Nafta Form Pdf

[Paz Warsager]

The NAFTA Certificate of Origin is used by the United States, Canada, and Mexico to determine if imported goods are eligible to receive reduced or eliminated duty as specified by the NAFTA. For purposes of obtaining preferential tariff treatment, this document must be completed legibly and in full by the exporter and be in the possession of the importer at the time the declaration is made. This document may also be completed voluntarily by the producer for use by the exporter.

The NAFTA Certificate of Origin is not required for shipments to another NAFTA country unless the product qualifies for preferential tariff treatment under the NAFTA rules of origin. A certificate is not needed if the shipment does not qualify for preferential tariff treatment.

Products are classified using national tariff schedules of the country into which they are imported. All NAFTA countries are members of the World Customs Organization (WCO) and utilize the Harmonized Commodity Description and Coding System. The system is used by more than 200 countries and economies as a basis for their Customs tariffs and for the collection of international trade statistics.

The Harmonized System comprises about 5,000 commodity groups. Goods are classified under a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification.

The first two digits are the chapter, the first four comprise the heading, and the first six digits comprise the subheading. For example, a grand piano is classified in subheading 9201.20 of the Harmonized System. Chapter 92 is used for Musical Instruments; heading 92.01 for pianos, and subheading 9201.20 is for grand pianos. Individual countries may establish additional classifications beyond the six-digit level. At the eight-digit level these are called tariff items.

In order to receive the preferential rate established in the NAFTA, the product must meet the applicable rule of origin. These rules, which are established in Chapter Four of the NAFTA, specify the production that must occur in order for a product to be eligible for NAFTA treatment. For example, a product imported into one NAFTA country from outside North America, then shipped onward to another NAFTA country may not qualify for duty-free treatment.

The NAFTA rules of origin have been modified several times since the agreement entered into force. For the most up-to-date information on tariffs and rules of origin, please see the links provided at the end of this document.

A NAFTA Certificate of Origin is not required for the commercial importation of a good valued at less than US$1,000. However, for goods to qualify for NAFTA preferential duties, the invoice accompanying the commercial importation must include a statement certifying that they qualify as originating goods under the NAFTA rules of origin. The statement should be handwritten, stamped, typed on or attached to the commercial invoice.

Once an exporter determines that the exported good will meet the NAFTA rules of origin, a NAFTA Certificate of Origin must be completed accurately and legibly. The exporter must then send the Certificate to the importer. While the Certificate does not have to accompany the shipment, the importer must have a copy of the Certificate in hand before claiming the NAFTA tariff preference at customs. Certificates of Origin may, at the discretion of the exporter, cover a single importation of goods or multiple importations of identical goods.

In some cases, an exporter may not have the NAFTA Certificate of Origin ready at the time of export; however, the importer still has up to one year after the goods go through customs to make a claim for the NAFTA tariff preference and to apply for a refund of duties paid at the time of entry.

Exporters who are not producers often request that their producers or distributors provide them with a NAFTA Certificate of Origin as proof that the final good, or an input used in the manufacture of the final good, sold to Mexico or Canada meets the rules of origin. NAFTA does not obligate a producer who is not an exporter to provide the ultimate exporter with a NAFTA Certificate of Origin. However, if the non-exporting producer does complete the NAFTA Certificate of Origin, they are subject to the same obligations regarding record

In the United States, the exporter is required to retain either the original or a copy of the Certificate for five years from the date of signature. The importer is required to retain the Certificate and all other relevant documentation for five years after the importation of the goods. Adequate records relating to the goods, and their materials and production must support the facts asserted in the Certificate. Mexican exporters must maintain a copy of the Certificate for 10 years. Canadian importers and exporters are required to keep the Certificate for six years from the time of the transaction for the importer and six years from the date of signing for the Canadian exporter.

On July 1, 2020, the United States, Mexico, and Canada updated NAFTA to create the new USMCA. The USMCA is mutually beneficial for North American workers, farmers, ranchers, and businesses. It creates a more balanced environment for trade, support high-paying jobs for Americans, and grow the North American economy.

For additional information on tariffs, including USMCA and applied tariffs, visit the FTA Tariff Tool and the FTA Resources Toolbox on our FTA Help Center. To learn more about harmonized system codes, visit our Understanding H.S. Codes page.

USMCA increases the de minimis threshold for purposes of origin from 7 percent to 10 percent, with certain exceptions for textile and apparel goods. For more information, see Article 4.12 of the USMCA Rules of Origin Chapter.

The USMCA no longer requires a specific certificate of origin. Rather, a minimum set of data elements must be submitted to prove origin. These nine data elements are found in Annex 5-A of Chapter 5 Origin Procedures.

Certification is not required for exports to Mexico that do not exceed US $1,000. A Party may require a written representation certifying that the good qualifies as an originating good; Chapter 5 of the USMCA agreement page 4. Record-keeping requirements still need to be met.

The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. This site contains PDF documents. A PDF reader is available from Adobe Systems Incorporated.

NAFTA forms are often required when shipping internationally between North American countries to allow your shipment to pass through customs more easily. Rely on NAFTAform.net to create your NAFTA Forms every time. You no longer have to rely on templates, computer software or searching for a new sample NAFTA form every time.

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In general aliens performing services in the United States (U.S.) as employees are liable for U.S. Social Security and Medicare taxes. However, certain classes of alien employees are exempt from U.S. Social Security and Medicare taxes.

Nonresident aliens, in general, are also liable for Social Security/Medicare Taxes on wages paid to them for services performed by them in the United States, with certain exceptions based on their nonimmigrant status.

The United States has entered into agreements with several nations called Totalization Agreements for the purpose of avoiding double taxation of income with respect to social security taxes. These agreements must be taken into account when determining whether any alien is subject to the United States Social Security and Medicare tax.

The IRS has issued regulations which clearly stipulate that the spouses and dependents of alien scholars, trainees, teachers, or researchers temporarily present in the United States in J-2 status are NOT exempt from Social Security and Medicare taxes, and are fully liable for Social Security/Medicare taxes on any wages they earn in the United States because such aliens have not entered the United States for the primary purpose of engaging in training, teaching, or research. However, if the alien in J-2 status is employed doing a type of work which is exempt from Social Security and Medicare tax under the code, then the exemption still applies. For example, the wages paid to a J-2 teacher employed by a state university might be exempt from Social Security and Medicare tax if the state has not elected Social Security and Medicare coverage for state employees under Section 218 of the Social Security Act.

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