HAPPY NEW YEAR! It is now time for for importers and exporters to review, update and renew their blanket North American Free Trade Agreement (NAFTA) certificates of origin. Importers and customs brokers must be in possession of a valid NAFTA certificate of origin to continue to receive the duty free (UST, MST or MUST) benefits of NAFTA in 2016.
This is also a perfect time to review tariff classifications used in NAFTA certificates of origin. When was the last time you asked whether the H.S. tariff classification is correct? Have you asked a customs lawyer to review the CITT decisions of the last year and CBSA publications and published rulings summaries to determine if new guidance is available?
Have you reviewed the preference criterion used in the NAFTA certificate of origin? Did you know that many importers incorrectly use Preference Criterion A for manufactured goods? Did you know that the CBSA regularly determines that the preference criterion used by an importer is not correct?
If you have relied on a regional value content calculation for your determination of NAFTA origin, when was the last time you reviewed the bill of materials and the RVC calculation? When was the last time you checked with your supplier that they have reviewed their RVC calculations? Has your purchasing department changes the sourcing of any materials used in the manufacturing process?
The completion of the new certificate of origin is the perfect time to verify that the information is still accurate. take a few moments to start the year off right.