NAFTA Certificates of Origin for Domestic Transations

Wednesday, February 3, 2010

NAFTA CERTIFICATES OF ORIGIN

FOR DOMESTIC TRANSACTIONS

 

Frequently, U.S. distributors (not manufacturers/producers) who are selling NAFTA qualifying products to domestic parties are being asked to certify and provide certificates of origin to their U.S. purchasers to use when exporting the goods to Canada/ Mexico.   This is a misuse of the NAFTA certificate.  NAFTA certificates of origin are to be certified by the actual exporter or manufacturer/producer of the NAFTA qualifying goods.  [NAFTA export requirements are described in 19 CFR 181.11 and 12.]

 

Sellers of NAFTA goods involving domestic transactions might want to consider supplying their U.S. customers with an affidavit or letter explaining relevant information that supports NAFTA qualification.  Another approach would be to complete a “modified” certificate of origin that lists the U.S. distributor as the “seller” rather than the importer, and shows the U.S. purchaser as the “buyer” instead of the exporter.  The affidavit or modified certificate of origin may be used by the exporter as supporting evidence for the certificate of origin that the exporter is required to certify.  It is important that the distributor’s affidavit or modified certificate is based on documented proof the goods, in fact, qualify for NAFTA benefits.   Please click on the following links to view more information:

http://www.cbp.gov/xp/cgov/trade/trade_programs/-international_agreements/free_trade/nafta/cert_origin/

http://www.faqs.org/rulings/rulings1998HQ003906.html

If you would like to discuss NAFTA certificates of origin or other NAFTA issues, please contact our Regulatory Compliance Consultant, Kerry Layton at 816-741-7500 or klayton@fhkaysing.com.