Case Study

1. Complex Supply Chain: The client’s supply chain involves multiple components and materials of varying origins, requiring a thorough analysis of the product’s eligibility under USMCA rules.

2. Documentation Requirements: The client lacked a structured process for gathering the necessary information, including a detailed Bill of Materials (BOM) and cost breakdowns.

3. HTS Classification: Accurate Harmonized Tariff Schedule (HTS) classification for all materials was required to assess compliance with USMCA provisions.

1. Information Organization and Preparation

• Assisted the client in gathering all necessary documentation, including the Bill of Materials (BOM), supplier declarations, and transactional data.
• Guided the client in organizing information required for HTS classification, ensuring all components and materials were accurately documented.

2. BOM Analysis and Country of Origin Data Collection

• Reviewed the BOM and provided a standardized template to capture critical information about the origin of each material.
• Worked with the client to obtain detailed country-of-origin information for all inputs and cost data for the finished product.

3. HTS Classification and Rule Application

• Assisted the client in determining the HTS codes for each material in the BOM and the finished product, ensuring accurate classification for compliance analysis.
• Applied the USMCA rules of origin to assess compliance, using the transaction value methodand the net cost method to calculate qualifying ratios.

4. Compliance Analysis and Documentation

• Prepared a comprehensive country of origin analysis according to USMCA provisions, supported by certificates, transaction values, and detailed calculations.
• Ensured all necessary records were in place to demonstrate compliance with reasonable care and diligence, mitigating the risk of non-compliance.

1. USMCA Qualification: Confirmed that the client’s product qualified for duty-free treatment under USMCA provisions, resulting in significant cost savings.

2. Streamlined Compliance Process: Provided the client with a structured framework and templates for future origin determinations, reducing administrative burdens.

3. Enhanced Confidence: Equipped the client with thorough documentation and supporting analysis, ensuring smooth communication with Customs and Border Protection (CBP) in case of audits or inquiries.