NAFTA FAQ's

For non-NAFTA FAQ's, click here.


Q: Are all goods shipped from the U.S. to Canada or Mexico, or imported from Canada or Mexico under NAFTA, now duty-free?

A: No. First, not all goods shipped within NAFTA territory were made in North America. For example, a car imported from Japan to the U.S. and then exported to Mexico does not get duty breaks under NAFTA. Likewise, a car imported from Japan to Mexico or Canada does not get duty breaks if it is then shipped to the United States.

There are very precise rules in NAFTA about what constitutes an eligible product and what does not. For example, metal imported into the U.S. from Taiwan and made into sports equipment here can become a NAFTA product that gets duty breaks if exported to Canada or Mexico.

Likewise, if the metal is imported into Canada or Mexico, the sporting goods then manufactured could get a break coming into the U.S.

Unstrung tennis racquets imported from Taiwan into Mexico and strung there would not ordinarily qualify.

This is according to Annex 401 of NAFTA. Copies are available at most large libraries. Your freight forwarder or customs broker can assist you.

Those products which qualify under NAFTA are now duty-free. The duty reductions took place over time, but are now at zero.


Q: What is a NAFTA Certificate of Origin?

A: This is a document certifying that the goods are ORIGINATING products of the U.S., Canada, or Mexico WITHIN THE MEANING OF NAFTA. It is prepared by the exporter to ensure favorable duty treatment for the importer.

As above, the fact that a product was made here does NOT mean it qualifies for certification. The product must meet the NAFTA Preference Criterion, or no NAFTA CofO should be issued. The biggest single mistake being made in cross border trade at this time is the widespread issuance of NAFTA certificates of origin by exporters who have not checked the facts and are actually issuing false documentation.

It is only a matter of time before enforcement catches up with these companies and individuals.

Please comply with NAFTA and consult with your freight forwarder or customs broker before issuing NAFTA certificates of origin. Here is a blank NAFTA Certificate of Origin that you can download and use.

NAFTA and the NAFTA Certificate of Origin are covered in Export-Import, especially chapter 8.

Further information on these and many other subjects is available in Export-Import: Everything You and Your Company Need to Know to Compete in World Markets.

Q: What if a product doesn't Canadian or Mexican buyer needs a Certificate of Origin anyway, to clear Customs?

Joseph Zodl is author of Export-Import: Everything You and Your Company Need to Know About World Markets.

For more information, click the book cover.