Yarn Forward Rule
Yarn Forward is a rule of origin requirement — for a garment to qualify for preferential tariffs under agreements like USMCA, the yarn must be produced within member countries.
Yarn Forward is a rule of origin used in trade agreements including USMCA, CPTPP, and many US FTAs. For a finished garment or fabric to receive preferential tariff treatment, the yarn used to produce the fabric must originate in a member country. Every step from yarn onward (weaving/knitting, dyeing, finishing, cutting, sewing) must occur within member countries.
Practical implication: a Mexican-sewn garment using fabric woven in Vietnam from Chinese yarn does NOT qualify under USMCA even if assembly happened in Mexico. The yarn origin disqualifies the whole supply chain.
Compliance requires full supply chain traceability: yarn mill → fabric mill → garment factory. Certificates of origin must document every stage.
TextileERP tracks yarn origin at the bobbin level, propagates origin through fabric and garment production, and auto-generates USMCA Certificates of Origin with full documentation.
Related terms
Textile ERP
Textile ERP is enterprise resource planning software purpose-built for textile manufacturing, trading, and distribution — covering operations generic ERPs can't.
Production Planning (Textile)
Textile production planning coordinates orders through spinning, weaving, dyeing, finishing, and cutting, with machine-specific constraints at each stage.
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