What a trade agreement does for an importer
Free trade agreements such as the United States-Korea Free Trade Agreement and the United States-Mexico-Canada Agreement allow qualifying goods to enter at reduced or zero duty rates. Whether goods qualify depends on the agreement's rules of origin, which often look at where materials came from and how the product was transformed, not simply where it was shipped. The preference is usually claimed by the importer at entry, and some agreements also allow a claim after importation within a set period. Recent tariff measures imposed on other legal grounds have in many cases applied regardless of trade agreement status, and several have been changed or challenged, so their current reach should be confirmed. A trade agreement claim lowers ordinary duties; it does not answer every tariff question.
Supporting a preference claim
The importer generally must have a basis for the claim and be able to produce supporting records if Customs and Border Protection asks. That usually means a certification of origin from the importer, exporter, or producer, and documents behind it such as bills of materials, supplier statements, and production records. Exporters are sometimes asked to share cost and sourcing information they consider confidential, and some agreements allow that information to go directly to customs. The importer is generally expected to retain these records for a set period after entry. When the producer is abroad, the arrangement for verification should be settled before the first shipment.
When a claim is questioned
CBP can request information to verify origin and can deny the preference if the support is inadequate, which leads to duties owed plus interest and possibly penalties. A denial also tends to prompt review of other entries of the same product. If you discover a past claim was wrong, a correction or a prior disclosure may reduce exposure, depending on timing. If you have a commercial contract dispute with a trading partner rather than a customs question, the issues are different and we address them separately. In a first meeting we review the product, its sourcing, and the documents behind your preference claims.
