Canada, Mexico and the United States maintain measures imposing criminal, civil or administrative penalties for violations of their laws and customs procedures, including those relating to the NAFTA. For example, an exporter or producer who falsely represents on a NAFTA Certificate of Origin that a good qualifies as originating may be penalized. An importer may also be penalized for making a false claim for preferential NAFTA treatment on the customs import documentation.
Exporters and producers may avoid such penalties if they promptly and voluntarily advise all concerned parties of the incorrect information contained in the Certificate of Origin. Importers may avoid penalties if they promptly and voluntarily submit a corrected customs declaration and pay any duties that are owed upon learning of the incorrect information contained in the Certificate of Origin.
Importers, exporters and producers who prepare a Certificate of Origin may also be penalized for failing to retain their records as required by the NAFTA (generally five years).