Practical Advice from NAFTA’s “Front Lines”
9. No HTS code? No NAFTA. Most of the preference criteria require an understanding of the HTS (the HTS is based on the international Harmonized Commodity Coding and Classification System, which has been established by the World Customs Organization). Virtually all countries base their tariff schedules on the HTS, making it easier to conduct international trade. Some require producers to identify the HTS codes of non-originating materials used within their goods. Without a robust, accurate classification process, a company should not participate in NAFTA.
10. A part may not be a part. Tariff change rules usually require materials classified as parts of goods to originate in North America. This can be a stumbling block for producers. There exists a pervasive misuse and overuse of the parts classification provisions within the tariff. What producers refer to as a “part” is frequently, specifically provided for elsewhere within the harmonized tariff. Proper classification of materials, ingredients, and other components will simplify the NAFTA origination process.
11. No certificate? No NAFTA. The importer must have a COO voluntarily supplied by the supplier before making a NAFTA duty-free claim. The condition of that certificate is also important. NAFTA is the only US free trade agreement that incorporates an official format for the certificate of origin. Incomplete or inaccurately completed forms may cause the importer’s NAFTA claim to be denied. The instructions are printed on the back of the form.
According to John Goodrich, author of the book, “NAFTA: A Practical Guide to Regulation, Documentation & Procedures” If you would like more information on NAFTA Training; click here or call us at 800.860.5030