De Minimus RuleDe Minimus Rule
De Minimis Rule
In general, the De Minimis Rule allows up to 10 percent (7 percent for NAFTA) of the selling price to be non-qualifying material even though the nonoriginating good may not meet the TS test. However, if a foreign input does not meet the ROO and does not qualify under the De Minimis Rule, then the good does not qualify under the FTA. Note: There are several exceptions to the De Minimis Rule. For example, the De Minimis Rule for textile products is calculated by weight. It is important to consult the text of the agreement for more details.
In general, the De Minimis Rule allows up to 10 percent (7 percent for NAFTA) of the selling price to be non-qualifying material even though the nonoriginating good may not meet the TS test. However, if a foreign input does not meet the ROO and does not qualify under the De Minimis Rule, then the good does not qualify under the FTA. Note: There are several exceptions to the De Minimis Rule. For example, the De Minimis Rule for textile products is calculated by weight. It is important to consult the text of the agreement for more details.