Frequently Asked Questions and Answers
- What are the NAFTA rules of origin?
- Where can I obtain a NAFTA certificate of origin?
- Who is permitted temporary entry into another NAFTA country based on the rules of the Agreement?
- 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?
- How does the NAFTA affect the tariff rates between Canada and the U.S.?
- How does the NAFTA affect the tariff rates between Canada and Mexico?
- How can I find out which national tariffs apply for different originating goods under the NAFTA?
- 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 the Canada
Border Services Agency 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 Border Services Agency
publication "Exporting
Goods from Canada – A Handy Guide for Exporters" 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.
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