4.1 NAFTA OVERVIEW

Originally introduced on January 1, 1989, as the United States/Canada Free Trade Agreement and was extended to include Mexico and evolved to the current North American Free Trade Agreement (NAFTA).

Rates of duty under the Free Trade Agreement were reduced according to each individual commodity in staging categories. The categories were immediate reduction to duty free, reduction over a five (5) year period ending January 1, 1994 and finally reduction over ten (10) years ending January 1, 1998. All goods effective January 1, 1998 became free of duty. It should be noted that duty fee applies to only those goods between Canada & the USA. Mexico has a different tariff treatment and therefore, the duty reduction staging category is spread over 15 years.

NAFTA rates of duty apply only to goods manufactured within the regions of the United States, Canada, and Mexico. They must meet certain other criteria before being allowed entry under the preferential rate.

4.2 QUALIFICATIONS

In order for goods to qualify for the reduced tariff rate under NAFTA, the importer or customs broker must be in receipt of a fully completed NAFTA certificate of origin, at the time of customs release. A sample of the completed NAFTA certificate of origin including a blank form is included in section 1, items 1.5 and 1.7. Steps to qualify are shown in an easy to follow format in Section 1, Subsection 1.4.5.

4.3 FORMS

NAFTA certificates of origin can be completed on a per shipment basis. Or they can be prepared on an annual basis. For sample forms see: