2014 NAFTA And Free Trade Agreement Renewal Time

2014 NAFTA And Free Trade Agreement Renewal Time

With the end of the year quickly approaching, now is the time for importers and exporters to review, update and renew their blanket North American Free Trade Agreement (NAFTA) Certificates of Origin and/or other Free Trade Agreement Certificates of Origin on file with Pacific Customs Brokers.

Importer Responsibilities Under NAFTA:

As with other preferential trade programs, the importer bears responsibility to claim the benefits. A claim for preferential NAFTA treatment is done when the Certificate of Origin is supplied with the Customs documents at the time the goods enter Canada, Mexico or the United States.

NAFTA creates a free trade area, not a common market. Customs administrations will still exist and goods entering Canada, Mexico or the United States must still comply with each country's laws and regulations. Importers need to be aware the agreement does not allow for the unchecked movement of goods among Canada, Mexico and the United States.

Exporter Responsibilities Under NAFTA:

The exporter is responsible for fully completing the Certificate of Origin, also referred to as the NAFTA Certificate. If you are exporting or importing eligible goods and you are not the producer or the manufacturer these are your three options:

  1. Complete your own certificate of origin based on the information from your producer's or manufacturer's NAFTA.
  2. Complete your own certificate of origin based on a letter from the producer or manufacturer explaining why the goods would be eligible for NAFTA.
  3. Complete your own certificate of origin based on your own knowledge of the product.
NAFTA Certificate of Origin: Top 5 Mistakes And How To Avoid Them

Correctly Completed Certificates:

For companies reviewing NAFTA Certificates of Origin (NCO) from their North American vendors, the first step is to ensure that at face value, the certificate has proper coding and is fully completed. While this might sound like common sense you would be surprised how many certificates are missing information or contain unacceptable data (for instance, indicating a dollar value in the net cost column). In order to assure accuracy of the data, you need to have sufficient knowledge regarding the completion of the document, the basics of which are usually found on the second page of the Certificate of Origin. If not completed accurately, you are at risk for Administrative Monetary Penalties System (AMPS) and potential duties issued by Canada Border Services Agency.

eManifest AMPS Penalty Assessments Now Issued At The Border

An Opportunity To Increase Your Awareness:

If you are unsure about your knowledge and ability to perform this step, Pacific Customs Brokers offers a variety of services to cover verification, collection, review and maintenance of Certificates of Origin, as well as a seminar. For details and to register »

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About the Author
Gloria Terhaar
CCS (CA/US), CTCS, CBSA Prof. Designate

Gloria Terhaar began her career in Canadian customs brokerage 2007. She currently works in our Canadian division as a Trade Compliance Supervisor and Regulatory Compliance Specialist. Gloria has extensive experience in all aspects of documentation and regulatory requirements as they relate to importing products into Canada. Gloria is often called upon to train industry with some recent talks for MNP, the Surrey Board of Trade, TFO Canada and the BC Produce Marketing Association. In 2018, Gloria also participated in the Canadian Produce Marketing Association and the Canadian Horticultural Council advocacy event "Fall Harvest" in Ottawa where she participated in advocacy efforts for the Canadian produce industry.

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.