NAFTA Certificate Requirements

A NAFTA certificate is required generally while conducting business in a foreign country where different taxes or region wise rules are applicable. The North American Free Trade Agreement gives an opportunity to the member nations to avail of various benefits and to lessen their tax so that they trade in a free and transparent manner. The following are the

Minimum criteria to be met by all NAFTA certificate applicants:

The minimum criteria in order to be met by member nations in order to obtain the NAFTA certificate and avail the benefits are given below for your reference:

a)      Member countries should firstly sign the North American Free Trade Agreement and abide by all the terms and conditions in it.

b)      Nations that have the NAFTA certificate would be able to reduce their tax and tariffs. The nations that otherwise do not possess the NAFTA certificate would have to pay the higher most favoured nation tariff.

c)      The NAFTA certificate can be obtained in any of the top languages like English, French, and Spanish.

d)     The applicant companies that are importers should definitely submit the NAFTA certificate. However this is not mandatory for export companies.

Other requirements to obtain a NAFTA certificate:

  1. The NAFTA certificate need not be authorized by a notary.
  2. Applicant firms can also opt to get the NAFTA certificate from private channels. But prior approval is needed to be taken from the Customs department.
  3. There are only specific goods and services that are categorised under NAFTA that can get preferential treatments. Goods that are involved in the business and would be eligible for a lower tariff must be from that list only.
  4. The NAFTA certificate is valid in US and Canada for a period of 5 years. In Mexico, the NAFTA certificate can be preserved for 10 years.
  5. If goods have attracted a higher tax or tariff, then companies can apply for refund up to a period of one year.

Leave a Reply

Your email address will not be published. Required fields are marked *