On
January 1, 1994, a trilateral trade agreement between the United States, Canada
and Mexico was implemented. This is called the North American Free Trade Agreement
(NAFTA). NAFTA spells opportunity because qualifying goods have lower duty rates.
However, in order to take full advantage of this trade agreement, you must strictly
comply with the rules and regulations.
COMPLIANCE WITH THE REGULATIONS
REGIONAL VALUE CONTENT
/ TARIFF SHIFT
HUGH SAVINGS POTENTIAL
For goods to qualify for preferential duty treatment they must meet a specified
percentage of North American content, undergo a tariff shift or both. These rules
of origin and the preparation of a certificate of origin (to substantiate that
the product qualifies) make compliance with the regulations time consuming and
tedious. It is also necessary to fully understand the Harmonized Tariff Schedule
in order to properly classify products.
On
January 1, 1994, a trilateral trade agreement between the United States, Canada
and Mexico was implemented. This is called the North American Free Trade Agreement
(NAFTA). NAFTA spells opportunity because qualifying goods have lower duty rates.
However, in order to take full advantage of this trade agreement, you must strictly
comply with the rules and regulations.