What was NAFTA purpose?
What is NAFTA? NAFTA is the North American Free Trade Agreement between the U .S., Canada and Mexico. It became effective on January 1, 1994. The purpose of NAFTA was to encourage trade by eliminating tariffs on most goods originating in and traded between these countries over a fifteen-year period. What does NAFTA do? NAFTA provides preferential tariff treatment for certain products traded between these countries when strict documentation and certification procedures are met. Currently, preferential treatment means either reduced or eliminated tariff rates, depending on the product. What are the requirements? Product qualification for NAFTA preferential tariff treatments requires: Accurate Harmonized System (HS) classification with supporting documentation. Official designation of the country of origin documented with NAFTA certificates. Products can qualify through Tariff Shift, Regional Value Content (RVC) or de minimis: Tariff Shift means that a finished good undergoes a substantia
