For more information on the USMCA, visit the USTR website. The NAFTA Low Value Origin Declaration is a confirmatory declaration that certifies that the goods contained in the shipment meet the requirements of the NAFTA rules of origin. It can only be used for commercial imports under $2,500.00 CAD; and does not include a general deadline, so it must be met for each individual shipment. This is a much simpler form that must be completed as only the name, address and signature of the manufacturer or exporter must be completed. Enter the manufacturer`s full legal name, address (including country) and legal tax identification number in accordance with box 1. If more goods from a manufacturer are included in the certificate, attach a list of additional manufacturers, including the legal name, address (including country) and legal tax identification number associated with the goods described in box 5. If you want this information to be confidential, it is acceptable to include the note “Available to Customs upon Request”. If the manufacturer and exporter are identical, fill in the field with “EQUAL”. If the producer is unknown, it is acceptable to specify “UNKNOWN”.
NAFTA`s rules of origin have been amended several times since the agreement came into force. For the most up-to-date information on tariffs and rules of origin, see the links at the end of this document. D-1) the goods were imported into the territory of a NAFTA country in unassembled or disassembled form, but were classified as assembled goods in accordance with HS General Interpretative Rule 2(a); or NAFTA allows your company to ship eligible goods duty-free to customers in Canada and Mexico. Goods can fall under NAFTA rules of origin in a variety of ways. This may be because the goods are wholly obtained or manufactured in a NAFTA party, or because the rule of origin of the good in a NAFTA party requires enough work and equipment to make the product what it is when exported. U.S. tariff plans have columns titled “General” and “Special”, in the Canadian tariff, the corresponding columns are replaced by “MFN Tariff” and “Applicable Preferential Tariffs”. If the rate indicated in the “General/Most Favoured Nation” column is “free”, the rate of duty is zero.
The Mexican tariff information website has a section entitled “Customs applied to countries in the rest of the world”. If the expression given here is “Ex”, the rate of duty is zero. All products assigned to these tariff subheadings or headings are eligible for duty-free treatment and the NAFTA Certificate of Origin is not required. Properly completing a NAFTA Certificate of Origin can be confusing for those who have never done so before or who do not understand the requirements of each region. The NAFTA Certificate of Origin must be completed and certified by an authorized signatory of the manufacturer or exporter of the goods who has sufficient knowledge of the information provided in all areas. The Harmonized System comprises about 5,000 product groups. Goods are classified under a six-digit code, organized in a legal and logical structure and supported by clearly defined rules to achieve uniform classification. (E) Certain automatic data-processing goods listed in Annex 308.1 and their parts that do not originate in the territory are considered originating when imported from the territory of another NAFTA country into the territory of a NAFTA country if the most-favoured-nation tariff rate of the goods corresponds to the rate of duty set out in Annex 308.1 and is common to all NAFTA countries.
(Reference: Annex 308.1) The NAFTA Certificate of Origin should be made available to the importer by the exporter to support its claim for duty-free importation. The form can also be provided by the manufacturer for use by the exporter. Every day, customs officers must inform their clients of inaccuracies made when completing a NAFTA certificate. An incomplete or incorrectly completed certificate invalidates the possibility of claiming the lower preferential duty rate that would have been granted with a valid certificate. Only one certificate of origin is used in all three countries and printed in English, French or Spanish. The certificate shall be completed at the discretion of the exporter in the language of the exporting country or in the language of the importing country. Importers must provide a translation of the certificate to their own customs administration upon request. In January 1994, Canada, the United States and Mexico launched the North American Free Trade Agreement (NAFTA), the largest free trade area in the world. The goal was to reduce trading costs, increase business investment and help North America become more competitive in the global marketplace. In order for goods produced in one of the three NAFTA regions to be eligible for reduced tariffs, a valid NAFTA certificate must be presented.
For goods that are not fully grown or manufactured from items grown or manufactured entirely in a NAFTA area, they must meet certain pre-established criteria to qualify for reduced rates of duty. These criteria can be found in the “Rules of Origin” section of NAFTA. This box must be completed, signed and dated by the exporter. If the certificate is completed by the manufacturer for use by the exporter, it must be completed, signed and dated by the manufacturer. The date must be the date on which the certificate was completed and signed. In many cases, the number of pages is left blank or signed by someone in an administrative position. The Canada Border Services Agency (CBSA) is known to question the validity of the certificate if it was signed by someone with questionable knowledge of the information. In the United States, the exporter is required to keep the original or a copy of the certificate for five years from the date of signature. The importer is required to keep the certificate and all other relevant documents for five years after the importation of the goods. Adequate records of the goods, their materials and their manufacture must prove the facts alleged in the certificate. Mexican exporters must keep a copy of the certificate for 10 years.
Canadian importers and exporters are required to keep the certificate for six years from the date of the transaction for the importer and six years from the date of signature for the Canadian exporter. NAFTA covers services other than air, marine and basic telecommunications. The agreement also provides for the protection of intellectual property rights in various areas, including patents, trademarks and copyrighted material. NAFTA`s government procurement regulations apply not only to goods, but also to service and construction contracts at the federal level. In addition, U.S. investors are guaranteed equal treatment with domestic investors in Mexico and Canada. If the rate in the General column is not zero, the exporter should check the next rate in the Special/Preferred column. The U.S. tariff plan uses the codes “CA” and “MX” for Canada and “MX” respectively.
Mexico. The Canadian tariff plan uses the codes “US” and “MX” for the United States and Mexico, respectively. In the case of Mexico, there is a section entitled “Tariff for Trading Partners”, which contains the codes “EE. UU. ” and “Canada” for the prime rate applicable to these countries. For most products, the rate applied to goods eligible for NAFTA preferences is zero. (A) the good is “wholly obtained” in the territory of one or more of the NAFTA states referred to in Section 415. Note: Buying a good in the territory does not necessarily mean that it is “completely mined or manufactured”. If the product is an agricultural product, see also criterion F and Annex 703.2. (Reference: Sections 401(a) and 415) As soon as an exporter finds that the exported good complies with the NAFTA rules of origin, a NAFTA Certificate of Origin must be completed accurately and legibly. The exporter must then send the certificate to the importer. Although the importer does not have to attach the certificate to the shipment, they must have a copy of the certificate on hand before they can apply for the NAFTA customs preference at customs.
Certificates of origin may, at the discretion of the exporter, cover a single import of goods or a multiple import of identical goods. Products are classified according to the domestic tariff schedules of the country into which they are imported. All NAFTA countries are members of the World Customs Organization (WCO) and use the Harmonized Commodity Description and Coding System. The system is used by more than 200 countries and economies as a basis for their tariffs and for the collection of international trade statistics. .