Table of Contents
Everything you need to understand, implement, and scale compliance with USMCA, ECCN, HTS codes, COO rules, BAA/BABA laws, and sanctions screening—without risking your margins.
Why Trade Compliance Can’t Be an Afterthought in 2025
Global trade isn’t getting easier. It’s getting smarter, stricter, and higher-stakes.
With new digital customs systems, cross-border ESG rules, and stricter enforcement of export controls and origin verification, manufacturers that treat compliance as a checkbox are being outpaced—or penalized.
What’s changing:
- FTA claims are under audit
- Export control violations are criminally enforced
- Government contract eligibility now ties to sourcing and content rules
- Supply chain transparency is becoming a legal requirement
If you're exporting products, managing multi-country suppliers, or delivering to federally funded projects, your ability to prove compliance across origin, classification, licensing, and screening is now business-critical.
The Six Pillars of Trade Compliance
Let’s break down the six core areas you must control—and how they connect.
1 USMCA: Free Trade Benefits If You Qualify
The U.S.-Mexico-Canada Agreement (USMCA) offers zero-duty movement across North America, but not without proof.
Why It Matters:
- Enables duty-free shipping
- Enforces regional content rules (e.g., 75% for autos)
- Requires self-certification with 9 data elements
- Customs authorities can audit claims for 5 years
Real Risk: A single incorrect RVC calculation can disqualify an entire shipment from preferential treatment, retroactively.
Pro Tip: Automate origin calculation based on your BOM and supplier declarations.
Read full USMCA compliance guide →
2 Buy American, Buy America, and BABA: Know the Rulebook or Lose the Bid
These aren’t buzzwords. They’re legally distinct regulations with real-world impact on contract eligibility, especially in infrastructure.
Why It Matters: Get the wrong origin claim, and your bid is rejected, no second chances.
Read Buy America compliance breakdown →
3 HTS vs. HS Classification: The Hidden Cost in Every Shipment
HTS and HS codes aren’t just numbers—they’re legal declarations that determine:
- Duty rates
- FTA eligibility
- Regulatory oversight (e.g., FDA, EPA)
- Shipment clearance speed
Mistake to Avoid: Letting the freight forwarder “handle classification.” If it’s wrong, you’re liable not them.
Example: A lithium-ion battery classified under the wrong subheading could trigger hazardous goods inspection or miss export controls entirely.
Read the HS/HTS classification blog→
4 ECCN: Don’t Ship Controlled Tech Without a License
If your product has dual-use potential—civilian and military—you need to know your ECCN under the U.S. Export Administration Regulations (EAR).
Products Commonly Flagged:
- Electronics (e.g., high-speed ADCs, FPGA)
- Encrypted software
- Aerospace components
- Semiconductors
- Sensors and lasers
What’s at Stake:
- Unauthorized export = civil penalties up to $300,000
- Criminal charges, including denied export privileges
Understand ECCN classification and license rules →
5 Sanctions & Denied Party Screening: Avoid the Wrong Customer
U.S. and global regulations prohibit business with:
- Sanctioned entities (OFAC SDN List)
- Denied parties (BIS Entity List)
- Certain countries (e.g., North Korea, Iran, Russia sectors)
- End users with military or WMD ties
Why It Matters: You don’t need to intend to violate sanctions. You just need to fail to screen.
Real-World Case: A U.S. manufacturer unknowingly shipped components to a sanctioned military subcontractor in China. Result: $8.5M fine + 2-year audit supervision.
Build a denied party screening protocol →
6 Country of Origin (COO): More Than “Made In”
COO affects:
- FTA claims
- Tariffs and trade remedies
- Product labeling laws
- Government contract eligibility
- Forced labor legislation (UFLPA, EU FLR)
Mistake: Using “final assembly location” as COO. Customs requires substantial transformation or RVC proof, not packaging.
Your Risk: Invalid COO = loss of preferential treatment + false claim exposure
See how to determine COO correctly →
How These Trade Compliance Pillars Connect (And Why You Need a Central System)
- Your HTS code determines duties, but also signals regulatory risk
- Your COO claim affects both FTA eligibility (USMCA) and Buy America compliance
- Your ECCN requires screening who you’re shipping to (denied parties)
- Your BOM affects origin, classification, and license needs
These aren’t silos. They’re a network and every mistake echoes across compliance.
How Acquis Helps You Stay Compliant (and Competitive)
With Acquis, trade compliance becomes traceable, automated, and audit-ready.
We help you:
- Classify HTS/ECCNs correctly from the BOM
- Map COO at the component level
- Automate USMCA qualification
- Integrate denied party screening
- Maintain full documentation and audit trail
Want a smarter trade compliance workflow? Book a strategy session →