How To Fill out a NAFTA - The Fundamentals

Properly completed document required for Canadian importers to claim preferential U.S. Tariff Treatment.

Must be completed by the exporter of the goods.

NOTE: Where the exporter is not the producer, reasonable knowledge of the goods’ origin or written representation from the producer regarding the goods’ origin is required.

Exporters are required to produce certificates upon request by Customs and maintain supporting records for a period of 5 years.

NAFTA Certificate of OriginNAFTA Certificate of Origin

Field 1: Field 1: Exporter Exporter

NAME, ADDRESS AND FEDERAL TAX IDENTIFICATION NUMBER OF THE EXPORTER

The company that shipped or consigned the goods to the recipient in Canada. Not necessarily the Vendor

NOTE: The Tax Identification number for U.S. companies is the Employer’s Identification Number or, in the case of individuals, Social Security Number.


Cannot be left blank. Must contain name Cannot be left blank. Must contain name of the exporter (company causing the of the exporter (company causing the movement of the goods to Canada – movement of the goods to Canada – other than customs broker or forwarder.other than customs broker or forwarder.

Field 1: Field 1: Exporter Exporter


Field 2: Field 2: Blanket PeriodBlanket Period

FOR REPETITIVE SHIPMENTS OF IDENTICAL GOODS

Specified period of coverage for multiple shipments – “Blanket” certificates are valid for a period of up to one year. Indicate the certificate’s beginning and expiry date of coverage.


Should be completed ONLY IF certificate Should be completed ONLY IF certificate is intended to cover multiple shipments is intended to cover multiple shipments of identical goods. Blanket period must of identical goods. Blanket period must have beginning/ending dates in D/M/Y have beginning/ending dates in D/M/Y order. Period cannot exceed one year.order. Period cannot exceed one year.

Field 2: Field 2: Blanket PeriodBlanket Period


Field 3: Field 3: Producer’s NameProducer’s Name

NAME, ADDRESS AND FEDERAL TAX IDENTIFICATION NUMBER OF THE PRODUCER (MANUFACTURER)

If more than one producer’s good is included on the Certificate, attach a cross-referenced list.

If the information is confidential, state “Available to Customs upon request.”

If the producer and exporter are the same, indicate “SAME”.

If the producer is not known, indicate “UNKNOWN”.


The producer cannot be The producer cannot be from a country outside the from a country outside the NAFTA territory. NAFTA territory.

Field 3: Field 3: Producer’s NameProducer’s Name


Field 4: Field 4: Importer’s Name & AddressImporter’s Name & Address

NAME, ADDRESS AND FEDERAL TAX IDENTIFICATION NUMBER OF THE IMPORTER

If the importer is not known, indicate “UNKNOWN”.

If the Certificate is being provided to multiple importers, state “VARIOUS”.


If completed for multiple importers (i.e., If completed for multiple importers (i.e., ““VariousVarious””), the Exporter must still keep ), the Exporter must still keep track of these companies in order to track of these companies in order to notify them of any subsequent changes notify them of any subsequent changes to their certificate. to their certificate.

Field 4: Field 4: Importer’s Name & AddressImporter’s Name & Address


Field 5: Field 5: Description of GoodsDescription of Goods

FULL DESCRIPTION OF THE GOODS COVERED BY THE CERTIFICATE

Description of the goods sufficiently detailed to directly relate them to the CCI or Commercial Invoice, as well as to the HS classification.

For individual shipments, include the invoice number or any other unique reference number such as purchase order or sales order.


Use of vague or general descriptions Use of vague or general descriptions is not acceptable. Descriptions must is not acceptable. Descriptions must be product specific and should relate be product specific and should relate directly to the invoice description directly to the invoice description whenever possible. A part number whenever possible. A part number alone is not acceptable. alone is not acceptable.

If not a If not a ““blanketblanket”” certificate, specific certificate, specific reference should be made to the reference should be made to the invoice number, purchaser order, etc. invoice number, purchaser order, etc.

Field 5: Field 5: Description of GoodsDescription of Goods


Field 6: Field 6: H.S. ClassificationH.S. Classification

HARMONIZED CLASSIFICATION OF THE GOODS COVERED BY THE CERTIFICATE

Valid HS classification number (6 or 8 digits, depending on the NAFTA Rule of Origin) corresponding to the Description in Field 5 of the form.

Correct tariff classification is important in order to determine the appropriate Rule of Origin.


Cannot be left blank. The H.S. Cannot be left blank. The H.S. classification number must be at classification number must be at least 6-digits (or 8-digits as required).least 6-digits (or 8-digits as required).

Must be a valid H.S. description Must be a valid H.S. description relating to the goods listed on the relating to the goods listed on the invoice. invoice.

Field 6: Field 6: H.S. ClassificationH.S. Classification


Field 7: Field 7: Origin/Preference CriterionOrigin/Preference Criterion

CODE REPRESENTING THE APPROPRIATE RULE OF ORIGIN UPON ON WHICH THE GOODS QUALIFY FOR NAFTA TREATMENT

In order to be entitled to preferential tariff treatment, each good must meet at least one of the preference criteria (A through F).


Field 7: Field 7: Preference Criterion APreference Criterion A

GOODS WHOLLY OBTAINED OR PRODUCED ENTIRELY IN THE NAFTA TERRITORY

Refers only to natural extraction, growth, production or similar processes carried out in the NAFTA region.

Examples: Minerals, vegetables, livestock, fish, shellfish, goods taken from the seabed, finished products made from originating materials, waste & scrap derived from used goods.


The phrase The phrase ““wholly obtainedwholly obtained”” in in context with Origin Criterion context with Origin Criterion ““AA”” does NOT mean does NOT mean ““purchasedpurchased”” or or simply simply ““acquiredacquired”” in Canada, in Canada, Mexico or the United States. Mexico or the United States.

The goods must be basic products The goods must be basic products

naturally extracted or cultivated. naturally extracted or cultivated.

Field 7: Field 7: Preference Criterion APreference Criterion A


Field 7: Field 7: Preference Criterion BPreference Criterion B

CHANGE IN TARIFF CLASSIFCATION OR “TARIFF SHIFT” WITH REGIONAL VALUE ADDED

Goods may qualify under NAFTA if their last place of manufacture was in North America and the manufacturing process resulted in a “significant” transformation of the goods – i.e., as dictated in the Rules of Origin stated in Article 401.

Example: Non-Originating Materials: Steel Billets — Heading 72.07.

Finished Product: Steel Beams — Heading 72.16


Field 7: Field 7: Preference Criterion CPreference Criterion C

PRODUCTION FROM ORIGINATING GOODS

Goods produced in North America from originating materials. Materials qualify as “originating” by virtue of meeting the Rules of Origin – e.g., tariff shift representing a significant transformation.


VALUE-ADDED RULE

Technical provision applicable where no change in classification occurs.

1) Goods imported in an unassembled or disassembled condition and classified as if the goods were complete (according to GIR 2a).

Value-added in the NAFTA region equaling 60% of the selling price required in order to qualify.

Example: Unassembled Bicycle Kits classified under subheading 8712.00 as a complete bicycle.

Field 7: Field 7: Preference Criterion D1Preference Criterion D1


Field 7: Field 7: Preference Criterion D2Preference Criterion D2

GOODS CLASSIFIED UNDER THE SAME HEADING AS THE FINISHED PRODUCT

Technical provision applicable where no change in classification occurs.

2) Where the tariff subheading provides for both the goods themselves and their parts.

Example: Electric train sets of heading 95.03 assembled from various non-originating parts.


Field 7: Field 7: Preference Criterion EPreference Criterion E

CODE FOR CERTAIN AUTOMATIC DATA PROCESSING EQUIPMENT AND PARTS SPECIFIED IN NAFTA ANNEX 308.1

Allowance to permit NAFTA preference to certain non-originating computer equipment.


Field 7: Field 7: Preference Criterion FPreference Criterion F

ORIGINATING AGRICULTURAL GOODS

Qualifying agricultural products as defined in NAFTA Annex 703.2. Relevant Section A or B must be specified.


Field 8: Field 8: ProducerProducer

PRODUCER STATUS

State “YES” if you are the actual producer of the good.

State “NO” if you are not the producer of the good, followed by: 1), 2); or 3) indicating the nature of your understanding of the good’s origin:

1) Your own personal knowledge.2) Producer’s written representation (other than Certificate of Origin).3) Completed NAFTA Certificate of Origin.


Field 9: Field 9: Net CostNet Cost

REGIONAL VALUE CONENT (RVC)

Where goods are subject to a RVC requirement, indicate “N/C” if the method used to calculate the amount utilizes Net Cost.

If Net Cost is calculated over a period of time, indicate the start and ending dates applicable.

Otherwise, indicate “NO.”


Field 10: Field 10: Country of Origin of GoodsCountry of Origin of Goods

COUNTRY OF ORIGIN FOR AGRICULTURAL OR TEXTILE GOODS

State “MX” or “US” as appropriate for specified goods in accordance with Canadian Marking Rules


Field 11: Field 11: Exporter CertificationExporter Certification

NAME AND CONTACT INFORMATION OF THE PERSON COMPLETING THE CERTIFICATE ALONG WITH DATE COMPLETED

The person completing the form should have sufficient knowledge of the goods and the applicable Rules of Origin in order to ensure legitimacy of the Certificate.


Business

How To Fill out a NAFTA - The Fundamentals