NAFTA Rules of Origin

 “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 32.03
69.13
 NAFTA – 401(b) Example

+ =

69.13 32.03
69.13

Qualify? NO!! – Change in Chapter rule

specified in Annex 401B has not been
satisfied
 NAFTA – 401(b) Example

+ =

25.07 32.03 69.13

Qualify?
 NAFTA – 401(b) Example

+ =

25.07 32.03 69.13

Qualify? – YES!
 NAFTA – 401(b) Example

+ =

25.07 32.03 69.13

Qualify? – YES! Tariff change rule as specified in

Annex 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.
(Have NAFTA
been satisfied
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.

No! Tariff change rule as
(Have NAFTA specified in Annex 401B has
Certificate of not been satisfied
Origin)
NAFTA Regional Value Content

Terms:

RVC = Regional Value Content

TV = Transaction Value Method

NC = Net Cost Method

VNM = Value Of Non-Originating Materials

 NAFTA Regional Value Content

RVC = Value Value of Non-

of Goods - Originating Materials X
100
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 Non
Originating
Ceilometer
9015.80 Value
$5,000.00
Sale Price
$8000.00
NAFTA
 NAFTA

Chapter 84: Originating

Material
Chapter 85:
Originating Material
Chapter 90: Originating
Material
Part 9015.90.20 Non
Originating
Ceilometer Value
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