CSMS Message: 94-000643

Title:FACT SHEET 37
Date:1994-06-29
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : ROBYN DAY

SUBJECT : NAF-FACT SHEET 37

DATE : 06/29/94

4175071
JUNE 24, 1994

CATEGORY: NAF CO:TO:TF RD

TO : REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT
AND PORT DIRECTORS

FROM : DIRECTOR, OFFICE OF TRADE OPERATIONS

SUBJECT: FACT SHEET 37: CORRECTION TO FACT SHEET 30, #4062072
DATED MARCH 3, 1994, RE. QS AND AS ON THE NAFTA
CERTIFICATE OF ORIGIN

PASS TO: CUSTOMS OFFICERS, NON-ABI BROKERS, IMPORTERS AND OTHER
INTERESTED PARTIES

BACKGROUND:

NAFTA FACT SHEET 30 PROVIDED ANSWERS TO SOME OF THE COMMON
QUESTIONS RECEIVED BY THE HELP DESK IN REGARDS TO COMPLETING A
CERTIFICATE OF ORIGIN. BASED UPON FURTHER DISCUSSION BY THE
THREE COUNTRIES, CHANGES IN RESPONSE TO TWO OF THE QUESTIONS ON
THAT FACT SHEET ARE REQUIRED.

ACTION:

FOR THE FOLLOWING QUESTIONS THE ANSWERS HAVE BEEN MODIFIED
TO REFLECT THE CURRENT CONSENSUS OF THE THREE NAFTA COUNTRIES.

Q: WHAT SHOULD I PUT IN BLOCK 9 OF THE CERTIFICATE OF ORIGIN
(CUSTOMS FORM 434)?

A: THE INSTRUCTIONS FOR THIS FIELD INDICATE THAT IT MUST BE
COMPLETED WITH EITHER "NC" OR "NO"; YOU SHOULD NOT INDICATE
ANY DOLLAR AMOUNT OR PERCENTAGE. IF YOUR GOOD IS SUBJECT TO
A REGIONAL VALUE CONTENT REQUIREMENT AND YOU USETHE NET
COST METHOD TO CALCULATE THE REGIONAL VALUE CONTENT
REQUIREMENT,PUT "NC" IN FIELD 9, AND IF THE RVC IS
CALCULATED OVER A PERIOD OF TIME, IDENTIFY THE BEGINNING AND
ENDING DATES OF THAT PERIOD. FOR ANY OTHER CIRCUMSTANCES
THIS FIELD SHOULD BE COMPLETED WITH "NO." YOU SHOULD NO
LONGER LEAVE THIS FIELD BLANK OR PUT IN "NOT APPLICABLE."

Q: MY GOOD IS MADE OF MATERIALS THAT ARE WHOLLY OBTAINED OR
PRODUCED IN THE NAFTA REGION EXCEPT FOR ONE MATERIAL WHOSE
VALUE IS LESS THAN SEVEN PERCENT OF THE TOTAL VALUE OF THE
GOOD. I UNDERSTAND THAT THIS MATERIAL IS CONSIDERED DE
MINIMIS BUT WHICH PREFERENCE CRITERION SHOULD I USE--"A"
(WHOLLY OBTAINED OR PRODUCED) OR "B" (MEETING THE SPECIFIC
RULE OF ORIGIN)?

A: USE PREFERENCE CRITERION "B." THE U.S., CANADA AND MEXICO
HAVE AGREED THAT THE DE MINIMIS PROVISION IS NOT ALLOWED
UNDER THE PREFERENCE CRITERION "A" AND THAT ANY GOOD WHICH
CONTAINS FOREIGN MATTER MUST QUALIFY UNDER CRITERION "B."

QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO THE
NAFTA HELP DESK AT (202)927-0066.

PHILIP METZGER