How to determine if your goods qualify for NAFTA
In order to determine whether or not your goods qualify for North American Free Trade Agreement (NAFTA) tariff treatment, you should be aware of three contributing factors:
1. The Harmonized System classification number (HS code)
2. The Most-Favoured-Nation (MFN) tariff agreement 3. Chapter four of the NAFTA agreement This helpful resource offers more details on how the above elements help in determining NAFTA eligibility.
Published on: Mar 3, 2016
Transcripts - How to determine if your goods qualify for NAFTA
3 STEPS TO DETERMINE IF YOUR
GOODS ARE NAFTA ELIGIBLE
NAFTA offers many benefits:
• Reduced duty rates
• Bottom line savings
NAFTA eligibility can be complex.
• Detailed information about the entire production
• Correctly classified goods
We’ve identified three easy steps to help.
to help you determine
Determine the tariff schedule classification
number for the product, its components
and raw materials
NAFTA rules of origin are organized
by classification code with specific
rules for each one.
How to determine the classification:
• Use your Schedule B numbers to help determine
• First six digits of the Schedule B number are part
of the tariff classification code
Assess the duty rate for the product
U.S. duty rates are under the
General rate of duty.
In the U.S.:
• Look to the special column for the tariff
agreement code under the Harmonized Tariff
• This will indicate if your product is eligible for a
preferential tariff treatment
Canadian duty rates are under the
Most-Favoured-Nation (MFN) tariff
• Look to the applicable preferential tariff column
under the Canadian HS
• This will indicate applicable trade agreements
and their associated duty rate
Qualify your goods
Chapter four of the NAFTA
agreement outlines requirements
for goods to qualify for
If your goods qualify for NAFTA tariff
• Complete the Certificate of Origin
• Submit it with your shipment to Customs
Keep these steps on file
Use these three steps to find
out if future products benefit
from reduced taxes and tariffs.
Determining if your goods qualify for
NAFTA tariff treatment can be difficult…
can help with that.