Understanding the rules for commercial activity in the North American Free Trade Agreement (NAFTA) can be difficult. For each free trade agreement with a NAFTA partner, there is a set of definitions that describe how a good meets the terms of the agreement to qualify for special duty treatment.
To learn more about navigating NAFTA, join Sherisse Redman, CCS, owner of Export-Able Consulting, on January 14th from 1-2pm EST in the next “Export Success” webinar as she shares her expertise about NAFTA certifications and exporting within NAFTA definitions.
“To certify that goods qualify for the preferential tariff treatment under NAFTA, exporters must complete a certificate of origin (COO), a required component of export compliance to confirm where the products are originally manufactured,” says Emiliano Introcaso, National Program Manager for the Export Success Program at Canadian Manufacturers & Exporters (CME). “In order to qualify for NAFTA, the good must have been manufactured in Canada, USA or Mexico and the regional value content (RVC) must qualify the product as such.”
With a COO in hand, importers can take advantage of lower or preferential duty rates. And that makes a big difference.
According to EDC’s webinar “Doing Business In Mexico”, it’s easy to see why Mexico has become one of Canada’s top trade partners.
Ranked in the top 10 markets for exporters and investors worldwide, bilateral trade between Canada and Mexico reached almost $33 billion in 2013. Access to the Mexican market is because of the country’s commitment to free trade through NAFTA.
As such, the free trade agreement provides businesses with better access to materials, technologies, investment capital, and talent available across North America.
Tune into the webinar at 1 p.m. on January 14 to learn more about the fundamentals of NAFTA including Tariff Classification, Country of Origin verification, Regional Value Content and Preference Criterion. Find out how you can apply this knowledge to other free trade agreements like CIFTA and CCFTA and in the future, the TPP.