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North American Free Trade Agreement (NAFTA)
The North American Free Trade Agreement (NAFTA) is a trilateral trade agreement with Canada, Mexico and the USA. The agreement came into effect on January 1st, 1994 to reduce and/or eliminate duty on goods made in a NAFTA country. Only goods that meet specific requirements are eligible for the preferential tariff treatment.
What goods are eligible for NAFTA?
- Goods that are wholly obtained or produced entirely in a NAFTA country.
- Goods that have been transformed in a NAFTA country such as trees cut into lumber.
- Goods that are produced in a NAFTA country exclusively from originating materials such as lumber carved into a puzzle and painted in Mexico.
- Some off shore goods may also qualify under NAFTA, if there has been further processing in North America resulting in a tariff shift or tariff change. Should you have product that may fall into this category, it maybe beneficial to speak with one of our highly trained Tariff Consultants regarding eligibility.
What documents are required to qualify for NAFTA?
- In order to receive the benefits of NAFTA, the exporter or producer must provide a valid Certificate of Origin. Anyone signing a NAFTA Certificate of Origin must be knowledgeable of the requirements, the manufacturing processes involved in the product and the Rules of Origin.
- The importer must be in possession of a valid NAFTA Certificate to be entitled to the reduced duty rate at the time the goods clear Customs. It is the importer's responsibility to maintain copies for a 5 year period and be able to provide Customs with a copy, should one be requested. In the event of an audit, if Customs were to find the NAFTA to be invalid, duties and interest can be assessed retroactively from the time the goods were released.
- Should the Importer obtain a NAFTA Certificate post entry, an amendment can be made with Customs if it is within the eligible time limits.
Where do I find a copy of a NAFTA Form?
- Click here to find a formal Certificate of Origin for goods declared over $1,600.00 (Canadian funds) and the Low Value NAFTA for goods declared under $1,600.00 (Canadian funds)