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FTA Savings Calculator — Free Trade Agreement Duty Savings

Estimate annual duty savings from free trade agreements. Calculate the difference between MFN duty rate and FTA preferential rate for qualifying goods.

Quick answer: USMCA (US-Mexico-Canada) eliminates duty on qualifying goods. US-Korea FTA (KORUS) reduces many industrial goods to 0%. Annual FTA savings on a $2M import program can easily reach $50,000–$200,000.

🌐 FTA Savings Calculator

0% for fully eliminated tariffs. Check CBP FTA portal.
Not all goods may meet rules of origin
Certificates of origin, customs broker, record-keeping
Annual FTA Duty Savings
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Net After Compliance
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Compliance ROI
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How to Use This Calculator

  1. Enter annual import value — total customs value of imports from the FTA country.
  2. Enter MFN and FTA rates — find your HTS code at hts.usitc.gov — FTA rates are listed in the special column.
  3. Set qualifying percentage — not all goods automatically qualify — they must meet rules of origin requirements.
  4. Include compliance cost — certificates of origin, customs broker review, and record-keeping. Compare to net savings.

Worked Example

$1.5M annual imports from Canada under USMCA. MFN 6.5%, FTA 0%, 80% qualifying, $6,000 compliance.

  1. Qualifying value: $1,500,000 × 80% = $1,200,000
  2. MFN duty: $1,200,000 × 6.5% = $78,000
  3. FTA duty (0%): $0
  4. Gross savings: $78,000
  5. Net after compliance: $78,000 − $6,000 = $72,000
  6. ROI: $72,000 ÷ $6,000 = 1,200%

Frequently Asked Questions

Rules of origin (ROO) determine whether a product qualifies for FTA preferential treatment. Common tests: tariff shift (the product's HTS code must change due to manufacturing), regional value content (a minimum % of value must originate in the FTA territory), or specific process requirements. Most goods must be "wholly obtained" or "substantially transformed" in the FTA country.

The importer claims FTA preference on the customs entry by certifying that goods qualify. A certificate of origin (COO) from the supplier supports the claim. Under USMCA, there's no mandated COO form — a certification statement suffices. Keep supporting records (BOMs, supplier declarations) for 5 years in case of audit.