North American Free Trade

Agreement.
 Signed Dec. 17, 1992.
 Came into effect January 01, 1994
 Replaced “Free Trade Agreement” between
Canada and the USA.
 Agreement removes most barriers to trade
and investment among the United States,
Mexico and Canada.
 U.S., Canada and Mexico are considered a
single, giant, integrated market, $6.5 Trillion
worth of goods traveling between the three
countries
 North American Free Trade
Agreement.
 U.S. is Canada’s largest trade partner.
83.7% of Canada’s exports
71.5% of Canada’s imports
 U.S. is Mexico’s largest trade partner
10% of US Exports
10% of US Imports
North American Free Trade
Agreement.
 North American Free Trade
Agreement.
 Goods have to qualify to be considered
eligible for NAFTA.
 In order to qualify a NAFTA Certificate must
be completed.
 In order to complete a NAFTA Certificate, the
rules of origin must be examined for that
good,
 The rules of origin are set out in Annex 401B
of the NAFTA agreement.
 North American Free Trade
Agreement.
 The rules of Origin follow the
Harmonized Tariff.
 The H.S. # of the good being examined
is looked up in Annex 401B, and the
rule that must be followed is stated.
 If the rule has been followed, the good
qualifies.
 North American Free Trade
Agreement.
 NAFTA is a specific “Tariff Treatment”
into Canada.
 In order to use NAFTA (duty free) a
Correct completed NAFTA Certificate of
Origin must be in the importers hands
at time of customs clearance.
 That NAFTA Certificate must be correct.
 Definitions

Territories

Canada

Mexico: Includes Guadalupe & Revillagigedo

United States: Includes Washington D.C. and

Puerto Rico
 Definitions.

Good

A good is the item which is crossing the border

that is being examined to see if it qualifies
for NAFTA or not.

Anything crossing the border is a good

 Definitions.

Material

A good that is used in the production of

another good, and includes a part or an
ingredient.
 Definitions.

Good or Material
 Definitions.

Good or Material
 Definitions.

Good or Material
 Definitions

Originating

Means a good or material qualifying

under the rules or Origin set out in
Chapter Four (Rules of Origin)
 Definitions

Non- originating

A good or material that does not qualify

as originating under Chapter 4.