Windtech Inc

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What is NAFTA

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations. It also calls for the gradual elimination, over a period of 15 years, of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries.

Only goods which qualify under the NAFTA rules of origin can obtain NAFTA tariff preference, i.e., reduced or eliminated export tariffs. The NAFTA rules of origin take into account where goods are produced and what materials are used to produce them. The purpose is to ensure that North American goods traded among the three NAFTA partner countries (United States/Canada/Mexico) receive preferential tariff treatment. Products of other countries merely being transshipped through or undergoing only minor operations in North America are not eligible for NAFTA benefits.

NAFTA Originating Goods

NAFTA Originating goods are those that meet the appropriate NAFTA rule-of-origin, meaning that they have sufficient North American (Canada, United States and/or Mexico) content to qualify for NAFTA tariff preference. These NAFTA originating goods qualify as a duty free finished or manufactured product.

Non-NAFTA Originating Goods

All goods that are manufactured on any foreign countries outside of the NAFTA region or that DO NOT meet the appropriate NAFTA rule-of-origin, meaning that they DO NOT have sufficient North American (Canada, United States and/or Mexico) content to qualify for NAFTA tariff preference are considered Non-NAFTA Originating Goods and will be subject to import/export duties.

North American Free Trade Agreement (NAFTA)


Windtech Inc. has a manufacturing facility (commonly known as “maquiladora” or “maquila”) in Mexico; therefore all materials (Customer supplied or Windtech supplied) must be temporarily imported to Mexico and then exported back to the US as a finished or manufactured product.

If the final product is determined by US Customs to be a NAFTA Originating Good, then there will be no export fees; but if it’s determined to be a non-NAFTA Originating Good there will be import/export duties based on the product specific characteristics.

 The Country of Origin of the final product is determined by the US Customs Import/Export Specialists.

 Only goods which qualify under the NAFTA rules of origin can obtain NAFTA tariff preference, i.e., reduced or eliminated tariffs (0% Export Tax). The NAFTA rules of origin take into account where goods are produced and what materials are used to produce them. The purpose is to ensure that North American goods traded among the three NAFTA partner countries (United States/Canada/Mexico) receive preferential tariff treatment. Products of other countries merely being transshipped through or undergoing only minor operations in North America are not eligible for NAFTA benefits.

 In the case that your final product is determined to be a non-NAFTA originating good we will notify you and will invoice the duties in which it incurs.

CUSTOMER OBLIGATIONS IF SUPPLYING MATERIALS FOR THE ASSEMBLY

All Windtech Customers that supply materials for the assembly of their parts MUST provide Windtech the following documentation for every supplied material:


1)     A SIGNED Country of Origin* certificate. You can send your own or we can prepare one for your signature. This certificate must specify the Part Number, Brief Description, Country of Origin and Cost. This certificate must be signed by a highly ranked employee of the company (Manager Level and up).

2)     A copy of the SIGNED Affidavit from the manufacturer of the supplied materials, in which is clearly specified the Country of Origin of the goods. This Affidavit must be signed by a highly ranked employee of the company (Manager Level and up).

For example: If you are supplying the laminations for the assembly of your stator and you are acquiring these laminations from Company X (manufacturer of the laminations, not a distributor);  you will need to ask Company X for a signed Affidavit stating that the lams are from the USA (or the actual Country of Origin). When you receive that document you will need to submit a copy to us in order to fulfill this US Customs requirement and determine the final Country of Origin of the complete stator.

These documentation has to be submitted at the beginning of the natural year for recurrent part numbers or whenever new materials will be supplied.


This is now a mandatory requirement in order to benefit from the special preferential tariff treatment for goods “originating” in and traded among NAFTA  countries (0% Export Tax); otherwise we will be forced to add an export tax to the final unit price. 


The Country of Origin refers to the country where the material/product was manufactured; not where the material has been acquired.  


Please be aware that the completion of a NAFTA Certificate of Origin is an affirmation that the party signing the document has determined that the goods covered by the certificate are “originating” in the country specified.  This certificate imposes certain legal rights, obligations and liabilities on the party signing the document.

CERTIFICATE OF ORIGIN or COUNTRY OF ORIGIN CERTIFICATE



A Certificate of Origin or Country of Origin Certificate (often abbreviated to CO or COO) is a document used in international trade. It traditionally states from what country the shipped goods originate and not the country where the goods are shipped from, but the country where the goods are actually made. The CO is mandatory and primarily important for classifying the goods in the customs regulations of the importing country, thus defining how much duty shall be paid.  This certificate is required by the US Customs authority for deciding whether the imports should benefit from preferential treatment in accordance to the NAFTA agreement.