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Claiming Preferential Treatment

A claim for preferential treatment is usually made at the time of importation on the customs document used by the importing country. The Agreement allows NAFTA claims up to one year from the date of importation. The procedures for presenting a NAFTA claim are different in Canada, Mexico, and the United States.

Article 502 : Obligations Regarding Importations

Chapter 7 - Entry Procedures

19 CFR 181.21-.23 - Import Requirements can be found in sections 181.21 – 181.23

3550-070 Filing and Processing Claims Under the North American Free Trade Agreement (NAFTA)

Certificate of Origin

Post Importation NAFTA Claims

Generally, NAFTA claims are made at the time of importation. However, NAFTA allows for a NAFTA claim to be made by the importer within one year from the date of importation.

Drawback

Drawback is a refund, reduction or waiver in whole or in part of Customs duties collected upon importation of an article or materials which are subsequently exported. Under NAFTA, this refunded amount is the lesser of the amount of duties paid upon importation into the NAFTA territory and the total amount paid on the finished good is the NAFTA country to which it is exported. Drawback became effective for trade between Canada and the United States on January 1, 1996, and for trade between Mexico, the United States and Canada, this program became effective on January 1, 2001.

Article 303 : Restriction on Drawback and Duty Referral Programs
Annex 303.6 : Goods Not Subject to Article 303
Annex 303.7 : Effective Dates for the Application of Article 303
Annex 303.8 : Exception to Article 303(8) for Certain Color Cathode-Ray Television Picture Tubes

Drawback and Duty Deferral Programs

Duty Deferral

Country of origin marking is used to clearly indicate to the ultimate purchaser of a product where it is made. NAFTA marking rules are also used to determine the rate of duty, staging and country of origin applicable for NAFTA goods.

Last modified: 
January 17, 2018
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