Also known as: RVC, Regional content, Value content requirement
The percentage of a product's value that must originate within a free trade agreement's region for the goods to qualify as originating and access preferential tariff treatment.
Regional value content (RVC) is a rules of origin criterion establishing the minimum percentage of a product's value that must originate within the treaty zone. It is calculated using two main methods: the transaction value method (starting from the sales price minus non-originating materials) and the net cost method (starting from production cost). Under USMCA, the minimum RVC varies by product: 75% for automobiles, 70% for core components, and 40-50% for most manufactured goods.
Rules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
TradeUSMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
DocumentsCertificate of Origin
Document certifying that goods originate in a specific country, required to claim preferential tariff rates under trade agreements.
TariffsPreferential Tariff Treatment
A tariff benefit granted by a country to imports from a trading partner with which it has an agreement or treaty, applying lower duties than the general rates.