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NAFTA Certificate RenewalCertificate of OriginWhat should you do?What Buckland will do?

Why is it important to renew your certificates NOW?

 

In order for your Canadian or U.S. customers to claim duty-free status under the North American Free Trade Agreement, a properly completed NAFTA Certificate of Origin must be in our possession by no later than December 23.

 

Failure to renew your Certificates of Origin will result in the significantly higher MFN duty rate being assessed on your goods after January 2.

 

It is against Customs regulations to claim the NAFTA preferential duty rate when a valid certificate is not available at the time of import. Under Canada's new Administrative Monetary Penalty System (AMPS), significant fines (ranging up to $5,000 per instance) can be assessed for using an incorrect tariff treatment or for the failure to have a valid certificate on hand at the time of import. Penalties for recordkeeping infractions of up to $25,000 may also be levied by Customs.

 

Our Policy:

 

To ensure that our clients are protected against Customs-assessed AMPS penalties, Buckland will not use the NAFTA preferential duty rate on imported goods unless we have a valid NAFTA Certificate of Origin in our possession at the time of import.

 


 
  

NAFTA Certificate Checklist
NAFTA Certificate Checklist

The following questions have been designed to assist you when reviewing your vendor's NAFTA Certificate of Origin in order to determine its validity. It is important to note that incorrect completion of the data fields on the form can render the certificate invalid and may result in Customs-issued penalties under the Administrative Monetary Penalty System (AMPS).

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Definition of Criterion
Definition of Criterion "A"

NAFTA applies to goods that originate in Canada, Mexico or the United States. Various "origin criteria" are applied to determine exactly HOW the goods qualify for NAFTA treatment. The most basic criterion is "A" covering goods "wholly produced or obtained" in the NAFTA region. Unfortunately, this statement is frequently misinterpreted. The following information is intended to provide clarification and help exporters to avoid errors when preparing their Certificates of Origin.

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Steps to Take When Qualifying for NAFTA
Steps to Take When Qualifying for NAFTA

Only goods which qualify under the NAFTA Rules of Origin can obtain NAFTA tariff preference, i.e., reduced or eliminated tariffs. The NAFTA Rules of Origin take into account where goods are produced and what materials are used to produce them. The purpose is to ensure that North American goods traded among the three NAFTA partner countries receive preferential tariff treatment. Products of other countries merely being transhipped through or undergoing only minor operations in North America are not eligible for NAFTA benefits.

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Do my goods qualify for NAFTA?
Do my goods qualify for NAFTA?

What letter/origin criterion do I put in field 7 of the NAFTA certificate of origin?

 

Use the following checklist to determine if your goods meet the preferential rules of origin (NAFTA, Chapter 4, Annex 401). Begin with #1 and proceed to the next step, unless otherwise indicated. For our Canadian clients, you can send this checklist to your vendors with your NAFTA Certificate of Origin request.

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