CB13u—Basic NAFTA for Customs Brokers

Subscriber price: $67.00, Non-subscriber price: $87.00
Estimated total study time: 4 hours 27 minutes

This course is designed to give a general overview of the North American Free Trade Agreement (NAFTA) for customs brokers. NAFTA may apply to shipments imported via air, sea or land border. Customs brokers must learn how to properly process an article for entry with Canada or Mexico as the country of origin. In order to do this it is important to learn how to determine eligibility. To verify the accuracy and completeness of the certificates received, the broker must know what the rules of origin mean and when to question the information. They must also understand the ramifications of incorrect processing. Special provisions for NAFTA goods in Chapters 98 and 99 (i.e., tariff preference level) are covered, along with determining the duty and merchandise processing fees for NAFTA goods. Entry processing using the certificate of origin and post entry activities (e.g., protest, 520(d) and reconciliation) for obtaining refunds on entries for which NAFTA was not claimed are also briefly discussed.

NAFTA Documentation Requirements

This first lesson begins with an overview of the North American Free Trade Agreement (NAFTA) and the types of certificates of origin available. Then we delve a little deeper into the documentation requirements for import based on entry type.

(Estimated study time: 38 minutes)

Introduction
Overview of the North American Free Trade Agreement
North American Free Trade Agreement (NAFTA) Documentation Requirements
- Countries Involved in the NAFTA Agreement
- Types of NAFTA Certificates
  - Formal Entry under NAFTA
  - Informal Entry under NAFTA
  - Tariff Preference Level (TPL)

Determining NAFTA Eligibility and Validating the Certificate

The next step is understanding when NAFTA may apply and what to do if a certificate of origin wasn't received. Once a certificate is received, it is necessary to know whether it is valid and what the recordkeeping requirements are. More importantly, it is necessary to know what the penalties for non-compliance.

(Estimated study time: 49 minutes)

Introduction
Determining NAFTA Eligibility
Do's and Don'ts of Applying NAFTA for Customs Brokers
- Don't file NAFTA if:
- Do Claim NAFTA if:
Checking the Invoice against the Certificate of Origin
Errors that Invalidate the NAFTA Certificate of Origin
- Block 1, The Exporter's Information
- Block 2, The Blanket Certificate Dates
- Block 3, The Producer's Information
- Block 4, The Importer's Information
- Block 5, The Description of Goods
- Block 6, The Harmonized Tariff System Number
- Block 7, The Preference Criterion
- Block 8, The Producer's Statement
- Block 9, The Net Cost
- Block 10, The Country of Origin
- Block 11, The Authorized Signature and Date

Understanding NAFTA Rules of Origin

In order to understand the rules of origin, it is important to understand the difference between originating and non-originating materials. Then we cover the rules of origin, what they mean and how they work.

(Estimated study time: 40 minutes)

Introduction
Non-Originating vs. Originating Material
How Rules of Origin Work
Preference Criterion A: Wholly Obtained or Produced
Preference Criterion B: Tariff Shifts and RVCs
Preference Criterion C: From Originating Materials
Preference Criterion D: Unassembled Goods
- General Information for Preference Criterion D
- D1: Kit plus Regional Value Content (RVC) Imported Unassembled or Disassembled plus RVC (GRI 2a)
- D2: Goods and their Parts Classified in the Same Heading plus RVC
Preference Criterion E: Automatic Data Processing Goods and Parts
Preference Criterion F: Originating Agricultural Goods
- General Information for Preference Criterion F
- F1-A: Mexico/U.S. Trade
- F1-B: Mexico/Canada Trade
- F2: Mexico/Canada Dairy, Poultry or Eggs

Special Rules Relating to Origin

In this lesson we review special rules that can make or break the applicability of NAFTA. These include: accumulation, automotive tracing, averaging, de minimis, disregarded materials, fungible goods, intermediate materials, non-qualifying operations, and rules regarding transshipment.

(Estimated study time: 35 minutes)

Introduction
Special Rules Relating to Origin
- Materials Disregarded Before Application of the Tariff Shift
  - The De Minimis Rule
  - The Disregarded Materials Rule
- The Rule that Makes Materials Non-Qualifying No Matter What
- Method of Shipment that Disqualifies Products for NAFTA
- NAFTA Allows Averaging for Similar Goods
- Accumulation and Intermediate Materials for Goods Produced in Multiple North American Locations
- Automotive Tracing for Motor Vehicles and Parts
- Fungible Goods

Duty and Fees for NAFTA Goods and Effects on HTSUS Chapters 98 and 99

We have a certificate of origin and it is valid, now what? This lesson describes how to apply it to arrive at the correct duty. Since this lesson is about classification, we also discuss how NAFTA effects Chapter 98 and 99.

(Estimated study time: 1 hour 16 minutes)

Introduction
Structure of the HTSUS Page
Duty Columns
Example of Classification under the Tariff Shift Rule
NAFTA Articles Returned after Export for Repair or Alteration
NAFTA Duty Deferral of Articles Imported for Processing and Export to a NAFTA Territory
Handling NAFTA Duty Deferral of Articles Imported for Processing and Export to a NAFTA Territory
Types of NAFTA Articles that May Fall under Tariff Preference Level
Processing NAFTA Tariff Preference Levels (TPL) for Textile and Wearing Apparel
Reviewing the Certificate of Eligibility

NAFTA Entry and Refund Processing

The final lesson puts it all together for entry processing. Then addresses advanced ruling procedures and post entry remedies for obtaining refunds if NAFTA should have been filed.

(Estimated study time: 30 minutes)

Introduction
Entry Processing with a NAFTA Certificate of Origin
NAFTA Advance Ruling Procedures
NAFTA Post Entry Refunds
NAFTA Reconciliation Filing