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"It is estimated that over 50% of all NAFTA certificates prepared by exporters or producers are in error or incomplete. Revenue Canada and the US Customs authorities are now stepping up their NAFTA audits. More and more Canadian and American companies are being targeted. It is time to ensure your certificates are valid and establish the supporting documentation to prove it".

NAFTA Certification

Trade between all three parties of the North American Free Trade Agreement (Canada, US, and Mexico), has increased significantly since the signing of the agreement in 1994. As a result, our Trade Advisory Group has helped many companies take advantage of the savings created by the NAFTA by certifying their products under the extensive rules and regulations contained in the agreement.

The NAFTA provides for tariff elimination on all goods that are considered "originating" in one of the three territories. Certain products may incorporate non-NAFTA inputs, and still be considered "originating", as long as it can be shown that there has been enough transformation in the NAFTA territory. In order for your goods to obtain "originating" status, and identify the proper transformation, you must ensure that all goods have been properly certified and that you have in your possession a valid Certificate of Origin. Knowledge of the requirements for eligibility, tariff classifications, rules of origin, penalties, and various other regulations is crucial to complete a NAFTA Certification.

The principles for the elimination of tariffs under NAFTA were based upon a phase out period of 15 years. Currently, goods traded between Canada and the US enter duty free, and those traded with Mexico enjoy the preferential rates established.

If you manufacture and sell goods in North America, our Trade Advisory Group can help to eliminate the barriers, enabling your company to be more profitable and competitive in this ever- changing world of International Trade.

If you are interested in having your goods move throughout North America under the preferential rate, and would like to learn more about NAFTA Certification and how it can benefit your organization, give us a call. Remember, the key to successful trading is reducing the barriers for you and your clients abroad.