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| North American Free Trade Agreement (NAFTA) |
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NAFTA is a comprehensive, legal framework for duty-free trade between Canada, the United States, and Mexico. Companies located in a NAFTA country, regardless of their corporate nationality, can benefit from the ability to export and import duty-free within the NAFTA region, provided that these goods meet NAFTA’s Rules of Origin |
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| Rules of Origin |
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- Goods that are “wholly obtained or produced” within
the NAFTA region, or that meet the “Annex 401 Origin Criterion,” qualify
for duty-free treatment
- “Wholly obtained or produced” means
that the goods contain no non-NAFTA materials, parts
or components
- Under
Annex 401, goods incorporating non-NAFTA raw materials, parts
or components, will qualify if they are sufficiently
transformed within a NAFTA country so as to undergo
a specified change in tariff
classification with reference to the Harmonized Tariff
Schedule. (Note: certain goods must also have a specified amount
of NAFTA value-added content)
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| Online Resources |
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NAFTA Rules of Origin |
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| Non-NAFTA Tariffs |
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Canada is one of the world’s most open trading economies.
Canadian duties on imports from non-NAFTA countries are generally
as low or lower than US duties.
Canada also has bi-lateral free trade agreements
with Chile, Israel and Costa Rica |
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| Online Resources |
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Canada Tariff Schedule
Free Trade Agreements
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