Why Do I Have to Complete a NAFTA Certificate of Origin?
The United States, Canada and Mexico signed the North American Free Trade Agreement during the early 1990s to reduce the restrictions on trade between them. In order to take advantage of this, businesses usually need to complete a NAFTA certificate of origin.
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Why FIll Out a Form
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People should fill out a NAFTA certificate of origin because members of NAFTA offer reduced import tax rates for trade from other participating countries.
Who Needs a Form
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NAFTA does not require anyone to complete a certificate of origin, only if the person wishes to saves money on export/import taxes and qualifies for this rate.
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Exporting Minimums
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Exporters are only required to fill out a NAFTA certificate if they ship at least $1,000 worth of goods to Mexico, $1,600 to Canada and $2,500 to the U.S. from a member country of NAFTA. Products can still qualify for a tax reduction if the shipper simply puts a statement of the package notifying customs officials that the product comes from a NAFTA nation, but does not meet the value requirement.
Product Qualification
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Products do not qualify for a NAFTA tax reduction if parts or materials are from non-NAFTA countries.
Tips
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UPS's website has a copy of the certificate of origin in PDF format on their website, which requires Adobe Acrobat to open but makes it easy to fill out on the computer.
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