• To : Automated Broker Interface
Subject: FACT SHEET 18
TO : ALL ABI BROKERS.                                                     

FROM : ROBYN DAY                                                          

SUBJECT : NAF-FACT SHEET 18                                               

DATE : 01/07/94                                                           

                                  4004071                                 
                              JANUARY 4, 1994                             

CATEGORY: NAF                                         CO:TO:T:T RD        

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

FROM    : ACTING DIRECTOR, OFFICE OF TRADE OPERATIONS                     

SUBJECT : FACT SHEET #18:  Q AND A'S CONCERNING THE TRANSITION            
          PERIOD FOR THE NAFTA CERTIFICATE OF ORIGIN                      


1.   Q:   DO THE US-CANADA FREE TRADE AGREEMENT RULES OF ORIGIN           
          APPLY TO ANY SHIPMENTS AFTER 1-1-94?                            

     A:   NO. ONLY THE NAFTA RULES OF ORIGIN WILL APPLY.                  


2.   Q:  WHAT DOES THE PHRASE "TRANSITION PERIOD" MEAN?                   

     A:   IT REFERS ONLY TO THE PERIOD DURING WHICH                       
          DOCUMENTATION OTHER THAN THE OFFICIAL CF 434 WILL BE            
          ACCEPTED BY U.S. CUSTOMS.   THIS PERIOD EXTENDS FROM            
          JANUARY 1, 1994 THRU MARCH 31, 1994, FOR GOODS ENTERED          
          ON OR BEFORE MARCH 31, 1994.  ORIGINATING GOODS MUST            
          MEET A NAFTA RULE OF ORIGIN IN ORDER TO RECEIVE                 
          PREFERENTIAL TARIFF TREATMENT.                                  


3.   Q:   WHERE CAN I GET A CF 434 (NAFTA CERTIFICATE OF ORIGIN)?         
           NOTE:  THE U.S. VERSION OF THE NAFTA CERTIFICATE OF            
          ORIGIN (CF 434) MAY BE SUBMITTED  TO U.S. CUSTOMS, AS           
          MAY THE MEXICAN OR CANADIAN VERSIONS.                           

     A:   PRINTED COPIES SHOULD BE AVAILABLE FOR SALE IN JANUARY          
          1994 FROM THE GOVERNMENT PRINTING OFFICE, OR FROM               
          DISTRICT OFFICES.  UNTIL THE OFFICIAL CF 434 IS                 
          AVAILABLE, COPIES OF THE DOCUMENT ARE AVAILABLE ON              
          FLASHFAX (IN THE U.S. AT 202-927-1692 OR 927-1694 IN            
          CANADA AT 613-952-9174; DOCUMENT #0450).  THE DRAFT CF          
          434 MAY BE USED FOR A SINGLE IMPORTATION OR FOR                 
          IMPORTATIONS THAT OCCUR DURING A BLANKET PERIOD AS              
          NOTED ON THE FORM. (PLEASE REFER TO FACT SHEETS 5 AND 7         
          FOR FURTHER INSTRUCTIONS).                                      


4.   Q:   ARE THERE ANY OPTIONS OTHER THAN THAT DESCRIBED IN #3           
          ABOVE DURING THIS INTERIM PERIOD (JANUARY 1 - MARCH 31,         
          1994)?                                                          



     A:   YES.  SEVERAL OPTIONS ARE AVAILABLE.  ONE, A US-CANADA          
          FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN (CF 353) MAY         
          BE USED IF THE EXPORTER CERTIFIES THE FOLLOWING ON THIS         
          FORM:                                                           


 I HEREBY CERTIFY THAT THE GOOD IN THIS SHIPMENT QUALIFIES AS AN          
 ORIGINATING GOOD FOR PURPOSES OF PREFERENTIAL TARIFF TREATMENT           
 UNDER THE NAFTA.                                                         

 ___________________________  ______________________________              
 EXPORTER'S NAME              TITLE                                       


 ___________________________  ______________________________              
 ADDRESS                      SIGNATURE AND DATE                          



A SECOND OPTION FOR CLAIMING NAFTA PREFERENTIAL TARIFF                    
TREATMENT DURING THE INTERIM PERIOD IS A LETTER PREPARED AND              
SIGNED BY THE EXPORTER THAT PROVIDES SUBSTANTIALLY THE SAME               
INFORMATION AS IS REQUIRED ON THE NAFTA CERTIFICATE OF ORIGIN.            

A THIRD OPTION FOR CLAIMING NAFTA PREFERENTIAL TARIFF TREATMENT           
IS A PRIVATELY PRINTED COPY OF THE CERTIFICATE OF ORIGIN THAT             
IS AN EXACT REPLICA OF THE APPROVED CF 434.                               

A FOURTH OPTION IS TO USE EITHER THE CANADIAN (FORM #B232E) OR            
THE MEXICAN VERSION OF THE CF 434.                                        

A FIFTH OPTION FOR MERCHANDISE RELEASED UNDER SPECIAL PERMIT FOR          
IMMEDIATE DELIVERY THAT ARE WHOLLY PRODUCED OR OBTAINED IN A              
NAFTA COUNTRY AS EVIDENCED BY A CLAIM UNDER CRITERION 5(A) ON THE         
CF 353 (EXPORTER'S CERTIFICATE OF ORIGIN), IS TO USE THE CF 353.          
IN THIS LIMITED CIRCUMSTANCE, THE SUPPLEMENTARY STATEMENT                 
PROVIDED ABOVE IS NOT REQUIRED.  THIS EXCEPTION APPLIES ONLY FOR          
GOODS WHICH ARE RELEASED UNDER A SPECIAL PERMIT FOR IMMEDIATE             
DELIVERY DURING THE PERIOD OF 12-16-93 TO 12-31-93.                       


5.   Q:   CAN DOCUMENTATION BE SUBMITTED TO COVER A BLANKET               
          PERIOD DURING THE INTERIM PERIOD?                               

     A:   YES.  IF A CF 434 IS AVAILABLE, IT MAY BE USED AS A             
          BLANKET FOR THE ENTIRE YEAR (FIELD #2 COVERS THE                
          BLANKET TIME PERIOD).  A PROPERLY ENDORSED US-CANADA            
          FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN (CF 353) MAY         
          ALSO BE USED.  HOWEVER, THE BLANKET PERIOD FOR THE CF           
          353 MAY NOT EXTEND BEYOND 3-3-94.  FOR MERCHANDISE              
          ENTERING THE COMMERCE OF THE UNITED STATES AFTER                
          3-31-94, ONLY AN APPROVED VERSION OF THE NAFTA                  
          CERTIFICATE OF ORIGIN MAY BE USED.  IF A BLANKET                
          US-CANADIAN FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN          
          (CF 353) IS SUBMITTED TO BE USED UNTIL 3-31-94, THEN A          
          LETTER MUST ACCOMPANY THE CO, STATING THAT THE GOOD             
          QUALIFIES UNDER NAFTA RULES OF ORIGIN AND THAT THE              
          BLANKET PERIOD ONLY EXTENDS UNTIL 3-31-94.                      

6.   Q:   IF A DRAFT CF 434 WAS USED FOR A BLANKET PERIOD, DOES           
          ANOTHER CF 434 NEED TO BE COMPLETED WHEN THE OFFICIAL           
          VERSION IS AVAILABLE?                                           

     A:   NO.  THE DRAFT VERSION OF THE CF 434 WILL BE ACCEPTABLE         
          FOR THE ENTIRE YEAR.                                            


7.   Q:   CAN THE 11-9-93 VERSION OF THE DRAFT CERTIFICATE OF             
          ORIGIN THAT APPEARED ON FLASHFAX BE USED?                       

     A:   FOR AUTOMOTIVE GOODS AND THEIR PARTS THAT ARE SPECIFIED         
          IN ARTICLE 403 AND ANNEX 403.1 AND 403.2, THE 11-9-93           
          VERSION MAY BE USED AS A NAFTA BLANKET CO FOR UP TO ONE         
          YEAR PROVIDED THAT IT IS COMPLETED AND SIGNED BEFORE            
          3-31-94.                                                        

          THIS VERSION MAY NOT BE USED FOR AGRICULTURAL GOODS             
          DESCRIBED IN ANNEX 703.2, APPENDIX 6A AND 6B.  FOR ALL          
          OTHER GOODS, IT MAY BE USED UNTIL 3-31-94.                      


8.   Q:   WOULD MERCHANDISE THAT WAS RELEASED UNDER THE IMMEDIATE         
          DELIVERY PROCEDURE IN DECEMBER BUT NOT ENTERED UNTIL            
          JANUARY QUALIFY FOR PREFERENTIAL TARIFF TREATMENT UNDER         
          THE NAFTA?                                                      

     A:   YES.  NAFTA BEGINS ON 1-1-94.  GOODS ENTERED ON OR              
          AFTER THAT DATE WILL BE ELIGIBLE FOR PREFERENTIAL               
          TARIFF TREATMENT UNDER THE NAFTA. (19 CFR 141.68(C))            


9.   Q:   WOULD IT BE MORE ADVANTAGEOUS TO CLAIM GSP FOR MEXICAN          
          GOODS AND US-CANADA FREE TRADE AGREEMENT FOR CANADIAN           
          GOODS ENTERED AFTER 1-1-94?                                     

     A:   NO.  AS OF 1-1-94, MEXICAN GOODS WILL NO LONGER BE              
          ELIGIBLE FOR GSP, AND THE US-CANADIAN FREE TRADE                
          AGREEMENT WILL BE SUPERSEDED BY THE NAFTA.                      


10.  Q:   WHAT WILL THE MERCHANDISE PROCESSING FEE (MPF) BE FOR           
          NAFTA COUNTRIES?                                                

     A:   MPF FOR CANADIAN ORIGINATING GOODS WILL BE ELIMINATED           
          ON 1-1-94.  MPF FOR MEXICAN ORIGINATING GOODS WILL BE           
          ELIMINATED ON 6-30-99.  UNTIL THEN, MPF FOR MEXICAN             
          GOODS WILL CONTINUE AT THE PRESENT RATE.  THERE WILL BE         
          NO STAGED REDUCTIONS.                                           
11.  Q:   UNDER THE US-CANADA FREE TRADE AGREEMENT, THE MPF HAS           
          BEEN PRO-RATED WHEN THE ENTRY HAS LINES CLAIMING                
          PREFERENCE AND OTHER LINES THAT DO NOT.  WILL THERE             
          STILL BE A FORMULA TO DETERMINE THE MPF FOR ENTRIES             
          THAT HAVE BOTH CANADIAN GOODS THAT QUALIFY UNDER NAFTA          
          AND GOODS FROM ANOTHER COUNTRY?                                 

     A:   NO.  ENTRIES THAT CONTAIN ORIGINATING NAFTA GOODS AND           
          NON-ORIGINATING GOODS WILL NO LONGER BE PRO-RATED UNDER         
          THE NAFTA.  FOR ENTRIES WITH MULTIPLE LINES CONTAINING          
          BOTH CANADIAN GOODS THAT ARE NOT SUBJECT TO MPF AND             
          OTHER GOODS THAT ARE SUBJECT TO MPF, THE MPF WOULD BE           
          ASSESSED ON THE VALUE OF THE GOODS SUBJECT TO MPF.  NO          
          MPF WOULD BE ASSESSED ON QUALIFYING CANADIAN GOODS.  IN         
          ANY CASE, MPF MINIMA AND MAXIMA APPLY.  THE FORMULA             
          PREVIOUSLY USED TO PRO-RATE THE MPF FOR CANADIAN GOODS          
          HAS BEEN ELIMINATED.                                            

12.  Q:   WILL THERE BE A FORMULA TO DETERMINE THE MPF FOR                
          ENTRIES THAT HAVE BOTH MEXICAN GOODS THAT QUALIFY UNDER         
          NAFTA AND GOODS THAT DO NOT QUALIFY UNDER NAFTA?                

     A:   NO.  MPF WILL BE ASSESSED ON ALL MEXICAN GOODS UNTIL            
          JUNE 30, 1999.  AT THAT TIME, THE MPF WILL BE                   
          ELIMINATED FOR MEXICAN GOODS THAT QUALIFY UNDER THE             
          NAFTA MARKING RULES.  MPF MINIMA AND MAXIMA APPLY.              

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




                                        JANET L. LABUDA