When should a North American Free Trade Agreement (NAFTA) certificate of origin be completed?
A NAFTA Certificate of Origin should only be completed for products exported to Canada or Mexico that meet the NAFTA rules of origin and which would face a higher tariff if they were coming from a fourth country. Under NAFTA, products that qualify under the rules of origin will have zero duties when traded between the U.S. and Canada, and will have low or zero tariffs when traded between the U.S. and Mexico. In some cases the tariff rate may be zero no matter where the products are produced. If the tariffs using NAFTA Preference are not better than the usual duties applied under Most Favored Nation (MFN) status, it is not worthwhile spending the time and effort to complete a NAFTA Certificate of Origin.
Related Questions
- Can I use a North American Free Trade Agreement (NAFTA) Certificate of Origin to declare that my products qualify for preferential duty treatment under the U.S.-Australia FTA?
- Can I use a North American Free Trade Agreement (NAFTA) Certificate of Origin to declare that my products qualify for preferential duty treatment under the CAFTA-DR?
- Is the North American Free Trade Agreement (NAFTA) Certificate of Origin required for shipping to Canada and Mexico?
