Who is the exporter on a nafta

The Trading Post is not. Sign up to receive easy to understand updates, events, and guides on international trade. Its intent was to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace. For items not wholly grown or produced of items wholly grown or manufactured in a NAFTA area, they must meet certain predetermined criteria in order to qualify for reduced duty rates.

The NAFTA Certificate of Origin should be provided by the exporter to the importer to support the importer's claim for duty-free entry. The form can also be provided by the producer for use by the exporter. Correctly completing a NAFTA Certificate of Origin can be confusing for those who have never done it before or do not understand the requirements of each field.

The NAFTA Certificate of Origin must be completed and certified by an authorized signatory of the producer or exporter of the goods who has enough knowledge of the information provided in all fields. On a daily basis, customs brokers are faced with informing their clients of inaccuracies made when completing a NAFTA certificate.

An incomplete or incorrectly completed certificate invalidates the ability to claim the lower preferential rate of duty that would have been awarded with a valid certificate.

Below are the instructions outlining how to correctly complete each field of a NAFTA certificate, as well as some of the most common errors customs brokers identify when validating certificates. It is a much more straight forward form to complete, requiring only the producer's or exporter's name, address and signature to be completed.

State the full legal name, address including country and legal tax identification number of the exporter. Complete field if the Certificate covers multiple shipments of identical goods as described in Field 5 that are imported into a NAFTA country for a specified period of up to one year blanket period.

Common Error: It is not uncommon to find that the DATE field is completed inaccurately to reflect a blank period covering a year and one 1 day. To be sure that the blanket period is valid, this field must read the same year in both start and end date of the blanket period. State the full legal name, address including country and legal tax identification number, as defined in Field 1, of the producer. If more than one producer's good is included on the Certificate, attach a list of the additional producers, including the legal name, address including country and legal tax identification number, cross referenced to the good described in Field 5.

If you wish this information to be confidential, it is acceptable to state "Available to Customs upon request". If the producer and the exporter are the same, complete field with "SAME".

State the full legal name, address including country and legal tax identification number, as defined in Field 1, of the importer. Provide a full description of each good. The description should be sufficient to relate it to the invoice description and to the Harmonized System HS description of the good. If the Certificate covers a single shipment of a good, include the invoice number as shown on the commercial invoice. If not known, indicate another unique reference number, such as the shipping order number.

Tip: For a blanket certificate, part or item numbers identifying each commodity covered by the certificate should be included to guarantee that there is no confusion as to which products are covered and which are not. For each good described in Field 5, identify the H. If the good is subject to a specific rule of origin in Annex that requires eight digits, identify to eight digits, using the H.

Tip: Applying accurate H. If you are unsure if the code is correct, contact a customs broker before completing the certificate. For each good described in Field 5, state which criterion A through F is applicable. The rules of origin are contained in Chapter Four and Annex 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.

The three leaders also added a clause to the deal that states it expires after 16 years. The three nations will also review the deal every six years, at which point they can decide whether they wish to extend the deal or not.

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Secretary of the Economy for Mexico. World Economic Forum. The Kingston Whig Standard. Canadian Business. David, H. The Christian Science Monitor. Emerging Markets. Investing Essentials. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

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This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. 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.