In order to determine whether or not your goods qualify for North American Free Trade Agreement (NAFTA) tariff treatment, you should be aware of three contributing factors: 1. The Harmonized System classification number (HS code) 2. The Most-Favoured-Nation (MFN) tariff agreement 3. Chapter four of the NAFTA agreement This helpful resource offers more details on how the above elements help in determining NAFTA eligibility.

1. 3 STEPS TO DETERMINE IF YOUR
GOODS ARE NAFTA ELIGIBLE

2. NAFTA offers many benefits:
• Reduced duty rates
• Bottom line savings

3. NAFTA eligibility can be complex.
You need:
• Detailed information about the entire production
process
• Correctly classified goods
We’ve identified three easy steps to help.

4. to help you determine
NAFTA eligibility
3 steps
We’ve identified

5. Determine the tariff schedule classification
number for the product, its components
and raw materials
1

6. NAFTA rules of origin are organized
by classification code with specific
rules for each one.

7. How to determine the classification:
• Use your Schedule B numbers to help determine
the classification
• First six digits of the Schedule B number are part
of the tariff classification code

8. Assess the duty rate for the product
2

9. U.S. duty rates are under the
General rate of duty.

10. In the U.S.:
• Look to the special column for the tariff
agreement code under the Harmonized Tariff
Schedule (HTS)
• This will indicate if your product is eligible for a
preferential tariff treatment

11. Canadian duty rates are under the
Most-Favoured-Nation (MFN) tariff
agreement.

12. In Canada:
• Look to the applicable preferential tariff column
under the Canadian HS
• This will indicate applicable trade agreements
and their associated duty rate

13. Qualify your goods
3

14. Chapter four of the NAFTA
agreement outlines requirements
for goods to qualify for
reduced duties.

15. If your goods qualify for NAFTA tariff
treatment :
• Complete the Certificate of Origin
• Submit it with your shipment to Customs

16. Keep these steps on file
Download PDF
Use these three steps to find
out if future products benefit
from reduced taxes and tariffs.

17. Determining if your goods qualify for
NAFTA tariff treatment can be difficult…
can help with that.
Contact Livingston