How Small Businesses Can Stay Duty-Free After the U.S. Deminimis Exemption

A Guide for Small Businesses from Mexico and Canada Exporting Under CUSMA/T-MEC

In 2025, the United States ended the deminimis exemption, a small but crucial provision that allowed low-value imports to cross the border tax-free. This change has affected small exporters worldwide, but countries like Mexico and Canada—under the CUSMA agreement (T-MEC for its initials in Spanish)—face additional challenges when claiming duty exemptions. Packages that once arrived in the U.S. without taxes are now frequently assessed duties, even when the products are fully compliant under CUSMA/T-MEC.

As a small business owner based in Canada, exporting handmade silver jewelry from Mexico to the U.S. I experienced this firsthand. My goal with this article is to share my story and provide practical guidance for other small business owners navigating these new rules.

My Experience: When Compliance Wasn’t Enough

Shortly after the deminimis exemption was removed (August 29, 2025), I shipped two packages to the U.S. using different carriers. Both shipments included all the required documentation to demonstrate they were 100% CUSMA compliant: certificates of origin, detailed invoices, clear product descriptions, and proof of Mexican materials.

To my surprise, both packages were still taxed. It was frustrating to see them assessed despite my careful preparation, but I knew the fight was worth it. After hours on the phone and several follow-up emails, I finally received confirmation: my shipments were indeed duty-free. The process was far from enjoyable—it took a lot of effort and persistence to clear those packages—but in the end, I managed to do it.

Key Takeaways from My Experience:

• Persistence matters: Customs may not automatically recognize compliance. If you're completely sure that your products are 100% CUSMA compliant, you need to do everything in your power to dispute the assessment and get those taxes removed.

• Accurate documentation is essential: Keep certificates of origin, invoices, and proof of materials ready.

• Never assume automatic exemption: I was so sure that my packages would be cleared with no issues, but sadly, that was not the case. Because things are so busy and confusing at customs right now, I believe it’s often easier for them to tax everything than to carefully review each exemption, especially for packages under $800 USD. This is something that you, as a small business owner need to have clear in mind, before deciding whether to continue exporting to the U.S.

Understanding CUSMA/T-MEC Rules of Origin

CUSMA compliance is determined by the regional value content (RVC) and the origin of materials. Generally, products must have at least 60% of their value from North America to qualify for tariff exemptions.

In my particular case, all of my pieces clearly meet these requirements:

• Silver Jewelry: Made from 100% Mexican silver. Mexico has been the world’s leading silver producer for decades, and the silver is crafted by skilled artisans in Taxco.

• Gemstone Jewelry: Many gemstones featured on my website—such as Chiapas amber, Sonora turquoise, onyx, and obsidian—are Mexican in origin. Even when pieces include non-Mexican stones, such as pearls, larimar, or coral, the majority of the value remains North American due to the silver and handcraft labor.

Practical Tips for CUSMA Compliance

• Know Your Products Thoroughly: Before shipping, make sure you understand the materials, origin, and composition of each item. This is essential for determining compliance with CUSMA/T-MEC and calculating the Regional Value Content (RVC).

My handmade Taxco silver jewelry, made entirely of Mexican silver by local artisans, fully complies with CUSMA rules. This allows me to ship it duty-free to U.S. customers—proof that small businesses can thrive despite these new regulations.

 

• Verify Regional Value Content (RVC): Ensure your products meet the 60% North American content rule. This is critical for duty-free eligibility.

 

For example, this pendant combines Mexican silver with a Labradorite stone sourced from Canada. Even though the materials come from different countries, they are all within the CUSMA region, so the product fully qualifies as compliant. When combined with the labor of local artisans, the RVC easily surpasses the 60% threshold, ensuring duty-free shipment to U.S. customers.

 

 

 

Explore my collection of handmade Mexican silver jewelry  👈🏼  all CUSMA-compliant and ready to ship to the U.S

 

• Use Correct HS Codes and Clear Product Descriptions: HS codes (Harmonized System codes) classify products for customs purposes and help determine tariffs. Using the correct codes ensures your products are assessed accurately and supports your duty-free claim.

  Example: For handmade silver jewelry, the HS code is typically 7113.11 (Articles of jewelry and parts thereof, of silver, whether or not plated or clad with other precious metals).

  You can find HS codes through your country’s customs resources:

  • For Canadian exporters: Use the Canada Tariff Finder to search HS codes and check applicable tariffs.

  • For Mexican exporters: Visit the Ventanilla Única de Comercio Exterior Mexicana (VUCEM) and enter the name of your product (for example, joyería de plata or collares de plata).

  You can also consult your carrier or a licensed customs broker if needed.

• Verify HS Codes in the U.S. System: Although the first six digits of HS codes are standardized internationally, the United States adds extra digits for greater specificity.

To ensure full compliance and duty-free eligibility under CUSMA/T-MEC, it is recommended that Mexican and Canadian exporters cross-check their codes using the U.S. Harmonized Tariff Schedule (HTS).

This verification helps confirm that your product classification matches what U.S. Customs and Border Protection will use during import, preventing delays or rejection of your duty-free claim.

Here you can search the official HTS database through the U.S. International Trade Commission   👈🏼

 

• Keep Complete Digital Records: Save copies of all supporting documentation, including supplier declarations, proof of materials, and previous customs communications. This helps if customs questions your shipments or you need to dispute an assessment.
• Label Your Products Clearly: Include country of origin and material details on invoices and packing slips. Clear labeling reduces confusion and speeds up customs processing.

• Double-Check Documentation Requirements: Make sure any certificates of origin and supplier declarations are filled out correctly, including dates, signatures, and accurate product details.

• Include a Commercial Invoice: A properly completed commercial invoice is critical. It should show seller and buyer information, detailed product descriptions and quantities, HS codes, unit and total value of each item, country of origin, and a statement confirming CUSMA/T-MEC compliance. Customs uses this document to verify your duty-free claim.

• Include a CUSMA Certificate of Origin: This document proves that your goods qualify as North American under CUSMA/T-MEC. It should include exporter and importer information, detailed product descriptions, quantities, HS codes, and a statement of compliance. Including this certificate strengthens your case if customs assesses duties and is essential for disputes.

🔗 Download the Fillable CUSMA Certificate of Origin Template

 

• Keep a Record of Disputes: Document any communication with customs, including emails, phone calls, and reference numbers. This can help support future shipments and appeals.

• Use Reliable Carriers: Choose carriers experienced with CUSMA shipments. Some carriers have better procedures in place for handling duty-free shipments and can guide you through documentation requirements.

Encouragement for Small Businesses Exporting to the U.S.

The removal of the deminimis exemption may feel discouraging, but it doesn’t mean cross-border trade is impossible. Small businesses exporting from Mexico or Canada to the U.S. can still thrive under CUSMA/T-MEC—provided they are diligent about compliance and documentation.

For businesses rooted in authenticity and ethical practices, this challenge is an opportunity to reinforce the value of your products. Knowing your materials, following trade rules carefully, and advocating for your rights ensures that your products continue reaching U.S. customers without unnecessary tariffs.

Sharing experiences with other exporters can also help your peers navigate similar challenges and strengthen the small business community.

Turning Obstacles into Opportunities for Small Exporters

The end of the deminimis exemption has complicated cross-border sales, but it also underscores the value of preparation, transparency, and persistence. For small businesses exporting genuine products—like my handmade Mexican silver jewelry—this change is not the end; it is a reminder that integrity, knowledge, and persistence always pay off.

By understanding CUSMA rules, carefully documenting your products, and being ready to defend your compliance, you can export confidently. For businesses like mine, this ensures that the artisans behind your work are supported. For all other small businesses with CUSMA-compliant products, it helps guarantee that your goods reach U.S. customers without unnecessary tariffs, protecting both value and competitiveness.