According to NAFTA, “fully extracted or fully manufactured” means that all materials used in the manufacture of the product can be brought back to land (mineral or agricultural extraction). As the example shows, it is very easy to misinterpret this agreement without understanding how the terms are defined. The new “Access to the Market” chapter will more effectively support trade in industrial products between the United States, Mexico and Canada by removing provisions that are no longer relevant, updating key references and confirming commitments under the original agreement. Please note that, under the rules of origin, the Rules of Origin chapter refers to the first two (2) digits of the SH code, that the title refers to the first four (4) digits of the HS code and that, under the title, it refers to the first (6) digits of the SH code. The first of these two requirements is not met because there is no change of direction, so the manufacturer must check whether the ice is eligible under the second rule. In the second rule, the required partial position change is satisfied (from HTS 8516.90 to 8516.32), so that regional value change is calculated. Regional content under the transaction value method is as follows: If you doubt that your products are eligible under NAFTA rules of origin, importers, exporters and producers of goods can (and should) seek preliminary decisions from customs authorities in Canada, Mexico and the United States. Learn more about this option in my article NAFTA Rules of Origin – Advanced Rulings. The issuer of a written declaration of origin must, in addition to other supporting documents, certify that, in accordance with NAFTA rules of origin, goods are considered original products for products entering Canada for a period of five years from the date of import of goods for products entering Mexico.
Products may be classified as native products when manufactured exclusively in Canada, Mexico and/or the United States from materials considered to originate under the nafta provisions. This provision includes parts and materials products that are themselves in compliance with NAFTA rules of origin, although they may contain certain non-territorial inputs. NAFTA covers services other than air, marine and basic telecommunications. The agreement also provides protection for intellectual property rights in a wide range of areas, including patents, trademarks and copyrighted material. NAFTA`s procurement provisions apply not only to goods, but also to contracts for services and work at the federal level. In addition, U.S. investors are assured of equal treatment for domestic investors in Mexico and Canada. The United States, Mexico and Canada have agreed on stricter rules of origin that exceed those of NAFTA 1.0 and the Trans-Pacific Partnership (TPP), including for cars and auto parts and other industrial products such as chemicals, steel-intensive products, glass and fibreglass.
Even if they contain non-native materials, the products may originate in Canada, Mexico or the United States if the subjects of the rule of origin are consistent with the general score 12. The rules of origin are commonly referred to as specific rules of origin and are based on a change in the tariff classification, a regional value-content requirement or both. The rules of origin specific to each NAFTA product are regularly amended to reflect changes in the industry`s production practices and procurement models and to ensure consistency as a result of regular changes to the harmonized system of global customs cargo description and coding organizations (SH).