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Customer Support
General Questions
To find a quick answer to one of the Frequently Asked Questions listed below, click on that question.
NAFTA is the North American Free Trade Agreement between the U .S., Canada and Mexico. It became effective on January 1, 1994. The purpose of NAFTA was to encourage trade by eliminating tariffs on most goods originating in and traded between these countries over a fifteen-year period.
NAFTA provides preferential tariff treatment for certain products traded between these countries when strict documentation and certification procedures are met. Currently, preferential treatment means either reduced or eliminated tariff rates, depending on the product.
Product qualification for NAFTA preferential tariff treatments requires:
Products can qualify through Tariff Shift, Regional Value Content (RVC) or de minimis:
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Tariff Shift means that a finished good undergoes a substantial transformation in one of the NAFTA countries, changing its makeup from one item into something completely different.
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Regional Value Content (RVC) means that an item has some foreign content but that content is at an acceptable level under NAFTA’s rule of origin for that article.
- de minimis applies to articles with foreign content that is less than seven percent of the overall value of the product.
The Customs agencies of Canada, Mexico and the United States actively monitor NAFTA compliance primarily through audits.
As your international trade advisor, FedEx Trade Networks can help you take advantage of NAFTA, from getting to know your suppliers to establishing a sound recordkeeping system, in order to help ensure the maximum allowable cost savings for your company. Specifically, we will…
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Assist with accurate HS classification. Correct classification of a product is required for NAFTA preference qualification. We can classify your inventory and maintain it in a database.*
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Gather and assess supplier information. A thorough survey of your company’s suppliers is required to break down the components of each product for the officially designated country of origin. We gather all supplier and product information and determine whether NAFTA preferences exist on a product-by-product basis.
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Produce and manage valid Certificates of Origin. We can produce accurate certificates of origin and maintain the supporting documentation for your products imported into the U.S. from Canada and Mexico.
*Please note that only a licensed Customs broker is permitted to make a definitive classification determination. FedEx Trade Networks Trade Services, Inc. is not acting as a licensed Customs broker, but can utilize the services of its sister company, FedEx Trade Networks Transport & Brokerage, Inc.
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