TABLE OF CONTENTS:
- Introduction to the new environment of international trade
- What does CBP require regarding origin marking?
- Differences between preferential origin and US content
- Practical implications for Latin American exporters
- Impact of the new 10% tariffs from April 2025
- Legal and documentary recommendations
- How to mitigate CBP sanctions
- Conclusion: Prepare for more demanding international trade
In the context of the more restrictive trade policy that has characterized the new administration of President Trump, The United States has strengthened its guidelines on country of origin marking on imports., as well as controls on their US content. This new approach has a direct impact on Latin American exporters, especially those operating under free trade agreements in sectors with sensitive rules of origin or complex value chains, or those that integrate US inputs into their production chain. How can these requirements be properly met to avoid sanctions and maintain competitiveness and market access?
What does CBP require regarding origin marking?
El CBP (U.S. Customs and Border Protection) The Tariff Act of 1930 requires that all imported merchandise be clearly, legibly, indelibly marked in English with the country of origin. This marking must clearly reflect precisely the place where the product was substantially transformed, not simply assembled or packaged and this is not a commercial label but a legal requirement, non-compliance with which can result in sanctions, retentions and even the return of goods.
What is the relationship between preferential origin and US content?
They are different but complementary concepts. Preferential origin allows access to 0% tariffs under treaties such as the Trade Promotion Agreement (TPA) between Colombia and the US, if the Specific Rules of Origin are met (e.g., change of tariff subheading or Regional Value Content). Meanwhile, US content has special treatment under the Executive Order 14257 of April 2, 2025, which establishes that if at least 20% of the value of a product comes from inputs originating or processed in the US, the 10% tariff applies only to the remaining valuee. This provision mitigates the impact of the general tariff.
What practical implications do these measures have for exporters?
In this context, companies must carefully document the origin and value of the inputs used in the manufacture of their products. It is recommended to: (i) ensure that certificates of origin comply with the formal requirements of the APC; (ii) prepare and preserve the technical documentation required per product; (iii) correctly calculate and declare the percentage of US content If you wish to apply partial exclusion from the general 10% tariff, otherwise, CBP may apply sanctions or deny the benefit.
How does this connect with the recent tariff measures?
From April 2025, the U.S. activated a general tariff of 10% on goods from multiple countries, even for those with trade agreements like Colombia. These tariffs are additional to the MFN (Most Favored Nation) and apply to products from different productive sectors. Meeting the origin requirements and demonstrating U.S. content has become the main legal tool for defending export competitiveness.
Do you need professional guidance to ensure compliance with these new international trade regulations?
Consult international trade policy experts here:
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Frequently Asked Questions (FAQ)
1. What is the US-mandated origin marking?
It is a legal requirement that clearly indicates in English the country where the product was substantially transformed, not just assembled.
2. What is the difference between preferred origin and US content?
Preferential origin allows for tariff benefits under treaties; US content allows for a partial reduction of a new general tariff if it exceeds 20%.
3. What happens if I don't follow these rules?
CBP sanctions may apply, including detention, return of merchandise, or loss of business profits.
4. How do I calculate the US content in my products?
It must be calculated based on the value of processed or US-originating inputs, with supporting technical documentation.
5. Who can advise me on how to comply with these rules?
You can contact legal experts in trade policy such as the consultants at Araujo Ibarra: https://araujoibarra.com
Glossary
- CBP: U.S. Customs and Border Protection, responsible for enforcing customs laws.
- Origin marking: Legal requirement that indicates the country where a product was substantially transformed.
- Preferred origin: Condition that allows a product to access reduced or zero tariffs under trade agreements.
- US content: Percentage of product value derived from inputs originating in or processed in the U.S.
- General tariff: Additional 10% tax on certain imported products from April 2025.
Legal Affairs Office of Amena Mestre, a consulting firm Politics and Trade Remedies.
Source: Origin as a new priority for importing products into the United States | AsuntosLegales.co
