NAFTA: Some Practical Advice

NAFTA: Some Practical Advice

From the Global Training Center Blog:

It is always good to review current policies and procedures – then should remember the following:

• NAFTA is a voluntary program~

While there are incentives for participation, there are also good reasons to opt out. Check the duty rates in the destination country. For example, if you are shipping wood doors to Canada, they are already duty free. Participating in the NAFTA will not reduce the duties any further!

• No NAFTA if No Certificate of Origin (COO) certificate~

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.

• Certificate of Origin (COO) certificates are not shipping documents~

Too frequently, organizations assign completion of the COO to untrained, front line individuals. The COO should be treated as a controlled business document not unlike contracts, checks or tax documents. Only authorized, empowered, knowledgeable and responsible staff should be allowed to complete and sign the document.

To read more NAFTA advice from John Goodrich at Global Training Center Blog