| Title: | CERTIFICATE OF ORIGIN |
|---|---|
| Date: | 1993-12-01 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : LISA CROSBY
SUBJECT : NAF-CERTIFICATE OF ORIGIN
DATE : 12/01/93
4327071
DECEMBER 1, 1993
CATEGORY: NAF CO:TO:T:T LAC
TO : REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT
AND PORT DIRECTORS
FROM : DIRECTOR, NAFTA IMPLEMENTATION TASK FORCE
SUBJECT: FACT SHEET 5: INTERIM MEASURES PENDING AVAILABILITY OF
CF 434 (CERTIFICATE OF ORIGIN FOR THE NORTH AMERICAN FREE
TRADE AGREEMENT)
BACKGROUND:
THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) REQUIRES
MEXICO, CANADA AND THE UNITED STATES TO DEVELOP A UNIFORM
CERTIFICATE OF ORIGIN TO CERTIFY THAT ORIGINATING GOODS IMPORTED
INTO THEIR TERRITORIES QUALIFY FOR THE PREFERENTIAL TARIFF
TREATMENT ACCORDED BY THE NAFTA. ARTICLE 502 OF THE AGREEMENT
PROVIDES THAT ONLY IMPORTERS WHO POSSESS A VALID CERTIFICATE OF
ORIGIN MAY CLAIM PREFERENTIAL TARIFF TREATMENT.
IMPORTERS AND BROKERS HAVE EXPRESSED CONCERN THAT DELAY IN
MAKING THE CERTIFICATE AVAILABLE WILL NOT GIVE THEM ADEQUATE TIME
TO PREPARE FOR IMPLEMENTATION OF THE NAFTA ON JANUARY 1, 1994.
RECOGNIZING THIS BURDEN, CUSTOMS HEADQUARTERS WILL ALLOW ALTERNATE
CERTIFICATIONS, AS DESCRIBED BELOW, THROUGH MARCH 31, 1994.
IN ADDITION, THE TRADE COMMUNITY HAS INQUIRED REGARDING THE
STATUS OF THE U.S.-CANADA FREE TRADE AGREEMENT AND THE GENERALIZED
SYSTEM OF PREFERENCES (GSP) EFFECTIVE JANUARY 1, 1994.
CLARIFICATION OF THIS POINT IS ALSO PROVIDED BELOW.
ACTION:
1. SECTION 201(A)(2) OF THE IMPLEMENTING LEGISLATION PROVIDES
THAT PRESIDENT CLINTON SHALL TERMINATE THE DESIGNATION OF
MEXICO AS A BENEFICIARY DEVELOPING COUNTRY FOR PURPOSES OF
THE GSP, EFFECTIVE JANUARY 1, 1994. ACCORDINGLY, GOODS OF
MEXICO WILL NOT BE ACCORDED DUTY-FREE TREATMENT UNDER THE GSP
IF ENTERED ON OR AFTER JANUARY 1, 1994. GOODS OF MEXICO
ENTERED ON OR AFTER JANUARY 1, 1994, MUST MEET THE NAFTA RULES
OF ORIGIN TO QUALIFY FOR REDUCED RATES OF DUTY; IF THEY DO NOT
MEET THE NAFTA RULE OF ORIGIN, THEY WILL BE DUTIABLE AT THE
MFN RATE.
2. THE IMPLEMENTING LEGISLATION PROVIDES THAT THE U.S.-CANADA
FREE TRADE AGREEMENT (FTA) WILL BE SUSPENDED UPON ENTRY INTO
FORCE OF THE NAFTA. ALTHOUGH THE NAFTA RETAINS THE DUTY RATES
NEGOTIATED IN THE FTA, THE FTA RULES OF ORIGIN WILL BE
SUPERSEDED BY THE NAFTA RULES OF ORIGIN. ACCORDINGLY,
CANADIAN GOODS ENTERED ON OR AFTER JANUARY 1, 1994, MUST
QUALIFY FOR PREFERENTIAL TARIFF TREATMENT ACCORDING TO THE
TERMS OF NAFTA. IF THEY DO NOT, THEY WILL BE DUTIABLE AT THE
APPROPRIATE MFN RATE OF DUTY.
3. SINCE GSP BENEFITS WILL BE TERMINATED, AND FTA BENEFITS WILL
BE SUSPENDED, EFFECTIVE JANUARY 1, 1994, GOODS WILL ONLY BE
ELIGIBLE FOR PREFERENTIAL TARIFF TREATMENT ON OR AFTER THAT
DATE IF THEY QUALIFY AS ORIGINATING ACCORDING TO THE TERMS OF
THE NAFTA. UNDER NO CIRCUMSTANCES WILL THESE REQUIREMENTS BE
WAIVED. GOODS THAT DO NOT MEET THE NAFTA RULES OF ORIGIN WILL
BE DUTIABLE AT THE MFN RATE OF DUTY.
4. THE PARTIES HAVE AGREED TO A UNIFORM FORMAT FOR THE
CERTIFICATE OF ORIGIN. HOWEVER, THIS FORMAT MUST BE APPROVED
IN THE UNITED STATES BY THE OFFICE OF MANAGEMENT AND BUDGET
(OMB) AND THE FORM MUST BE PRINTED. ACCORDINGLY, THE OFFICIAL
FORM WILL NOT BE AVAILABLE UNTIL SOME TIME IN DECEMBER. THE
PUBLIC WILL BE NOTIFIED WHEN THE OFFICIAL FORM IS PRINTED AND
AVAILABLE FOR SALE. MEANWHILE, HOWEVER, THE FINAL DRAFT OF
THE CERTIFICATE CAN BE OBTAINED FROM THE CUSTOMS FLASHFAX BY
CALLING (202)927-1692 OR (202)927-1694 IN THE UNITED STATES
(613-952-9174 IN CANADA) AND REQUESTING DOCUMENT NUMBER 0450.
THE FLASHFAX WILL SEND THE CERTIFICATE OF ORIGIN TO THE
CALLER'S FACSIMILE MACHINE. INTERESTED PARTIES ARE ENCOURAGED
TO OBTAIN A COPY OF THE CERTIFICATE AND TO BECOME FAMILIAR
WITH THE INFORMATION THAT MUST BE SUPPLIED ON THE FORM.
5. TO GIVE THE TRADE COMMUNITY TIME TO BEGIN USING THE NAFTA
CERTIFICATE OF ORIGIN (CF 434), THE U.S. CUSTOMS SERVICE WILL
ACCEPT ALTERNATIVE CERTIFICATES OF ORIGIN FOR GOODS ENTERED
ON OR BEFORE MARCH 31, 1994. THE U.S. CUSTOMS WILL ACCEPT
THESE DOCUMENTS PREPARED BY THE EXPORTER IN LIEU OF THE CF
434:
A. THE FTA CERTIFICATE OF ORIGIN (CF 353), PROVIDED IT IS
ACCOMPANIED BY THIS STATEMENT BY THE EXPORTER:
I HEREBY CERTIFY THAT THE GOOD IN THIS SHIPMENT QUALIFIES
AS AN ORIGINATING GOOD FOR PURPOSES OF PREFERENTIAL
TARIFF TREATMENT UNDER THE NAFTA.
_______________________ _______________________
EXPORTER'S NAME TITLE
_______________________ _______________________
ADDRESS SIGNATURE AND DATE
B. THE DRAFT CERTIFICATE IN ITS FORM CURRENTLY AVAILABLE
FROM THE FLASHFAX.
C. A LETTER PREPARED AND SIGNED BY THE EXPORTER THAT
PROVIDES SUBSTANTIALLY THE SAME INFORMATION AS IS
REQUIRED ON THE NAFTA CERTIFICATE OF ORIGIN AVAILABLE
FROM THE FLASHFAX.
D. EITHER THE CANADIAN OR MEXICAN VERSION OF THE
CERTIFICATE, IF AVAILABLE BEFORE THE U.S. VERSION.
6. NO CERTIFICATE OF ORIGIN, IN ANY FORM, NEED BE SUBMITTED WITH
THE ENTRY SUMMARY PACKAGE. HOWEVER, THE IMPORTER MUST POSSESS
A CERTIFICATE WHEN THE CLAIM IS MADE AND MUST SUBMIT IT TO
CUSTOMS UPON REQUEST.
7. IMPORT SPECIALISTS SHALL BE FLEXIBLE IN ACCEPTING ALTERNATE
CERTIFICATIONS THROUGH MARCH 31, 1994. IF NECESSARY, A CF 28
WILL BE USED TO OBTAIN ADDITIONAL INFORMATION TO SUBSTANTIATE
THE CLAIM THAT THE GOODS ORIGINATE. EVERY EFFORT SHOULD BE
MADE TO ACCORD BENEFITS TO GOODS THAT AUTHENTICALLY QUALIFY
FOR PREFERENTIAL TARIFF TREATMENT.
8. IMPORTERS WHO DO NOT HAVE ANY CERTIFICATION THAT THE GOODS
QUALIFY AS ORIGINATING UNDER THE NAFTA MUST ENTER THEM AT THE
MFN RATE OF DUTY. THESE DUTIES WILL BE REFUNDED PROVIDED THE
IMPORTER MAKES A NAFTA CLAIM AND SUBMITS A CERTIFICATE WITHIN
ONE YEAR FROM THE DATE OF IMPORTATION.
9. EFFECTIVE AS TO GOODS ENTERED OR WITHDRAWN FROM WAREHOUSE ON
OR AFTER APRIL 1, 1994, ONLY THE CF 434 WILL BE ACCEPTED AS
THE BASIS FOR CLAIMS FOR ORIGINATING GOODS. ALL PARTIES ARE
ENCOURAGED TO BEGIN USING THE CF 434 AS SOON AS POSSIBLE.
QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO THE NAFTA
HELP DESK AT (202)927-0066.
MARIA P. REBA