA Rules of Origin Guide and Shipping Chinese Components to a Mexican IMMEX Factory Guide, assess whether the Mexican manufacturing process satisfies the common-law substantial transformation test (HQ H300226 / HQ H301619 / HQ H305370, NY N302707) and confirm that no non-originating Chinese subassembly fails the applicable General Note 11(o) tariff shift (HQ H327583).
Engineering BOM Changes and Anexo 24 Ledgers: If an engineering change order replaces an originating component with a non-originating or unverified component during a 12-month blanket certification period, re-evaluate whether a SKU previously certified under Criterion C must be re-analyzed and re-certified under Criterion B.

Frequently asked questions

What is the difference between USMCA Origin Criterion A and Criterion C?

Under USMCA Article 4.2(a), Article 4.3(a)–(l), and HTSUS General Note 11(b)(i) and 11(l), Criterion A applies to goods wholly obtained or produced entirely in one or more USMCA Parties (such as minerals extracted, crops harvested, live animals born and raised, waste or scrap derived, or goods produced exclusively from those Article 4.3(a)–(k) wholly obtained materials under Article 4.3(l)). Under Article 4.2(c) and General Note 11(b)(ii), Criterion C applies to goods produced entirely in one or more USMCA Parties exclusively from originating materials—including intermediate components that qualified as originating under Criterion B via a tariff shift or Regional Value Content (RVC) rule.

When should a Mexican manufacturer use Criterion B instead of Criterion C on a USMCA Certification of Origin?

Use Criterion B (USMCA Article 4.2(b) / HTSUS General Note 11(b)(iii)) whenever the Bill of Materials contains any non-originating material imported from outside North America—or any domestically purchased material whose USMCA originating status is not substantiated with information and documentation under 19 CFR § 182.12(f)—and those non-originating or unsubstantiated inputs satisfy the applicable Annex 4-B product-specific rule of origin (tariff shift, RVC, or process rule) or the 10% de minimis rule (Article 4.12). Use Criterion C only when you possess origin substantiation under 19 CFR § 182.12(f) establishing that every material incorporated into the good is originating.

When does USMCA Origin Criterion D (USMCA Article 4.2(d) / HTSUS General Note 11(b)(iv)) apply?

Except for goods of Chapters 61 through 63, Criterion D applies when a good is produced entirely in one or more USMCA Parties and one or more non-originating materials cannot satisfy the Annex 4-B tariff shift rule because either (1) both the good and its materials are classified in the same subheading or an undivided heading and the good was imported in an unassembled or disassembled form but classified as an assembled good pursuant to GRI 2(a), or (2) the heading (if not further subdivided into subheadings) or subheading provides for and specifically describes both the good itself and its parts, provided the Regional Value Content (RVC) is at least 60% under the Transaction Value method or at least 50% under the Net Cost method and all other applicable Chapter 4 requirements are met.

Why are USMCA Article 4.2(b) and 4.2(c) numbered differently in HTSUS General Note 11(b)?

In the treaty text (USMCA Article 4.2) and the Uniform Regulations (19 CFR Part 182, Appendix A, Part II, § 2(1)), paragraph (b) covers goods produced using non-originating materials that satisfy Annex 4-B (Criterion B), while paragraph (c) covers goods produced exclusively from originating materials (Criterion C). In the U.S. Harmonized Tariff Schedule, HTSUS General Note 11(b)(ii) codifies the 'exclusively from originating materials' rule (Criterion C), while General Note 11(b)(iii) codifies the 'non-originating materials satisfying Annex 4-B / GN 11(o)' rule (Criterion B). Citing both the Article 4.2 paragraph and the corresponding General Note 11(b) subparagraph avoids ambiguity in audit workpapers.

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