NAFTA Rules of Origin

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“A” Wholly Obtained or Produced “B” Meet “specific rules of origin” – Annex 401B - Tariff Change - Regional Value Content “C” Made from Originating Material “D” Unassembled goods or Goods Classified With their parts - Regional Value Content

Goods Wholly Obtained Or Produced

Origin Criteria “A” Goods Wholly Obtained or Produced Entirely in the Territory of one or More of the Parties

Goods Wholly Obtained Or Produced Goods Wholly Obtained or Produced Entirely in the Territory of one or More of the Parties
Mineral goods extracted in the territory of one or more of the parties Vegetable goods harvested in the territory of one or more of the parties Live animals born and raised in the territory of one or more of the parties Goods obtained by hunting, trapping or fishing i.o.o.m.o.t.p. Goods taken from the sea by vessels registered and

Goods Wholly Obtained Or Produced

Wholly produced con’t
Goods produced aboard factory ships registered and flying the flag, o.o.m.o.t.p. Goods taken by the party from the seabed or beneath the seabed outside territorial waters provided that a Party has rights to exploit that seabed Goods taken from outer space by a party Waste and scrap derived from production in one or

Goods Wholly Obtained Or Produced

Origin Criteria “B”
Good Meets “specific rules of origin” as laid out in Annex 401B - Tariff Change - Regional Value Content

NAFTA – 401(b) Example

+

=

69.13 69.13

32.03

NAFTA – 401(b) Example

+

=

69.13 69.13

32.03

Qualify?
specified in satisfied

NO!!

– Change in Chapter rule Annex 401B has not been

NAFTA – 401(b) Example

+

=

25.07 Qualify?

32.03

69.13

NAFTA – 401(b) Example

+

=

25.07

32.03

69.13

Qualify? –

YES!

NAFTA – 401(b) Example

+

=

25.07

32.03

69.13

Qualify? – Annex

YES!

Tariff change rule as specified in 401B has been satisfied

NAFTA – 401(b) Example
Pork HS# 02.03 Hungary

Spices HS# 09.07 Barbados

Sausages HS# 16.01

Wheat from U.S.A. (Have NAFTA Certificate of Origin)

NAFTA

NAFTA – 401(b) Example
Pork HS# 02.03 Hungary

Spices HS# 09.07 Barbados

Sausages HS# 16.01

Qualify for NAFTA?
Yes! Tariff change rule as specified in Annex 401B has Wheat from U.S.A. been satisfied (Have NAFTA
Certificate of Origin

NAFTA – 401(b) Example
Ham HS# 16.02 France

Spices HS# 09.07 Barbados

Sausages HS# 16.01

Qualify for NAFTA?
Wheat from U.S.A. (Have NAFTA Certificate of Origin)

No! Tariff change rule as
specified in Annex 401B has not been satisfied

NAFTA Regional Value Content
Terms:
RVC = Regional Value Content TV NC = Transaction Value Method = Net Cost Method Value Of Non-Originating Materials

VNM =

NAFTA Regional Value Content

RVC = 100

Value of Goods

Value of Non- Originating Materials X

Value of Goods

NAFTA Regional Value Content Transaction Value Method (TV): RVC = TV - VNM x 100 TV = 60% or more

NAFTA Regional Value Content Net Cost Method (NC): RVC = NC - VNM x 100 NC = 50% or more

NAFTA
Chapter 84: Originating Material Chapter 85: Originating Material Chapter 90: Originating Material Part 9015.90.20 Originating Ceilometer $5,000.00 Non Value

9015.80 Sale Price $8000.00

NAFTA

NAFTA
Chapter 84: Originating Material Chapter 85: Originating Material Chapter 90: Originating Material Part 9015.90.20 Originating Non Value

Ceilometer 9015.80 $5,000.00 Sale Price $8000.00

NAFTA

Does it Qualify?

RVC = TV - VNM x 100 TV = $8000.00 - $5000.00 x100 $8000.00 = 37.5% Therefore: Does not qualify for NAFTA

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