What is the difference between a nafta and a certificate of origin

Additional rules are described in Annex Note: In order to be entitled to preferential tariff treatment, each good must meet at least one of the criteria below. A The good is "wholly obtained or produced entirely" in the territory of one or more of the NAFTA countries, as referred to in Article Note: The purchase of a good in the territory does not necessarily render it "wholly obtained or produced".

If the good is an agricultural good, see also criterion F and Annex Reference: Article a and B The good is produced entirely in the territory of one or more of the NAFTA countries and satisfies the specific rule or origin, set out in Annex , that applies to its tariff classification.

The rule may include a tariff classification change, regional value-content requirement or a combination thereof. The good must also satisfy all other applicable requirements of Chapter Four. Reference: Article b. C The good is produced entirely in the territory of one or more of the NAFTA countries exclusively from originating materials.

Under this criterion, one or more of the materials may not fall within the definition of "wholly produced or obtained", as set out in Article All materials used in the production of the good must qualify as "originating" by meeting the rules of Article a through d.

Reference: Article c. D Goods are produced in the territory of one or more of the NAFTA countries but do not meet the applicable rule of origin, set out in Annex , because certain non-originating materials do not undergo the required change in tariff classification. The goods do nonetheless meet the regional value-content requirement specified in Article d. This criterion is limited to the following two circumstances:. D-1 the good was imported into the territory of a NAFTA country in an unassembled or disassembled form but was classified as an assembled good, pursuant to HS General Rule of Interpretation 2 a ; or.

D-2 the good incorporated one or more non-originating materials, provided for as parts under the HS, which could not undergo a change in tariff classification because the heading provided for both the good and its parts, and was not further subdivided into subheadings, or the subheading provided for both the good and its parts and was not further subdivided.

E Certain automatic data processing goods and their parts, specified in Annex Reference: Annex F The good is an originating agricultural good under preference criterion A, B or C above and is not subject to a quantitative restriction in the importing NAFTA country because it is a "qualifying good" as defined in Annex A good listed in Appendix For each good described in field 5, state "YES" if you are the producer of the good.

If you are not the producer of the good, state "NO" followed by 1 , 2 , or 3 , depending on whether this certificate was based upon:. For each good described in Field 5, where the good is subject to a regional value content RVC requirement, indicate "NC" if the RVC is calculated according to the net cost method; otherwise, indicate "NO".

Reference: Articles Common Error: Many NAFTA certificates are found to be invalid due to the exporter stating the actual cost of the commodities in this field. As stated above, the net cost field is not asking for actual cost of the good but which method is being used to ascertain that the commodities being imported meet the NAFTA Rules of Origin. Common Error: The NAFTA certificate is invalid and ineffective if the commodities listed are not produced in a participating country in the agreement.

Many people do this so that whoever is clearing the goods knows where the items are made. This field must be completed, signed and dated by the exporter. When the Certificate is completed by the producer for use by the exporter, it must be completed, signed and dated by the producer.

The date must be the date the Certificate was completed and signed. Ship Internationally Learn About Trade. Shipment Status Customs Brokerage freight industries tools about Careers. US Canada Freight. US Canada. PCB Blog. Dos And Don'ts Of Section Understanding Trade Deficits and Surpluses. Tariff Classification Number As emphasized in a previous article , it is very important the H. Share this post. Gina Crews CCS. US Business Development Manager.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.

Pacific Customs Brokers Ltd. Canada Pacific Customs Brokers Inc. Careers About Contact Legal Terms. Toll Free: Toll Free Fax: Individual countries may establish additional classifications beyond the six-digit level. At the eight-digit level these are called tariff items. Once the appropriate classification has been determined, the tariff schedules maintained by each of the NAFTA countries will indicate the related rates of duty.

The U. All products classified under these subheadings or tariff numbers are eligible for duty-free treatment, and the NAFTA Certificate of origin is not required. How do I claim the duty-free treatment? In order to receive the preferential rate established in the NAFTA, the product must meet the applicable rule of origin. For the most up-to-date information on tariffs and rules of origin, please see the links provided at the end of this document. A uniform Certificate of Origin is used in all three countries and is printed in English, French or Spanish.

Importers must submit a translation of the Certificate to their own customs administration when requested. However, for goods to qualify for NAFTA preferential duties, the invoice accompanying the commercial importation must include a statement certifying that they qualify as originating goods under the NAFTA rules of origin.

The statement should be handwritten, stamped, typed on or attached to the commercial invoice. The exporter must then send the Certificate to the importer.