Frequently Asked Questions and Answers

1. What are the NAFTA rules of origin?
2. Where can I obtain a NAFTA certificate of origin?
3. Who is permitted temporary entry into another NAFTA country based on the rules of the Agreement?
4. What can I do if I am a Canadian citizen experiencing difficulty entering the U.S. or Mexico for the purposes of conducting business under the provisions of the NAFTA?
5. How does the NAFTA affect the tariff rates between Canada and the U.S.?
6. How does the NAFTA affect the tariff rates between Canada and Mexico?
7. How can I find out which national tariffs apply for different originating goods under the NAFTA?
8. How can I obtain information on NAFTA customs procedures?

1. What are the NAFTA rules of origin?

Each NAFTA country retains its external tariffs vis-à-vis non-members' goods and levies a lower tariff on the goods "originating" from the other NAFTA members. Rules of origin provide the basis for customs officials to make determinations about which goods are entitled preferential tariff treatment under the NAFTA. Negotiators of the agreement sought to make the NAFTA's rules of origin very clear so as to provide certainty and predictability to producers, exporters and importers. They also sought to ensure that the NAFTA's benefits are not extended to goods exported from non-NAFTA countries which have undergone only minimal processing in North America. The NAFTA rules of origin are explained in Chapter Four of the Agreement.

2. Where can I obtain a NAFTA certificate of origin?

NAFTA certificates of origin are available at any Canada Customs office. They can also be obtained from Revenue Canada's website. The form number is B232.

3. Who is permitted temporary entry into another NAFTA country based on the rules of the Agreement?

In order to ensure that the provisions set out in the NAFTA to facilitate business in North America reach their full potential, Chapter Sixteen of the Agreement permits the temporary cross-border movement of business travelers between the NAFTA countries. The provisions contained within Chapter 16 complement rather than replace a NAFTA country's existing provisions for temporary entry.

There are four categories of travelers eligible for temporary entry from one NAFTA country into another. They are: business visitors, traders and investors, intra-company transferees and professionals. There are specific qualifying criteria which every potential entrant must meet under each of the categories in order to be permitted entry into another NAFTA country. For more specific information on the temporary entry criteria set out in the NAFTA, please see Cross Border Movement of Business Persons and the North American Free Trade Agreement.

4. What can I do if I am a Canadian citizen experiencing difficulty entering the U.S. or Mexico for the purposes of conducting business under the provisions of the NAFTA?

If you qualify under all of the criteria set out in the NAFTA for one of the four categories of temporary business traveler, have provided the correct documentation upon attempting to enter a NAFTA country under one of these categories, and are still encountering problems entering the U.S. or Mexico for business purposes, you can contact the Department of Foreign Affairs and International Trade by phone at 1-800-267-8376 or try using our online NAFTA Diagnostic Tool to report your experience. They may be able to provide you with additional advice.

It should be noted that any country, including the NAFTA countries, has the sovereign right to determine the admissibility of persons entering its territory. Canadians traveling to the U.S. or Mexico must comply with the existing legal requirements associated with entry into these countries. This includes demonstrating a legitimate purpose for the trip and a well established reason for return, among others.

5. How does the NAFTA affect the tariff rates between Canada and the U.S.?

The NAFTA did not affect the phase-out of tariffs which had been agreed upon under the Canada- U.S. Free Trade Agreement (FTA). The phase-out of FTA tariffs was completed on January 1, 1998. As of that date, virtually all tariffs on Canada- U.S. trade in originating goods were eliminated. Some tariffs remain in place for certain products in Canada's supply-managed sectors (e.g. eggs, dairy and poultry products). In the U.S., tariffs remain in place for certain products such as sugar, dairy, peanut and cotton.

6. How does the NAFTA affect the tariff rates between Canada and Mexico?

On January 1, 2003, the final tariff reduction in the Canada-Mexico phase-out schedule was done. The Mexican Administration showed its commitment to the NAFTA by proceeding with the tariff cuts in the face of significant political opposition from certain sectors. Another good example of our commitment to further trade liberalization through NAFTA is the amendment of rules of origin for certain products, including alcoholic beverages and petroleum/topped crude oil, which was implemented on January 1 as well. These changes make it easier for manufacturers of these products to qualify for duty-free treatment under the NAFTA.

7. How can I find out which national tariffs apply for different originating goods under the NAFTA?

For Canadian tariff lines, please consult the Canada Border Services Agency to determine the tariff rates which apply. For U.S. rates, please consult the U.S. International Trade Commission website Mexico has posted the NAFTA tariff schedule on their e-CONOMIA site.

8. How can I obtain information on NAFTA customs procedures?

The U.S. Customs publication "NAFTA: A Guide to Customs Procedures" is available. The Canada Customs and Revenue Agency publication "Customs Guide to NAFTA" is available as well.

The Customs administrations of the three NAFTA Parties maintain a NAFTA customs-related website which contains useful advisory information on all three countries in English, French and Spanish.

Further information can also be obtained by contacting the Customs administrations directly.