What is de minimis in rules of origin?
De minimis, also called tolerance, is a small allowance for imported materials that don't meet the rule. If they stay under the limit, often 10 or 15 percent of the product's value, the product can still qualify.
An example
A rule for tables says the materials have to come from a different heading. You make the tables yourself but buy in finished table legs, which sit in the same heading as the table. If the legs are worth less than the agreement's limit, de minimis lets the table qualify anyway.
Where it doesn't help
It usually only rescues a tariff shift rule. It won't help you pass a value test, because the materials still count towards the value. Some agreements leave certain products out, often farm goods, and textiles usually have their own allowance worked out by weight.
Where you'll find it. The article it's in, agreement by agreement.
- USMCADe minimis, Article 4.12Textile tolerance, Uniform Regulations, Section 5
- CAFTA-DRDe minimis, Article 4.6, as toleranceDe minimis, Article 3.25
- CPTPPDe minimis, Article 3.11Textile tolerance, Article 4.2
- RCEPDe minimis, Article 3.7, as toleranceDe minimis, Article 3.7
- ATIGADe minimis, Article 33, as tolerance
- ACFTADe minimis, Article 9, as toleranceDe minimis, Article 9
- PEM ConventionDe minimis, Article 5, as toleranceTextile tolerance, Annex I
- CETADe minimis, Article 6, as general toleranceTextile tolerance, Annex 1
- EU–Japan EPADe minimis, Article 3.6, as general toleranceTextile tolerance, Annex 3A, Note 7
- EU–Korea FTADe minimis, Article 5, as toleranceTextile tolerance, Annex I
- EU–Mercosur iTADe minimis, Article 3.5, as general toleranceTextile tolerance, Annex 3A, Note 6
- EU–SADC EPADe minimis, Article 8, as general toleranceTextile tolerance, Annex I
- EU–UK TCADe minimis, Article 42, as general toleranceTextile tolerance, Annex 2, Note 7
- EU–Vietnam FTADe minimis, Article 5, as toleranceTextile tolerance, Annex I
- UK–Canada TCADe minimis, Article 6, as general toleranceTextile tolerance, Annex 1
- UK–Japan CEPADe minimis, Article 3.6, as general toleranceTextile tolerance, Annex 3A, Note 7
- UK–SACUM EPADe minimis, Article 8, as general toleranceTextile tolerance, Annex I
- UK–Vietnam FTADe minimis, Article 5, as toleranceTextile tolerance, Annex I
- US–Australia FTADe minimis, Article 5.2, as toleranceDe minimis, Article 4.2
- KORUSDe minimis, Article 6.6, as toleranceDe minimis, Article 4.2
- US–Singapore FTADe minimis, Article 3.3, as toleranceDe minimis, Article 3.3
- Canada–Colombia FTADe minimis, Article 307, as toleranceDe minimis, Article 307
- Canada–Indonesia CEPADe minimis, Article 3.7, as toleranceDe minimis, Article 3.7
- Canada–Korea FTADe minimis, Article 3.8, as toleranceDe minimis, Article 3.8
- Canada–Ukraine FTADe minimis, Article 3.6, as toleranceDe minimis, Article 3.6
- EU GSPDe minimis, Article 48, as toleranceTextile tolerance, Annex 22-03
- UK DCTSDe minimis, Regulation 11, as toleranceTextile tolerance, Schedule 1, Note 4